Westlake (NYSE:WLK) Releases Quarterly Earnings Results, Beats Estimates By $1.22 EPS

Westlake (NYSE:WLK) announced its quarterly earnings results on Tuesday. The specialty chemicals company reported ($0.25) EPS for the quarter, beating the consensus estimate of ($1.47) by $1.22, Zacks reports. The company had revenue of $2.53 billion for the quarter, compared to analyst estimates of $2.61 billion. Westlake had a negative net margin of 13.50% and a negative return on equity of 1.22%. Westlake’s revenue was down 10.9% compared to the same quarter last year. During the same quarter last year, the business earned $0.06 earnings per share.

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

• Westlake recorded $511 million of identified Q4 charges (about $495 million of inventory write?offs/accrued expenses tied to shutting multiple PEM plants and one HIP sale), and management presents operating metrics excluding these non?GAAP items.
• Management expects its three?pillar program to drive a $600 million improvement in earnings in 2026 via footprint optimization, better plant reliability, and additional structural cost reductions.
• The HIP segment remained resilient and is guided to $4.4–$4.6 billion in 2026 revenue with a 19–21% EBITDA margin, supported by the ACI acquisition, product innovation (e.g., PVC?O), and structural savings.
• PEM continues to face volume and price pressure from global overcapacity (Q4 sales prices down ~5% sequentially; FY PEM EBITDA $267 million), although management expects the recent plant closures to remove low?priced export exposure and contribute roughly $100 million of annual EBITDA benefit in 2026.
• Balance sheet and cash posture remain a focus — $2.9 billion in cash/securities, $5.6 billion total debt with a long average maturity, a planned 2026 capex of ~ $900 million (down ~$100 million), and a target ~17% effective tax rate — giving the company flexibility to pursue cash generation and shareholder returns.

Westlake Price Performance

Shares of WLK stock opened at $103.13 on Thursday. Westlake has a 52 week low of $56.33 and a 52 week high of $114.75. The stock has a market capitalization of $13.23 billion, a PE ratio of -8.81, a PEG ratio of 52.44 and a beta of 0.91. The company has a debt-to-equity ratio of 0.55, a quick ratio of 1.39 and a current ratio of 2.24. The stock’s fifty day moving average is $85.85 and its 200-day moving average is $79.47.

Westlake Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, March 18th. Shareholders of record on Tuesday, March 3rd will be paid a $0.53 dividend. The ex-dividend date of this dividend is Tuesday, March 3rd. This represents a $2.12 dividend on an annualized basis and a yield of 2.1%. Westlake’s payout ratio is currently -18.12%.

Insider Activity

In related news, Chairman Albert Chao sold 40,836 shares of the company’s stock in a transaction dated Monday, December 22nd. The shares were sold at an average price of $73.57, for a total transaction of $3,004,304.52. Following the transaction, the chairman owned 627,722 shares in the company, valued at $46,181,507.54. This represents a 6.11% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 1.30% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of WLK. Orbis Allan Gray Ltd boosted its position in Westlake by 12.1% in the 4th 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 last quarter. Wellington Management Group LLP raised its position in shares of Westlake by 7,239.1% during the fourth quarter. Wellington Management Group LLP now owns 4,220,717 shares of the specialty chemicals company’s stock worth $312,080,000 after acquiring an additional 4,163,207 shares during the last quarter. Dimensional Fund Advisors LP lifted its stake in shares of Westlake by 45.0% during 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. State Street Corp boosted its holdings in Westlake by 7.8% in the fourth quarter. State Street Corp now owns 1,396,633 shares of the specialty chemicals company’s stock valued at $103,267,000 after acquiring an additional 101,391 shares during the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in Westlake by 0.8% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 924,704 shares of the specialty chemicals company’s stock valued at $68,373,000 after acquiring an additional 7,431 shares during the last quarter. Institutional investors own 28.40% of the company’s stock.

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on WLK shares. UBS Group raised their price objective on Westlake from $92.00 to $129.00 and gave the stock a “buy” rating in a research note on Wednesday. Truist Financial increased their price objective on Westlake from $82.00 to $99.00 and gave the stock a “buy” rating in a report on Wednesday, January 21st. Morgan Stanley set a $80.00 target price on shares of Westlake in a research note on Monday, December 15th. BMO Capital Markets reiterated a “market perform” rating and set a $83.00 price target (down from $91.00) on shares of Westlake in a research note on Tuesday, November 4th. Finally, Mizuho raised their target price on shares of Westlake from $88.00 to $97.00 and gave the company a “neutral” rating in a research note on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $92.53.

Westlake News Roundup

Here are the key news stories impacting Westlake this week:

• Positive Sentiment: UBS raised its price target sharply to $129 and initiated/maintained a Buy view, implying ~25% upside versus the current price — a clear bullish catalyst for investors expecting a recovery. UBS price target raise
• Positive Sentiment: Q4 EPS beat expectations: Westlake reported a narrower adjusted loss and beat consensus on EPS, which analysts and management say could set the stage for a profit rebound in 2026 — this helped spur short?term buying after the print. WLK Q4 Earnings Beat, Sales Miss
• Positive Sentiment: Business development: Westlake expanded an epoxy distribution partnership with Brenntag in India, supporting APAC growth exposure if volumes recover. India distribution expansion
• Neutral Sentiment: BMO Capital reiterated a Hold and a $108 target, signaling balanced risk/reward despite Q4 positives and cost?saving potential — keeps sentiment mixed. BMO Hold maintained
• Negative Sentiment: Revenue and fundamentals were weaker: Q4 sales missed estimates and were down ~10.9% YoY, with weak volumes and pricing, negative net margin and a negative ROE — headwinds to near?term earnings. Press release / Q4 results
• Negative Sentiment: Mizuho lifted its target to $97 but kept a Neutral rating — that PT sits below the current price and signals potential downside from some analysts’ perspectives. Mizuho price target update

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.