Westlake Corporation Reports $602 Million Net Income for Fiscal Year 2024

Westlake Corporation reported a net income of $602 million, or $4.64 per diluted share, for the fiscal year ending December 31, 2024, a notable increase from the $479 million, or $3.70 per diluted share, recorded in 2023. The company's total net sales for 2024 were $12.14 billion, down from $12.55 billion in the previous year. The decline in sales was primarily attributed to lower average sales prices across most product lines, including PVC resin and caustic soda, which fell by 10% compared to 2023. However, the company experienced a 6% increase in sales volumes, driven by higher demand for PVC resin, polyethylene, and other products.

In terms of operational performance, Westlake's income from operations rose to $875 million in 2024, compared to $729 million in 2023. This improvement was influenced by the absence of significant impairment charges that had impacted the previous year's results, including a $475 million impairment related to the Westlake Epoxy business. The company also incurred $75 million in expenses associated with the mothballing of its allyl chloride and epichlorohydrin units in the Netherlands, which are expected to cease operations in 2025. Despite these challenges, the company benefited from lower natural gas and feedstock costs, which helped offset some of the declines in sales prices.

Strategically, Westlake has continued to expand its operations through acquisitions, including the purchase of the global epoxy business from Hexion Inc. in February 2022 for $1.2 billion. The company has also been actively involved in addressing environmental concerns, with a commitment to reduce its Scope 1 and Scope 2 CO2 emissions intensity by 20% by 2030 from a 2016 baseline. As of December 31, 2023, Westlake reported a 16% reduction in emissions intensity, although higher emissions in 2023 compared to the previous year were attributed to lower production rates.

Westlake's operational footprint includes 58 manufacturing locations across North America, Europe, and Asia, with a total employee headcount of approximately 15,540 as of December 31, 2024. The company has faced challenges in the housing and infrastructure products segment, with net sales increasing slightly to $4.32 billion in 2024, driven by higher sales volumes despite a competitive pricing environment. The outlook for 2025 remains cautious, with expectations of continued volatility in energy prices, inflation, and interest rates potentially impacting demand and margins across both segments.

Looking ahead, Westlake anticipates that macroeconomic conditions, including elevated interest rates and inflation, will continue to influence its operations. The company is focused on maintaining operational efficiencies and exploring further growth opportunities, including potential acquisitions that align with its strategic objectives.