Westlake Chemical 2025 Q2 Earnings Maintains Profitability Amid Moderate Revenue Growth

Westlake Chemical reported its Q2 2025 earnings on August 6, 2025, with revenue rising 4.6% year-over-year to $297.12 million, though net income slightly declined. The company maintained stable EPS at $0.41, in line with the prior-year period, and affirmed its 11-year track record of profitability.

Revenue
The company’s total revenue grew to $297.12 million in Q2 2025, driven by improved production and sales at the Petro 1 facility following the completion of a major turnaround. Net sales from Westlake totaled $269.08 million, while net co-products, ethylene, and other sales to third parties amounted to $28.04 million, contributing to the overall revenue growth.

Earnings/Net Income
Despite maintaining an EPS of $0.41, net income for the quarter fell to $85.80 million, a 2.5% drop from $88.03 million in Q2 2024. The company remains profitable for the 11th consecutive year during this period, reflecting a resilient business model.

Price Action
WLKP’s stock price has experienced a modest decline in the short term, with a 0.96% drop on the latest trading day, a 0.18% decrease over the past week, and a 2.14% decline month-to-date.

Post-Earnings Price Action Review
The post-earnings trading strategy of buying WLKP shares on the earnings date and holding for 30 days generated a 19.00% return over the past three years, though this underperformed the benchmark index’s 61.91% return. The strategy recorded an excess return of -42.91%, a maximum drawdown of 0%, a Sharpe ratio of 0.36, and a volatility of 18.40%, signaling a low-risk, low-return investment approach.

CEO Commentary
Jean-Marc Gilson, CEO, noted that Q2 results showed a marked improvement from Q1 2025, with higher production and sales volumes post-Petro 1 turnaround. He acknowledged the lingering impact of elevated maintenance capital expenditures from the extended turnaround but emphasized that such levels are unlikely to recur. Gilson expressed cautious optimism about distributable cash flow and the coverage ratio returning to strong historical levels in the second half of 2025.

Guidance
The company has not adjusted its quarterly distribution or capital spending plans and has no additional turnarounds scheduled for 2025 or 2026. The board declared a quarterly distribution of $0.4714 per unit, marking the 44th consecutive quarterly payout to unitholders.

Additional News
On August 5, 2025, Westlake Chemical Partners LP announced the declaration of a $0.4714 per unit quarterly distribution, payable on August 27, 2025, to holders of record as of August 12, 2025. The Partnership’s Q2 2025 net income attributable to the Partnership was $14.6 million, or $0.41 per limited partner unit, in line with the previous year. However, MLP distributable cash flow for the quarter was $15.0 million, down from $17.1 million in Q2 2024, due to higher maintenance capital expenditures from the Petro 1 turnaround. The Partnership also reaffirmed its ethylene sales agreement with Westlake Corporation, which provides a fixed margin of $0.10 per pound on 95% of OpCo’s ethylene production, ensuring stable cash flows.