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Mar 31, 2025
Westlake Q1 2025 Earnings Report
Westlake reported a net loss and lower EBITDA due to higher feedstock and energy costs, unfavorable sales mix, and operational disruptions.
Key Takeaways
Westlake posted a net loss of $40 million in Q1 2025, affected by higher input costs and planned/unplanned plant outages, despite stable revenues and strong growth in the HIP segment.
Net loss of $40 million driven by higher North American feedstock and energy costs.
Revenue remained stable at $2.85 billion despite adverse macro conditions.
HIP segment saw 4% sequential volume growth, led by Compounds and Siding & Trim.
EBITDA dropped to $288 million due to $80 million impact from operational disruptions.
Revenue by Segment
Forward Guidance
Westlake expects improved operating rates for the remainder of 2025 with stabilized energy costs, but remains cautious due to macroeconomic headwinds and tariff uncertainties.
Positive Outlook
- Successful turnaround of Petro 1 ethylene unit completed.
- No major planned turnarounds for the remainder of the year.
- HIP segment demand led by branded products and supply position.
- Strong balance sheet with $2.5B in liquidity.
- Focus on expanding leadership in HIP and PEM segments.
Challenges Ahead
- Unfavorable sales mix in HIP pressured margins.
- High energy and feedstock costs impacted EBITDA.
- Weak global manufacturing and industrial activity.
- Global trade policy uncertainty affecting customer behavior.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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