Westlake Corporation (WLK)
NYSE:WLK
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Westlake Corporation
(NYSE:WLK)
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Rating:56Neutral
Price Target:
$118.00
▲(4.79% Upside)
Action:ReiteratedDate:05/05/26
WLK scores mid-range mainly due to weak current financial performance (losses, margin compression, and negative free cash flow) despite a relatively strong balance sheet. Technicals are supportive with an overall uptrend and neutral momentum, while valuation is constrained by negative earnings. The latest call suggests operational improvement potential in 2026, but near-term execution, cost, and litigation risks keep the score moderate.
Positive Factors
Balance sheet strength & liquidity
Westlake’s sizable equity base and moderate debt-to-equity (~0.57) plus ~$2.5B cash/investments provide durable financial flexibility for a cyclical chemicals business. This supports funding of capex, opportunistic M&A, debt calls and working-capital needs through a multi-quarter recovery.
Negative Factors
Sharp profitability deterioration
A large trailing loss and materially compressed margins reflect structural pressure from weaker pricing, feedstock volatility and prior shutdowns. Sustained low margins reduce return on capital, constrain reinvestment and amplify sensitivity to cyclical downturns over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength & liquidity
Westlake’s sizable equity base and moderate debt-to-equity (~0.57) plus ~$2.5B cash/investments provide durable financial flexibility for a cyclical chemicals business. This supports funding of capex, opportunistic M&A, debt calls and working-capital needs through a multi-quarter recovery.
Read all positive factors
Westlake Corporation (WLK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.71B
Dividend Yield2.88%
Average Volume (3M)1.17M
Price to Earnings (P/E)―
Beta (1Y)0.85
Revenue Growth-8.01%
EPS Growth-351.54%
CountryUS
Employees15,540
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)-11.73
Shares Outstanding128,083,500
10 Day Avg. Volume1,117,913
30 Day Avg. Volume1,168,350
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)1.08
Price to Sales (P/S)0.85
P/FCF Ratio-17.98
Enterprise Value/Market Cap0.79
Enterprise Value/Revenue1.04
Enterprise Value/Gross Profit40.30
Enterprise Value/Ebitda-58.52
Forecast
1Y Price Target
$121.54Price Target Upside7.93% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)4.08
Revenue Forecast (FY)$11.98B
Westlake Corporation Business Overview & Revenue Model
Company Description
Westlake Corporation manufactures and supplies petrochemicals, polymers, and building products worldwide. It operates through two segments, Performance and Essential Materials; and Housing and Infrastructure Products. The Performance and Essential...
How the Company Makes Money
Westlake makes money primarily by manufacturing and selling chemicals and building-products to industrial and construction-related customers. In its Performance and Essential Materials segment, revenue is generated from sales of chlor-alkali produ...
Westlake Corporation Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call conveyed a cautiously optimistic outlook: underlying operational progress and market tailwinds (Middle East-driven supply disruptions, strong sequential volume recovery, $150M Q1 EBITDA uplift and return of Epoxy to profitability) provide clear momentum. At the same time, near-term headwinds—primarily a transitory natural gas cost spike (~34% QoQ impact referenced), delayed seasonal demand from cold weather, PVC price-reset timing, GAAP one-time charges ($85M) and remaining litigation exposure—kept GAAP results negative and forced cautious guidance updates. Management expects the pricing and cost-saving actions to have stronger impact in Q2–Q3 and reiterated a $600M annual EBITDA improvement target, supporting a positive operational outlook despite near-term uncertainties.Positive Updates
Solid Revenue and Adjusted EBITDA
Reported net sales of $2.7 billion and adjusted EBITDA of $235 million for Q1 2026 (non-GAAP, excludes identified items).
Negative Updates
GAAP Net Loss
Reported GAAP net loss of $100 million ($0.77 per share) in Q1 2026 versus a net loss of $33 million in Q1 2025; identified items ($85 million aggregate) were excluded from non-GAAP commentary.
Read all updates
Q1-2026 Updates
Positive
Negative
Solid Revenue and Adjusted EBITDA
Reported net sales of $2.7 billion and adjusted EBITDA of $235 million for Q1 2026 (non-GAAP, excludes identified items).
Read all positive updates
Company Guidance
Management guided HIP revenue toward the lower end of the previously communicated $4.4–$4.6 billion range with an HIP EBITDA margin of 19%–21% (all excl. identified items), reiterated company 2026 capex of $900 million (≈$100 million below 2025) and expected cash interest of about $215 million, and reconfirmed a 2026 target to deliver $600 million of EBITDA uplift from its 3‑pillar plan (≈$150 million of that uplift realized in Q1). They said the ~$45 million Q1 natural‑gas EBITDA headwind is transitory, cited a favorable FIFO pretax estimate of $37 million in Q1, and noted balance‑sheet and cash metrics of $2.5 billion cash & investments, $5.6 billion total debt (with $500 million of debt to be called in Q2) and Q1 operating cash use of $94 million; Q1 results were $2.7 billion sales, $235 million EBITDA and a $100 million net loss ($0.77/sh), and identified items totaled $85 million ($67M legal settlement + $18M shutdown costs).Westlake Corporation Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
72
Positive
Cash Flow
41
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 11.17B | 12.14B | 12.55B | 15.79B | 11.78B |
| Gross Profit | 289.00M | 1.96B | 2.22B | 4.07B | 3.50B |
| EBITDA | -199.00M | 2.21B | 1.96B | 4.18B | 3.69B |
| Net Income | -1.51B | 602.00M | 479.00M | 2.25B | 2.02B |
Balance Sheet | |||||
| Total Assets | 19.96B | 20.75B | 21.04B | 20.55B | 18.46B |
| Cash, Cash Equivalents and Short-Term Investments | 2.93B | 2.92B | 3.30B | 2.23B | 1.91B |
| Total Debt | 6.44B | 5.28B | 5.52B | 5.38B | 5.64B |
| Total Liabilities | 10.67B | 9.71B | 10.27B | 10.09B | 9.93B |
| Stockholders Equity | 8.79B | 10.53B | 10.24B | 9.93B | 7.96B |
Cash Flow | |||||
| Free Cash Flow | -530.00M | 306.00M | 1.30B | 2.29B | 1.74B |
| Operating Cash Flow | 465.00M | 1.31B | 2.34B | 3.40B | 2.39B |
| Investing Cash Flow | -1.22B | -1.00B | -1.04B | -2.48B | -3.21B |
| Financing Cash Flow | 530.00M | -650.00M | -245.00M | -587.00M | 1.44B |
Westlake Corporation Technical Analysis
Neutral
112.61
Price Trends
108.11
Positive
92.04
Positive
84.95
Positive
Market Momentum
2.71
Positive
48.16
Neutral
27.73
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WLK, the sentiment is Neutral. The current price of 112.61 is below the 20-day moving average (MA) of 116.14, above the 50-day MA of 108.11, and above the 200-day MA of 84.95, indicating a neutral trend. The MACD of 2.71 indicates Positive momentum. The RSI at 48.16 is Neutral, neither overbought nor oversold. The STOCH value of 27.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WLK.
