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Westlake
🇺🇸 NYSE:WLK
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•
Mar 31, 2024

Westlake Q1 2024 Earnings Report

Westlake reported first quarter results, demonstrating the value of its diverse business portfolio with strong performance in the HIP segment offsetting challenges in the PEM segment due to weak global demand.

Key Takeaways

Westlake Corporation reported net sales of $3.0 billion and net income of $174 million for the first quarter of 2024. The company's HIP segment achieved record first quarter EBITDA, driven by strong demand in housing end markets, while the PEM segment faced challenges due to weak global industrial and manufacturing activity.

Housing and Infrastructure Products (HIP) achieved record first quarter income from operations of $210 million with a 20% operating income margin.

HIP EBITDA of $264 million rose 29% year-over-year with a record first quarter EBITDA margin of 25%.

Performance and Essential Materials (PEM) sales volume grew 3% sequentially from gradual demand recovery with stable average sales prices.

Overall sales volume for the Company increased 6% sequentially from the previous quarter.

Total Revenue
$2.98B
Previous year: $3.36B
-11.4%
EPS
$1.34
Previous year: $3.05
-56.1%
EBITDA
$546M
EBITDA Margin
18%
Gross Profit
$436M
Previous year: $792M
-44.9%
Cash and Equivalents
$3.11B
Previous year: $2.41B
+28.7%
Free Cash Flow
-$103M
Previous year: $245M
-142.0%
Total Assets
$21B
Previous year: $20.8B
+0.7%

Westlake

Westlake

Westlake Revenue by Segment

Forward Guidance

Looking ahead, Westlake expects continued growth in the HIP segment despite economic headwinds, while the PEM segment is expected to remain relatively stable due to weak end market demand and low-priced Asian imports. Efforts are underway to improve the profitability of European operations.

Positive Outlook

  • Growth in our HIP segment to continue despite elevated inflation and interest rates.
  • Supply of houses remains limited and the demographics supporting housing demand remain favorable.
  • Relatively stable near-term performance in our PEM segment.
  • Progressing with our efforts to improve the profitability of our European operations through structural cost improvement.
  • Continue to make investments to improve the reliability and efficiency of our plants.

Challenges Ahead

  • Pricing and margins in our PEM segment remain challenged by weak global demand.
  • Growth in our PEM segment is constrained by continuing weak end market demand.
  • Low-priced Asian imports in some product categories and geographies.
  • Elevated inflation
  • Elevated interest rates

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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