Westlake Corporation (WLK) AI Stock Analysis

• Market Cap: $10.20B
• Dividend Yield: 2.88%
• Average Volume (3M): 1.43M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.03
• Revenue Growth: -5.32%
• EPS Growth: -1108.29%
• Country: US
• Employees: 15,540
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): -0.29
• Shares Outstanding: 128,273,220
• 10 Day Avg. Volume: 1,035,863
• 30 Day Avg. Volume: 1,428,633
• PEG Ratio: 0.97
• Price to Book (P/B): 1.40
• Price to Sales (P/S): 1.21
• P/FCF Ratio: 48.16
• Enterprise Value/Market Cap: 1.34
• Enterprise Value/Revenue: 1.19
• Enterprise Value/Gross Profit: 12.95
• Enterprise Value/Ebitda: 28.26
• 1Y Price Target: $82.64
• Price Target Upside: 3.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: $77.00 ▼(-3.18% Downside)

The score is held back primarily by weak financial performance (losses, pressured margins, and negative free cash flow), despite a solid leverage profile. Technicals are improving and provide support, while valuation is constrained by negative earnings and only partly offset by the dividend. Management commentary and recent events are mixed, balancing cost actions and growth investments against continued cyclic/structural challenges in PEM and restructuring impacts.

Positive Factors

Balance Sheet Strength

A low debt-to-equity ratio of 0.15 provides durable financial flexibility, helping Westlake fund strategic investments, absorb cyclic chemical volatility, and execute acquisitions without excessive leverage. This supports long-term operational continuity despite earnings swings.

HIP Segment Resilience and Investments

The Housing & Infrastructure Products segment has sustained volumes and customer ties even amid softer residential activity; coupled with investments like the new PVCO pipe facility, this underpins steady cash generation potential and structural growth exposure to rebuilding and infrastructure trends.

Acquisition Expands Global Compounds Footprint

The ACI/Perplastic purchase broadens Westlake Global Compounds across Europe and North Africa, adding specialty products and technologies. This diversifies end markets and manufacturing locations, strengthening competitive position in higher-value compounds and reducing reliance on legacy PVC commodity cycles.

Negative Factors

Weak Profitability and Declining Revenue

Sustained negative margins and falling revenue indicate structural profitability challenges. Over time this erodes retained earnings, constrains reinvestment capacity, and pressures returns on capital, forcing difficult tradeoffs between cost cuts, portfolio reshaping, and investment in growth businesses.

Negative Free Cash Flow

Positive operating cash flow but negative free cash flow signals capital intensity or cash outflows after capex and restructuring. Persisting FCF deficits reduce self-funded growth options, increase reliance on capital markets, and limit durable ability to sustain dividends or opportunistic M&A without dilutive financing.

Major Impairment Reflects Structural PEM Weakness

A $727M noncash goodwill impairment signals that chlorovinyl assets face a prolonged trough and impaired long-term earnings potential. This reflects durable demand or price structural issues in the PEM portfolio, likely prompting further restructuring, asset rationalization, and reduced future cash contributions from that business.

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

Westlake Corporation faces significant financial challenges, particularly in profitability and cash flow. The income statement shows declining revenues and profitability, while the balance sheet remains relatively stable with low leverage. Cash flow issues are evident, with negative free cash flow in the TTM period. Strategic measures are needed to address these challenges and improve financial performance.

Income Statement

Westlake Corporation's income statement shows significant challenges in recent periods. The TTM data reveals a negative net profit margin of -8.34%, indicating losses, and a declining revenue trend with a -2.37% growth rate. The gross profit margin has also decreased to 9.18% from higher levels in previous years. These factors suggest profitability issues and a need for strategic adjustments.

Balance Sheet

The balance sheet reflects a relatively stable financial position with a low debt-to-equity ratio of 0.15 in the TTM period, indicating manageable leverage. However, the return on equity is negative at -9.42%, reflecting recent losses. The equity ratio remains healthy, suggesting a solid asset base relative to equity.

