Westlake Corporation Reports $1.5 Billion Net Loss and Decline in Sales for Fiscal Year 2025

Westlake Corporation reported a significant decline in its financial performance for the fiscal year ending December 31, 2025, with a net loss attributable to the company of $1.5 billion, or $11.70 per diluted share, compared to a net income of $602 million, or $4.64 per diluted share, in 2024. Total net sales decreased by 8% to $11.17 billion from $12.14 billion in the previous year. The decline in revenue was primarily attributed to lower sales prices and volumes for key products, including PVC resin, polyethylene, and chlorine, as well as increased energy and feedstock costs. The company also recognized a non-cash goodwill impairment charge of $727 million related to its North American Chlorovinyls reporting unit.

In terms of operational changes, Westlake undertook significant restructuring efforts, including the closure of several production facilities. In December 2025, the company ceased operations at its PVC plant in Aberdeen, Mississippi, and its vinyl chloride monomer plant in Lake Charles, Louisiana, among others. These closures resulted in restructuring costs of $393 million, which included accelerated depreciation and write-downs of inventory. Additionally, the company completed the acquisition of the ACI/Perplastic Group, a global compounding solutions business, for approximately €92.4 million, further expanding its product offerings in the wire and cable sectors.

Westlake's operational metrics reflected a challenging environment, with a 5% decrease in sales volumes across its segments. The Housing and Infrastructure Products segment reported net sales of $4.15 billion, down from $4.32 billion in 2024, while the Performance and Essential Materials segment saw sales drop to $7.02 billion from $7.83 billion. The company’s gross profit margin also fell to 7% from 16% in the previous year, primarily due to lower sales prices and increased costs.

Looking ahead, Westlake anticipates continued challenges in the housing market, particularly due to high mortgage rates and inflation affecting consumer spending. However, the company expects potential improvements in demand for housing products as interest rates stabilize. The Performance and Essential Materials segment is projected to face ongoing pressure from lower prices and demand, influenced by geopolitical tensions and market conditions. The company plans to focus on optimizing its asset footprint and improving productivity to navigate these challenges effectively.