Westlake(US:WLK)2025-10-30 11:33Financial Performance - Westlake Corporation reported net sales of $2.8 billion for Q3 2025, a decrease of 9% from $3.1 billion in Q3 2024[4]. - The company experienced a net loss of $782 million, or $6.06 per share, compared to a net income of $108 million, or $0.83 per share, in Q3 2024[5]. - EBITDA for Q3 2025 was $(431) million, down from $505 million in Q3 2024, with EBITDA excluding Identified Items at $313 million[4][5]. - The Performance and Essential Materials segment reported a net sales decline of 13% year-over-year, with a loss from operations of $158 million compared to income of $66 million in Q3 2024[22]. - The Housing and Infrastructure Products segment generated net sales of $1.1 billion, a slight decrease from $1.1 billion in Q3 2024, with an income from operations of $151 million[4][19]. - The company recorded a non-cash impairment charge of $727 million related to the North American chlorovinyls business, significantly impacting earnings[5][17]. - The EBITDA margin for Q3 2025 was 11%, down from 19% in Q3 2024, reflecting lower average sales prices and margins[4][8]. - Gross profit for Q3 2025 was $236 million, down 53% from $499 million in Q3 2024[31]. - The company reported a net loss of $772 million in Q3 2025, compared to a net income of $120 million in Q3 2024[31]. - The impairment of goodwill amounted to $727 million in Q3 2025, with no such impairment reported in Q3 2024[31]. - The overall operating income margin for Q3 2025 was (27)%, while the margin excluding identified items was (1)%[39]. Cash Flow and Debt - Net cash provided by operating activities was $182 million, with total debt at $4.7 billion as of September 30, 2025[18]. - Cash and cash equivalents decreased to $1,927 million as of September 30, 2025, down from $2,919 million at the end of 2024[33]. - Total assets decreased to $19,814 million as of September 30, 2025, compared to $20,750 million at the end of 2024[33]. - Total liabilities increased to $9,876 million as of September 30, 2025, compared to $9,707 million at the end of 2024[33]. - Net cash provided by operating activities for the nine months ended September 30, 2025, was $240 million, a significant decrease from $880 million in the same period of 2024[35]. - Net cash provided by operating activities for Q3 2025 was $182 million, compared to $135 million in Q2 2025, and $880 million for the nine months ended September 30, 2025[39]. Cost Management and Future Outlook - Westlake expects to achieve $200 million in cost savings by the end of 2026, alongside $100 million in annual losses from the Pernis Shutdown starting in 2026[11]. - The company incurred restructuring, transaction, and integration-related costs of $17 million in Q3 2025, down from $75 million in Q3 2024[31]. Segment Performance - Sales volume decreased by 1% and average sales price decreased by 2% compared to Q2 2025, with a 6% decrease in Housing and Infrastructure Products sales volume[7][6]. - The Housing and Infrastructure Products segment reported net external sales of $1,091 million in Q3 2025, down from $1,160 million in Q2 2025[45]. - The Performance and Essential Materials segment had a loss from operations of $(902) million in Q3 2025, compared to $(318) million in Q2 2025[47]. - Average sales price for the Housing and Infrastructure Products segment decreased by 1% in Q3 2025 compared to Q2 2025, with a volume decrease of 6%[49]. Earnings Per Share - Diluted earnings per share attributable to Westlake Corporation for Q3 2025 was $(6.06), improving from $(1.11) in Q2 2025, with earnings per share excluding identified items at $1.41[41]. - Free cash flow for Q3 2025 was $(57) million, compared to $(132) million in Q2 2025, with a total of $157 million for the nine months ended September 30, 2025[43]. Identified Items Impact - Identified items added $744 million to the income from operations in Q3 2025, highlighting significant impacts on reported earnings[47]. - EBITDA for Q3 2025 was $67 million, a significant decrease from $(431) million in Q2 2025, while EBITDA for the nine months ended September 30, 2025 was $1,795 million[39].