Westlake Corporation Reports First Quarter 2025 Results

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

Business Highlights

In the first quarter of 2025, Westlake reported net sales of $2.8 billion, a net loss of $40 million and EBITDA (earnings before interest expense, income taxes, depreciation and amortization) of $288 million. Higher feedstock and energy costs in North America, planned turnarounds and unplanned plant outages that impacted EBITDA by approximately $80 million, and changes in sales mix drove the lower EBITDA and EBITDA margin in the first quarter of 2025 compared to each of the fourth quarter of 2024 and the first quarter of 2024.

Compared to the fourth quarter of 2024, Westlake’s first quarter of 2025 sales volume increased 1%, which was offset by a 1% decline in average sales price. Housing and Infrastructure Products sales increased 2%, driven by 4% sales volume growth that more than offset a 2% decline in average sales price. Performance and Essential Materials sales decreased 1% over the same period of time due to a 1% decline in sales volume and flat average sales price.

Executive Commentary

“Our first quarter of 2025 earnings were impacted by higher North American feedstock and energy costs, partially due to winter storms early in the quarter, our planned turnaround at our Petro 1 ethylene unit, and unfavorable sales mix changes in our HIP segment. HIP’s sequential sales volume growth of 4% was led by solid double-digit growth in Compounds, Siding & Trim, and Roofing, driven by the strength of our brands and leading supply positions with fast-growing customers in these markets,” said Jean-Marc Gilson, President and Chief Executive Officer.

“Despite continued weak industrial and manufacturing activity, PEM segment sales volume declined only 2% year-over-year, as solid growth in chlor-alkali partially offset modest declines in most other product areas. However, significantly higher North American feedstock and energy costs drove a decline in PEM EBITDA and PEM EBITDA margin as compared to the prior-year and prior-quarter periods. While we expect PEM’s EBITDA margin to recover as we eventually pass these higher input costs to customers through higher sales prices, weak global macroeconomic conditions and some flattening of the global cost curve during the first quarter led to temporary delays in our price increase initiatives,” continued Mr. Gilson.

“Looking ahead to the remainder of 2025, we are pleased that the Petro 1 ethylene unit successfully completed its planned turnaround last month, and with no further major planned turnarounds we expect our operating rates to improve. While we don’t currently expect recent tariff announcements to materially impact our costs or supply chains, the increased uncertainty and unpredictability of future global trade policy is causing some of our customers to pause activity as they assess the impact of tariffs on their own businesses. During such times of increased demand uncertainty, we can rely on our core strengths: our integrated business model in a diverse set of businesses; our globally-advantaged North American feedstock and energy cost position; the critical nature of our materials to our customers’ products; our solid investment-grade balance sheet with $2.5 billion of cash, cash equivalents and marketable securities with no near-term debt maturities; our unbroken string of quarterly dividends for over 20 years since our IPO; and our low-cost manufacturing culture. We believe these attributes will enable Westlake to maintain its strong position as an integrated global producer of chemicals and building products despite the current period of turbulence. As 2025 progresses, we will continue to look for opportunities to deploy our balance sheet to create long-term value for shareholders by expanding our leading positions in both HIP and PEM,” concluded Mr. Gilson.

Results

Consolidated Results

For the three months ended March 31, 2025, the Company reported a quarterly net loss of $40 million, or ($0.31) per share, on net sales of $2.8 billion. The year-over-year decrease in net income of $214 million was primarily due to lower sales volume and average sales price along with higher input costs in our PEM segment, and lower average sales price and margins in our HIP segment.

The first quarter of 2025 net loss of $40 million was below net income of $7 million reported in the fourth quarter of 2024. The sequential decrease in net income compared to the prior quarter was primarily due to higher feedstock and energy costs and lower margins in our PEM segment, which were partially offset by seasonally higher sales volume in our HIP segment.

EBITDA of $288 million for the first quarter of 2025 decreased by $258 million compared to first quarter 2024 EBITDA of $546 million. First quarter 2025 EBITDA decreased by $128 million compared to fourth quarter 2024 EBITDA of $416 million.

A reconciliation of EBITDA to net income, income from operations and net cash provided by operating activities can be found in the financial schedules at the end of this press release.

Cash, Investments and Debt

Net cash used for operating activities was $77 million for the first quarter of 2025 and capital expenditures were $248 million. As of March 31, 2025, cash, cash equivalents and fixed income investments were $2.5 billion and total debt was $4.6 billion.

Housing and Infrastructure Products Segment

For the first quarter of 2025, Housing and Infrastructure Products income from operations of $148 million decreased by $62 million as compared to the first quarter of 2024. The year-over-year decrease was the result of lower average sales price and margins, due to an unfavorable shift in sales mix, and lower sales volume, particularly in Pipe & Fittings, partly due to winter storms early in the quarter.

Sequentially, Housing and Infrastructure Products income from operations increased by $19 million as compared to the fourth quarter of 2024. This increase in income from operations versus the prior quarter was primarily due to seasonally higher sales volume and solid demand growth in Compounds.

Performance and Essential Materials Segment

For the first quarter of 2025, Performance and Essential Materials loss from operations was $163 million as compared to income from operations of $22 million in the first quarter of 2024. This year-over-year decrease of $185 million was primarily due to higher North American feedstock and energy costs, driven in part by winter storms early in the quarter, and planned turnarounds and unplanned plant outages. The sales volume decline of 2% was driven by weaker global demand for PVC resin and polyethylene.

Sequentially, Performance and Essential Materials income from operations decreased by $122 million as compared to the fourth quarter of 2024. This decrease in income from operations versus the prior quarter was primarily driven by lower margins on roughly flat sales due to lags in our ability to pass through higher input costs.

For the full first quarter 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