Westlake (NYSE:WLK) Posts Quarterly Earnings Results

Posted by Latisha Jones on Feb 25th, 2026

Westlake (NYSE:WLK – Get Free Report) released its quarterly earnings results on Tuesday. The specialty chemicals company reported ($0.25) earnings per share for the quarter, beating analysts’ consensus estimates of ($1.47) by $1.22, Zacks reports. Westlake had a negative return on equity of 0.78% and a negative net margin of 8.34%.The company had revenue of $2.53 billion for the quarter, compared to analysts’ expectations of $2.61 billion. During the same quarter in the previous year, the company posted $0.06 earnings per share. The business’s revenue for the quarter was down 10.9% compared to the same quarter last year.

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 Trading Down 0.9%

Shares of NYSE WLK traded down $0.93 during mid-day trading on Wednesday, hitting $103.24. 42,546 shares of the company traded hands, compared to its average volume of 1,414,076. The company has a quick ratio of 1.39, a current ratio of 1.99 and a debt-to-equity ratio of 0.39. Westlake has a 1 year low of $56.33 and a 1 year high of $114.75. The stock has a market capitalization of $13.24 billion, a price-to-earnings ratio of -13.96, a PEG ratio of 46.82 and a beta of 0.91. The business has a 50 day moving average of $85.26 and a two-hundred day moving average of $79.30.

Westlake Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, March 18th. Stockholders of record on Tuesday, March 3rd will be given a dividend of $0.53 per share. The ex-dividend date of this dividend is Tuesday, March 3rd. This represents a $2.12 dividend on an annualized basis and a dividend yield of 2.1%. Westlake’s payout ratio is -28.57%.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on the company. Bank of America upgraded Westlake from a “neutral” rating to a “buy” rating and reduced their price target for the stock from $87.00 to $84.00 in a research report on Monday, November 3rd. Morgan Stanley set a $80.00 target price on shares of Westlake in a research note on Monday, December 15th. Alembic Global Advisors set a $80.00 price target on shares of Westlake in a research note on Monday, November 17th. UBS Group reiterated a “buy” rating and set a $92.00 price objective (down from $93.00) on shares of Westlake in a research note on Tuesday, December 23rd. Finally, Royal Bank Of Canada reissued an “outperform” rating and set a $100.00 target price on shares of Westlake in a report on Friday, January 16th. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $89.47.

View Our Latest Report on WLK

More Westlake News

Here are the key news stories impacting Westlake this week:

Positive Sentiment: Adjusted EPS beat/ narrower loss — Westlake reported a (-$0.25) EPS vs. much larger consensus loss, beating expectations and prompting relief among investors. This is the primary reason the stock traded up after results. Westlake shares jump as adjusted loss narrows despite sales decline
Positive Sentiment: Management highlights cost-saving and recovery plans — The earnings call and slide deck emphasized strategic cost reductions and operational actions that could improve margins if executed, supporting upside potential. Westlake Corp (WLK) Q4 2025 Earnings Call Highlights
Positive Sentiment: Asia distribution expansion — A Westlake unit expanded its epoxy distribution partnership with Brenntag into India, extending commercial reach in a growth market and supporting longer‑term revenue opportunities. Westlake Unit Expands India Distribution Partnership With Brenntag
Neutral Sentiment: BMO maintains Hold with $108 PT — BMO’s note keeps WLK on Hold, signaling balanced risk/reward despite the quarter and cost-saving potential; this tempers bullish momentum. Balanced Risk-Reward Keeps Westlake on Hold Despite Strong Q4 and Cost-Saving Upside
Neutral Sentiment: Board changes announced — The company added Bhavesh V. “Bob” Patel and confirmed CEO Jean‑Marc Gilson on the board; governance change noted but unlikely to move near‑term fundamentals. Westlake Corporation Appoints New Directors to its Board
Negative Sentiment: Revenue miss and continued YoY decline — Q4 sales of $2.53B missed consensus (~$2.61B) and were down ~10.9% year‑over‑year, underscoring demand headwinds that could pressure near‑term recovery. Westlake (WLK) Reports Q4 Loss, Misses Revenue Estimates
Negative Sentiment: Full‑year 2025 showed a significant loss and negative margins — Company filings and coverage flagged a challenging full year with negative net margin and weak ROE, keeping some analysts cautious. Westlake Reports Challenging 2025 Results with Significant Loss

Insider Transactions at Westlake

In other Westlake 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 completion of the sale, the chairman directly owned 627,722 shares of the company’s stock, valued at approximately $46,181,507.54. This represents a 6.11% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 1.30% of the company’s stock.

Hedge Funds Weigh In On Westlake

Several institutional investors and hedge funds have recently bought and sold shares of the business. Wellington Management Group LLP boosted its holdings in 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 worth $312,080,000 after purchasing an additional 4,163,207 shares in the last quarter. Dimensional Fund Advisors LP boosted its position in 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 worth $139,431,000 after purchasing an additional 585,438 shares during the period. 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 valued at $324,348,000 after purchasing an additional 472,224 shares during the last quarter. Barclays PLC raised its position in shares of Westlake by 118.1% in the fourth quarter. Barclays PLC now owns 66,613 shares of the specialty chemicals company’s stock valued at $4,925,000 after purchasing an additional 435,451 shares during the period. Finally, Balyasny Asset Management L.P. lifted its stake in shares of Westlake by 495.8% in 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 buying an additional 395,896 shares during the last quarter. Hedge funds and other institutional investors own 28.40% of the company’s stock.

About Westlake

(Get Free Report)

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.