Westlake Chemical Partners (WLKP) Q3 2025 earnings summary

Executive summary

• Q3 2025 consolidated net income was $86.2 million on $308.9 million in net sales, down from $104.1 million in Q3 2024, mainly due to higher feedstock and energy costs and lower third-party sales prices, but up sequentially from Q2 2025 after the planned turnaround.

• Net income attributable to the partnership for Q3 2025 was $14.7 million ($0.42 per unit), down from $18.1 million in Q3 2024, but stable sequentially.

• The ethylene sales agreement with Westlake was renewed through 2027 at unchanged terms, ensuring stable, fee-based cash flows for 95% of production.

Financial highlights

• Q3 2025 net sales increased 11.5% year-over-year to $308.9 million, driven by higher ethylene sales prices and volumes to Westlake.

• Gross profit for Q3 2025 was $99.4 million (32.2% margin), down from $116.9 million (42.2% margin) in Q3 2024, due to higher feedstock and energy costs.

• MLP distributable cash flow for Q3 2025 was $14.9 million, down $3 million year-over-year, primarily due to higher maintenance capital expenditures.

• Quarterly distribution of $0.4714 per unit was declared, to be paid November 26, 2025, marking the 45th consecutive quarterly distribution.

• Cumulative distribution coverage ratio since IPO is approximately 1.05x.

Outlook and guidance

• No planned turnarounds for the remainder of 2025 or in 2026, with production returned to nameplate capacity after the Petro 1 turnaround.

• Predictable, fee-based cash flows expected to continue due to the renewed ethylene sales agreement with take-or-pay protections.