Westlake Corporation Risk Analysis
Westlake Corporation disclosed 34 risk factors in its most recent earnings report. Westlake Corporation reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Westlake Corporation Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $8.77B | 20.33 | 8.09% | 5.33% | -7.41% | -56.10% | |
66 Neutral | $23.75B | 26.50 | 10.92% | ― | 1.79% | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | $24.54B | 51.88 | -7.44% | 12.78% | -21.87% | -176.90% | |
57 Neutral | $22.47B | -10.05 | -5.13% | 1.10% | -4.37% | 48.60% | |
56 Neutral | $14.71B | -4.38 | -15.50% | 2.88% | -8.01% | -351.54% | |
49 Neutral | $5.46B | 30.69 | -9.59% | ― | -1.99% | -176.82% |
* Basic Materials Sector Average
WLK
Westlake Corporation
114.87
38.12
49.67%
ALB
Albemarle
190.69
134.19
237.52%
EMN
Eastman Chemical
76.72
4.19
5.78%
LYB
LyondellBasell
76.04
24.89
48.65%
SQM
Sociedad Quimica Y Minera SA
89.75
55.90
165.14%
AVTR
Avantor
7.99
-3.99
-33.31%
Westlake Corporation Corporate Events
Business Operations and StrategyFinancial DisclosuresLegal Proceedings
Westlake Posts Q1 2026 Loss Amid Restructuring Efforts
Negative
May 5, 2026
In the first quarter of 2026, Westlake Corporation reported net sales of $2.7 billion, a net loss of $169 million, or $1.31 per share, and EBITDA of $150 million, with results weighed down by an $85 million impact from identified items including a...
Business Operations and StrategyM&A Transactions
Westlake Eyes German PVC Asset in Strategic Expansion
Positive
May 1, 2026
On April 27, 2026, Westlake Corporation and its subsidiary Westlake Vinnolit GmbH Co. KG signed a non-binding letter of intent with the preliminary insolvency administrator of VYNOVA Wilhelmshaven GmbH to acquire a polyvinyl chloride and vinyl ch...
Business Operations and StrategyExecutive/Board Changes
Westlake Corporation Names Jonathan Baksht as New CFO
Positive
Apr 20, 2026
On April 15, 2026, Westlake Corporation’s board appointed Jonathan H. Baksht as Senior Vice President and Chief Financial Officer, effective June 15, 2026, succeeding long-serving finance chief M. Steven Bender, who will shift to a special a...
Legal Proceedings
Westlake Settles Direct Purchaser PVC Antitrust Lawsuit
Negative
Apr 14, 2026
Westlake Corporation and other PVC pipe and fittings manufacturers have faced ten putative class action lawsuits in Illinois, filed between August 2024 and June 2025, alleging a conspiracy with an industry publication to fix, raise, maintain and s...
Business Operations and StrategyPrivate Placements and Financing
Westlake Boosts Liquidity with New $1.5 Billion Credit Facility
Positive
Apr 6, 2026
On April 2, 2026, Westlake Corporation entered into a new unsecured revolving credit agreement providing up to $1.5 billion in borrowing capacity, replacing an existing facility of the same size that was terminated that day without costs or penalt...
Business Operations and StrategyExecutive/Board Changes
Westlake Announces Leadership Transition in Key Materials Segment
Positive
Apr 2, 2026
On March 30, 2026, Westlake Corporation’s board approved a leadership transition tied to the planned retirement of Robert F. Buesinger, who has been serving as Executive Vice President and head of the Performance Essential Materials segment...
Business Operations and StrategyFinancial Disclosures
Westlake Reports Challenging 2025 Results with Significant Loss
Negative
Feb 24, 2026
Westlake Corporation reported its fourth quarter and full‑year 2025 results, highlighting a difficult year marked by lower net sales and a swing to a substantial net loss compared with 2024. Consolidated net sales fell to $11.17 billion from...
Executive/Board Changes
Westlake Announces CFO Retirement and Board Leadership Changes
Neutral
Feb 23, 2026
On February 19, 2026, Westlake Corporation said Executive Vice President and Chief Financial Officer M. Steven Bender had notified the company of his intention to retire, with his departure to take effect once a successor is appointed. The move si...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.