Westlake Corporation
- Open
- 76.00
- Day high
- 77.18
- Day low
- 75.58
- Prev close
- 76.54
- Volume
- 431K
- Mkt cap
- $9.8B
- P/E (TTM)
- —
- EPS (TTM)
- —
- P/B
- 1.1
- P/S
- 0.9
- Yield
- 1.38%
- Per share
- $1.06
Westlake Corporation (WLK) is a Basic Materials company listed on NYSE. The stock is up 1% over the past year.
Westlake Corporation (WLK) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 7 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
WLK earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 5, 2026 | $-0.22 | $-0.77 | -250.0% | $2.7B | -4.8% |
| Feb 24, 2026 | $-1.47 | $-4.22 | -186.2% | $2.5B | -2.9% |
| Oct 30, 2025 | $0.18 | $-0.29 | -261.1% | $2.8B | +8.8% |
| May 2, 2025 | $0.70 | $-0.31 | -144.3% | $2.8B | -9.0% |
| May 1, 2024 | $1.03 | $1.34 | +30.1% | $3.0B | +1.5% |
| Feb 20, 2024 | $0.81 | $0.72 | -11.1% | $2.8B | -1.0% |
| Nov 2, 2023 | $1.97 | $2.20 | +11.7% | $3.1B | -4.5% |
| Aug 3, 2023 | $2.93 | $2.31 | -21.2% | $3.3B | -7.2% |
| May 4, 2023 | $2.14 | $3.05 | +42.5% | $3.4B | -1.1% |
| Feb 21, 2023 | $2.28 | $1.79 | -21.5% | $3.3B | -2.2% |
| Nov 3, 2022 | $4.30 | $3.10 | -27.9% | $4.0B | -0.8% |
| Aug 2, 2022 | $5.98 | $6.65 | +11.2% | $4.5B | +5.0% |
WLK insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 16, 2026 | Baksht Jonathanofficer: SVP and CFO | Grant | 20,580 | — |
| May 14, 2026 | Bender Mark Stevenofficer: EVP & CFO | Option | 13,164 | — |
| May 14, 2026 | Bender Mark Stevenofficer: EVP & CFO | Tax | 5,284 | $97.34 |
| Apr 6, 2026 | Powers Brian Johnofficer: SVP, PEM Segment Head | Grant | 1,961 | — |
| Mar 31, 2026 | Buesinger Robert F.officer: EVP, PEM Segment Head | Sell | 4,000 | $115.25 |
| Mar 30, 2026 | Bender Mark Stevenofficer: EVP & CFO | Sell | 16,413 | $112.53 |
| Mar 6, 2026 | Bender Mark Stevenofficer: EVP & CFO | Tax | 1,171 | $104.96 |
| Mar 2, 2026 | Bender Mark Stevenofficer: EVP & CFO | Sell | 421 | $101.52 |
| Mar 2, 2026 | Bender Mark Stevenofficer: EVP & CFO | Option | 6,199 | $65.81 |
| Mar 2, 2026 | Bender Mark Stevenofficer: EVP & CFO | Option | 6,494 | $86.54 |
| Mar 2, 2026 | Bender Mark Stevenofficer: EVP & CFO | Sell | 16,988 | $100.91 |
| Feb 24, 2026 | Patel Bhavesh V.director | Grant | 1,852 | — |
| Feb 23, 2026 | Ederington L. Benjaminofficer: EVP, Legal & External Affairs | Tax | 357 | $94.10 |
| Feb 23, 2026 | Chao John Tsung-chendirector | Grant | 213 | — |
| Feb 23, 2026 | Szwejbka Scott Thomasofficer: SVP, HIP Segment Head | Tax | 91 | $94.10 |
Source: WLK SEC Form 4 filings, latest Jun 16, 2026. For informational purposes only — not investment advice.
See the full WLK insider & 13F page →Westlake Corporation company profile
Overview
Westlake Corporation (NYSE:WLK) is a Houston-based specialty chemicals and building products manufacturer that was founded in 1986 and went public in 2004. Originally known as Westlake Chemical Corporation, the company changed its name to Westlake Corporation in February 2022 to better reflect its diversified portfolio beyond traditional chemicals. The company operates as a subsidiary of TTWF LP and has grown through both organic expansion and strategic acquisitions, including the notable $3.8 billion acquisition of Hexion's global epoxy business in 2022. Today, Westlake stands as a vertically integrated manufacturer serving diverse end markets from residential construction to industrial applications.
Business
Westlake Corporation operates in the specialty chemicals and building materials industry through two primary business segments that together generate approximately $12 billion in annual revenue. The Performance and Essential Materials (PEM) segment represents roughly 65-70% of total revenue and manufactures petrochemicals and polymers. This segment produces polyethylene (a plastic used in packaging and consumer goods), styrene monomer (used in plastics and rubber), PVC resin (polyvinyl chloride for pipes and construction materials), VCM (vinyl chloride monomer, the building block for PVC), caustic soda (sodium hydroxide used in chemical processing), and epoxy resins (adhesives and coatings for aerospace, automotive, and wind energy applications). The company's vertical integration allows it to produce raw materials like ethylene and convert them into higher-value downstream products. The Housing and Infrastructure Products (HIP) segment accounts for approximately 30-35% of revenue and manufactures building products primarily for residential construction and repair markets. Key products include PVC siding and trim (exterior building materials), windows, PVC decking, roofing applications, PVC pipe and fittings (for plumbing and infrastructure), and various specialty films and compounds. This segment benefits from both new construction activity and the more stable repair and remodeling market, which represents about 50% of HIP sales. The company's operations are concentrated in North America, where it leverages cost advantages from abundant natural gas feedstocks and operates multiple integrated manufacturing facilities across Texas, Louisiana, and other states.
