Westlake (NYSE:WLK) Issues Quarterly Earnings Results, Beats Expectations By $0.18 EPS

Westlake (NYSE:WLK) announced its quarterly earnings data on Tuesday. The specialty chemicals company reported $2.01 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.83 by $0.18, FiscalAI reports. The business had revenue of $3.27 billion for the quarter, compared to analysts’ expectations of $3.24 billion. Westlake had a negative return on equity of 1.89% and a negative net margin of 14.91%.The firm’s quarterly revenue was up 10.8% compared to the same quarter last year. During the same period in the previous year, the business posted ($1.11) EPS.

Here are the key takeaways from Westlake’s conference call:

• Second-quarter results improved sharply: net sales reached $3.3 billion and EBITDA was $679 million, while net income rose to $260 million, or $2.01 per share, compared with a year-ago net loss.
• PEM EBITDA increased $364 million year over year and $380 million sequentially, supported by higher selling prices, lower North American natural gas and ethane costs, improved volumes, and the company’s feedstock advantage.
• Westlake’s three-pillar profitability program contributed approximately $150 million of year-over-year EBITDA improvement in the quarter and about $300 million in the first half; management continues to target a $600 million benefit for 2026, with savings described as sustainable.
• HIP delivered 6% organic sales-volume growth and stable EBITDA despite weak residential construction, led by roughly 20% growth in Pipe & Fittings from infrastructure and data-center spending; management expects continued healthy pipe demand and housing-products outperformance.
• Management expects HIP 2026 revenue and EBITDA margin to be at the lower end of its previously stated ranges because of muted residential construction and higher transportation and raw-material costs, while some second-quarter pipe demand may have been pulled forward from the third quarter.

Westlake Price Performance

WLK opened at $78.05 on Wednesday. The company has a debt-to-equity ratio of 0.56, a current ratio of 2.17 and a quick ratio of 1.56. The stock’s 50 day simple moving average is $78.90 and its 200 day simple moving average is $94.12. The firm has a market cap of $10.00 billion, a price-to-earnings ratio of -6.15 and a beta of 0.63. Westlake has a 1 year low of $56.33 and a 1 year high of $124.23.

Westlake Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, June 11th. Stockholders of record on Wednesday, May 27th were paid a dividend of $0.53 per share. This represents a $2.12 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date of this dividend was Wednesday, May 27th. Westlake’s dividend payout ratio (DPR) is -16.69%.

Analyst Upgrades and Downgrades

A number of analysts recently commented on WLK shares. The Goldman Sachs Group set a $85.00 price target on shares of Westlake in a research note on Thursday, July 16th. Zacks Research downgraded Westlake from a “hold” rating to a “strong sell” rating in a research report on Tuesday, July 21st. Mizuho cut their price target on Westlake from $110.00 to $88.00 and set a “neutral” rating for the company in a report on Wednesday, July 1st. BMO Capital Markets reiterated a “market perform” rating and issued a $96.00 price target on shares of Westlake in a research report on Monday, July 6th. Finally, Wells Fargo & Company decreased their price objective on Westlake from $125.00 to $110.00 and set an “equal weight” rating on the stock in a research note on Wednesday, May 6th. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, ten have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, Westlake presently has a consensus rating of “Hold” and an average target price of $97.64.

Institutional Investors Weigh In On Westlake

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Wellington Management Group LLP increased its position in Westlake by 7,239.1% during the 4th quarter. Wellington Management Group LLP now owns 4,220,717 shares of the specialty chemicals company’s stock valued at $312,080,000 after buying an additional 4,163,207 shares in the last quarter. Dimensional Fund Advisors LP lifted its holdings in Westlake by 45.0% in the fourth quarter. Dimensional Fund Advisors LP now owns 1,885,678 shares of the specialty chemicals company’s stock valued at $139,431,000 after acquiring an additional 585,438 shares during the period. Orbis Allan Gray Ltd grew its position in Westlake by 12.1% during the fourth quarter. Orbis Allan Gray Ltd now owns 4,386,635 shares of the specialty chemicals company’s stock valued at $324,348,000 after buying an additional 472,224 shares during the period. Barclays PLC increased its position in Westlake by 118.1% in the fourth quarter. Barclays PLC now owns 66,613 shares of the specialty chemicals company’s stock worth $4,925,000 after buying an additional 435,451 shares in the last quarter. Finally, Balyasny Asset Management L.P. increased its stake in shares of Westlake by 495.8% in the third quarter. Balyasny Asset Management L.P. now owns 475,743 shares of the specialty chemicals company’s stock worth $36,661,000 after purchasing an additional 395,896 shares in the last quarter. 28.40% of the stock is owned by hedge funds and other institutional investors.

Westlake News Summary

Here are the key news stories impacting Westlake this week:

• Positive Sentiment: Earnings and revenue topped estimates. Westlake reported adjusted diluted EPS of $2.01 versus consensus estimates ranging from $1.83 to $1.93, while revenue reached $3.27 billion, above the approximately $3.24 billion estimate. EPS improved from a $1.11 loss in the year-earlier quarter. Westlake Tops Q2 Earnings Estimates
• Positive Sentiment: Profitability rebounded sharply. Net income attributable to Westlake was $260 million, or $2.01 per share, compared with a $142 million loss a year ago. EBITDA rose to $679 million from $340 million last year and $235 million in the first quarter, supported by higher prices, increased volumes and the company’s profitability-improvement plan, which targets a $600 million operating-income benefit. Westlake Second-Quarter Results
• Positive Sentiment: PEM delivered the biggest turnaround. Performance and Essential Materials operating income improved to $185 million from a $318 million loss, as average selling prices increased 14% and EBITDA reached $416 million. Westlake also generated $111 million of quarterly free cash flow, reduced debt by roughly $500 million and returned $99 million through dividends and share repurchases. Westlake Reports Higher Net Income and EBITDA
• Neutral Sentiment: Westlake Chemical Partners declared a $0.4714 quarterly distribution. The payment supports the broader Westlake group’s cash-generation profile, but it applies to affiliate WLKP, not directly to WLK. Westlake Chemical Partners Distribution
• Negative Sentiment: Risks remain. HIP operating income fell $10 million year over year as pricing and margins weakened, while slower housing activity and raw-material inflation could pressure results. Management also cited volatility tied to the Middle East conflict and global supply-demand conditions.

Westlake Company Profile

Westlake Corp. is a global manufacturer of petrochemicals, polymers and building products, serving customers across industrial and residential markets. The company’s core operations encompass the production of vinyls—primarily polyvinyl chloride (PVC) and its key feedstock vinyl chloride monomer (VCM)—as well as chlor-alkali products including caustic soda and chlorine. In addition, Westlake produces ethylene, propylene and specialty elastomers, along with construction-related materials such as vinyl siding, trim, windows and roofing systems.

Operating a network of vertically integrated plants and distribution centers, Westlake serves markets in North America, Europe and Asia.