Westlake Corporation (WLK) reported a loss of $40 million or 31 cents per share for the first quarter of 2025. This compares to a profit of $174 million or $1.34 in the year-ago quarter. The bottom line missed the Zacks Consensus Estimate of earnings of 70 cents.Sales dipped around 4.3% year over year to $2,846 million in the quarter. It missed the Zacks Consensus Estimate of $2,920 million. The top line was impacted by a 2% decline in sales volumes and a 2% decline in average sales prices.The results in th ...

Financial Performance - Net sales for Q1 2025 were $2,846 million, a decrease of 4.3% compared to $2,975 million in Q1 2024[11] - Gross profit for Q1 2025 was $232 million, down 50.2% from $466 million in Q1 2024[11] - Net loss attributable to Westlake Corporation for Q1 2025 was $40 million, compared to a net income of $174 million in Q1 2024[11] - Basic earnings per share for Q1 2025 were $(0.31), a decline from $1.35 in Q1 2024[11] - Comprehensive loss for Q1 2025 was $26 million, compared to a comprehensive income of $140 million in Q1 2024[14] - Net income for the three months ended March 31, 2025, was a loss of $35 million, compared to a net income of $185 million for the same period in 2024, representing a significant decline[21] - Cash flows from operating activities resulted in a net cash outflow of $77 million for Q1 2025, compared to a net cash inflow of $169 million in Q1 2024[21] - Other income for Q1 2025 was $37 million, down from $50 million in Q1 2024, with interest income contributing $29 million in 2025 compared to $40 million in 2024[71] Assets and Liabilities - Total assets as of March 31, 2025, were $20,711 million, slightly down from $20,750 million at the end of 2024[9] - Total liabilities increased to $9,790 million as of March 31, 2025, compared to $9,707 million at the end of 2024[9] - Cash and cash equivalents decreased to $2,297 million from $2,919 million at the end of 2024[9] - Retained earnings decreased to $10,373 million as of March 31, 2025, from $10,481 million at the end of 2024[9] - Total accounts receivable increased to $1,656 million as of March 31, 2025, up from $1,483 million at the end of 2024, indicating a rise of approximately 11.6%[41] - Inventories rose to $1,781 million as of March 31, 2025, compared to $1,697 million at the end of 2024, reflecting an increase of about 4.9%[42] - Total long-term debt amounted to $4,674 million, an increase from $4,645 million as of December 31, 2024[46] - The carrying value of long-term debt was $4,592 million as of March 31, 2025, compared to $4,562 million at the end of 2024[56] Shareholder Activities - The company repurchased 279,771 shares of common stock during the first quarter of 2025[16] - The company paid dividends totaling $68 million in Q1 2025, slightly up from $65 million in Q1 2024[21] - Dividends declared per common share increased to $0.5250 for the three months ended March 31, 2025, compared to $0.5000 in 2024[65] Legal and Regulatory Matters - The company has reserved approximately $76 million for damages awarded in a lawsuit related to negligence and trespass at the Natrium Plant[81] - The company is involved in multiple antitrust lawsuits, including claims seeking $861 million in damages from direct purchasers of caustic soda and €1,397 million from BASF for alleged cartel activities[75][78] - The company anticipates that the resolution of various legal and regulatory matters, particularly environmental issues, will take an extended period of time[73] - The company is currently unable to estimate the financial impact of ongoing lawsuits, including those related to ethylene and PVC pipe antitrust claims[78][80] - The company entered into a settlement agreement in 2023 regarding caustic soda lawsuits, but the agreement was terminated after the court rejected preliminary approval in June 2024[75] - The company is defending against a lawsuit filed by PPG Industries regarding indemnification related to a Brazilian lawsuit, with potential implications for financial statements[85][86] Environmental and Compliance Issues - Environmental contingencies reserves were approximately $70 million as of March 31, 2025, down from $72 million at the end of 2024[87] - The company reserved approximately $32 million for monitoring wells and other remedial activities related to compliance orders from the Louisiana Department of Energy and Natural Resources[92] - The company assessed reasonably possible loss contingencies related to environmental matters in the range of $100 million to $170 million[94] - The company is facing uncertainty regarding the potential impact of evolving claims and programs related to natural resource damage and industrial site reuse initiatives[73] Segment Performance - Performance and Essential Materials segment reported a loss from operations of $163 million for Q1 2025, compared to a profit of $22 million in Q1 2024[100] - Housing and Infrastructure Products segment generated an income from operations of $148 million in Q1 2025, down from $210 million in Q1 2024[100] - Total capital expenditures for the consolidated company were $248 million in Q1 2025, compared to $272 million in Q1 2024[100] Cash Flow and Investments - The company reported a net cash used for investing activities of $434 million in Q1 2025, compared to $272 million in Q1 2024, indicating a 60% increase in cash outflow[21] - Cash, cash equivalents, and restricted cash decreased to $2,313 million at the end of Q1 2025 from $3,124 million at the end of Q1 2024, a decline of approximately 26%[21] - The company invested $248 million in property, plant, and equipment during Q1 2025, compared to $272 million in the same period of 2024[21]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported EBITDA of $288 million on net sales of $2.8 billion, with a net loss of $40 million or $0.31 per share, reflecting a decrease in net income of $214 million year-over-year [7][13][14] - The year-over-year decline in net income was primarily due to higher North American feedstock and energy costs of approximately $100 million, planned turnarounds, and unplanned outages impacting EBITDA by approximately $80 million [13][14] - The company’s cash and investments as of March 31, 2025, were $2.5 billion, with total debt at $4.6 billion [19] Business Line Data and Key Metrics Changes - The Housing and Infrastructure Products (HIP) segment produced EBITDA of $203 million on $1 billion of sales, with a 20% EBITDA margin, reflecting a $61 million decrease year-over-year due to a 2% decline in sales volumes and a 3% decline in average sales prices [17][18] - The Performance and Essential Materials (PEM) segment's EBITDA was $73 million, down from $253 million in Q1 2024, primarily due to a 59% increase in natural gas costs and a 42% increase in ethane costs, alongside a 2% decline in sales volumes [19][19] Market Data and Key Metrics Changes - The company noted that global demand remains below historical levels, with recent disruptions from tariffs impacting global growth [8] - The PVC industry saw operating rates in the low to mid 80s, with a build in inventory in anticipation of the construction season [35][36] Company Strategy and Development Direction - The company is focused on rightsizing operations for current economic realities, optimizing