Product Development - Westlake Corporation's unit, Westlake Royal Building Products, has introduced the Series 800 Patio Door to its Royal Window Solutions product line, emphasizing performance and versatility for various projects and locations [1] - The Series 800 doors are designed for optimal thermal efficiency and durability, featuring Energy Star-compliant glazing options, an internal weep system, an all-welded frame and sash, and dual-seal weatherstripping, achieving a DP50 rating for standard-height doors [2] Product Features - The Series 800 doors can be customized up to 12 feet wide and 8 feet high, with options including stainless steel rollers, dual-point locking, and ADA-compliant sizes, making them suitable for coastal applications [3] Market Outlook - The company is optimistic about the Housing and Infrastructure Products segment, driven by the need to increase residential housing supply in the U.S. after over 15 years of under-building to meet population growth and housing demand [4] - Despite challenging global macroeconomic conditions, the Performance and Essential Materials segment is positioned to benefit from a potential resurgence in global industrial and manufacturing activity, with a focus on cost-cutting, customer value enhancement, plant safety, and new product commercialization for 2025 [5]

Westlake Corporation’s (WLK) unit, Westlake Royal Building Products, has introduced a new Reversible Nickel Gap/V-Groove profile to its Kleer cellular PVC trim line. This product features a tongue-and-groove joint that simplifies installation, vertically or horizontally, by creating the nickel gap on one side and the V-groove on the other, making it suitable for modern and traditional home styles.The new Nickel Gap/V-Groove profile is made to be waterproof, termite resistant and low maintenance, like all ot ...

Westlake Corporation (WLK) recently announced that Westlake Epoxy plans to launch state-of-the-art solutions for the growing composites industry. WLK, over the years, has cultivated a broad network of equipment manufacturers, formulators, automators and end users. These partnerships have fostered the development of cutting-edge product offerings, including EpoVIVE.WLK plans to launch the new products in Paris at the JEC World Show 2025, March 4 to 6. The exhibition of its innovative offerings will include p ...

Group 1: Core Product Offering - Westlake Corporation's Westlake Royal Building Products unit is launching fire-rated roofing and stone solutions aimed at protecting homeowners in wildfire-prone areas, particularly in California [1] - The product portfolio includes various fire-rated roofing brands such as Newpoint Concrete Roof Tile, U.S. Tile Clay Roofing Products, Unified Steel-Stone coated roofing, and DaVinci Roofscapes, all designed to withstand extreme heat and provide natural fire resistance [2] - The new product lineup adheres to strict Wildland-Urban Interface guidelines and has been tested by Underwriters Laboratories, ensuring protection without sacrificing aesthetic appeal [3] Group 2: Company Performance and Rankings - Westlake Corporation currently holds a Zacks Rank of 4 (Sell), indicating a less favorable outlook compared to other companies in the Basic Materials sector [4] - Ingevity Corporation, with a Zacks Rank of 1 (Strong Buy), has a current-year earnings estimate of $2.75 per share and has beaten earnings estimates in three of the last four quarters [5] - Carpenter Technology Corporation has a Zacks Rank of 2 (Buy) and a current fiscal-year earnings estimate of $6.95 per share, having surpassed earnings estimates in all trailing quarters, with shares increasing by 207.1% over the past year [6] - ArcelorMittal also holds a Zacks Rank of 2 (Buy) with a current-year earnings estimate of $3.72 per share, having surpassed earnings estimates in three of the last four quarters [7]

Core Insights - Westlake Corporation (WLK) is launching EpoVIVE, a new epoxy product portfolio focused on sustainability, at JEC World in Paris from March 4-6 [1] - EpoVIVE aims to provide significant sustainability benefits over traditional products, featuring safer materials and energy-efficient applications, aligning with WLK's environmental goals [2] - The EpoVIVE portfolio is designed to cater to various industries, including aerospace, automotive, and construction, showcasing its versatility [3] Company Performance - WLK currently holds a Zacks Rank of 4 (Sell), indicating a less favorable outlook compared to other stocks in the Basic Materials sector [4] - Ingevity Corporation (NGVT) has a Zacks Rank of 1 (Strong Buy) with a current-year earnings estimate of $2.75 per share, demonstrating strong performance [5] - Carpenter Technology Corporation (CRS) has a Zacks Rank of 2 (Buy) with a current fiscal-year earnings estimate of $6.95 per share and a significant share price increase of 207.1% over the past year [6] - ArcelorMittal (MT) also holds a Zacks Rank of 2 (Buy) with a current-year earnings estimate of $3.72 per share, showing consistent performance with an average earnings surprise of 4.11% [7]

Westlake Corporation (WLK) logged a profit of $7 million or 6 cents per share for the fourth quarter of 2024. This compares to a loss of $497 million or $3.86 in the year-ago quarter. The bottom line missed the Zacks Consensus Estimate of $1.04.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Sales rose around 0.6% year over year to $2,843 million in the quarter. It missed the Zacks Consensus Estimate of $2,904.6 million. A 3% growth in sales volume was offset by a 2% decline in averag ...

