Westlake Corporation (WLK)
NYSE:WLK
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Westlake Corporation
(NYSE:WLK)
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Rating:46Neutral
Price Target:
$87.00
â–¼(-22.74% Downside)
Action:Reiterated
Date:05/19/26
WLK scores low primarily due to sharply deteriorated profitability and negative free cash flow, reinforced by weak price momentum and bearish technical signals. The score is partially supported by management’s operational improvement plan and 2026 EBITDA uplift targets from the latest earnings call, plus a modest dividend yield.
Positive Factors
Profitability improvement plan delivering
Management's three‑pillar plan has produced tangible cost and footprint savings, with ~$150M of the $600M annual EBITDA target realized in Q1. Sustained delivery of these structural efficiencies would materially improve margins, cash generation and resilience across cycles over multiple quarters.
Negative Factors
Collapsed profitability and net losses
Margins and earnings have deteriorated sharply to near break‑even levels, producing large net losses in 2025 and TTM. Structural margin compression undermines internal capital generation, weakens return metrics and heightens sensitivity to feedstock and PVC price cycles over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability improvement plan delivering
Management's three‑pillar plan has produced tangible cost and footprint savings, with ~$150M of the $600M annual EBITDA target realized in Q1. Sustained delivery of these structural efficiencies would materially improve margins, cash generation and resilience across cycles over multiple quarters.
Read all positive factors
Westlake Corporation (WLK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.23B
Dividend Yield2.88%
Average Volume (3M)1.11M
Price to Earnings (P/E)―
Beta (1Y)0.75
Revenue Growth-8.63%
EPS Growth-524.43%
CountryUS
Employees15,540
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)-12.74
Shares Outstanding128,122,940
10 Day Avg. Volume969,568
30 Day Avg. Volume1,114,924
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 Cap1.36
Enterprise Value/Revenue1.39
Enterprise Value/Gross Profit109.81
Enterprise Value/Ebitda-42.76
Forecast
1Y Price Target
$115.00Price Target Upside2.12% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)3.89
Revenue Forecast (FY)$12.05B
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)
| % Change Since: |
Next Earnings Date:Aug 04, 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
56
Neutral
Cash Flow
35
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.98B | 11.17B | 12.14B | 12.55B | 15.79B | 11.78B |
| Gross Profit | 139.00M | 289.00M | 1.96B | 2.22B | 4.07B | 3.50B |
| EBITDA | -357.00M | -199.00M | 2.21B | 1.96B | 4.18B | 3.69B |
| Net Income | -1.64B | -1.51B | 602.00M | 479.00M | 2.25B | 2.02B |
Balance Sheet | ||||||
| Total Assets | 19.71B | 19.96B | 20.75B | 21.04B | 20.55B | 18.46B |
| Cash, Cash Equivalents and Short-Term Investments | 2.48B | 2.93B | 2.92B | 3.30B | 2.23B | 1.91B |
| Total Debt | 6.41B | 6.44B | 5.28B | 5.52B | 5.38B | 5.64B |
| Total Liabilities | 10.66B | 10.67B | 9.71B | 10.27B | 10.09B | 9.93B |
| Stockholders Equity | 8.55B | 8.79B | 10.53B | 10.24B | 9.93B | 7.96B |
Cash Flow | ||||||
| Free Cash Flow | -508.00M | -530.00M | 306.00M | 1.30B | 2.29B | 1.74B |
| Operating Cash Flow | 448.00M | 465.00M | 1.31B | 2.34B | 3.40B | 2.39B |
| Investing Cash Flow | -1.06B | -1.22B | -1.00B | -1.04B | -2.48B | -3.21B |
| Financing Cash Flow | 563.00M | 530.00M | -650.00M | -245.00M | -587.00M | 1.44B |
Westlake Corporation Technical Analysis
Negative
112.61
Price Trends
106.14
Negative
100.14
Negative
87.29
Negative
Market Momentum
-5.76
Positive
29.31
Positive
15.72
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WLK, the sentiment is Negative. The current price of 112.61 is above the 20-day moving average (MA) of 93.95, above the 50-day MA of 106.14, and above the 200-day MA of 87.29, indicating a bearish trend. The MACD of -5.76 indicates Positive momentum. The RSI at 29.31 is Positive, neither overbought nor oversold. The STOCH value of 15.72 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
66 Neutral | $20.79B | -89.28 | -2.35% | 1.10% | 7.87% | 69.44% | |
66 Neutral | $22.66B | 29.77 | 14.69% | ― | 18.36% | 35.24% | |
65 Neutral | $8.73B | 21.68 | 6.77% | 5.33% | -7.41% | -56.10% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
54 Neutral | $6.25B | -11.21 | -9.59% | ― | -1.99% | -176.82% | |
52 Neutral | $22.06B | -27.06 | -7.44% | 12.78% | -21.87% | -176.90% | |
46 Neutral | $11.23B | -6.79 | -17.68% | 2.88% | -8.63% | -524.43% |
* Basic Materials Sector Average
WLK
Westlake Corporation
86.83
18.80
27.64%
ALB
Albemarle
176.42
122.28
225.86%
EMN
Eastman Chemical
75.87
0.94
1.26%
LYB
LyondellBasell
66.65
15.59
30.52%
SQM
Sociedad Quimica Y Minera SA
85.87
56.06
188.06%
AVTR
Avantor
9.12
-3.84
-29.63%
Westlake Corporation Corporate Events
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...
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.