manufacturing footprint, and raising cost reduction targets for 2025 to $150 million to $175 million [9][10] - Capital spending forecast for 2025 has been reduced by 10% to $900 million to support cash generation [10][22] - The company aims to enhance margins, optimize its footprint, and improve cost structure and operational reliability as it navigates the current business cycle [24][27] Management's Comments on Operating Environment and Future Outlook - Management expressed that while the macroeconomic environment is uncertain, proactive steps are being taken to mitigate impacts from trade tensions and commodity price volatility [24][25] - The company expects positive sales growth for the HIP segment in 2025, despite anticipating revenue and EBITDA margins to be towards the low end of previous guidance ranges [21][22] Other Important Information - The company completed significant operational milestones, including the successful turnaround of the Petra 1 ethylene plant and new VCM tie-ins at the Geismar plant, which are expected to enhance operational reliability [10][11] - The effective tax rate for 2025 is expected to be approximately 23%, with cash interest expense around $160 million [22] Q&A Session All Questions and Answers Question: Can you remind us the typical timeline for price realization in the HIP segment? - Management indicated that the HIP market is more stable in pricing dynamics compared to the PIM segment, allowing for more price stability despite input cost changes [31] Question: How did the PVC industry perform in the first quarter? - The industry saw a build in inventory in anticipation of the construction season, with operating rates in the 80s range [35][36] Question: What is the outlook for the HIP segment's EBITDA in Q2? - Management expects a seasonal ramp-up in construction activities, which should positively impact HIP's EBITDA in the second quarter [67] Question: How much of the $80 million outage costs were planned versus unplanned? - Approximately two-thirds of the $80 million outage costs were related to planned turnarounds [74] Question: What is the company's stance on M&A opportunities? - The company remains open to acquisition opportunities and is actively assessing potential value in the current market [80][82]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported EBITDA of $288 million on net sales of $2.8 billion, with a net loss of $40 million or $0.31 per share, a decrease of $214 million in net income year-over-year [6][13] - The year-over-year decline in net income was primarily due to higher North American feedstock and energy costs of approximately $100 million, planned turnarounds, and unplanned outages impacting EBITDA by approximately $80 million [13][19] - The company’s cash and investments as of March 31, 2025, were $2.5 billion, with total debt at $4.6 billion [19] Business Segment Data and Key Metrics Changes - The Housing and Infrastructure Products (HIP) segment produced EBITDA of $203 million on $1 billion of sales, with a 20% EBITDA margin, reflecting a $61 million decrease year-over-year due to a 2% decline in sales volumes and a 3% decline in average sales prices [17][18] - The Performance and Essential Materials (PEM) segment's EBITDA was $73 million, down from $253 million in Q1 2024, primarily due to a 59% increase in natural gas costs and a 42% increase in ethane costs, with a 2% decrease in sales volumes [19][19] - The company is raising its cost reduction target for 2025 by $25 million to a new range of $150 million to $175 million, building on $40 million of cost reductions achieved in Q1 [9][21] Market Data and Key Metrics Changes - Global demand remains below historical levels, with recent disruptions from tariffs weighing on global growth [8] - The company expects 2025 revenue and EBITDA margin in the HIP segment to be towards the low end of the previously communicated range of $4.4 billion to $4.6 billion, with EBITDA margin between 20% to 22% [20][21] - The construction season is expected to strengthen in Q2 and Q3, with housing starts forecasted to be in the 1.3 million range [67][85] Company Strategy and Development Direction - The company is focused on rightsizing operations for current economic realities, optimizing manufacturing footprint, and improving cost structure and operational reliability [9][10] - The company is taking proactive steps to enhance margins and create value for shareholders, including reducing capital spending forecast for 2025 by 10% to $900 million [10][21] - The company emphasizes its integrated business model, diversity of businesses, and strong investment-grade balance sheet as key strengths to navigate the uncertain macroeconomic environment [26][27] Management's Comments on Operating Environment and Future Outlook - Management noted that the direct impact from recent tariff announcements is largely manageable, with most products being USMCA compliant [24][25] - The company anticipates continued volatility in commodity prices and currency rates, which may impact the PEM segment in the second quarter and full year of 2025 [25] - Management expressed cautious optimism regarding the construction market, expecting positive sales growth for HIP in 2025 despite current challenges [20][21] Other Important Information - The company completed significant operational milestones, including the successful turnaround of the Petra 1 ethylene plant and new VCM tie-ins at the Geismar plant, which are expected to enhance reliability [10][11] - The company returned $68 million to shareholders in the form of dividends during the quarter and repurchased $30 million of common stock [20] Q&A Session Summary Question: Can you remind us the typical timeline for price realization in the HIP segment? - Management indicated that the HIP market is more stable in pricing dynamics compared to the PIM segment, allowing for more price stability despite input cost changes [31] Question: What do you anticipate retaliatory tariffs in China will do to PE operating rates and domestic prices? - Management noted that the mix of polyethylene produced is largely focused on domestic applications, limiting exposure to Asian market dynamics [32] Question: How did the PVC industry perform in the first quarter? - Management reported that the industry saw a build in inventory in anticipation of the construction season, with operating rates in the low to mid 80s [35] Question: Can you provide insights on the mix shift impact within HIP? - Management explained that the pull forward of pipe and fittings business in Q4 2024 led to a negative mix effect in Q1 2025, but they expect to regain share in higher value-added products [48][106] Question: What is the outlook for HIP EBITDA in Q2? - Management expects HIP EBITDA to improve in Q2 due to seasonal strength in construction and positive pricing trends in PVC [67][70] Question: How much of the $80 million outage costs were planned versus unplanned? - Management indicated that about two-thirds of the $80 million outage costs were related to planned turnarounds [75] Question: What is the company's stance on M&A opportunities? - Management stated that acquisition opportunities remain important, and they are continuously assessing the market for potential growth opportunities [80][82]

