Westlake : 2026 Q1 Presentation

Published: 2026-05-05 07:55:08 ET WLK

Published on 05/05/2026 at 07:55 am EDT

1Q 2026

‌First Quarter 2026 Highlights

Net Sales

1Q 2026 Financial Results

EBITDA(1,2)

Cash, Equivalents and Investments(3)

Intra-quarter improvement in PEM's average sales price with further realizations expected to benefit subsequent quarters as a result of a steepening of the global cost curve due to the Middle East conflict

On track to deliver 2026 EBITDA uplift of $600 million from our three-pillar profitability improvement plan (footprint optimization, cost savings and improved plant reliability)

PEM sales volume (excl. plant closures)(4) increased both YoY and QoQ for the first

time since 2Q'24 driven by higher PVC resin production and sales volume

Strong Pipe and Fittings sales volume growth from sustained strength in

infrastructure spending, including data centers' needs for cooling water

Acquisition of ACI in January 2026 improves HIP's exposure to the fast-growing high-

voltage wire & cable market

Solid investment-grade rated balance sheet with $2.5 billion of cash and equivalents(3)

Excludes "Identified Items" consisting of a $67 million charge to settle certain litigation involving direct purchasers of PVC pipe and fittings and $18 million of charges related to previously announced facility shutdowns

Reconciliation of EBITDA excl. Identified Items to the applicable GAAP measure can be found on page 11

Includes investments in available-for-sale securities

2

Certain of PEM's North America chlorovinyls production facilities ceased operations in December 2025, including (i) the polyvinyl chloride plant at the Aberdeen, Mississippi facility, (ii) the vinyl chloride monomer plant at the Lake Charles, Louisiana North facility and (iii) a diaphragm chlor-alkali unit at the Lake Charles, Louisiana South facility, as well as the styrene production plant located at the Lake Charles, Louisiana facility. The PVC resin production unit owned by the Huasu joint venture ceased operations in June 2025. In January 2026, HIP completed the acquisition of ACI.

‌Westlake Corporation 1Q 2026(1)

($ in millions)

1Q'26

4Q'25

QoQ%

1Q'25

YoY%

Sales

$2,652 $2,533

5%

$2,846

(7%)

Operating Loss(1)

($87) ($160)

N.M.

($25)

N.M.

EBITDA(1,2)

Housing and Infrastructure Products

$186 $146

27%

$203

(8%)

Performance and Essential Materials

$36 $45

(20%)

$80

(55%)

Corporate

$13 $5

-

$12

-

$235

$196

20%

$295

(20%)

Westlake

1Q 2026 vs. 1Q 2025(3)

Average Sales Price

-2.5%

Volume

-0.6%

Westlake

1Q 2026 vs. 4Q 2025(3)

Average Sales Price

+0.5%

Volume

+5.8%

Excludes "Identified Items" consisting of: a $67 million charge to settle certain litigation involving direct purchasers of PVC pipe and fittings and

$18 million of charges related to previously announced facility shutdowns in 1Q'26; $495 million of PEM shutdown charges and $16 million for

HIP restructuring charges in 4Q'25; and $7 million of charges related to previously announced facility shutdowns in 1Q'25

3

Reconciliations of Operating Income (Loss) excl. Identified Items, HIP EBITDA excl. Identified Items and PEM EBITDA excl. Identified Items to the applicable GAAP measure can be found on pages 11 and 12

Excludes the impact of plant closures and the ACI acquisition. See note 4 on page 2.

Sequentially higher sales volume

and average sales price driven by seasonally higher HIP demand and improved export demand for PEM

Our three-pillar profitability

improvement plan drove ~$150 million of EBITDA uplift in 1Q'26 towards our FY'26 target of $600 million

Lower average sales price and higher

natural gas costs drove a YoY decline in EBITDA

3

‌Housing and Infrastructure Products

("HIP") Segment Performance(1)

HIP Segment

1Q 2026 vs. 4Q 2025(4)

Average Sales Price Volume

-4.8% +10.3%

($ in millions)

1Q'26

4Q'25

QoQ%

1Q'25

YoY%

Housing Products Sales

$788

$767

3%

$838

(6%)

Infrastructure Products Sales

$205

$134

53%

$158

30%

Total HIP Sales

$993

$901

10%

$996

(0%)

Operating Income(1)

$124

$82

51%

$148

(16%)

EBITDA(1,2)

$186

$146

27%

$203

(8%)

EBITDA Margin (1,3)

19%

16%

-

20%

-

Continued strong YoY Pipe & Fittings sales volume growth from strong infrastructure spending growth, including increasing demand to supply cooling water to data centers

Slow start to the homebuilding season due to unusually cold weather across much of the United States

