Westlake Corporation Reports Significant Financial Decline in Q2 and First Half of 2025

Westlake Corporation reported a significant decline in financial performance for the second quarter and first half of 2025, as detailed in its latest 10-Q filing. For the three months ended June 30, 2025, the company recorded a net loss of $142 million, or $(1.11) per diluted share, compared to a net income of $313 million, or $2.40 per diluted share, for the same period in 2024. Net sales fell to $2.953 billion, down 8% from $3.207 billion in the prior year. The decrease in revenue was attributed to lower sales prices and volumes across key product lines, including PVC resin and building products, as well as increased energy and feedstock costs.

In the first half of 2025, Westlake's net loss reached $182 million, or $(1.42) per diluted share, compared to a net income of $487 million, or $3.75 per diluted share, in the same period of 2024. Total net sales for the six months ended June 30, 2025, were $5.799 billion, a decline of 6% from $6.182 billion in the previous year. The company cited ongoing weak global industrial activity and unplanned plant outages as contributing factors to the downturn in both sales and profitability.

Strategically, Westlake has been undergoing significant operational changes, including the closure of its Pernis facility in the Netherlands and the temporary cessation of operations at its PVC resin unit in Suzhou, China. The company recognized restructuring costs of $115 million in the second quarter related to these closures. Additionally, Westlake's employee headcount and customer engagement metrics were not disclosed in the filing, but the company continues to focus on maintaining its market position amid challenging economic conditions.

Operationally, Westlake's Performance and Essential Materials segment saw a 11% decrease in net sales to $1.793 billion in the second quarter of 2025, driven by lower sales volumes for polyethylene, chlorine, and PVC resin. Conversely, the Housing and Infrastructure Products segment reported a smaller decline, with net sales of $1.160 billion, down 3% year-over-year. The company remains the second-largest producer of chlor-alkali and PVC globally, but faces ongoing challenges from fluctuating raw material prices and geopolitical tensions affecting supply chains.

Looking ahead, Westlake anticipates continued volatility in demand and pricing due to macroeconomic factors, including inflation and geopolitical conflicts. The company is evaluating the impact of recent tax reforms under the One Big Beautiful Bill Act, which may provide some relief in cash tax obligations. However, the overall outlook remains cautious as Westlake navigates a complex market environment characterized by uncertainty in trading relationships and raw material costs.