Revenue model
Westlake generates revenue primarily through product sales to a diverse customer base including chemical processors, plastics fabricators, construction contractors, municipalities, and supply warehouses. The company's business model centers on vertical integration, where it converts low-cost natural gas and ethane feedstocks into higher-value specialty chemicals and building products. In the PEM segment, Westlake purchases natural gas and ethane as primary feedstocks, processes them through steam crackers to produce ethylene, then converts ethylene into various downstream products like polyethylene, PVC, and specialty chemicals. The company also produces chlor-alkali products (caustic soda and chlorine) through electrolysis, creating synergies across its chemical value chain. Customers include large chemical companies, packaging manufacturers, and industrial processors who use these materials as inputs for their own products. The HIP segment sells finished building products directly to contractors, distributors, and retailers. Revenue streams include both new residential construction and the more stable repair and remodeling market. The segment benefits from brand recognition and cross-selling opportunities across its product portfolio. Several factors significantly impact Westlake's margins. Feedstock costs, particularly natural gas and ethane prices, directly affect profitability since these represent major input costs. The company's Q1 2025 results showed a 59% increase in natural gas costs and 42% increase in ethane costs, severely impacting PEM segment margins. Global supply-demand dynamics for chemicals affect pricing power, with oversupply conditions pressuring margins. Housing market activity influences HIP segment performance, though the repair and remodeling portion provides some stability. Operational efficiency through the company's cost reduction initiatives (targeting $150-175 million in savings for 2025) helps offset margin pressures. Product mix also matters, as specialty and differentiated products typically command higher margins than commodity chemicals.
Competitive moat
Westlake's competitive moat is moderately strong, built primarily on its vertical integration and geographic advantages in North America. The company's integrated manufacturing footprint allows it to capture value across multiple steps of the chemical value chain, from basic feedstocks to finished products. This integration provides cost advantages and supply chain control that smaller, non-integrated competitors cannot match. The company benefits from North American feedstock advantages, particularly access to low-cost natural gas and ethane from shale production. This geographic positioning provides structural cost advantages over competitors relying on higher-cost feedstocks or those located in regions with expensive energy. Westlake's substantial manufacturing infrastructure, built over decades, creates meaningful barriers to entry given the capital intensity required to replicate such integrated operations. However, the moat faces several challenges. The chemicals business is inherently cyclical and commodity-like, limiting pricing power during industry downturns. Global overcapacity in many chemical markets pressures margins and reduces differentiation. The company faces competition from large integrated chemical companies like Dow, LyondellBasell, and international producers, particularly in Asia where lower-cost production is expanding. In the HIP segment, while Westlake has established brands and distribution relationships, the building products market is competitive with numerous regional and national players. The company's vertical integration into PVC resin provides some cost advantages for its building products, but this segment lacks the same structural moats as the integrated chemicals business. The epoxy business, acquired from Hexion, operates in a challenging environment with significant overcapacity and weak demand, particularly from China and wind energy markets. This highlights how even integrated operations can struggle against global competitive pressures and end-market cyclicality.
Risks & safety
Westlake maintains a strong financial position with moderate margin of safety, though recent operational challenges have pressured near-term results. • Liquidity and Solvency: Strong balance sheet with $2.3 billion in cash and short-term investments as of Q1 2025, providing substantial liquidity cushion. Current ratio of 2.6x indicates solid short-term liquidity. Debt-to-equity ratio of 0.53x represents moderate leverage levels that are manageable. • Cash Flow Concerns: Q1 2025 showed negative free cash flow of $325 million due to operational challenges and capital expenditures, though this appears temporary given the company's historical cash generation capability. • Valuation Metrics: Trading at EV/EBITDA of approximately 14x based on Q1 2025 run-rate EBITDA, which appears elevated due to cyclically depressed earnings. Historical normalized EBITDA suggests more reasonable valuation multiples during normal operating conditions. • Cyclical Risks: Earnings volatility due to commodity chemical cycles and housing market fluctuations creates uncertainty around normalized earning power. Current margins in PEM segment (4%) are well below historical levels (13%+ in prior periods). • Operational Challenges: Recent unplanned maintenance outages and higher feedstock costs demonstrate operational risks that can significantly impact quarterly results.
Recent development
Over the past several years, Westlake has pursued a strategy of portfolio diversification and vertical integration expansion. The most significant development was the 2022 acquisition of Hexion's global epoxy business for $3.8 billion, which added specialty chemical capabilities but has faced challenging market conditions with weak demand from China and wind energy sectors. The company has implemented aggressive cost reduction initiatives, achieving $170 million in savings in 2024 and targeting $150-175 million for 2025. These efforts include manufacturing footprint optimization, particularly in the epoxy business, and operational efficiency improvements across both segments. Sustainability and innovation have become key focus areas, with Westlake establishing a goal to reduce carbon emission intensity by 20% by 2030. The company has invested in carbon waste transformation technology through Universal Matter and launched pilot programs using post-consumer recycled PVC materials with hospital chains. In the HIP segment, Westlake has expanded its PVCO (pressure-rated PVC) pipe capacity with construction of a new manufacturing plant in Wichita Falls, Texas, responding to infrastructure spending opportunities. The segment has achieved five consecutive years of growth and record EBITDA margins reaching 28% in Q2 2024. The PEM segment has focused on operational improvements including completing major turnarounds after 8.5 years and replacing mercury cell capacity with more environmentally friendly membrane cell technology. However, the segment has faced significant headwinds from higher feedstock costs and global overcapacity conditions. Capital allocation has emphasized shareholder returns, with the company returning $325 million through dividends and share repurchases in 2024 while maintaining a strong balance sheet for potential acquisitions and organic growth opportunities.
WLK company profile · for informational purposes only — not investment advice.
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