By Sarina Isaacs

Shares of Westlake fell after the company swung to a surprise loss in the first quarter, citing higher feedstock and energy costs.

The stock was down 8.8% to $84.16, extending its year-to-date tumble to nearly 27%.

The Houston company on Friday posted a first-quarter loss of $40 million, or 31 cents a share, reversing from a profit of $174 million, or $1.34 a share, a year earlier.

Analysts were looking for earnings of 60 cents a share, according to FactSet.

Chief Executive Jean-Marc Gilson said the bottom line was hurt in part by higher North American feedstock and energy costs, which he said drove a decline in earnings before interest, taxes, depreciation and amortization for one of its business units, performance and essential materials. He also cited harsh winter weather, among other factors.

The segment's Ebitda margin should ultimately recover as Westlake raises prices in order to pass those costs to customers, said Gilson, but a weak macroeconomic backdrop and some flattening of the global cost curve temporary delayed the company's price-increase initiatives.

Net sales, meanwhile, slipped to $2.85 billion in the first quarter from $2.98 billion the prior year, missing the average analyst estimate of $2.95 billion.

Looking ahead to the rest of the year, Gilson warned that "the increased uncertainty and unpredictability of future global trade policy is causing some of our customers to pause activity as they assess the impact of tariffs on their own businesses."

Gilson added, however, that the company doesn't currently expect tariffs to materially impact its costs or supply chains.

Write to Sarina Isaacs at sarina.isaacs@wsj.com

(END) Dow Jones Newswires

May 02, 2025 12:33 ET (16:33 GMT)

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