Financial Performance - The company reported a significant increase in revenue, reaching $X billion, representing a Y% growth compared to the previous year[7]. - User data showed an increase in active users, with a total of Z million users, reflecting a growth rate of A% year-over-year[7]. - The company provided an optimistic outlook for the next quarter, projecting revenue growth of B% and an expected operating margin of C%[7]. Product Development and Innovation - New product launches are anticipated to contribute an additional $D million in revenue, with a focus on innovative technologies in the pipeline[7]. - The company is investing $H million in R&D to develop new technologies aimed at sustainability and efficiency improvements[21]. Market Expansion - The company plans to expand its market presence in E regions, aiming for a market share increase of F% by the end of the fiscal year[7]. Acquisitions and Synergies - Recent acquisitions are expected to yield synergies of approximately $G million, enhancing operational efficiencies[21]. Capital Expenditures - Future capital expenditures are projected to be $I million, focusing on capacity expansions and modernization of existing facilities[21]. Economic Factors and Compliance - The company is closely monitoring macroeconomic factors, including inflation and interest rates, which could impact future performance[25]. - Compliance with new environmental regulations is expected to incur costs of approximately $J million, affecting the overall financial outlook[21].

Financial Data and Key Metrics Changes - For Q4 2024, the company reported sales of $2.8 billion and EBITDA of $416 million, representing a 7% increase in EBITDA compared to Q4 2023's EBITDA of $390 million [17][24] - Full year 2024 net income was $677 million, with EBITDA totaling $2.3 billion, while total sales for 2024 declined by 3% to $12.1 billion due to a 10% decline in average sales prices [25][26] - The company achieved total cost reductions of $170 million in 2024, exceeding the target of $125 million to $150 million [16][32] Business Segment Data and Key Metrics Changes - The Housing and Infrastructure Products (HIP) segment achieved record income from operations of $807 million and an EBITDA margin of 24%, driven by an 8% sales volume growth [20][28] - The Performance and Essential Materials (PEM) segment saw a 1% increase in sales volume, primarily due to export market demand, although average sales prices were impacted by industry capacity increases [18][30] - HIP's EBITDA margin improved to 19% in Q4 2024, while PEM's EBITDA margin increased to 12% from 11% in the same period of 2023 [27][31] Market Data and Key Metrics Changes - North America showed strong demand across both segments, supported by a broad product portfolio and a strong feedstock position [19] - The company expects housing starts for 2025 to remain similar to 2024 at 1.3 million [33] Company Strategy and Development Direction - The company is focused on sustainability and has initiated several key projects, including a pilot program for post-consumer recycled PVC and investments in carbon waste transformation technology [36][37] - The company plans to continue optimizing its business to drive operational performance and reduce costs, with a target of $125 million to $150 million in cost reductions for 2025 [42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of the HIP segment, citing strong brand offerings and geographical reach [39][41] - The company acknowledges uncertainties in the global macroeconomic environment but remains focused on actions within its control to improve business performance [41] Other Important Information - The company returned approximately $325 million to shareholders through dividends and share repurchases in 2024 [21][32] - As of December 31, 2024, the company had $2.9 billion in cash and cash equivalents, with total debt of $4.6 billion [31] Q&A Session Summary Question: Insights on HIP margins and expected degradation - Management indicated that margin guidance reflects a product mix shift rather than a decline in overall demand [49] Question: Cost cuts distribution across divisions - Cost reduction efforts will be significant in both HIP and PEM segments, particularly in logistics and procurement [52] Question: Concerns about homebuilder outlook affecting volumes - Management remains confident in growth, expecting market penetration to increase despite broader economic concerns [59] Question: Impact of tariffs on PVC trade flows - Management is monitoring potential impacts of tariffs on trade patterns and will adapt as necessary [62] Question: Volume and price changes for the year - Year-over-year volume improvements were 6% for PEM and 8% for HIP, with price declines of 12% for PEM and 6% for HIP [81][84] Question: Free cash flow outlook for 2025 - Management expects stronger free cash flow generation in 2025 due to continued strength in the HIP business [90] Question: Recent demand experience in major product lines - Demand for polyethylene remains strong, with price initiatives reflecting good market conditions [118] Question: Expectations for EBITDA margins in 2025 - Management views the 20% to 22% EBITDA margin guidance as conservative, with potential for improvement if housing starts increase [132]

Westlake (WLK) Q4 2024 Earnings Call February 24, 2025 09:17 PM ET Company Participants Johnathan Zoeller - VP & TreasurerJean-Marc Gilson - President & CEOSteven Bender - CFO & EVPDavid Begleiter - Managing DirectorAleksey Yefremov - MD & Equity ResearchJohn Roberts - Managing DirectorMichael Leithead - Director - Equity ResearchKevin McCarthy - PartnerJosh Spector - Executive DirectorMichael Sison - Managing DirectorAziza Gazieva - Vice PresidentMatthew Blair - Managing Director Conference Call Participan ...

Earnings Presentation 4Q and Full Year 2024 1 Fourth Quarter and Full Year 2024 Highlights Fifth consecutive quarter of YoY sales volume growth with momentum into 2025 $2.8B Net Sales 1% increase YoY $416M EBITDA(1) 7% increase YoY (2) $434M Net Cash Provided by Operating Activities $12.1B Net Sales 3% decrease YoY $2.3B EBITDA(1,2) 12% decrease YoY(2) $1.3B Net Cash Provided by Operating Activities 4Q 2024 Financial Results FY 2024 Financial Results (1) Reconciliation of EBITDA excl. Identified Item to Net ...