Westlake (NYSE:WLK) Issues Earnings Results, Misses Estimates By $0.04 EPS

Posted by Stanley Muller on Nov 5th, 2026

Westlake (NYSE:WLK – Get Free Report) posted its quarterly earnings data on Wednesday. The specialty chemicals company reported $0.45 EPS for the quarter, missing the consensus estimate of $0.49 by ($0.04), FiscalAI reports. The company had revenue of $2.98 billion during the quarter, compared to the consensus estimate of $2.94 billion. Westlake had a positive return on equity of 0.93% and a negative net margin of 10.94%. The firm’s quarterly revenue was up 5.0% compared to the same quarter last year. During the same period last year, the business earned ($0.29) EPS.

Here are the key takeaways from Westlake’s conference call:

Westlake reported $408 million of EBITDA and $220 million of free cash flow, both higher year over year, but EBITDA fell about $275 million sequentially as PEM prices declined, HIP volumes weakened, and input costs rose.
PEM EBITDA increased $125 million year over year to $215 million, supported by higher selling prices and the three-pillar improvement plan, which delivered $500 million of uplift through the first three quarters. Management remains on track for $600 million of full-year improvement, though PEM earnings are still below mid-cycle levels.
HIP faced weaker housing activity, higher costs, and lower volumes; third-quarter EBITDA fell $20 million year over year. Westlake expects fourth-quarter HIP revenue of $900 million to $1 billion and a margin of about 13%, and anticipates continued residential-construction weakness into 2027.
European energy costs and weak PVC demand pressured PEM, prompting the Cologne PVC facility closure and consolidation of sales at Wilhelmshaven. Management expects the restructuring and access to lower-cost feedstocks to improve European profitability from 2027, targeting cash-flow neutrality.
Westlake ended the quarter with $2 billion in cash and investments and $5.1 billion in debt, while lowering 2026 capital-spending guidance by $50 million to $850 million. Management said it expects a significant working-capital release to support fourth-quarter cash flow.

Westlake Stock Down 0.8%

NYSE:WLK opened at $67.93 on Thursday. The company has a quick ratio of 1.70, a current ratio of 2.45 and a debt-to-equity ratio of 0.55. The stock’s fifty day moving average is $67.51 and its two-hundred day moving average is $86.39. Westlake has a 52 week low of $56.33 and a 52 week high of $124.23. The stock has a market capitalization of $8.68 billion, a price-to-earnings ratio of -7.09 and a beta of 0.66.

Westlake Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, September 10th. Shareholders of record on Tuesday, August 25th were given a $0.5330 dividend. The ex-dividend date of this dividend was Tuesday, August 25th. This is a positive change from Westlake’s previous quarterly dividend of $0.53. This represents a $2.13 dividend on an annualized basis and a yield of 3.1%. Westlake’s dividend payout ratio is presently -22.23%.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on WLK shares. Royal Bank Of Canada decreased their price target on Westlake from $95.00 to $74.00 and set an “outperform” rating on the stock in a report on Tuesday, October 13th. Zacks Research downgraded Westlake from a “hold” rating to a “strong sell” rating in a research report on Friday, October 23rd. Truist Financial decreased their price objective on Westlake from $104.00 to $90.00 and set a “buy” rating for the company in a report on Thursday, October 1st. Wells Fargo & Company dropped their price target on Westlake from $89.00 to $68.00 and set an “equal weight” rating on the stock in a research note on Thursday, October 1st. Finally, Wall Street Zen raised shares of Westlake from a “sell” rating to a “hold” rating in a report on Saturday, August 8th. Four analysts have rated the stock with a Buy rating, eight have given a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, Westlake currently has a consensus rating of “Hold” and a consensus target price of $81.13.

Check Out Our Latest Stock Analysis on WLK

Insider Buying and Selling at Westlake

In related news, Chairman Albert Chao sold 38,873 shares of the business’s stock in a transaction on Tuesday, August 11th. The stock was sold at an average price of $80.28, for a total value of $3,120,724.44. Following the sale, the chairman owned 642,880 shares in the company, valued at approximately $51,610,406.40. The trade was a 5.70% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 1.40% of the company’s stock.

More Westlake News

Here are the key news stories impacting Westlake this week:

Positive Sentiment: Third-quarter sales rose 5% year over year to $2.98 billion, topping the $2.94 billion analyst estimate. Westlake also reported improved adjusted EBITDA and moved to positive quarterly EPS from a loss a year earlier. Westlake Corporation Reports Third Quarter 2026 Results
Negative Sentiment: EPS of $0.45 fell short of the $0.49 consensus estimate, giving investors a reason to focus on profitability despite the revenue beat. Westlake Q3 Earnings and Revenues Lag Estimates

About Westlake

(Get Free Report)

Westlake Corporation is a global manufacturer of performance and essential materials, as well as products used in housing and infrastructure. Headquartered in Houston, Texas, the company serves customers in construction, packaging, healthcare, consumer products, automotive, and other industrial markets.

Westlake’s materials portfolio includes chlor-alkali and derivative chemicals, polyethylene, PVC, vinyl intermediates, epoxy resins, and other specialty products. These materials are used in applications such as water treatment, coatings, adhesives, plastics, medical products, and packaging.

Through its housing and infrastructure businesses, Westlake also produces building products including vinyl siding, trim, roofing products, pipe, fittings, and related components.