Westlake 2025 Q2 Earnings Record Loss as Net Income Plummets 145.9%

Westlake Corporation reported a significant decline in performance in Q2 2025, swinging to a net loss of $1.11 per share, a 145.9% negative change from a profit of $2.42 per share in the prior-year period. The earnings report underscores a challenging environment for the company amid production disruptions and global demand weakness, with no formal guidance provided for the remainder of the year.

Revenue
Westlake’s total revenue fell 7.9% year-over-year to $2.95 billion in Q2 2025. The Housing and Infrastructure Products segment generated $1.16 billion, with Housing Products accounting for $980 million and Infrastructure Products contributing $180 million. The Performance and Essential Materials segment totaled $1.79 billion, led by Performance Materials at $1.02 billion and Essential Materials at $771 million. Consolidated revenue across all reportable segments was in line with the company’s reported total of $2.95 billion.

Earnings/Net Income
The company swung to a net loss of $131 million, or $1.11 per share, in Q2 2025, a 140.6% deterioration from net income of $323 million, or $2.42 per share, in Q2 2024. This marked a significant earnings downturn driven by operational challenges and production outages.

Price Action
Westlake’s stock edged up 0.11% on the latest trading day, but slipped 2.41% over the most recent full trading week. Month-to-date, the stock gained 2.43%.

Post-Earnings Price Action Review
A strategy of purchasing Westlake shares following a quarter-over-quarter revenue increase and holding for 30 days yielded a negative return of -15.86% over the past three years. This significantly underperformed the benchmark return of 48.58%, resulting in an excess return of -64.45% and a compound annual growth rate of -5.79%. The backtest highlighted a high level of risk, with a maximum drawdown reaching 0.00%, indicating potential for total loss during the period.

CEO Commentary
Jean-Marc Gilson, President and CEO, noted transitory challenges in Q2, including production disruptions at the Geismar chlorovinyls site and global industrial weakness. He expressed cautious optimism, stating that the company expects production to return to normal in Q3 2025 and has achieved $75 million in cost savings so far toward its 2025 target of $150–$175 million.

Guidance
Westlake did not provide specific financial guidance for the remainder of 2025 but emphasized continued cost-reduction initiatives and operational execution to improve EBITDA and cash flow.

Additional News
On June 11, 2025, Westlake announced that 125 employees’ children were awarded scholarships for the 2025–2026 academic year, continuing its 29-year commitment to education support. Additionally, Westlake Chemical Partners LP (WLKP) declared its 44th consecutive quarterly distribution of $0.4714 per unit, payable on August 27, 2025. The distribution was in line with the same period in 2024. Westlake also announced its Q2 2025 earnings call for August 5, 2025.