Westlake Corp Q4 revenue misses on lower sales volume, prices

Overview

• Chemical manufacturer's Q4 revenue missed analyst expectations

• Company's Q4 results impacted by lower sales volume and prices, particularly in PEM segment

Outlook

• Westlake targets $600 mln EBITDA improvement in PEM for 2026

• Company expects HIP segment growth from ACI acquisition in January 2026

• Westlake anticipates challenging global industrial conditions in 2026

Result Drivers

• PLANT SHUTDOWNS - Significant charges from shutting down chlorovinyls and styrene plants impacted Q4 results

• LOWER SALES VOLUME AND PRICES - Declines in sales volume and prices, particularly in PEM, affected Q4 performance

• COST REDUCTION INITIATIVES - Company expects cost reduction efforts to improve earnings in 2026

Company press release: ID:nBw3ZkKVQa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 9 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the commodity chemicals peer group is "buy"

• Wall Street's median 12-month price target for Westlake Corp is $82.00, about 11.8% below its February 23 closing price of $93.02

• The stock recently traded at 156 times the next 12-month earnings vs. a P/E of 60 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)