Westlake Chemical Partners (WLKP) Q1 2026 earnings summary

Executive summary

• Net income attributable to the partnership was $14.2 million ($0.40 per unit) in Q1 2026, up from $4.9 million in Q1 2025, with consolidated net income (including OpCo) of $82 million on $306 million in net sales.

• Distributable cash flow reached $18 million ($0.51 per unit), up from $4.7 million, and the 47th consecutive quarterly distribution was declared.

• EBITDA increased to $121.2 million from $75.0 million year-over-year.

• Business model stability is supported by a fixed margin ethylene sales agreement, minimizing market volatility.

• Cash flows from operating activities increased to $110.2 million from $45.8 million year-over-year.

Financial highlights

• Net sales rose to $305.7 million from $237.6 million, with gross profit margin improving to 30.7% from 22.8% year-over-year.

• Net income per limited partner unit was $0.40, up from $0.14 year-over-year.

• Distributable cash flow and operating surplus improved, with a trailing twelve-month coverage ratio of 1.00x.

• Capital expenditures were $5.6 million, down from $16.0 million, mainly due to the absence of a major turnaround.

• Cash and cash equivalents stood at $44.3 million at quarter-end.

Outlook and guidance

• No planned turnarounds in 2026; stable operations expected.

• Surge in global demand for North American chemicals and polymers due to Middle East conflict and Strait of Hormuz closure is boosting export demand and third-party ethylene sales prices.

• If elevated ethylene prices persist, further margin improvements are anticipated in Q2.

• Management expects to continue distributing most excess cash generated from operations.