EXHIBIT 99.1 WESTLAKE CORPORATION Contact—(713) 960-9111 Investors—Steve Bender Media—L. Benjamin Ederington Westlake Corporation Reports First Quarter 2025 Results HOUSTON--(BUSINESS WIRE)--Westlake Corporation (NYSE: WLK) (the "Company" or "Westlake") today announced first quarter 2025 results. SUMMARY FINANCIAL HIGHLIGHTS (in millions of dollars, except per share data and percentages) | | | Three Months | | Three Months | | Three Months | | --- | --- | --- | --- | --- | --- | --- | | | | Ended March 31, ...

Earnings Presentation 1Q 2025 1 First Quarter 2025 Highlights Operational Milestones $2.5 billion cash position provides significant optionality 1Q 2025 Financial Results $2.8B Net Sales $288M EBITDA(1) $2.5B Cash, Equivalents and Investments(2) (1) Reconciliation of EBITDA to Net Income (Loss), Income from Operations and Net Cash Provided by Operating Activities can be found on page 11 (2) Includes investments in available-for-sale securities 2 • 1Q'25 PEM EBITDA impacted by $100 million of YoY higher feed ...

In its upcoming report, Westlake Chemical (WLK) is predicted by Wall Street analysts to post quarterly earnings of $0.70 per share, reflecting a decline of 47.8% compared to the same period last year. Revenues are forecasted to be $2.92 billion, representing a year-over-year decrease of 1.9%.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 9.8% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections du ...

Tailwind value investor with Chemical Engineering background including BS, MS, and PhD degrees. My investing style is to apply a mix of fundamental valuation and technical analysis. I'm attracted to companies in the technical sector that hit all the valuation marks and also have contributing factors that can fuel their growth, but, at times, I apply analysis outside of that sector. I am also passionate about understanding how society is adapting to increasing economic, societal and environmental pressures. ...

A month has gone by since the last earnings report for Westlake Chemical (WLK) . Shares have lost about 10.2% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Westlake due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.How Have Estimates Been Moving Since Then?It turns ...

Westlake Corporation’s (WLK) unit Westlake Epoxy is set to unveil several new products under the EpoVIVE portfolio at the European Coatings Show (“ECS”) 2025, from March 25 to March 27, in Germany. EpoVIVE is designed to provide sustainability advantages.The new technologies introduced in EpoVIVE make its products energy efficient with a lower carbon footprint and reduced emissions. The portfolio aims to meet the demand for alternatives free of SVHC (substances of very high concern) that use circular materi ...