Westlake(US:WLK)2025-10-31 19:02Financial Performance - Net sales for Q3 2025 were $2,838 million, a decrease of 9% compared to $3,117 million in Q3 2024[11]. - Gross profit for Q3 2025 was $236 million, down from $499 million in Q3 2024, reflecting a significant decline in profitability[11]. - The company reported a net loss of $772 million for Q3 2025, compared to a net income of $120 million in Q3 2024[11]. - Earnings per share for Q3 2025 were $(6.06), a sharp decline from $0.84 in Q3 2024[11]. - Comprehensive loss for Q3 2025 was $786 million, compared to a comprehensive income of $154 million in Q3 2024[14]. - For the nine months ended September 30, 2025, the company reported a net loss of $938 million compared to a net income of $628 million for the same period in 2024[21]. - The company reported a net loss attributable to common stockholders of $778 million for the three months ended September 30, 2025, compared to a net income of $107 million for the same period in 2024[68]. - The diluted earnings per share for the three months ended September 30, 2025 was $(6.06), compared to $0.83 for the same period in 2024, indicating a substantial decrease in profitability[68]. Assets and Liabilities - Total assets decreased to $19,814 million as of September 30, 2025, down from $20,750 million at the end of 2024[9]. - Current liabilities increased to $2,897 million in Q3 2025, compared to $2,219 million in Q4 2024[9]. - Total stockholders' equity decreased to $9,426 million as of September 30, 2025, down from $10,527 million at the end of 2024[9]. - Total liabilities increased to $9,876 million as of September 30, 2025, compared to $9,707 million at the end of 2024[9]. - The total long-term debt carrying value was $4,656 million as of September 30, 2025, an increase from $4,562 million at December 31, 2024[53]. - Accounts payable decreased to $799 million as of September 30, 2025, from $851 million at December 31, 2024[52]. Goodwill and Impairment - The company recorded an impairment of goodwill amounting to $727 million in Q3 2025[11]. - The Company recognized a non-cash goodwill impairment charge of $727 million in the third quarter of 2025, primarily related to the North American Chlorovinyls reporting unit[50]. - The gross balances of goodwill at September 30, 2025, were $2,169 million, with accumulated impairment losses totaling $855 million[46]. - The fair value of the North American Chlorovinyls reporting unit did not exceed its carrying amount, leading to the goodwill impairment[50]. Cash Flow and Investments - Net cash provided by operating activities decreased to $240 million from $880 million year-over-year, reflecting a significant decline[21]. - The company reported net cash used for investing activities of $968 million, an increase from $736 million in the previous year[21]. - Cash, cash equivalents, and restricted cash decreased to $1,943 million at the end of the period from $2,931 million at the end of 2024, a decline of approximately 34%[21]. - The company had available-for-sale securities valued at $198 million as of September 30, 2025, which were not present at the end of 2024[39]. Dividends and Shareholder Returns - The company declared dividends totaling $68 million for both the periods ending March 31, 2025, and June 30, 2025, maintaining consistent dividend payouts[16]. - Dividends declared per common share for the three months ended September 30, 2025, was $0.5300, slightly up from $0.5250 in 2024[69]. - The company paid dividends totaling $204 million during the nine months ended September 30, 2025, compared to $197 million in the same period of 2024[21]. Segment Performance - Performance and Essential Materials segment reported a loss from operations of $902 million in Q3 2025, compared to a loss of $9 million in Q3 2024[99]. - The Housing and Infrastructure Products segment reported an operating income of $151 million in Q3 2025, down from $202 million in Q3 2024[99]. - Total reportable segments income (loss) from operations for the nine months ended September 30, 2025, was $(862) million, down from $848 million in the same period of 2024[100]. Taxation - The effective income tax rate for the three months ended September 30, 2025, was 0.4%, significantly lower than the 35.1% for the same period in 2024, primarily due to non-deductible goodwill impairment and valuation allowances[10][63]. - For the nine months ended September 30, 2025, the effective income tax rate was (0.4)%, compared to 25.4% in 2024, again influenced by goodwill impairment and valuation allowances[63]. Legal and Compliance Issues - The company is involved in multiple antitrust lawsuits, including claims seeking damages of $861 million and $500 million in the U.S. for caustic soda price-fixing[87]. - The Company has accrued an estimated liability for environmental contingencies totaling approximately $71 million as of September 30, 2025[94]. - The Company is unable to estimate the impact of ongoing lawsuits and environmental contingencies on its consolidated financial statements for current or future periods[91][94].