Westlake Corporation Reports $40 Million Net Loss in Q1 2025

Westlake Corporation reported a net loss of $40 million, or $(0.31) per diluted share, for the first quarter of 2025, a significant decline from a net income of $174 million, or $1.34 per diluted share, in the same period last year. The company's net sales decreased by 4% to $2.846 billion, down from $2.975 billion in the first quarter of 2024. This decline was attributed to lower sales prices for key products, including PVC resin and chlorine, as well as reduced sales volumes for polyethylene and PVC resin, which were partially offset by increased caustic soda sales volumes.

The company's gross profit margin fell to 8% from 16% year-over-year, primarily due to decreased sales prices and higher energy and feedstock costs. Selling, general, and administrative expenses rose to $227 million from $209 million, driven by increased allowances for credit losses and higher legal and consulting costs. The loss from operations was $32 million, a stark contrast to the income of $223 million reported in the prior year, reflecting the challenges faced in both the Performance and Essential Materials and Housing and Infrastructure Products segments.

In terms of operational metrics, Westlake's Performance and Essential Materials segment saw net sales drop to $1.850 billion, a decrease of 4% from the previous year, while the Housing and Infrastructure Products segment reported a 5% decline in net sales to $996 million. The company noted that the overall decrease in sales was influenced by weak global industrial activity and adverse weather conditions impacting demand for housing products. The total employee headcount remained stable, with no significant changes reported in staffing levels.

Looking ahead, Westlake Corporation anticipates continued challenges due to macroeconomic factors such as inflation, rising interest rates, and geopolitical tensions affecting demand and pricing across its product lines. The company is closely monitoring the impact of recent U.S. tariffs on imported products and the potential for retaliatory measures from other countries. Despite these challenges, Westlake remains committed to its strategic initiatives, including ongoing investments in production capacity and efficiency improvements, as it navigates the current market landscape.