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Westlake (WLK) investor relations material
Westlake Q2 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Q2 2025 net sales were $2.95B–$3.0B, with a net loss of $142M; HIP segment delivered strong results while PEM was pressured by outages, global oversupply, and the Pernis facility closure.
HIP segment achieved $275M EBITDA on $1.16B–$1.2B sales, a 24% margin, driven by municipal water demand and infrastructure investment.
PEM segment earnings were impacted by $110M from outages and turnarounds, with global oversupply and restructuring charges further pressuring results.
Closure of the Pernis Epoxy facility in the Netherlands incurred $108M–$130M in charges and is expected to return PEM to profitability in 2026.
Company is executing a profitability improvement strategy in PEM: plant reliability, cost reduction, and footprint optimization, with $75M in cost savings achieved and $200M more targeted by 2026.
Financial highlights
Q2 2025 EBITDA was $340M, up 18% sequentially but down year-over-year; adjusted net loss per share was $(0.09) excluding $130M in restructuring charges.
Net loss attributable to the company was $142M in Q2 2025, compared to net income of $313M in Q2 2024.
Free cash flow was negative $132M for the quarter, reflecting higher capital expenditures.
Cash and investments at June 30, 2025, were $2.3B; total debt was $4.7B.
Gross profit margin contracted to 8.7%–9% from 20.7%–21% a year ago due to higher input costs and lower prices.
Outlook and guidance
HIP 2025 revenue expected between $4.2B and $4.4B with EBITDA margin of 20–22%.
Additional $200M in cost reductions targeted by 2026; $75M in savings achieved in H1 2025 toward a $150–$175M full-year target.
Expect improved PEM production and sales volumes in Q3 as turnarounds conclude and reliability improves.
Profitability improvement actions and Pernis closure expected to enhance margins and cash flow in 2026.
Management expects continued margin and demand pressure due to global macroeconomic uncertainty, energy price volatility, and trade/tariff issues.
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