Westlake(US:WLK) ZACKSยท2025-11-04 16:51Core Insights - Westlake Corporation (WLK) reported a significant loss of $782 million or $6.06 per share for Q3 2025, contrasting with a profit of $108 million or 83 cents per share in the same quarter last year [1][8] - Adjusted loss per share, excluding one-time items, was 29 cents, falling short of the Zacks Consensus Estimate of earnings of 18 cents [1] Financial Performance - Sales decreased approximately 8.9% year over year to $2,838 million, missing the Zacks Consensus Estimate of $2,939.1 million, primarily due to lower sales volumes and average selling prices [2] - The Performance and Essential Materials segment saw a 13.5% decline in sales to $1,747 million, with an operational loss of $902 million compared to a loss of $9 million in Q3 2024 [3] - The Housing and Infrastructure Products segment generated sales of $1,091 million, down 0.6% year over year, with income from operations decreasing by $51 million from the previous year [4] Cash Flow and Financial Position - Operating activities generated $182 million in net cash, while capital expenditures were $239 million, resulting in a free cash outflow of $57 million for the quarter [5] - As of September 30, 2025, the company had cash and cash equivalents of approximately $1.93 billion and long-term debt of $3.9 billion [5] Strategic Outlook - Westlake anticipates improved profitability in the coming year, implementing cost-cutting measures to counteract weak global demand, targeting $200 million in cost savings for 2026 [6][8] - Footprint optimization, including the shutdown of the Pernis facility, is expected to eliminate about $100 million in annual losses, contributing to profitability enhancements in 2026 [6] Market Position - Westlake currently holds a Zacks Rank of 4 (Sell), indicating a less favorable outlook compared to other stocks in the basic materials sector [7]