Westlake Corporation (WLK)
NYSE:WLK
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Westlake Corporation
(NYSE:WLK)
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Rating:58Neutral
Price Target:
$125.00
▲(6.00% Upside)
Action:ReiteratedDate:04/15/26
The score is held back primarily by weak recent financial performance (losses, compressed margins, and negative free cash flow). Technicals are a notable offset with a strong uptrend and positive momentum, while the earnings call adds moderate support due to specific 2026 improvement targets and strong liquidity. Valuation support is limited by negative earnings, and corporate events are mixed (improved financing flexibility vs. legal settlement risk).
Positive Factors
Balance Sheet Strength
A sizable equity base and moderate leverage (debt-to-equity ~0.57) give Westlake structural financial flexibility to withstand cyclical downturns, fund necessary capex and restructuring, and access capital markets. This durability supports execution of multi-year recovery plans and limits short-term distress risk.
Negative Factors
Earnings & Margin Deterioration
A large recent GAAP loss and materially compressed margins reflect structural pricing pressure and elevated input/operating disruptions. Persistent weak profitability erodes returns on capital, strains reinvestment capacity and raises execution risk for multi-year initiatives unless market pricing or volumes recover sustainably.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
A sizable equity base and moderate leverage (debt-to-equity ~0.57) give Westlake structural financial flexibility to withstand cyclical downturns, fund necessary capex and restructuring, and access capital markets. This durability supports execution of multi-year recovery plans and limits short-term distress risk.
Read all positive factors
Westlake Corporation (WLK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.37B
Dividend Yield2.88%
Average Volume (3M)1.25M
Price to Earnings (P/E)―
Beta (1Y)0.91
Revenue Growth-5.32%
EPS Growth-1108.29%
CountryUS
Employees15,540
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)-0.25
Shares Outstanding127,910,340
10 Day Avg. Volume1,109,789
30 Day Avg. Volume1,252,111
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 Cap1.22
Enterprise Value/Revenue1.68
Enterprise Value/Gross Profit65.12
Enterprise Value/Ebitda-94.57
Forecast
1Y Price Target
$119.15Price Target Upside1.03% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)2.86
Revenue Forecast (FY)$11.66B
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:Feb 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Neutral
The call presents a mixed picture: 2025 was a challenging year with meaningful price and volume declines (full-year sales down 8%), PEM margin compression, material one-time charges ($511M) and a full-year net loss of $116M. However, management has taken decisive restructuring and cost-saving actions (achieved $170M of structural savings in 2025, closed higher-cost assets, reduced headcount ~6%) and provides a clear three‑pillar plan targeting $600M of EBITDA improvement in 2026, alongside strong liquidity (cash & securities $2.9B) and HIP resiliency (2025 HIP EBITDA $839M, 20% margin) and sustainability achievements. The call balances significant near-term negatives with concrete self-help measures and positive guidance; outcome will depend on execution and market recovery.Positive Updates
Q4 and Full-Year EBITDA (Non-GAAP)
Reported fourth-quarter EBITDA of $196,000,000 (excluding $511,000,000 of identified items) and full-year 2025 EBITDA of $1,100,000,000 on sales of $11,200,000,000.
Negative Updates
Net Losses and Declining Sales
Reported a Q4 2025 net loss of $33,000,000 (loss of $0.25 per share) and a full-year 2025 net loss of $116,000,000. Full-year sales declined 8% year-over-year to $11,200,000,000.
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Q4-2025 Updates
Positive
Negative
Q4 and Full-Year EBITDA (Non-GAAP)
Reported fourth-quarter EBITDA of $196,000,000 (excluding $511,000,000 of identified items) and full-year 2025 EBITDA of $1,100,000,000 on sales of $11,200,000,000.
Read all positive updates
Company Guidance
Management guided that its three‑pillar self‑help plan should drive $600,000,000 of earnings improvement in 2026 — roughly $200,000,000 from footprint optimization (including an estimated $100,000,000 annual EBITDA benefit for PEM from the recent closures), $200,000,000 from improved plant reliability and $200,000,000 from additional structural cost reductions — building on >$170,000,000 of structural savings delivered in 2025 (including $60,000,000 in Q4) and a 6% headcount reduction; for 2026 they forecast HIP revenue of $4,400,000,000–$4,600,000,000 with a 19%–21% EBITDA margin, capital expenditures of approximately $900,000,000 (about $100,000,000 lower year‑over‑year), an effective tax rate of ~17%, and cash interest expense of ~ $215,000,000.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
Positive
117.93
Price Trends
106.56
Positive
90.28
Positive
84.35
Positive
Market Momentum
3.97
Positive
58.03
Neutral
50.34
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 117.93 is above the 20-day moving average (MA) of 115.56, above the 50-day MA of 106.56, and above the 200-day MA of 84.35, indicating a bullish trend. The MACD of 3.97 indicates Positive momentum. The RSI at 58.03 is Neutral, neither overbought nor oversold. The STOCH value of 50.34 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | $8.46B | 15.45 | 8.09% | 5.33% | -3.33% | -19.59% | |
62 Neutral | $23.50B | 33.47 | 10.92% | ― | -10.07% | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
59 Neutral | $24.33B | -18.77 | -6.63% | 12.78% | -19.65% | -157.13% | |
58 Neutral | $15.37B | -6.32 | -15.50% | 2.88% | -5.32% | -1108.29% | |
57 Neutral | $21.85B | ― | -5.13% | 1.10% | -23.92% | 90.47% | |
50 Neutral | $5.53B | -14.65 | -9.02% | ― | -3.59% | -126.16% |
* Basic Materials Sector Average
WLK
Westlake Corporation
117.93
30.26
34.51%
ALB
Albemarle
189.86
136.78
257.70%
EMN
Eastman Chemical
73.79
-0.25
-0.34%
LYB
LyondellBasell
73.25
21.36
41.15%
SQM
Sociedad Quimica Y Minera SA
88.93
54.06
155.03%
AVTR
Avantor
8.20
-7.20
-46.75%
Westlake Corporation Corporate Events
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.