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Westlake (WLK) investor relations material
Westlake Q3 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Reported a Q3 2025 net loss of $782 million, primarily due to a $727 million non-cash goodwill impairment in North American Chlorovinyls and $17 million in shutdown-related expenses.
Net sales were $2.8 billion, down 9% year-over-year, with both HIP and PEM segments impacted by lower prices and volumes.
Excluding identified items, net loss was $38 million ($0.29 per share) and EBITDA was $313 million.
HIP segment remained resilient, supported by municipal infrastructure demand, while PEM earnings and margins were pressured by global supply-demand imbalances, especially in PVC resins.
Achieved $115 million in cost savings year-to-date, progressing toward a $150–$175 million FY25 target.
Financial highlights
Q3 2025 net loss: $782 million ($6.06 per diluted share); adjusted net loss (excluding identified items): $38 million ($0.29 per share).
Net sales: $2.8 billion, down from $3.1 billion in Q3 2024 and $3.0 billion in Q2 2025.
EBITDA (excluding identified items): $313 million, down from $340 million in Q2 2025 and $580 million in Q3 2024.
Free cash flow for Q3 2025 was negative $57 million.
Cash, cash equivalents, and investments totaled $2.1 billion; total debt at $4.7 billion as of September 30, 2025.
Outlook and guidance
HIP segment 2025 revenue and EBITDA margin now expected at the low end of prior guidance: $4.2–$4.4 billion sales and 20–22% margin.
Management targets $200 million in additional cost savings in 2026, with $100 million benefit from the Pernis shutdown.
PEM segment profitability expected to improve post-Pernis closure and with ongoing cost actions.
Long-term HIP growth supported by infrastructure investment and new product innovation.
Additional costs expected for Pernis and Suzhou Huasu Plastics PVC unit shutdowns.
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