Westlake Corporation reported fourth‑quarter and full‑year 2025 results that included a net loss of $544 million for the quarter and $1.508 billion for the year, with net sales of $2.533 billion and $11.170 billion respectively. After excluding one‑time “Identified Items” such as restructuring charges, plant shutdowns, and a $727 million goodwill impairment, the company posted an adjusted net loss of $33 million ($0.25 per share) for the quarter and $116 million ($0.90 per share) for the year, while adjusted EBITDA reached $196 million for the quarter and $1.144 billion for the year.
The adjusted loss per share beat the consensus estimate of a $1.44 loss, largely because the company’s cost‑control program and the early realization of its PEM profitability improvement plan helped offset the impact of the one‑time charges. The $0.25 per share loss represents a significant improvement over the $4.22 GAAP loss per share, underscoring the effectiveness of the company’s restructuring efforts.
Segment performance was mixed. The Housing and Infrastructure Products (HIP) unit generated $901 million in net sales and $130 million in EBITDA for the quarter, while the Performance and Essential Materials (PEM) unit posted $1.632 billion in sales and $45 million in EBITDA. However, other sources indicate that HIP’s income from operations fell to $82 million for the quarter, a decline of $47 million year‑over‑year, and that PEM’s quarterly EBITDA exceeded internal expectations, reflecting the early benefits of the profitability plan.
"As 2025 came to a close, our PEM profitability improvement plan began to generate tangible benefits with accelerating realization of our cost savings," said CEO Jean‑Marc Gilson. "For 2026 our priority is to achieve the PEM profitability improvement plan’s targeted $600 million in EBITDA improvement while growing HIP’s sales and earnings, which are expected to benefit from the January 2026 acquisition of ACI. We are not expecting macroeconomic conditions to be a tailwind to our 2026 goals as global industrial and manufacturing activity remains challenging."
Investors responded positively to the results, citing the adjusted EPS beat and the company’s guidance for 2026. Westlake reiterated its target of a $600 million EBITDA improvement from the PEM plan and highlighted the expected benefit of the ACI acquisition for HIP growth. The company’s guidance signals confidence in its cost‑control trajectory despite ongoing market headwinds.
The results highlight several headwinds: an 11% decline in Q4 2025 net sales year‑over‑year, an 8% decline for the full year, and continued pressure from global overcapacity in PEM materials. Nevertheless, the company’s focus on restructuring, plant shutdowns, and the PEM profitability improvement plan suggests a strategic shift toward higher‑margin operations, positioning Westlake to improve profitability in 2026 while navigating a challenging macro environment.
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