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Sep 30, 2025
Westlake Q3 2025 Earnings Report
Westlake reported a significant loss in the third quarter of 2025 due to a major goodwill impairment in its chlorovinyls business within the Performance and Essential Materials segment.
Key Takeaways
Westlake Corporation reported a net loss of $782 million for Q3 2025, primarily due to a $727 million non-cash goodwill impairment in its chlorovinyls operations. Net sales were $2.84 billion, down 9% year-over-year, while EBITDA excluding identified items was $313 million. The Housing and Infrastructure Products segment remained resilient with a 20% EBITDA margin, while the Performance and Essential Materials segment suffered from lower sales prices and volume, resulting in a 5% adjusted EBITDA margin.
Net sales were $2.84 billion, a 9% year-over-year decline.
A $727 million non-cash impairment charge resulted in a net loss of $782 million.
EBITDA excluding identified items was $313 million, with an 11% margin.
Housing and Infrastructure Products segment achieved a 20% EBITDA margin.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Westlake expects to improve profitability in 2026 through $200 million in cost savings and $100 million in annual loss reduction from facility closures, supported by better plant reliability and footprint optimization.
Positive Outlook
- Planned $200 million in cost savings expected by 2026.
- $100 million in annual loss removal from footprint optimization.
- Improved plant reliability expected to boost EBITDA.
- Strong performance of HIP segment despite market slowdown.
- Resilient balance sheet with $1.9 billion in cash.
Challenges Ahead
- Weakness in global industrial and manufacturing activity pressures pricing.
- Chlorovinyls business impairment underscores market challenges.
- Lower PVC resin and chlorine prices affect margins.
- Ongoing labor and raw material cost pressures.
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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