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Jun 30
Westlake Q2 2025 Earnings Report
Westlake Corporation reported its second quarter 2025 results, showing a net loss and decreased EBITDA compared to the prior year, primarily due to facility closures, temporary operational cessations, and higher costs, despite sequential improvements in the HIP segment.
Key Takeaways
Westlake Corporation reported a net loss of $142 million, or $1.11 per share, on net sales of $2.953 billion for the second quarter of 2025. Excluding identified items related to facility closures and operational cessations, the net loss was $12 million, or $0.09 per share, and EBITDA was $340 million. The company experienced headwinds from lower sales volume in the PEM segment, higher feedstock and energy costs, and lower average sales prices, but saw sequential improvements in the HIP segment.
Net sales for Q2 2025 were $2.953 billion, a decrease from $3.207 billion in Q2 2024.
The company reported a net loss of $142 million, or $1.11 per diluted share, for Q2 2025, compared to a net income of $313 million in Q2 2024.
Excluding identified items, the net loss was $12 million, or $0.09 per diluted share, and EBITDA was $340 million.
The Housing and Infrastructure Products segment showed sequential improvement with a 16% increase in sales and a 14% sales volume growth, while the Performance and Essential Materials segment experienced a 3% sales decrease and a 6% decline in sales volume sequentially.
Westlake
Westlake
Westlake Revenue by Segment
Revenue by Segment
Housing & Infrastructure Products Revenue
CapyFin.comPerformance & Essential Materials Revenue
CapyFin.com Forward Guidance
Westlake's focus for the remainder of 2025 is on operational efficiency and cost reduction, with chlorovinyls production returning to normal rates in Q3. The company is expanding its cost-reduction efforts to target an additional $200 million by 2026, in addition to the $75 million already eliminated in H1 2025, and expects improved profitability in 2026 from the Pernis closure.
Positive Outlook
- Chlorovinyls production is returning to normal rates during the third quarter after operational disruptions.
- Eliminated over $75 million of company-wide costs in the first half of 2025 towards a target of $150-$175 million for the year.
- Expanding cost-reduction efforts to target an additional $200 million by 2026.
- Planned closure of the Pernis facility is expected to significantly improve global Epoxy business profitability in 2026.
- HIP segment delivered solid results despite lower North American residential construction activity, reflecting product value and 'win with the winners' strategy.
Challenges Ahead
- Overall financial performance in Q2 2025 reflected several headwinds, many of which are considered transitory.
- PEM sales volume was impacted by continued soft global industrial and manufacturing activity.
- Temporary disruptions to export sales volumes were created by tariff uncertainty.
- Earnings were impacted by production disruptions from the tie-in of new VCM capacity at the Geismar, Louisiana, chlorovinyls site.
- Higher planned turnarounds and some unplanned outages within the PEM segment impacted EBITDA and cash flow below their potential in the first half of 2025.
Revenue & Expenses
Visualization of income flow from segment revenue to net income