Westlake Corporation (WLK) AI Stock Analysis

• Market Cap: $13.36B
• Dividend Yield: 2.88%
• Average Volume (3M): 1.36M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.97
• Revenue Growth: -5.32%
• EPS Growth: -1108.29%
• Country: US
• Employees: 15,540
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): -0.25
• Shares Outstanding: 128,273,220
• 10 Day Avg. Volume: 1,251,776
• 30 Day Avg. Volume: 1,358,509
• PEG Ratio: 0.02
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 0.85
• P/FCF Ratio: -17.98
• Enterprise Value/Market Cap: 0.82
• Enterprise Value/Revenue: 0.98
• Enterprise Value/Gross Profit: 38.05
• Enterprise Value/Ebitda: -55.26
• 1Y Price Target: $101.00
• Price Target Upside: 0.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 0.8
• Revenue Forecast (FY): $11.32B

• Rating: 55 Neutral
• Price Target: $95.00 ▼(-5.32% Downside)
• Action: Reiterated Date: 02/24/26
• Date: Action: Reiterated 02/24/26

The score is held down primarily by weak recent financial performance (losses, margin compression, and negative free cash flow), partly offset by constructive technical trend signals and a mixed-but-action-oriented earnings call featuring a sizable 2026 self-help improvement target.

Positive Factors

Balance sheet & liquidity

Strong liquidity ( ~$2.9B cash/securities) and a large equity base (~$8.79B) with moderate leverage give Westlake financial flexibility. The long average debt maturity profile reduces near-term refinancing risk and supports funding of capex, restructurings and cyclical downturns.

Housing & Infrastructure Products resilience

The HIP segment generates durable, higher-margin cash flow (2025 EBITDA $839M at ~20% margin) and has explicit 2026 revenue/margin guidance. Product innovation (e.g., PVCO), municipal pipe demand and the ACI compounding deal diversify revenue and support more stable earnings versus commodity chemicals.

Management execution & cost program

Management has executed tangible actions—$170M of structural savings in 2025, asset closures and ~6% headcount cuts—and set a clear $600M three-pillar target for 2026. These disciplined structural levers (footprint, reliability, cost) can sustainably restore margins if executed and market conditions normalize.

Negative Factors

Severe profitability decline

A dramatic swing to large net losses undermines retained earnings and return metrics. Such a material hit to profitability compresses margins, weakens ROE and limits the firm’s cushion to absorb future cycles, raising execution risk for recovery plans over the next several quarters.

Weak free cash flow

Free cash flow turned negative TTM, and 2025 operating cash flow was small relative to capex, constraining internal funding. Persistent weak FCF reduces capacity to deleverage, fund strategic projects or return capital, making recovery dependent on both operational fixes and market recovery.

Structural market overcapacity & reliability issues

Industry overcapacity has driven sustained price pressure in core vinyl/PEM chains while elevated outages reduced output and increased costs. These structural supply/demand imbalances and reliability shortcomings can keep margins depressed until capacity rationalizes or demand recovers, a multi-quarter risk.

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 Materials segment manufactures and markets polyethylene, styrene monomer, ethylene co-products, PVC, VCM, ethylene dichloride chlor-alkali, and chlorinated derivative products. The Housing and Infrastructure Products segment manufactures and sells residential PVC siding; PVC trim and moldings; roofing applications; decorative stone; windows; PVC decking; PVC films for various inflatables, wallcovering, tape, and roofing applications; polymer composite roof tiles; PVC pipe and fittings; PVC compounds; and various consumer and commercial products such as landscape edging; industrial, home and office matting; marine dock edging; and masonry joint controls. The company offers its products to a range of customers, including chemical processors, plastics fabricators, small construction contractors, municipalities, and supply warehouses for use in various consumer and industrial markets, including residential construction, flexible and rigid packaging, automotive products, healthcare products, water treatment, and coatings, as well as other durable and non-durable goods. The company was formerly known as Westlake Chemical Corporation and changed its name to Westlake Corporation in February 2022. The company was founded in 1986 and is headquartered in Houston, Texas. Westlake Corporation is a subsidiary of TTWF LP.

How the Company Makes Money

Westlake Corporation generates revenue through multiple key streams, primarily from the sale of its petrochemical and building products. The Olefins and Vinyls segment contributes significantly to its earnings by producing and selling essential chemicals and plastics used in various industries. The Building Products segment also provides a substantial revenue source through its diverse range of construction materials. Additionally, Westlake benefits from strategic partnerships and joint ventures that enhance its market presence and operational efficiency. Fluctuations in raw material prices, particularly in the oil and gas sector, can impact profit margins, but the company's integrated business model helps mitigate these risks by optimizing production and supply chain processes.

Westlake Corporation Financial Statement Overview

Summary

Results are pressured by a sharp profitability downturn (TTM net loss and material margin compression) and weakened cash generation (free cash flow turned negative), partially offset by a comparatively solid balance sheet with moderate leverage and substantial equity.

Income Statement

Profitability deteriorated sharply into TTM (Trailing-Twelve-Months): revenue declined to $11.17B (down 2.7%) and the company swung from a $602M profit in 2024 to a $1.51B net loss, with negative operating income as well. Margins compressed materially versus prior years (gross margin down to ~9.2% in TTM from mid-teens in 2023–2024 and ~26–30% in 2021–2022), signaling a tough pricing/cost environment. The key positive is that the company has demonstrated strong earnings power in the recent cycle peak (2021–2022), but the current run-rate is weak and volatile.

