Westlake (NYSE:WLK) Issues Quarterly Earnings Results

Westlake (NYSE:WLK) released its quarterly earnings data on Tuesday. The specialty chemicals company reported $2.01 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.83 by $0.18, FiscalAI reports. The company had revenue of $3.27 billion during the quarter, compared to analysts’ expectations of $3.24 billion. Westlake had a negative net margin of 10.94% and a positive return on equity of 0.93%. The firm’s quarterly revenue was up 10.8% on a year-over-year basis. During the same period in the previous year, the company earned ($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 Stock Performance

Shares of NYSE WLK traded up $0.64 during midday trading on Thursday, reaching $79.38. The company had a trading volume of 319,361 shares, compared to its average volume of 1,246,861. Westlake has a 1 year low of $56.33 and a 1 year high of $124.23. The business’s 50-day simple moving average is $78.72 and its 200 day simple moving average is $94.05. The company has a current ratio of 2.45, a quick ratio of 1.56 and a debt-to-equity ratio of 0.55. The stock has a market cap of $10.17 billion, a P/E ratio of -8.28 and a beta of 0.63.

Westlake Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, June 11th. Shareholders of record on Wednesday, May 27th were paid a dividend of $0.53 per share. The ex-dividend date was Wednesday, May 27th. This represents a $2.12 dividend on an annualized basis and a yield of 2.7%. Westlake’s dividend payout ratio is presently -22.13%.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on WLK. Royal Bank Of Canada reiterated an “outperform” rating and issued a $95.00 target price on shares of Westlake in a research note on Thursday. The Goldman Sachs Group set a $85.00 price target on shares of Westlake in a report on Thursday, July 16th. Deutsche Bank Aktiengesellschaft reiterated a “hold” rating and set a $115.00 price objective on shares of Westlake in a research note on Thursday, May 7th. Truist Financial lowered their target price on shares of Westlake from $127.00 to $104.00 and set a “buy” rating for the company in a research note on Monday, July 20th. Finally, UBS Group reaffirmed a “buy” rating and issued a $117.00 price target (down from $130.00) on shares of Westlake in a report on Friday, June 5th. Three equities research analysts have rated the stock with a Buy rating, ten have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $93.92.

Institutional Trading of Westlake

A number of institutional investors and hedge funds have recently added to or reduced their stakes in WLK. Daiwa Securities Group Inc. boosted its position in shares of Westlake by 2.9% in the 4th quarter. Daiwa Securities Group Inc. now owns 4,108 shares of the specialty chemicals company’s stock worth $304,000 after buying an additional 117 shares in the last quarter. The Manufacturers Life Insurance Company lifted its holdings in shares of Westlake by 0.6% in the second quarter. The Manufacturers Life Insurance Company now owns 28,134 shares of the specialty chemicals company’s stock valued at $2,136,000 after purchasing an additional 165 shares in the last quarter. Transamerica Financial Advisors LLC grew its position in shares of Westlake by 37.4% in the fourth quarter. Transamerica Financial Advisors LLC now owns 805 shares of the specialty chemicals company’s stock valued at $59,000 after purchasing an additional 219 shares during the last quarter. NewEdge Advisors LLC increased its stake in shares of Westlake by 49.6% during the 2nd quarter. NewEdge Advisors LLC now owns 745 shares of the specialty chemicals company’s stock worth $57,000 after purchasing an additional 247 shares in the last quarter. Finally, Treasurer of the State of North Carolina boosted its stake in shares of Westlake by 1.7% during the second quarter. Treasurer of the State of North Carolina now owns 15,608 shares of the specialty chemicals company’s stock valued at $1,185,000 after acquiring an additional 266 shares during the last quarter. Institutional investors and hedge funds own 28.40% of the company’s stock.

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.