Westlake (NYSE:WLK) Issues Earnings Results, Misses Expectations By $0.67 EPS

Westlake (NYSE:WLK) posted its earnings results on Tuesday. The specialty chemicals company reported ($0.77) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.10) by ($0.67), Zacks reports. The company had revenue of $2.65 billion during the quarter, compared to analysts’ expectations of $2.79 billion. Westlake had a negative net margin of 13.50% and a negative return on equity of 1.22%. Westlake’s revenue for the quarter was down 6.8% on a year-over-year basis. During the same quarter last year, the firm earned ($0.31) EPS.

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

• The company says the Middle East conflict disrupted global supplies (about 10%–15% of polyethylene and ~5% of PVC), driving higher prices and late?Q1 volume gains in the PEM segment and creating a North America cost advantage that could persist through 2026.
• Management reports its three?pillar profitability program delivered roughly $150 million of EBITDA uplift in Q1 and remains on track for the $600 million 2026 target, with epoxy returned to profitability.
• HIP is expected to face near?term margin pressure from a slow start to the homebuilding season and timing lags in passing through higher PVC resin and transportation costs, prompting guidance toward the low end of its 2026 revenue and 19%–21% EBITDA margin range.
• On a GAAP basis Westlake reported a Q1 net loss of $100 million (EPS -$0.77) and recorded $85 million of identified items (including a $67 million pipe?and?fittings settlement); management noted remaining potential litigation exposures.
• Liquidity and capital actions include $2.5 billion of cash/investments, $5.6 billion total debt with a planned $500M debt call, ~$900 million 2026 capex, and a non?binding LOI to acquire a German PVC/VCM plant (subject to due diligence).

Westlake Stock Performance

Shares of WLK opened at $105.00 on Wednesday. The company has a debt-to-equity ratio of 0.55, a quick ratio of 1.65 and a current ratio of 2.24. The stock has a 50-day moving average of $111.66 and a two-hundred day moving average of $89.13. The stock has a market cap of $13.45 billion, a P/E ratio of -8.97 and a beta of 0.67. Westlake has a one year low of $56.33 and a one year high of $124.23.

Westlake Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, March 18th. Investors of record on Tuesday, March 3rd were paid a $0.53 dividend. The ex-dividend date was Tuesday, March 3rd. This represents a $2.12 dividend on an annualized basis and a yield of 2.0%. Westlake’s dividend payout ratio (DPR) is -18.12%.

Analyst Upgrades and Downgrades

A number of research analysts have recently issued reports on the stock. Morgan Stanley set a $115.00 price objective on shares of Westlake and gave the stock an “equal weight” rating in a research report on Tuesday. Wells Fargo & Company lifted their price target on shares of Westlake from $110.00 to $125.00 and gave the stock an “equal weight” rating in a report on Monday, April 6th. Deutsche Bank Aktiengesellschaft lowered Westlake from a “buy” rating to a “hold” rating and set a $120.00 price objective for the company. in a report on Monday, April 20th. Royal Bank Of Canada set a $145.00 target price on Westlake and gave the stock an “outperform” rating in a research note on Friday, April 10th. Finally, JPMorgan Chase & Co. cut Westlake from a “neutral” rating to an “underweight” rating and set a $90.00 price target for the company. in a research note on Wednesday. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, nine have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, Westlake presently has a consensus rating of “Hold” and an average target price of $114.00.

Insider Buying and Selling at Westlake

In other news, CFO Mark Steven Bender sold 17,409 shares of the firm’s stock in a transaction dated Friday, February 27th. The stock was sold at an average price of $100.92, for a total value of $1,756,916.28. Following the completion of the transaction, the chief financial officer directly owned 44,433 shares in the company, valued at $4,484,178.36. This trade represents a 28.15% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Corporate insiders own 1.40% of the company’s stock.

Hedge Funds Weigh In On Westlake

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Caitong International Asset Management Co. Ltd purchased a new position in Westlake during the 3rd quarter worth approximately $28,000. Quarry LP purchased a new stake in shares of Westlake in the 4th quarter valued at $31,000. CIBC Private Wealth Group LLC acquired a new stake in shares of Westlake in the third quarter worth $53,000. NewEdge Advisors LLC raised its holdings in shares of Westlake by 49.6% during the second quarter. NewEdge Advisors LLC now owns 745 shares of the specialty chemicals company’s stock worth $57,000 after purchasing an additional 247 shares during the last quarter. Finally, Transamerica Financial Advisors LLC raised its holdings in shares of Westlake by 37.4% during the fourth quarter. Transamerica Financial Advisors LLC now owns 805 shares of the specialty chemicals company’s stock worth $59,000 after purchasing an additional 219 shares during the last quarter. Institutional investors and hedge funds own 28.40% of the company’s stock.

Westlake News Roundup

Here are the key news stories impacting Westlake this week:

• Positive Sentiment: Deer Park site achieves ISCC PLUS certification, expanding the EpoVIVE™ mass-balance offering across the U.S. and Europe — supports long?term sustainability positioning and market access in coatings, wind energy and other end markets. Read More.
• Neutral Sentiment: Related entity Westlake Chemical Partners (WLKP) boosted its distribution after a strong quarter — positive for the group but the benefit to Westlake Corporation (WLK) is indirect and limited. Read More.
• Negative Sentiment: Material Q1 miss on both profit and revenue: Westlake reported EPS of ($0.77) vs. consensus (~($0.10)) and revenue of $2.65B vs. ~$2.79B; sales were down ~6.8% year?over?year and margins were negative. These results underpin the sell?off and raise near?term earnings risk. Read More.
• Negative Sentiment: Market reaction and commentary emphasize a weak outlook — major outlets report the stock plunged after the miss and cautious management commentary, signaling investor concern about demand and near?term recovery. Read More.
• Negative Sentiment: Analyst and transcript coverage highlights the magnitude of the miss versus estimates and operational metrics (Zacks coverage and the Q1 earnings call/transcript provide color on drivers, volumes and cost pressures investors will watch). Read More. Read More.

About Westlake

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.