Westlake Q2 Earnings Call Highlights

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Sun, August 9, 2026 astatine 11:03 AM CDT 7 min read

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Westlake returned to profitability successful Q2 2026, reporting $3.3 cardinal successful sales, $260 cardinal successful nett income and $679 cardinal successful EBITDA, supported by higher PEM pricing, little feedstock costs and outgo savings.
The company's profitability-improvement program contributed astir $150 cardinal to year-over-year EBITDA maturation successful the quarter, keeping Westlake connected way for its $600 cardinal full-year 2026 target. HIP income roseate 8%, but its borderline fell to 22% owed to little prices and higher proscription and raw-material costs.
Westlake lowered its 2026 HIP outlook toward the debased extremity of its anterior guidance scope amid weaker residential operation expectations, portion maintaining $900 cardinal successful superior expenditures. The institution besides completed a PVC and VCM works acquisition successful Germany expected to lend much meaningfully to net adjacent year.

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Westlake (NYSE:WLK) reported second-quarter 2026 nett income of $3.3 cardinal and nett income of $260 million, oregon $2.01 per share, compared with a nett nonaccomplishment of $12 cardinal successful the prior-year quarter. The institution said EBITDA reached $679 million, reflecting betterment successful some its Performance and Essential Materials, oregon PEM, conception and its Housing and Infrastructure Products, oregon HIP, segment.

President and CEO Jean-Marc Gilson said the 4th benefited from higher PEM selling prices, outgo savings from the company's profitability programme and continued measurement maturation successful HIP contempt brushed North American residential operation activity.

PEM margins benefited from pricing and little feedstock costs

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PEM generated second-quarter EBITDA of $416 million, up $364 cardinal from the 2nd 4th of 2025 and up $380 cardinal sequentially. Westlake attributed the betterment to a 14% year-over-year summation successful mean selling prices, benefits from its profitability-improvement plan, and higher income volumes excluding the effect of works closures.

Sequentially, mean PEM selling prices accrued 21%, portion earthy state and ethane costs declined. Gilson said higher planetary lipid prices during the 4th raised costs for competitors successful regions specified arsenic Asia and Europe, portion Westlake's North American operations benefited from lower-cost earthy state and earthy state liquids feedstocks.

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"Our earthy state and ethane outgo successful North America really declined importantly from the archetypal 4th owed to warmer upwind and an summation successful associated state from higher U.S. lipid drilling activity," Gilson said.

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