Westlake Chemical Partners Q2 Earnings Miss Estimates, Revenue Grows 4.5%

Westlake Chemical Partners reported Q2 2025 earnings per unit of $0.41, missing estimates by 12.8%, and revenue grew 4.5% to $297.1 million. Cash flows from operating activities fell sharply to $9.1 million due to a major maintenance turnaround. The company's results improved sequentially but remained pressured, with flat GAAP net income year over year and thin coverage of distributions.

Westlake Chemical Partners LP (WLKP) reported its second-quarter (Q2) 2025 earnings, revealing a mixed performance. The company's earnings per unit (EPS) of $0.41 missed estimates by 12.8%, while revenue grew 4.5% to $297.1 million. However, cash flows from operating activities (GAAP) fell sharply to $9.1 million due to a major maintenance turnaround.

The quarter marked a rebound from the prior period's low production, driven by the completion of the Petro 1 facility turnaround. Net income attributable to the partnership (GAAP) increased to $14.6 million, up from $4.9 million in Q1 2025. However, the company's distributable cash flow (non-GAAP) rose more than threefold but was still 12.4% lower than the same quarter a year earlier, primarily due to higher maintenance capital expenses from the turnaround.

Revenue (GAAP) grew by 4.6% compared to Q2 2024, increasing total sales to $297.1 million. However, this still undershot the analyst consensus by $3.9 million (GAAP). The company's ability to make its regular unitholder distribution remained under the spotlight, with the distribution coverage ratio (non-GAAP) falling to 0.79 times, well below the long-term average of about 1.05 times.

Looking ahead, management expects a "solid" improvement in distributable cash flow (non-GAAP) and the distribution coverage ratio in the second half of 2025 as plant operations normalize after the Petro 1 turnaround. No changes to the quarterly distribution or to planned capital spending were announced.

References:

[1] https://www.mitrade.com/insights/news/live-news/article-8-1015015-20250806
[2] https://www.nasdaq.com/articles/westlake-chemical-partners-lp-q2-profit-misses-estimates