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

Westlake (NYSE:WLK) posted its earnings results on Tuesday. The specialty chemicals company reported ($0.77) EPS for the quarter, missing the consensus estimate of ($0.10) by ($0.67), Zacks reports. Westlake had a negative return on equity of 1.89% and a negative net margin of 14.91%.The company had revenue of $2.65 billion for the quarter, compared to analyst estimates of $2.79 billion. During the same period last year, the business earned ($0.31) earnings per share. The firm’s revenue was down 6.8% on a year-over-year basis.

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 traded down $1.28 during mid-day trading on Thursday, reaching $98.64. 266,784 shares of the company’s stock were exchanged, compared to its average volume of 1,308,360. The business’s fifty day simple moving average is $111.81 and its 200-day simple moving average is $89.30. Westlake has a 52-week low of $56.33 and a 52-week high of $124.23. The stock has a market capitalization of $12.63 billion, a PE ratio of -7.76 and a beta of 0.67. The company has a debt-to-equity ratio of 0.56, a current ratio of 2.17 and a quick ratio of 1.65.

Westlake Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, March 18th. Stockholders of record on Tuesday, March 3rd were issued a $0.53 dividend. This represents a $2.12 annualized dividend and a dividend yield of 2.1%. The ex-dividend date of this dividend was Tuesday, March 3rd. Westlake’s dividend payout ratio is presently -16.69%.

Wall Street Analyst Weigh In

WLK has been the topic of several research analyst reports. JPMorgan Chase & Co. downgraded Westlake from a “neutral” rating to an “underweight” rating and set a $90.00 price objective on the stock. in a report on Wednesday. Bank of America restated a “neutral” rating and set a $119.00 target price on shares of Westlake in a research note on Monday, April 6th. Royal Bank Of Canada set a $145.00 price objective on shares of Westlake and gave the company an “outperform” rating in a report on Friday, April 10th. UBS Group set a $130.00 target price on shares of Westlake and gave the stock a “buy” rating in a research note on Wednesday. Finally, Truist Financial raised their price target on Westlake from $117.00 to $127.00 and gave the company a “buy” rating in a research note on Thursday, March 26th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, nine have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, Westlake has an average rating of “Hold” and a consensus target price of $112.07.

Insider Buying and Selling

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

Institutional Trading of Westlake

Hedge funds have recently added to or reduced their stakes in the stock. Wellington Management Group LLP increased its holdings in shares of Westlake by 7,239.1% in the fourth quarter. Wellington Management Group LLP now owns 4,220,717 shares of the specialty chemicals company’s stock valued at $312,080,000 after purchasing an additional 4,163,207 shares during the period. Dimensional Fund Advisors LP boosted its holdings in shares of 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 in the last quarter. Orbis Allan Gray Ltd grew its holdings 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 worth $324,348,000 after acquiring an additional 472,224 shares during the period. Barclays PLC grew its holdings in shares of Westlake by 118.1% in the 4th quarter. Barclays PLC now owns 66,613 shares of the specialty chemicals company’s stock worth $4,925,000 after acquiring an additional 435,451 shares during the period. Finally, Balyasny Asset Management L.P. boosted its position in Westlake by 495.8% during 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 institutional investors and hedge funds.

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.