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Jun 30, 2024
Westlake Q2 2024 Earnings Report
Westlake reported strong demand for HIP segment products and higher PEM segment average sales price, leading to year-over-year quarterly earnings growth.
Key Takeaways
Westlake Corporation reported Q2 2024 results with net sales of $3.2 billion, net income of $313 million, and EBITDA of $744 million. The company saw record Housing and Infrastructure Products (HIP) segment income from operations of $266 million and EBITDA of $336 million. There were sequential increases in Performance and Essential Materials (PEM) segment earnings and margins.
Record Housing and Infrastructure Products (HIP) segment income from operations of $266 million.
Record HIP segment EBITDA of $336 million.
Sequential increases in Performance and Essential Materials (PEM) segment earnings and margins.
Overall sales volume increased 6% sequentially from the previous quarter.
Westlake
Westlake
Westlake Revenue by Segment
Revenue by Segment
Housing & Infrastructure Products Revenue
CapyFin.comPerformance & Essential Materials Revenue
CapyFin.com Forward Guidance
Conditions in the HIP segment should continue to be supported by favorable structural factors. Steps are being taken to enhance PEM segment profitability, including a plan to temporarily cease operations at two units within the European epoxy business.
Positive Outlook
- Favorable structural factors supporting conditions in the HIP segment.
- Decade-long under-investment in housing.
- Population growth.
- Aging housing stock.
- Increasing investments in infrastructure driven by the Infrastructure and Jobs Act.
Challenges Ahead
- Global industrial and manufacturing activity remains sluggish.
- Plan to temporarily cease operations at two units within our European epoxy business.
- Uncertainties associated with political tensions and conflict in the Middle East, Russia and Ukraine and elsewhere
- Uncertainties associated with pandemic infectious diseases
- Uncertainties associated with climate change
Revenue & Expenses
Visualization of income flow from segment revenue to net income