HIP Segment Performance
The Housing and Infrastructure Products (HIP) segment performed well, maintaining sales levels despite a slowdown in North American residential construction. The segment is supported by strong relationships with key customers and a broad product portfolio.
Strategic Investments and Acquisitions
Westlake is investing in new growth opportunities, such as the construction of a new PVCO pipe facility in North Texas and the acquisition of ACI, which expands their global compound business and market reach.
Cost Reduction Initiatives
Westlake is on track to achieve $150 million to $175 million in company-wide structural cost reductions in 2025 and is aiming for an additional $200 million in 2026, particularly in the PEM segment.
Improved Operational Performance
The PEM segment saw improved operational performance and increased sales volume, partially offsetting price reductions due to global supply-demand imbalances.
Positive Long-Term Outlook for HIP
Despite current challenges, there is a positive long-term outlook for the HIP segment, supported by the need to rebuild North American housing stock and significant growth opportunities.