WLK earnings analysis
What we found in WLK's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Decline
- Q1 2026 revenue was $2.65 billion, down 7% from $2.85 billion in Q1 2025.
- EPS Negative Surprises
- Reported EPS was -$1.31, missing estimates of -$0.23.
- EBITDA Down
- EBITDA for Q1 2026 fell to $150 million, a decline from $288 million in Q1 2025.
- Gross Margin Contraction
- Gross profit margin decreased to 4% from 8%, leading to a gross profit drop of 52%.
- Increased Litigation Charges
- Included a $67 million litigation charge related to PVC antitrust settlement.
- Cash Position
- Cash and cash equivalents as of March 31, 2026, totaled $2.27 billion.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Increased Operational Costs
- Operational costs rose due to higher fuel costs, impacting margins.
- Sector Volatility
- Global energy and feedstock price volatility due to Middle East conflicts could affect supply chains.
- Litigation Risks
- The company is subject to ongoing litigation expenses that could negatively impact financial conditions.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-1.31
- Gross margin
- 4%
- Segment
- Housing and Infrastructure Products
- Segment
- Performance and Essential Materials
What they said about what is next.
No quantitative guidance was provided for future periods.
The filing reads worse than the one before it.
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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