Overview
Chemical manufacturer's Q4 revenue missed analyst expectations
Company's Q4 results impacted by lower sales volume and prices, particularly in PEM segment
Outlook
Westlake targets $600 mln EBITDA improvement in PEM for 2026
Company expects HIP segment growth from ACI acquisition in January 2026
Westlake anticipates challenging global industrial conditions in 2026
Result Drivers
PLANT SHUTDOWNS - Significant charges from shutting down chlorovinyls and styrene plants impacted Q4 results
LOWER SALES VOLUME AND PRICES - Declines in sales volume and prices, particularly in PEM, affected Q4 performance
COST REDUCTION INITIATIVES - Company expects cost reduction efforts to improve earnings in 2026
Company press release: ID:nBw3ZkKVQa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Sales | Miss | $2.53 bln | $2.60 bln (14 Analysts) |
Q4 Adjusted EPS | Beat | -$0.25 | -$1.43 (16 Analysts) |
Q4 EPS | -$4.22 | ||
Q4 Net Income | -$544 mln | ||
Q4 EBITDA Margin | 8.00% | ||
Q4 Pretax Profit | -$663 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 9 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the commodity chemicals peer group is "buy"
Wall Street's median 12-month price target for Westlake Corp is $82.00, about 11.8% below its February 23 closing price of $93.02
The stock recently traded at 156 times the next 12-month earnings vs. a P/E of 60 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)