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Westlake Q2 Earnings Miss Estimates, Revenues Decline Y/Y
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Key Takeaways
Westlake reported a Q2 loss of $142M versus a $313M profit a year earlier.
Westlake's Q2 sales fell 7.9% to $2.95B on lower volumes, prices and plant outages.
Cost savings of $150-$175M in 2025 aim to offset weak demand and high costs.
Westlake Corporation (WLK - Free Report) reported a loss of $142 million or $1.11 per share for the second quarter of 2025. This compares to a profit of $313 million or $2.40 per share in the year-ago quarter.
Barring one-time items, adjusted loss per share came in at 9 cents, missing the Zacks Consensus Estimate of earnings of 6 cents.
Sales dipped around 7.9% year over year to $2,953 million in the quarter. It missed the Zacks Consensus Estimate of $3,039.3 million. The top line was negatively impacted by lower sales volumes due to planned turnarounds, unplanned plant outages and lower average sales prices.
The results in the second quarter were also affected by higher North American feedstock and energy costs.
Sales in the Performance and Essential Materials segment went down around 10.9% year over year to $1,793 million in the reported quarter. It lagged our estimate of $1,847 million. Performance and Essential Materials' loss from operations in the second quarter of 2025 was $318 million compared with an income of $157 million in the second quarter of 2024 due to higher North American feedstock and energy costs and higher planned turnarounds and unplanned outages. Lower average sales prices and sales volumes weighed on the segment’s performance.
The Housing and Infrastructure Products (HIP) segment generated sales of $1,160 million, down around 2.8% from the year-ago quarter. The figure missed our estimate of $1200 million. HIP’s income from operations in the second quarter of 2025 was $222 million, down $44 million from the second quarter of 2024. The year-over-year decline resulted from lower average sales price and lower sales volume.
WLK's Financial Position
Operating activities generated $135 million in net cash in the second quarter of 2025. Capital expenditures were $267 million. For the quarter, free cash outflow was $132 million. As of June 30, 2025, the company's cash and cash equivalents were roughly $2.09 billion, with a total debt of $4.65 billion.
WLK's 2025 Outlook
Westlake expects its operations to improve in the second half of 2025 as production at its chlorovinyls facilities returns to normal following recent disruptions. However, the company faces challenges from weak global demand, uncertainty around tariffs, and higher feedstock and energy costs. To offset these pressures, Westlake is pushing its cost-cutting plans, aiming to save $150-$175 million this year and a further $200 million by 2026. The planned closure of the Pernis facility and other efficiency measures are expected to boost profitability in 2026, supported by the company’s broad product range and strong market position.
WLK’s Zacks Rank & Key Picks
WLK currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks worth a look in the basic materials space are Avino Silver & Gold Mines Ltd. (ASM - Free Report) , Gold Fields Limited (GFI - Free Report) and Vizsla Silver Corp. (VZLA - Free Report) .
Avino Silver is slated to report second-quarter results on Aug. 13. The Zacks Consensus Estimate for earnings is pegged at 3 cents per share. ASM’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, with the average surprise being 104.2%. Avino Silver flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Gold Fields is slated to report second-quarter results on Aug. 22. The Zacks Consensus Estimate for GFI’s second-quarter earnings is pegged at 59 cents per share. Gold Fields currently sports a Zacks Rank #1.
Vizsla is expected to report quarterly results on Sept. 11. The consensus estimate for VZLA’s earnings is pegged at a loss of a penny per share. VZLA’s earnings met the Zacks Consensus Estimate in three of the last four quarters while beating it in one, with the average surprise being 75%. Vizsla sports a Zacks Rank #1 at present.
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Westlake Q2 Earnings Miss Estimates, Revenues Decline Y/Y
Key Takeaways
Westlake Corporation (WLK - Free Report) reported a loss of $142 million or $1.11 per share for the second quarter of 2025. This compares to a profit of $313 million or $2.40 per share in the year-ago quarter.
Barring one-time items, adjusted loss per share came in at 9 cents, missing the Zacks Consensus Estimate of earnings of 6 cents.
Sales dipped around 7.9% year over year to $2,953 million in the quarter. It missed the Zacks Consensus Estimate of $3,039.3 million. The top line was negatively impacted by lower sales volumes due to planned turnarounds, unplanned plant outages and lower average sales prices.
The results in the second quarter were also affected by higher North American feedstock and energy costs.
Westlake Corp. Price, Consensus and EPS Surprise
Westlake Corp. price-consensus-eps-surprise-chart | Westlake Corp. Quote
WLK's Q2 Segment Highlights
Sales in the Performance and Essential Materials segment went down around 10.9% year over year to $1,793 million in the reported quarter. It lagged our estimate of $1,847 million. Performance and Essential Materials' loss from operations in the second quarter of 2025 was $318 million compared with an income of $157 million in the second quarter of 2024 due to higher North American feedstock and energy costs and higher planned turnarounds and unplanned outages. Lower average sales prices and sales volumes weighed on the segment’s performance.
The Housing and Infrastructure Products (HIP) segment generated sales of $1,160 million, down around 2.8% from the year-ago quarter. The figure missed our estimate of $1200 million. HIP’s income from operations in the second quarter of 2025 was $222 million, down $44 million from the second quarter of 2024. The year-over-year decline resulted from lower average sales price and lower sales volume.
WLK's Financial Position
Operating activities generated $135 million in net cash in the second quarter of 2025. Capital expenditures were $267 million. For the quarter, free cash outflow was $132 million. As of June 30, 2025, the company's cash and cash equivalents were roughly $2.09 billion, with a total debt of $4.65 billion.
WLK's 2025 Outlook
Westlake expects its operations to improve in the second half of 2025 as production at its chlorovinyls facilities returns to normal following recent disruptions. However, the company faces challenges from weak global demand, uncertainty around tariffs, and higher feedstock and energy costs. To offset these pressures, Westlake is pushing its cost-cutting plans, aiming to save $150-$175 million this year and a further $200 million by 2026. The planned closure of the Pernis facility and other efficiency measures are expected to boost profitability in 2026, supported by the company’s broad product range and strong market position.
WLK’s Zacks Rank & Key Picks
WLK currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks worth a look in the basic materials space are Avino Silver & Gold Mines Ltd. (ASM - Free Report) , Gold Fields Limited (GFI - Free Report) and Vizsla Silver Corp. (VZLA - Free Report) .
Avino Silver is slated to report second-quarter results on Aug. 13. The Zacks Consensus Estimate for earnings is pegged at 3 cents per share. ASM’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, with the average surprise being 104.2%. Avino Silver flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Gold Fields is slated to report second-quarter results on Aug. 22. The Zacks Consensus Estimate for GFI’s second-quarter earnings is pegged at 59 cents per share. Gold Fields currently sports a Zacks Rank #1.
Vizsla is expected to report quarterly results on Sept. 11. The consensus estimate for VZLA’s earnings is pegged at a loss of a penny per share. VZLA’s earnings met the Zacks Consensus Estimate in three of the last four quarters while beating it in one, with the average surprise being 75%. Vizsla sports a Zacks Rank #1 at present.