Westlake Corporation Reports Second Quarter 2025 Results

Westlake Corporation (the “Company” or “Westlake”) announced second quarter 2025 results.

Business Highlights

In the second quarter of 2025, Westlake reported net sales of $3.0 billion, a net loss of $142 million, or $1.11 per share, and EBITDA (earnings before interest expense, income taxes, depreciation and amortization) of $210 million. Earnings in the second quarter were impacted by $130 million from the closure of the Company’s Epoxy facility in Pernis, The Netherlands, (“Pernis”) and the temporary cessation of a PVC resin production unit at the Company’s Huasu joint venture (“Huasu”) in China (the “Identified Items”), which are included in the Performance and Essential Materials segment financial results. Excluding the Identified Items, the net loss in the second quarter of 2025 was $12 million, or $0.09 per share, and EBITDA was $340 million.

Compared to the first quarter of 2025, EBITDA excluding Identified Items of $340 million increased by $52 million primarily due to seasonally higher sales volume in our HIP segment partly offset by a $30 million higher impact from planed turnarounds and unplanned plant outages in our PEM segment.

Westlake’s second quarter of 2025 sales volume increased 1% and average sales price increased by 2% as compared to the first quarter of 2025. Housing and Infrastructure Products sales increased 16% sequentially, driven by 14% sales volume growth and a 2% increase in average sales price. Performance and Essential Materials sales decreased 3% over the same period of time as a higher average sales price was more than offset by a 6% decline in sales volume.

EBITDA excluding Identified Items of $340 million was lower than the second quarter of 2024 EBITDA of $744 million primarily due to lower sales volume in our PEM segment due to higher planned turnarounds and unplanned plant outages that impacted EBITDA by approximately $110 million in the second quarter of 2025. Additionally, higher feedstock and energy costs in North America, lower average sales price in each segment, and a 2% decline in HIP sales volume contributed to the lower year-over-year EBITDA.

Executive Commentary

“Our overall financial performance in the second quarter of 2025 reflected several headwinds, many of which we believe are transitory in nature. During the second quarter of 2025 our HIP segment delivered solid results against a backdrop of lower North American residential construction activity. HIP sales of $1.2 billion were similar to the prior year period despite lower U.S. housing starts and repair and remodel spending, reflecting the important role that our products play in delivering value to our customers and our strategy to ‘win with the winners’ by being a supplier of choice for the faster-growing end customers in the market,” said Jean-Marc Gilson, President and Chief Executive Officer.

“PEM sales volume was impacted by continued soft global industrial and manufacturing activity that was exacerbated by temporary disruptions to export sales volumes created by tariff uncertainty. While these market-related factors drove much of the year-over-year decline, our earnings were also impacted by production disruptions caused by the tie-in of new VCM capacity at our Geismar, Louisiana, chlorovinyls site, which contributed to a decrease in second quarter of 2025 chlorovinyls sales volume and earnings,” continued Mr. Gilson.

“Our focus for the remainder of 2025 will be on running our plants well and reducing our controllable costs. Higher planned turnarounds and some unplanned outages within our PEM segment impacted our EBITDA and cash flow below their potential in the first half of 2025. After taking steps to address the operational disruptions, our chlorovinyls production is returning to normal rates during the third quarter. Turning to our cost-reduction efforts, in the first half of 2025 we eliminated over $75 million of company-wide costs towards our 2025 cost savings target of $150 – $175 million. While we are pleased with progress to date, in light of continued soft global demand and profitability in some of our businesses, we are expanding the scope and nature of these cost-reduction efforts to target an additional $200 million of cost reductions by 2026. Additionally, during the second quarter of 2025 we announced the planned closure of Pernis to put our global Epoxy business on a path to profitability. We expect this action, along with our broader cost-reduction efforts, to significantly improve our profitability in 2026,” concluded Mr. Gilson.

Consolidated Results

(Unless otherwise noted the financial numbers below exclude the Identified Items)

For the three months ended June 30, 2025, the Company reported a quarterly net loss of $12 million, or $0.09 per share, on net sales of $3.0 billion, which was an improvement from the net loss of $40 million reported in the first quarter of 2025. Sequentially, earnings benefitted from higher sales volume and margins in our HIP segment, which more than offset lower sales volume in our PEM segment.

The second quarter of 2025 net loss of $12 million was $325 million below the second quarter of 2024 primarily due to lower sales volume, particularly in our PEM segment as a result of an elevated level of planned turnarounds and unplanned outages, as well as higher feedstock and energy costs in our PEM segment.

EBITDA of $340 million for the second quarter of 2025 increased by $52 million compared to first quarter 2025 as a result of higher sales volume and margins in our HIP segment, partially offset by a $30 million higher impact from planned turnarounds and unplanned outages in our PEM segment.

A reconciliation of EBITDA and net income to EBITDA excluding Identified Items and net income excluding Identified Items, as well as a reconciliation of EBITDA to net income, income from operations (including and excluding Identified Items) and net cash provided by operating activities, as well as a reconciliation of free cash flow to net cash flow provided by operating activities, can be found in the financial schedules at the end of this press release.

Expenses Regarding Facility Closure and Temporary Cessation of Operations (“Identified Items”)

During the second quarter of 2025, the Company accrued $108 million of expenses and $15 million inventory write-off related to the previously announced decision to shut down Pernis and $7 million of expenses to temporarily cease operations of a PVC resin production unit at Huasu. Consistent with our previous announcement, cash outflows related to the Pernis closure are expected to occur over several years after operations have ceased.

Cash, Investments and Debt

Net cash provided by operating activities was $135 million for the second quarter of 2025 and capital expenditures were $267 million. As of June 30, 2025, cash, cash equivalents and fixed-income investments were $2.3 billion and total debt was $4.7 billion.

Housing and Infrastructure Products Segment

For the second quarter of 2025, Housing and Infrastructure Products income from operations of $222 million increased by $74 million as compared to the first quarter of 2025. This increase in income from operations versus the prior quarter was primarily due to seasonally higher sales volume in Pipe & Fittings and Building Products.

Compared to the second quarter of 2024, Housing and Infrastructure Products income from operations decreased by $44 million. The year-over-year decrease was the result of lower sales volume and lower average sales price and margins, particularly in Pipe & Fittings.

Performance and Essential Materials Segment

(Unless otherwise noted the financial numbers below exclude the Identified Items)

For the second quarter of 2025, Performance and Essential Materials loss from operations of $188 million increased by $25 million as compared to the first quarter of 2025. This increase in loss from operations versus the prior quarter was primarily driven by a 6% decline in sales volume due to weaker global demand, in part due to temporary disruptions in global trade flows created by tariff uncertainty, as well as lower production levels, particularly for chlorine, caustic soda, and PVC resin, due to planned turnarounds and unplanned plant outages.

Performance and Essential Materials loss from operations was $188 million in the second quarter of 2025 as compared to income from operations of $157 million in the second quarter of 2024. The year-over-year decrease was primarily due to a 9% decline in sales volume, in part due to elevated planned turnarounds and unplanned outages, higher North American feedstock and energy costs, and 2% lower average sales price.

For full results click here.

About Westlake

Westlake is a global manufacturer and supplier of materials and innovative products that enhance life every day. Headquartered in Houston, with operations in Asia, Europe and North America, we provide the building blocks for vital solutions — from housing and construction, to packaging and healthcare, to automotive and consumer goods. For more information, visit the Company’s web site at www.westlake.com.

Contact:

Steve Bender – Investor Relations – (713) 960-9111

Source: Westlake Corporation