Westlake(NYSE) WLK

Westlake makes basic materials that help build homes and keep infrastructure running. These products go into everyday items like water pipes, food packaging, and medical supplies. The company serves builders, city planners, and manufacturers who need durable plastic and chemical components.

What Westlake Makes

• Housing and Infrastructure: Siding, stone veneer, windows, and PVC pipes for residential and municipal projects; includes 53 North American manufacturing sites.
• Performance and Essential Materials: Large-scale production of chemicals like ethylene, chlorine, and caustic soda used in everything from wind turbines to automotive parts.
• PVC and Polyethylene: Plastic resins sold to fabricators for making bags, food wraps, and flexible packaging.
• Epoxy and Derivatives: Specialized resins and coatings used for high-end applications in aerospace, electronics, and bridge construction.

Recent Business Moves

• Acquired Boral Limited North American building products business in 2021 for roughly $2.1 billion.
• Purchased the global epoxy business of Hexion Inc. in 2022 for approximately $1.2 billion.
• Acquired ACI (also known as Perplastic Group) in January 2026 to expand specialty materials for the wire and cable sectors.
• Completed production capacity expansions for chlorine and VCM (a plastic precursor) at the Geismar, Louisiana site in 2025.

A Global Production Network

The company maintains a highly integrated supply chain where it produces its own raw materials, like salt and ethylene, to lower costs. It operates across 18 countries with 64 manufacturing facilities to serve diverse industrial and consumer markets.

The Recent Numbers

• Net sales reached $2.5 billion in Q4 2025, a decrease of 10.9% from Q4 2024.
• Net income fell to a loss of $544 million in Q4 2025, down from a $7 million profit in Q4 2024.
• Operating cash flow was $225 million in Q4 2025, a 48.2% decline compared to $434 million in Q4 2024.
• Free cash flow dropped to a loss of $16 million in Q4 2025, down 110.7% from the previous year.

Bottom Line

Westlake has transformed from a regional chemical producer into a global supplier of building and high-performance materials. Its focus on downstream integration helps manage volatile raw material costs while serving essential needs in housing and industry.