Westlake (WLK) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 2026 were $2.7 billion, with a net loss of $169 million ($1.31 per share) and EBITDA of $150 million; excluding $85 million in litigation and shutdown charges, net loss was $100 million ($0.77 per share) and EBITDA was $235 million.

• $150 million EBITDA uplift was achieved in Q1 2026 from a three-pillar profitability plan, targeting $600 million for FY 2026.

• Sequential improvement in PEM's average sales price and volume, with further gains expected due to global supply disruptions and cost curve shifts from Middle East conflict.

• Acquisition of ACI/Perplastic Group in January 2026 expanded HIP's presence in specialty compounds and high-voltage wire & cable markets.

• Announced CFO transition and redemption of $496 million in 3.60% 2026 Senior Notes, with a new $1.5 billion revolving credit facility maturing in 2031.

Financial highlights

• Q1 2026 net sales: $2.7 billion; EBITDA: $150 million (adjusted: $235 million); net loss: $169 million (adjusted: $100 million).

• HIP segment Q1 net sales: $993 million; adjusted EBITDA: $186 million; margin: 19%.

• PEM segment Q1 net sales: $1.66 billion; adjusted EBITDA: $36 million; margin: 2%.

• Gross profit was $112 million, down from $232 million year-over-year; gross margin fell to 4%.

• Free cash flow was negative $303 million, reflecting significant capital expenditures.

Outlook and guidance

• PEM segment expected to benefit from higher global feedstock and energy prices and the profitability improvement plan.

• HIP 2026 revenue and EBITDA margin expected at the lower end of prior guidance: $4.4–$4.6 billion revenue, 19–21% EBITDA margin.

• Full-year capital expenditures forecast at $900 million, $100 million lower than last year.

• Longer-term housing fundamentals remain strong, but 2026 outlook reflects a slow start to homebuilding and affordability pressures.

• Further earnings improvement expected as profitability plan continues.