Earnings analysis · 10-Q
WLK earnings analysis
Filed May 6, 2026 · Our reading of the company's report
The latest report
Westlake Corporation reported a significant decrease in revenue and a larger net loss for Q1 2026 compared to both the prior quarter and the same period last year. The company's revenue came in at $2.65 billion, a 7%…
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Westlake Corporation reported a significant decrease in revenue and a larger net loss for Q1 2026 compared to both the prior quarter and the same period last year. The company's revenue came in at $2.65 billion, a 7% decline from $2.85 billion in Q1 2025, and the net loss attributable to the company increased to $169 million, translating to a diluted EPS of -$1.31, compared to -$0.31 a year ago. Several drivers of this performance included lower volumes and prices for key products and increased operational costs.
Reported figures
- Earnings per share
- $-1.31
- Gross margin
- 4%
- Segment
- Housing and Infrastructure Products
- Segment
- Performance and Essential Materials
What stood out
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Revenue Decline
Q1 2026 revenue was $2.65 billion, down 7% from $2.85 billion in Q1 2025.
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EPS Negative Surprises
Reported EPS was -$1.31, missing estimates of -$0.23.
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EBITDA Down
EBITDA for Q1 2026 fell to $150 million, a decline from $288 million in Q1 2025.
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Gross Margin Contraction
Gross profit margin decreased to 4% from 8%, leading to a gross profit drop of 52%.
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Increased Litigation Charges
Included a $67 million litigation charge related to PVC antitrust settlement.
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Cash Position
Cash and cash equivalents as of March 31, 2026, totaled $2.27 billion.
What to watch
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Increased Operational Costs
Operational costs rose due to higher fuel costs, impacting margins.
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Sector Volatility
Global energy and feedstock price volatility due to Middle East conflicts could affect supply chains.
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Litigation Risks
The company is subject to ongoing litigation expenses that could negatively impact financial conditions.
Management's outlook
No quantitative guidance was provided for future periods.
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.