Balance Sheet

The balance sheet is a relative strength, supported by a large equity base ($8.79B in TTM) against total assets of ~$19.96B. Leverage appears moderate with debt-to-equity around ~0.57 in TTM (broadly consistent with prior years), providing financial flexibility for a cyclical chemicals business. The main concern is that returns on equity turned negative in TTM due to losses, which can pressure credit metrics and constrain capital returns if the downturn persists.

Cash Flow

Cash generation weakened materially in TTM (Trailing-Twelve-Months): operating cash flow fell to $465M and free cash flow turned negative (-$289M), down meaningfully from positive free cash flow in 2024 ($306M) and especially 2022–2023. While operating cash flow remains positive despite reported losses (a stabilizing factor), the negative free cash flow indicates higher spending and/or working-capital pressure, reducing near-term financial flexibility.

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	497.00M	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

• Technical Analysis Sentiment: Positive
• Last Price: 100.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WLK, the sentiment is Positive. The current price of 100.34 is above the 20-day moving average (MA) of 94.17, above the 50-day MA of 85.05, and above the 200-day MA of 78.51, indicating a bullish trend. The MACD of 4.52 indicates Negative momentum. The RSI at 64.87 is Neutral, neither overbought nor oversold. The STOCH value of 52.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WLK.

Westlake Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EMN	68 Neutral	$8.80B	18.81	8.07%	5.33%	-3.33%	-19.59%
SQM	63 Neutral	$20.73B	43.62	9.87%	―	-10.07%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ALB	60 Neutral	$22.02B	-34.03	-5.24%	1.10%	-23.92%	90.47%
LYB	60 Neutral	$18.79B	-24.27	-7.03%	12.78%	-19.65%	-157.13%
WLK	55 Neutral	$13.36B	―	-15.56%	2.88%	-5.32%	-1108.29%
AVTR	50 Neutral	$6.21B	-11.65	-9.20%	―	-3.59%	-126.16%

Westlake Corporation Corporate Events

Westlake Reports Challenging 2025 Results with Significant Loss

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 $12.14 billion a year earlier, while net income attributable to the company moved from a $602 million profit in 2024 to a $1.51 billion loss in 2025, driven by significant identified items and weaker operating performance.

For the fourth quarter of 2025, Westlake’s net sales declined to $2.53 billion from $2.84 billion in the prior‑year period, and it posted an operating loss of $671 million versus income of $66 million a year earlier. The Housing and Infrastructure Products segment remained profitable, generating $4.15 billion in 2025 net sales and $587 million in operating income, though both were down from 2024, indicating resilient but pressured demand in building‑related end markets.

Across 2025, the company recorded negative EBITDA of $248 million versus positive EBITDA of $2.21 billion in 2024, but EBITDA excluding identified items remained positive at $1.14 billion, underscoring the scale of non‑recurring charges. Management emphasized that it undertook “meaningful actions” during 2025 to optimize its footprint, improve plant reliability and structurally reduce costs, positioning the business for improved earnings in 2026 despite the challenging past year.

The most recent analyst rating on (WLK) stock is a Hold with a $80.00 price target. To see the full list of analyst forecasts on Westlake Corporation stock, see the WLK Stock Forecast page.

Westlake Announces CFO Retirement and Board Leadership Changes

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 signals an upcoming leadership transition in Westlake’s finance function, a key role for capital allocation and strategic planning in its global materials business.

On February 20, 2026, Westlake’s board expanded to 14 members and elected former LyondellBasell chief executive Bhavesh V. “Bob” Patel as a Class III director and company president and CEO Jean-Marc Gilson as a Class I director. Patel’s appointment, which includes committee roles and an RSU grant, and Gilson’s addition to the board are intended to deepen sector expertise and tighten strategic alignment between management and directors, potentially strengthening governance and long-term positioning.

The most recent analyst rating on (WLK) stock is a Hold with a $80.00 price target. To see the full list of analyst forecasts on Westlake Corporation stock, see the WLK Stock Forecast page.

Westlake Completes Acquisition of ACI/Perplastic Compounding Businesses

On January 5, 2026, Westlake Corporation completed its acquisition of the global compounding solutions businesses of the ACI/Perplastic Group, a Portugal-based specialty materials manufacturer focused on the wire and cable sectors. The deal strengthens Westlake’s Housing & Infrastructure Products business and Westlake Global Compounds unit by adding new specialty products, advanced technologies and an expanded manufacturing footprint in Portugal, Romania and Tunisia, complementing its existing compounding operations in Mexico and enhancing its competitive positioning in global compounds markets.

The most recent analyst rating on (WLK) stock is a Buy with a $92.00 price target. To see the full list of analyst forecasts on Westlake Corporation stock, see the WLK Stock Forecast page.

Westlake Corporation Announces Major Facility Closures

On December 12, 2025, Westlake Corporation announced plans to cease operations at several North American chlorovinyl production facilities, including PVC, VCM, and chlor-alkali units, as well as a styrene production plant. These closures, expected to occur in December 2025, will result in a workforce reduction of approximately 295 employees and incur pre-tax costs of about $415 million. Despite these shutdowns, Westlake plans to continue supplying its customers from other facilities, maintaining significant production capacity in North America and globally. The decision reflects ongoing challenges in the global commodities chemicals industry and aims to improve profitability within its Performance & Essential Materials segment.

The most recent analyst rating on (WLK) stock is a Hold with a $69.00 price target. To see the full list of analyst forecasts on Westlake Corporation stock, see the WLK Stock Forecast page.