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Westlake Corporation
(NYSE:WLK)
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Rating:48Neutral
Price Target:
$69.00
▼(-6.53% Downside)
Action:Reiterated
Date:08/04/26
The score is held down primarily by weak financial performance (losses and negative free cash flow) and bearish technicals (below key moving averages with negative MACD). Offsetting these, earnings-call commentary points to improving operations via the profitability plan and a more constructive Q2–Q3 outlook, while the ~3% dividend yield provides a modest valuation support despite a negative P/E driven by current losses.
Positive Factors
Vertical integration & diversified revenue
Westlake’s integrated model—upstream olefins/polyolefins and chlor‑alkali plus downstream PVC pipes and fittings—helps capture value across the chain. That diversification smooths cyclical swings, lets the company internalize feedstock advantages, and supports durable cash flows across end markets.
Negative Factors
Collapsed profitability and negative margins
Profitability has swung sharply negative on a TTM basis, leaving thin gross margins and large net losses. Persistent weak margins constrain reinvestment capacity, impair return metrics and increase the reliance on operational fixes and favorable commodity cycles to restore durable earnings power.
Read all positive and negative factors
Positive Factors
Negative Factors
Vertical integration & diversified revenue
Westlake’s integrated model—upstream olefins/polyolefins and chlor‑alkali plus downstream PVC pipes and fittings—helps capture value across the chain. That diversification smooths cyclical swings, lets the company internalize feedstock advantages, and supports durable cash flows across end markets.
Read all positive factors
Westlake Corporation (WLK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.03B
Dividend Yield3.01%
Average Volume (3M)1.07M
Price to Earnings (P/E)―
Beta (1Y)0.76
Revenue Growth-8.63%
EPS Growth-524.43%
CountryUS
Employees14,600
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)-9.61
Shares Outstanding128,122,940
10 Day Avg. Volume774,901
30 Day Avg. Volume1,069,564
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$97.69Price Target Upside32.34% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)3.02
Revenue Forecast (FY)$11.71B
Westlake Corporation Business Overview & Revenue Model
Company Description
Westlake Corporation operates as a global producer and supplier of petrochemicals, polymers, and a diverse range of building materials. Its business activities are structured into two main divisions: Performance and Essential Materials, and Housin...
How the Company Makes Money
Westlake makes money primarily by manufacturing and selling chemicals and downstream building products. Its major revenue streams come from: (1) Petrochemicals—selling olefins and polyolefins (notably ethylene and polyethylene) to packaging, consu...
Westlake Corporation Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 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
24
Negative
Balance Sheet
52
Neutral
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.29B | 11.17B | 12.14B | 12.55B | 15.79B | 11.78B |
| Gross Profit | 563.00M | 289.00M | 1.96B | 2.22B | 4.07B | 3.50B |
| EBITDA | -671.00M | -199.00M | 2.21B | 1.96B | 4.18B | 3.69B |
| Net Income | -1.24B | -1.51B | 602.00M | 479.00M | 2.25B | 2.02B |
Balance Sheet | ||||||
| Total Assets | 19.44B | 19.96B | 20.75B | 21.04B | 20.55B | 18.46B |
| Cash, Cash Equivalents and Short-Term Investments | 1.85B | 2.93B | 2.92B | 3.30B | 2.23B | 1.91B |
| Total Debt | 0.00 | 6.41B | 5.28B | 5.52B | 5.50B | 5.64B |
| Total Liabilities | 10.23B | 10.67B | 9.71B | 10.27B | 10.09B | 9.93B |
| Stockholders Equity | 8.71B | 8.79B | 10.53B | 10.24B | 9.93B | 7.96B |
Cash Flow | ||||||
| Free Cash Flow | -265.00M | -530.00M | 306.00M | 1.30B | 2.29B | 1.74B |
| Operating Cash Flow | 631.00M | 465.00M | 1.31B | 2.34B | 3.40B | 2.39B |
| Investing Cash Flow | -1.09B | -1.22B | -1.00B | -1.04B | -2.48B | -3.21B |
| Financing Cash Flow | 23.00M | 530.00M | -650.00M | -245.00M | -587.00M | 1.44B |
Westlake Corporation Technical Analysis
Positive
73.82
Price Trends
79.34
Positive
93.93
Negative
86.58
Negative
Market Momentum
-1.72
Negative
61.04
Neutral
44.91
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 73.82 is below the 20-day moving average (MA) of 74.97, below the 50-day MA of 79.34, and below the 200-day MA of 86.58, indicating a neutral trend. The MACD of -1.72 indicates Negative momentum. The RSI at 61.04 is Neutral, neither overbought nor oversold. The STOCH value of 44.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $8.00B | 18.07 | 7.42% | 4.91% | -4.30% | -46.24% | |
64 Neutral | $9.32B | -16.43 | -10.34% | ― | -1.57% | -183.83% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | $20.04B | -21.86 | -3.79% | 6.83% | -11.13% | -245.92% | |
56 Neutral | $13.87B | -34.60 | -2.35% | 1.41% | 7.87% | 69.44% | |
56 Neutral | $18.31B | 23.48 | 14.69% | 1.48% | 18.36% | 35.24% | |
48 Neutral | $9.03B | -5.53 | -17.68% | 2.87% | -8.63% | -524.43% |
* Basic Materials Sector Average
WLK
Westlake Corporation
80.63
-0.31
-0.38%
ALB
Albemarle
120.82
53.48
79.42%
EMN
Eastman Chemical
73.90
15.42
26.38%
LYB
LyondellBasell
61.11
12.86
26.65%
SQM
Sociedad Quimica Y Minera SA
68.58
32.71
91.21%
AVTR
Avantor
13.68
2.04
17.53%
Westlake Corporation Corporate Events
Business Operations and StrategyFinancial Disclosures
Westlake Corporation Posts Strong Q2 2026 Turnaround
Positive
Aug 4, 2026
In the second quarter of 2026, Westlake reported net sales of $3.3 billion, net income of $260 million, or $2.01 per share, and EBITDA of $679 million, marking a significant turnaround from losses in both the prior quarter and the same period in 2...
Legal Proceedings
Westlake’s European Ethylene Lawsuits Partially Dismissed in Court
Positive
Jul 29, 2026
On July 29, 2026, the District Court of Amsterdam dismissed two major components of the Ethylene Antitrust Litigation brought against Westlake and other ethylene consumers, rejecting claims by Shell Chemical Europe B.V., which sought about €...
Business Operations and StrategyM&A Transactions
Westlake Expands European Chlorovinyls Footprint with German Acquisition
Positive
Jun 15, 2026
On June 15, 2026, Westlake Corporation announced that its German subsidiary, Westlake Vinnolit GmbH Co. KG, completed the acquisition of a polyvinyl chloride and vinyl chloride monomer production site in Wilhelmshaven, Germany, which had been in ...
Executive/Board ChangesShareholder Meetings
Westlake Shareholders Endorse Board, Pay and Auditor
Positive
May 18, 2026
At its annual meeting of stockholders held on May 14, 2026, Westlake Corporation’s shareholders elected five members to the Board of Directors, confirming the company’s existing governance structure and leadership continuity. The vote ...
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...
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.