Cash Flow

Cash flow analysis shows mixed results. The operating cash flow remains positive, but the free cash flow is negative in the TTM period, indicating cash outflows after capital expenditures. The free cash flow to net income ratio is negative, highlighting cash flow challenges. However, the operating cash flow to net income ratio is positive, suggesting some operational cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.48B	12.14B	12.55B	15.79B	11.78B	7.50B
Gross Profit	1.05B	1.96B	2.22B	4.07B	3.50B	1.02B
EBITDA	483.00M	2.21B	1.96B	4.18B	3.69B	1.25B
Net Income	-957.00M	602.00M	479.00M	2.25B	2.02B	330.00M
Balance Sheet
Total Assets	19.81B	20.75B	21.04B	20.55B	18.46B	13.84B
Cash, Cash Equivalents and Short-Term Investments	2.13B	2.92B	3.30B	2.23B	1.91B	1.31B
Total Debt	5.37B	5.28B	5.52B	5.38B	5.64B	3.95B
Total Liabilities	9.88B	9.71B	10.27B	10.09B	9.93B	7.26B
Stockholders Equity	9.43B	10.53B	10.24B	9.93B	7.96B	6.04B
Cash Flow
Free Cash Flow	-365.00M	306.00M	1.30B	2.29B	1.74B	772.00M
Operating Cash Flow	674.00M	1.31B	2.34B	3.40B	2.39B	1.30B
Investing Cash Flow	-1.23B	-1.00B	-1.04B	-2.48B	-3.21B	-509.00M
Financing Cash Flow	-418.00M	-650.00M	-245.00M	-587.00M	1.44B	-216.00M

Westlake Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 79.53
• 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 79.53 is above the 20-day moving average (MA) of 74.46, above the 50-day MA of 68.69, and above the 200-day MA of 78.25, indicating a bullish trend. The MACD of 2.05 indicates Negative momentum. The RSI at 66.38 is Neutral, neither overbought nor oversold. The STOCH value of 64.39 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	72 Outperform	$7.85B	11.47	12.24%	5.33%	-3.33%	-19.59%
SQM	71 Outperform	$20.56B	40.61	9.87%	―	-10.07%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ALB	58 Neutral	$18.98B	-99.14	-0.21%	1.10%	-23.92%	90.47%
WLK	56 Neutral	$10.20B	-10.71	-9.48%	2.88%	-5.32%	-1108.29%
LYB	52 Neutral	$15.33B	-12.67	-10.44%	12.78%	-19.65%	-157.13%
AVTR	48 Neutral	$8.22B	-99.01	-1.48%	―	-3.59%	-126.16%

Westlake Corporation Corporate Events

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.

Westlake Corporation Announces Results of Cash Tender Offer

On November 10, 2025, Westlake Corporation announced the pricing and results of its cash tender offer for its outstanding 3.600% Senior Notes due 2026. The tender offer, which expired on the same day, was conducted to manage the company’s debt profile and financial strategy, with the settlement expected around November 12, 2025. This move is part of Westlake’s broader financial management efforts, potentially impacting its market positioning and stakeholder interests by optimizing its capital structure.

The most recent analyst rating on (WLK) stock is a Hold with a $83.00 price target. To see the full list of analyst forecasts on Westlake Corporation stock, see the WLK Stock Forecast page.

Westlake Corporation Announces $1.2 Billion Notes Offering

On November 4, 2025, Westlake Corporation announced the pricing of its $1.2 billion public offering of senior unsecured notes, with $600 million due in 2035 and another $600 million due in 2055. The proceeds from this offering are intended to repurchase outstanding senior notes due in 2026 and fund the acquisition of ACI/Perplastic Group’s global compounding solutions business, as well as for general corporate purposes. The offering is expected to close on November 6, 2025, and is not contingent upon the completion of the acquisition or the tender offer.

The most recent analyst rating on (WLK) stock is a Hold with a $83.00 price target. To see the full list of analyst forecasts on Westlake Corporation stock, see the WLK Stock Forecast page.

Westlake Corporation Announces Cash Tender Offer for Notes

On November 4, 2025, Westlake Corporation announced the commencement of a cash tender offer to purchase any and all of its outstanding 3.600% Senior Notes due 2026. The tender offer aims to extend the maturity of Westlake’s outstanding indebtedness and is contingent upon the successful completion of a concurrent senior notes offering. The offer is set to expire on November 10, 2025, and Westlake plans to fund the purchase of the notes with the net proceeds from the notes offering, potentially impacting the company’s financial structure and market positioning.

The most recent analyst rating on (WLK) stock is a Hold with a $83.00 price target. To see the full list of analyst forecasts on Westlake Corporation stock, see the WLK Stock Forecast page.

Westlake Corporation Reports Q3 2025 Financial Loss

Westlake Corporation reported its third quarter 2025 financial results, revealing a net loss of $782 million due to a significant non-cash impairment charge related to its North American chlorovinyls business. The company’s EBITDA, excluding identified items, decreased compared to both the previous quarter and the same quarter in 2024, primarily due to lower sales prices and volumes in its Performance and Essential Materials segment, as well as administrative and restructuring expenses in its Housing and Infrastructure Products segment.

The most recent analyst rating on (WLK) stock is a Buy with a $93.00 price target. To see the full list of analyst forecasts on Westlake Corporation stock, see the WLK Stock Forecast page.