Westlake(WLK) - 2024 Q4 - Annual Results

Financial Performance - Westlake reported fourth quarter 2024 net sales of $2.8 billion, a 1% increase year-over-year, driven by a 3% sales volume growth[6]. - The company achieved a net income of$ 7 million for the fourth quarter, which includes a one-time non-cash tax charge of $45 million[10]. - Full year 2024 net sales totaled$ 12.1 billion, with net income of $677 million, reflecting a decrease from$ 1.1 billion in 2023[13]. - EBITDA for the fourth quarter of 2024 was $416 million, a 7% increase from$ 390 million in the same period last year[12]. - Gross profit for Q4 2024 was $328 million, significantly up from$ 199 million in Q4 2023, contributing to a total gross profit of $1,957 million for the year, down from$ 2,219 million[31]. - The company reported a net income of $19 million in Q4 2024, recovering from a net loss of$ 487 million in Q4 2023, with a total net income of $647 million for the year compared to$ 522 million in 2023[31]. - Earnings per share for Q4 2024 were $0.06, a recovery from a loss of$ 3.86 per share in Q4 2023, with annual earnings per share increasing to $4.66 from$ 3.73[31]. Segment Performance - The Housing and Infrastructure Products segment reported an annual income from operations of $807 million and EBITDA of$ 1.1 billion[4]. - Performance and Essential Materials segment net sales for 2024 were $7.8 billion, a decrease of$ 0.5 billion compared to 2023, with a loss from operations of $204 million[21]. - The Housing and Infrastructure Products segment reported net sales of$ 981 million in Q4 2024, up from $946 million in Q4 2023, while the Performance and Essential Materials segment saw a slight decrease in sales to$ 1,862 million from $1,880 million[37]. - The Performance and Essential Materials segment reported net external sales of$ 2,019 million for the three months ended September 30, 2024, compared to $1,880 million in the same period of 2023, reflecting a growth of 7.4%[52]. - The Housing and Infrastructure Products segment achieved an operating income margin of 18% for the three months ended September 30, 2024, up from 13% in the same period of 2023[49]. Cash Flow and Liquidity - The company generated$ 434 million in net cash from operating activities in the fourth quarter and $1.3 billion for the full year 2024[15]. - Westlake's cash and cash equivalents stood at$ 2.9 billion, with total debt of $4.6 billion as of December 31, 2024[15]. - Cash and cash equivalents at the end of 2024 were$ 2,935 million, down from $3,319 million at the end of 2023[35]. - The company’s operating cash flow for 2024 was$ 1,314 million, a decrease from $2,336 million in 2023[35]. - Free cash flow for the three months ended September 30, 2024, was$ 254 million, compared to $149 million in the same period of 2023, marking an increase of 70.5%[46]. Future Outlook - The company anticipates continued growth in the Housing and Infrastructure Products segment due to increased demand for residential housing in the U.S.[9]. - Westlake plans to focus on cost-saving initiatives and new product innovations to enhance earnings growth in 2025[9]. - Westlake Corporation plans to continue focusing on operational efficiency and strategic investments to enhance long-term growth prospects[26]. Restructuring and Costs - The company incurred restructuring, transaction, and integration-related costs of$ 8 million in Q4 2024, down from $22 million in Q4 2023[31].