Westlake Chemical misses Q4 expectations, shares dip

HOUSTON -On Monday, Westlake Chemical Corporation (NYSE:WLK) reported fourth quarter earnings that fell short of analyst expectation.

The company’s shares were down -0.65% in pre-market trading following the results.

The chemical and building products manufacturer posted adjusted earnings per share of $0.06, significantly below the $1.16 consensus estimate. Revenue came in at $2.84 billion, missing expectations of $2.98 billion.

Westlake’s fourth quarter sales increased 1% YoY, driven by 3% sales volume growth, marking the fifth consecutive quarter of YoY volume expansion. However, this was largely offset by a 2% decline in average sales prices.

"Compared to the prior-year period our fourth quarter sales volume grew in each segment, highlighted by 7% sales volume growth in our HIP segment, which was solid compared to a challenging macroeconomic backdrop that impacted the industry," said President and CEO Jean-Marc Gilson.

The company’s Housing and Infrastructure Products segment saw income from operations rise to $129 million from $121 million a year ago. However, the Performance and Essential Materials segment swung to an operating loss of $41 million compared to a $39 million loss last year.

Westlake generated $434 million in operating cash flow during Q4 and $1.31 billion for the full year 2024. The company ended the year with $2.9 billion in cash and $4.6 billion in total debt.

Looking ahead, Gilson said Westlake is "optimistic on the outlook for our HIP segment, underpinned by the need to expand the supply of residential housing in the U.S." but noted that "global macroeconomic conditions remain challenging to start the year" for its Performance and Essential Materials business.

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