Westlake Corporation (WLK)

Westlake Corp.'s stock price experienced a significant decline over the past year. In Q2 2025, Westlake reported a net loss of $12 million due to a decline in sales volume and elevated costs, while the closure of the Pernis facility in the Netherlands also impacted results. In Q3 2025, the company reported a net loss of $782 million due to a goodwill impairment and reduced sales. Stockholders were set to receive a dividend of $0.53 per share.

Demand for Westlake Corp.'s products and services exhibits seasonality, particularly within its Housing and Infrastructure Products (HIP) segment. The HIP segment experiences improved demand driven by a seasonal uptick in construction activity, especially in North America, leading to higher sales volumes. Income from operations in the HIP segment can decrease sequentially due to lower sales volume resulting from typical seasonality of customer demand. The first quarter of the year often sees the beginning of this seasonal increase in construction activity. Seasonal demand in the HIP segment is a key driver for sequential improvements in net income and EBITDA for the company.

Westlake Corporation is a global diversified industrial company that manufactures and supplies essential materials and innovative products across various sectors, operating primarily in the chemicals, petrochemicals, and building products industries. The company's business is divided into two main segments: Performance and Essential Materials, and Housing and Infrastructure Products. Major products include chlor-alkali products used in various industrial processes, olefins foundational for medical devices and packaging, polyethylene used in food packaging and toys, PVC and vinyl chemicals used in pipes and electrical wiring, epoxies powering wind turbines and electric vehicles, PVC compounds used in automotive and healthcare, building products for residential and commercial construction, and pipe & fittings for municipal and agricultural applications.

Westlake Corporation has a global presence with operations in Asia, Europe, and North America, serving customers in over 100 countries and employing approximately 16,000 people worldwide. In North America, it has a significant presence across the United States and Canada. In Europe, it operates in countries like Germany, France, and Spain. In Asia, it has a presence in China, Japan, South Korea, Taiwan, and Vietnam.

Westlake Corporation's brand reputation has been influenced by sustainability efforts, operational challenges, historical safety incidents, and product innovation. The company has been actively promoting its commitment to sustainability through lower-carbon products and partnerships with solar farms. The closure of the Pernis facility in the Netherlands could have a localized impact on reputation. Historical safety and environmental concerns can have a lingering impact on brand perception. The launch of new eco-friendly products and participation in industry events indicate a focus on innovation and sustainable materials.

Westlake Corporation has a diverse ownership structure, with institutional investors holding a significant portion of the shares. Major institutional owners include Orbis Allan Gray Ltd, Vanguard Group Inc., and BlackRock, Inc. Individual ownership accounts for a smaller percentage, approximately 1.46% of the company.