Westlake (NYSE:WLK) Releases Quarterly Earnings Results, Misses Expectations By $0.55 EPS

Westlake (NYSE:WLK) posted its quarterly earnings data on Tuesday. The specialty chemicals company reported ($0.77) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.22) by ($0.55), Zacks reports. Westlake had a negative return on equity of 1.22% and a negative net margin of 13.50%.The company’s quarterly revenue was down 6.8% on a year-over-year basis. During the same quarter in the prior year, the company 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 Price Performance

Shares of Westlake stock traded down $9.40 during mid-day trading on Tuesday, reaching $105.47. 1,051,816 shares of the stock were exchanged, compared to its average volume of 1,302,431. The company has a market cap of $13.51 billion, a price-to-earnings ratio of -9.01 and a beta of 0.67. The company has a current ratio of 2.24, a quick ratio of 1.65 and a debt-to-equity ratio of 0.55. The firm has a 50-day simple moving average of $111.45 and a 200 day simple moving average of $88.93. Westlake has a fifty-two week low of $56.33 and a fifty-two week high of $124.23.

Westlake Announces Dividend

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

Analysts Set New Price Targets

Several equities analysts recently commented on WLK shares. Morgan Stanley set a $115.00 target price on shares of Westlake in a research note on Tuesday. Zacks Research upgraded shares of Westlake from a “strong sell” rating to a “hold” rating in a research note on Thursday, February 26th. UBS Group upped their target price on shares of Westlake from $129.00 to $139.00 and gave the company a “buy” rating in a research note on Wednesday, March 18th. Wells Fargo & Company upped their target price on shares of Westlake from $110.00 to $125.00 and gave the company an “equal weight” rating in a research note on Monday, April 6th. Finally, Truist Financial increased their price objective on shares of Westlake from $117.00 to $127.00 and gave the company a “buy” rating in a research note on Thursday, March 26th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $113.20.

Trending Headlines about Westlake

Here are the key news stories impacting Westlake this week:

• Positive Sentiment: ISCC PLUS sustainability certification at Deer Park expands Westlake Epoxy’s market access for EpoVIVE™ mass-balance products, which could help win customers in coatings, wind energy and automotive end markets over time. Article Title
• Positive Sentiment: A related update: Westlake Chemical Partners (WLKP) boosted its distribution after a strong quarter, which could be a favorable sign for partnership cash flows and downstream demand dynamics. Article Title
• Neutral Sentiment: Company filed its formal Q1 2026 results and supporting materials (press release, slide deck, and conference call), showing detailed segment and cash-flow information investors can use for valuation and liquidity checks. Article Title
• Neutral Sentiment: Zacks provides a metrics vs. estimate breakdown for Q1 that highlights where revenue, EPS and other line items diverged from street expectations—useful for modeling revisions. Article Title
• Negative Sentiment: Q1 EPS of ($0.77) missed the Zacks consensus of ($0.22) by $0.55, and the loss widened versus ($0.31) a year ago — a clear near-term earnings disappointment. Article Title
• Negative Sentiment: Revenue declined ~6.8% year-over-year and the company reported a loss from operations (~$172M) with negative net margin (~13.5%), signaling margin pressure and weaker demand/price realization this quarter. Article Title

Insider Activity

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

Institutional Investors Weigh In On Westlake

Hedge funds have recently added to or reduced their stakes in the stock. Caitong International Asset Management Co. Ltd bought a new stake in Westlake during the 3rd quarter worth about $28,000. Quarry LP bought a new stake in Westlake during the 4th quarter worth about $31,000. CIBC Private Wealth Group LLC bought a new stake in Westlake during the 3rd quarter worth about $53,000. NewEdge Advisors LLC grew its holdings in 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 acquiring an additional 247 shares during the last quarter. Finally, Parallel Advisors LLC grew its holdings in Westlake by 58.1% during the 3rd quarter. Parallel Advisors LLC now owns 778 shares of the specialty chemicals company’s stock worth $60,000 after acquiring an additional 286 shares during the last quarter. Institutional investors own 28.40% of the company’s stock.

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.