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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.

Read the original on SEC.gov

Reported figures

Earnings per share
$-1.31
Gross margin
4%
Segment
Housing and Infrastructure Products
Segment
Performance and Essential Materials

What stood out

  • 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.

What to watch

  • 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.

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.