Core 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]

Financial Performance - Westlake Corporation's net sales for 3Q 2025 were $2838 million, a decrease of 9% year-over-year from $3117 million in 3Q 2024[6, 25] - The company's EBITDA for 3Q 2025 was $313 million, a 46% decrease compared to $580 million in 3Q 2024[5, 6] - Westlake reported a net loss attributable to the company of $782 million for 3Q 2025, compared to a net income of $108 million in 3Q 2024[25, 27] - The company achieved approximately $115 million in company-wide cost savings year-to-date, including $40 million in 3Q 2025, toward its fiscal year 2025 target of $150 - $175 million[6] Segment Performance - Housing and Infrastructure Products (HIP) - HIP segment sales for 3Q 2025 were $1091 million, a 1% decrease compared to $1098 million in 3Q 2024[10, 25] - HIP segment EBITDA for 3Q 2025 was $215 million, an 18% decrease compared to $262 million in 3Q 2024[6, 10] - The company expects 2025 revenue and EBITDA margin for the HIP segment to be at the low ends of the previously communicated ranges of $4200 - $4400 million of sales with a 20% - 22% EBITDA margin[11] Segment Performance - Performance and Essential Materials (PEM) - PEM segment sales for 3Q 2025 were $1747 million, a 13% decrease compared to $2019 million in 3Q 2024[15, 25] - PEM segment EBITDA for 3Q 2025 was $90 million, a 70% decrease compared to $297 million in 3Q 2024[6, 15] - PEM EBITDA includes an estimated $32 million unfavorable FIFO impact[18] Strategic Initiatives - Westlake is progressing towards $200 million of identified cost savings in 2026, in addition to a footprint optimization benefit of approximately $100 million in 2026 from the Pernis shutdown[5] - The company is taking action to achieve $200 million of company-wide identified cost savings in 2026 with the majority of that occurring in the PEM segment[22]

Financial Performance - Westlake Corporation's net sales for 3Q 2025 were $2838 million, a decrease of 9% year-over-year from $3117 million in 3Q 2024[6, 25] - The company's EBITDA for 3Q 2025 was $313 million, a 46% decrease compared to $580 million in 3Q 2024[5, 6] - Westlake reported a net loss attributable to the company of $782 million for 3Q 2025, compared to a net income of $108 million in 3Q 2024[25, 27] - The company achieved approximately $115 million in company-wide cost savings year-to-date, including $40 million in 3Q 2025, toward its fiscal year 2025 target of $150 - $175 million[6] Segment Performance - Housing and Infrastructure Products (HIP) - HIP segment sales for 3Q 2025 were $1091 million, a 1% decrease compared to $1098 million in 3Q 2024[10, 25] - HIP segment EBITDA for 3Q 2025 was $215 million, an 18% decrease compared to $262 million in 3Q 2024[6, 10] - The company expects 2025 revenue and EBITDA margin for the HIP segment to be at the low ends of the previously communicated ranges of $4200 - $4400 million of sales with a 20% - 22% EBITDA margin[11] Segment Performance - Performance and Essential Materials (PEM) - PEM segment sales for 3Q 2025 were $1747 million, a 13% decrease compared to $2019 million in 3Q 2024[15, 25] - PEM segment EBITDA for 3Q 2025 was $90 million, a 70% decrease compared to $297 million in 3Q 2024[6, 15] - PEM EBITDA includes an estimated $32 million unfavorable FIFO impact[18] Strategic Initiatives - Westlake is progressing towards $200 million of identified cost savings in 2026, in addition to a footprint optimization benefit of approximately $100 million in 2026 from the Pernis shutdown[5] - The company is taking action to achieve $200 million of company-wide identified cost savings in 2026 with the majority of that occurring in the PEM segment[22]

For the quarter ended September 2025, Westlake (WLK) reported revenue of $2.84 billion, down 9% over the same period last year. EPS came in at -$0.29, compared to $1.41 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $2.94 billion, representing a surprise of -3.44%. The company delivered an EPS surprise of -261.11%, with the consensus EPS estimate being $0.18.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street ...

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]