Financial Performance - Westlake Corporation's net sales for 2Q 2025 were $3 billion[5], with EBITDA of $340 million[5] - The company holds $2.3 billion in cash, equivalents, and investments[5] - Sales increased by 4% QoQ but decreased by 8% YoY[7] - EBITDA increased by 18% QoQ but decreased by 54% YoY[7] Segment Performance - Housing and Infrastructure Products (HIP) sales were $1.16 billion in 2Q 2025[11], a 16% increase QoQ[11] but a 3% decrease YoY[11], with EBITDA of $275 million[7], a 35% increase QoQ[7] but an 18% decrease YoY[7] - Performance and Essential Materials (PEM) sales were $1.793 billion in 2Q 2025[22], a 3% decrease QoQ[22] and an 11% decrease YoY[22], with EBITDA of $52 million[7], a 29% decrease QoQ[7] and an 87% decrease YoY[7] Strategic Initiatives - The company achieved over $75 million in cost savings in 1H 2025 towards a 2025 target of $150 - $175 million[6] - Westlake is taking action to generate an additional $200 million of cost savings by 2026 as part of its PEM profitability improvement strategy[6] - The closure of the Pernis facility is expected to significantly improve PEM segment profitability by removing ~$100 million in annual losses[6]

Financial Performance - Net sales were $2.846 billion, a decrease of 4% year-over-year (YoY) from $2.975 billion in 1Q 2024[6] - EBITDA was $288 million, a decrease of 47% YoY from $546 million in 1Q 2024[6] - The company has a strong cash position of $2.5 billion in cash, equivalents, and investments[4, 5, 8] - Westlake repurchased $30 million of shares of WLK common stock, with over $400 million share repurchase authorization remaining[8] Segment Performance - Housing and Infrastructure Products (HIP) - HIP segment sales were $996 million, a decrease of 5% YoY from $1.044 billion in 1Q 2024[10] - HIP segment EBITDA was $203 million, a decrease of 23% YoY from $264 million in 1Q 2024[6, 10] - The company expects 2025 HIP revenue and EBITDA margin to be towards the low ends of the previously-communicated ranges of $4.4 – $4.6 billion and 20% – 22%[11, 14] Segment Performance - Performance and Essential Materials (PEM) - PEM segment sales were $1.850 billion, a decrease of 4% YoY from $1.931 billion in 1Q 2024[15] - PEM segment EBITDA was $73 million, a decrease of 71% YoY from $253 million in 1Q 2024[6, 15] - Higher YoY prices for North American feedstocks and energy reduced EBITDA by approximately $100 million[8, 16] - Planned turnarounds and unplanned outages impacted EBITDA by approximately $80 million[5, 8, 16] Cost Savings and Capital Spending - Westlake achieved approximately $40 million of cost savings in 1Q 2025 and is raising its 2025 cost savings target by $25 million to $150 – $175 million[5] - The company is reducing its 2025 capital spending target by 10% to $900 million to support cash flows[5, 19]

Core Insights - Westlake Chemical (WLK) is expected to report quarterly earnings of $0.70 per share, a decline of 47.8% year-over-year, with revenues forecasted at $2.92 billion, reflecting a decrease of 1.9% compared to the same period last year [1] Earnings Estimates - Over the past 30 days, the consensus EPS estimate has been revised downward by 9.8%, indicating a reassessment by analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock price performance [3] Key Metrics Projections - The consensus estimate for 'Net external sales- Performance and Essential Materials' is $1.91 billion, down 1.1% year-over-year [5] - Analysts predict 'Net external sales- Housing and Infrastructure Products' will reach $1.06 billion, reflecting a year-over-year increase of 2% [5] - 'Net external sales- Performance and Essential Materials- Performance Materials' is estimated at $1.12 billion, a decrease of 3.4% year-over-year [6] - 'Net external sales- Performance and Essential Materials- Essential Materials' is projected at $753.23 million, down 1.8% year-over-year [6] - 'Net external sales- Housing and Infrastructure Products- Housing Products' is expected to be $883.99 million, a slight increase of 0.6% year-over-year [7] - 'Net external sales- Housing and Infrastructure Products- Infrastructure Products' is estimated at $172.19 million, reflecting a year-over-year increase of 4.4% [7] EBITDA Estimates - Analysts estimate 'EBITDA- Housing and Infrastructure Products' at $231.71 million, down from $264 million in the same quarter last year [8] - 'EBITDA- Performance and Essential Materials' is projected to be $199.94 million, compared to $253 million in the previous year [8] Stock Performance - Over the past month, shares of Westlake have declined by 9.4%, while the Zacks S&P 500 composite has decreased by only 0.7% [9] - Westlake currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance relative to the overall market in the near future [9]