Westlake Chemical Partners (WLKP) Q2 2025 earnings summary

Executive summary

• Q2 2025 consolidated net income was $85.8 million on net sales of $297.1 million, with net income attributable to the partnership at $14.6 million ($0.41 per unit), consistent with Q2 2024.

• The Petro 1 turnaround, completed in April 2025, impacted production volumes and financial results but led to improved production days and future cash flow stability.

• Achieved the 44th consecutive quarterly distribution since IPO, with a Q2 2025 payout of $0.4714 per unit.

• Net sales rose year-over-year due to higher ethylene prices and a $13.6 million buyer deficiency fee, partially offset by lower volumes from the turnaround.

• For the six months ended June 30, 2025, net income was $128.1 million on net sales of $534.7 million.

Financial highlights

• Q2 2025 net sales were $297.1 million (+4.5% year-over-year); gross profit was $97.5 million (margin 32.8%, down from 35.6%).

• Q2 2025 EBITDA was $124.4 million, up $1.2 million year-over-year.

• Distributable cash flow for Q2 2025 was $15 million ($0.43 per unit), down year-over-year due to higher maintenance capital expenditures.

• Cash provided by operating activities for the first half of 2025 was $54.9 million, mainly impacted by the Petro 1 turnaround.

• OpCo received a $13.6 million benefit from the ethylene sales agreement, offsetting production shortfalls.

Outlook and guidance

• No further planned turnarounds for the remainder of 2025 or in 2026, with the Petro 1 turnaround now complete.

• Distributable cash flow and coverage ratio are expected to improve in the second half of 2025 as maintenance impacts subside.

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

• Predictable fee-based cash flow is expected to support ongoing distributions despite soft global industrial activity.

• No immediate plans to raise equity capital or pursue major growth levers in the current year.