Westlake Chemical Partners (WLKP) Q4 2025 earnings summary

Executive summary

• Reported full year 2025 net income of $49 million ($1.38 per unit) and consolidated net income of $299 million, reflecting stable results despite a planned turnaround at the Petro 1 facility.

• Fourth quarter 2025 net income attributable to the partnership was $14.5 million, or $0.41 per unit, nearly flat year-over-year and sequentially.

• Full year 2025 net income attributable to the partnership was $48.7 million, down $13.7 million from 2024, mainly due to lower production and sales from the planned Petro 1 turnaround.

• The fixed margin Ethylene Sales Agreement for 95% of annual planned production insulated results from market volatility, supporting predictable earnings and cash flows.

• Achieved 46 consecutive quarterly distributions since IPO in 2014, with no reductions and a 71% increase in distributions since inception.

Financial highlights

• Fourth quarter 2025 net income was $15 million ($0.41 per unit), in line with Q4 2024.

• Q4 2025 distributable cash flow was $19 million, up $4 million year-over-year due to lower maintenance capex.

• Full year 2025 distributable cash flow was $53 million, down $14 million from 2024, mainly due to lower production and sales volumes from the planned turnaround.

• Fourth quarter 2025 cash flows from operating activities were $120.4 million, down $12.1 million year-over-year but up $15.2 million sequentially.

• EBITDA for 2025 was $450.0 million, compared to $507.6 million in 2024.

Outlook and guidance

• No planned turnarounds in 2026; production and sales volumes expected to recover, driving distributable cash flow and coverage ratio back to historical levels.

• Coverage ratio expected to rise above 1.1x in 2026, replenishing operating surplus and investment balances.

• Management expects improved coverage ratio in 2026, consistent with post-turnaround years.