Westlake Chemical Partners (WLKP) Q1 2026 earnings summary

Executive summary

• Net income attributable to the partnership was $14.2 million ($0.40 per unit) in Q1 2026, up from $4.9 million in Q1 2025, with consolidated net income including OpCo at $82 million on net sales of $306 million.

• EBITDA increased to $121.2 million from $75.0 million year-over-year, and distributable cash flow rose to $17.9 million from $4.7 million.

• Achieved 47 consecutive quarterly distributions since IPO, with Q1 2026 distribution of $0.4714 per unit declared.

• Business model stability supported by a fixed margin ethylene sales agreement, minimizing market volatility and supporting reliable distributions.

• Cash flows from operating activities increased to $110.2 million from $45.8 million year-over-year.

Financial highlights

• Net sales were $305.7 million, up from $237.6 million in Q1 2025, with gross profit margin improving to 30.7% from 22.8% year-over-year.

• Distributable cash flow was $18 million, or $0.51 per unit, up $13 million year-over-year due to higher production and sales volumes.

• Operating cash flow was $110.2 million, up from $45.8 million, reflecting higher income from operations and a favorable turnaround impact.

• Capital expenditures were $5.6 million, down from $16.0 million, mainly due to the absence of a major turnaround in 2026.

• Net income per limited partner unit was $0.40, up from $0.14 year-over-year.

Outlook and guidance

• No planned turnarounds in 2026, supporting stable operations and lower maintenance capital expenditures.

• Surge in global demand for North American ethylene and polymers due to Middle East conflict and Strait of Hormuz closure, boosting export demand and third-party ethylene sales prices.

• Management expects to continue distributing most excess cash generated from operations and to fund capital expenditures primarily from external sources if needed.

• Expectation of continued margin improvement if elevated ethylene prices persist into Q2.