HIP Segment

1Q 2026 vs. 1Q 2025(4)

Average Sales Price

-2.3%

Volume

-2.3%

With slower residential construction activity in North America and rising costs due to the Middle East conflict, 2026 revenue and EBITDA margin are now expected to be at the lower ends of the previously-communicated ranges of $4.4 - $4.6 billion of sales with a 19% - 21% EBITDA margin(3)

Excludes "Identified Items" consisting of a $67 million charge to settle certain litigation involving direct purchasers of PVC pipe and fittings and

$1 million of charges related to previously announced facility shutdowns in 1Q'26; and $13 million accrued footprint optimization expenses and

a $3 million loss on the sale of a compounding business in 4Q'25

4

4

Reconciliations of HIP Operating Income excl. Identified Items and EBITDA excl. Identified Items to the applicable GAAP measure can be found on page 12

HIP EBITDA margin is calculated by dividing HIP EBITDA by Total HIP Sales

Excludes the impact of the ACI acquisition. See note 4 on page 2.

‌Housing and Infrastructure Products Update

Longer-term housing fundamentals remain strong due to decade-plus of under-building, increasingly favorable demographics and popularity of remote work

Our 2026 outlook for exterior building products sales volume reflects the slow start to the homebuilding season and additional pressure on home affordability from increased building costs

New PVCO pipe plant under construction to support the strong growth and market adoption of this innovative product that reduces labor costs by streamlining the installation process

Strong presence in repair & remodel provides stability and steady growth driven by large number of homes in prime remodel age, healthy home equity levels, and significant backlog of projects

5

‌Performance and Essential Materials

("PEM") Segment Performance(1)

($ in millions)

1Q'26

4Q'25

QoQ%

1Q'25

YoY%

Performance Materials Sales

$1,003

$930

8%

$1,056

(5%)

Essential Materials Sales

$656

$702

(7%)

$794

(17%)

Total PEM Sales

$1,659

$1,632

2%

$1,850

(10%)

Operating Loss(1)

($194)

($222)

N.M.

($156)

N.M.

EBITDA(1,2)

$36

$45

(20%)

$80

(55%)

EBITDA Margin (1,3)

2%

3%

-

4%

-

PEM Segment

1Q 2026 vs. 1Q 2025(4)

Average Sales Price

-2.6%

Volume

+0.4%

PEM Segment

1Q 2026 vs. 4Q 2025(4)

Average Sales Price

+3.5%

Volume

+3.2%

Excludes "Identified Items" consisting of: $17 million of charges related to previously announced facility shutdowns in 1Q'26; $495 million of charges related to previously announced facility shutdowns in 4Q'25; and $7 million of charges related to previously announced facility shutdowns in 1Q'25

6

Reconciliations of PEM Operating Income (Loss) excl. Identified Items and PEM EBITDA excl. Identified Items to the applicable GAAP measure can be found on page 12

PEM EBITDA margin is calculated by dividing PEM EBITDA excl. Identified Items by Total PEM Sales

Excludes the impact of plant closures. See note 4 on page 2.

Sequentially higher average sales

price as a result of olefins, polyethylene and caustic soda price increases

Volume growth(4) driven by higher PVC resin production and sales volume, including stronger export market demand

Low cost position in North America

with a high degree of production security to supply global demand

A 34% QoQ increase in natural gas

prices, as a result of unusually cold weather early in 1Q'26, drove sequentially lower EBITDA

6

‌Performance and Essential Materials Update

Energy and feedstock advantages in North America (~85% of our production capacity) and our high degree of vertical integration relative to the global industry positions us to benefit from the steepening global cost curve and serve our customers well

Following a spike early in 1Q'26, U.S. natural gas prices have declined sharply which could provide a tailwind to PEM's margins for the remainder of 2026

Relatively stable North American demand as global macroeconomic conditions remain weak in Europe and Asia, but Westlake's high degree of product integration and large offtake of PVC resin to the HIP segment provide less exposure to weaker economies outside North America

The significant majority of the targeted $600 million company-wide EBITDA uplift in 2026 from our three-pillar profitability improvement plan is expected to benefit the PEM segment

7

8

‌Consolidated Statements of Operations

Three months ended March 31, Three months ended

December 31,

2026

2025

2025

(In millions of dollars, except per share data)

Housing and Infrastructure Products Sales

$ 993

$ 996

$ 901

Performance and Essential Materials Sales

1,659

1,850

1,632

Net sales

2,652

2,846

2,533

Cost of sales

2,540

2,614

2,446

Gross profit

112

232

87

Selling, general and administrative expenses

236

227

224

Amortization of intangibles

30

30

33

Restructuring, transaction and integration-related costs

18

7

501

Loss from operations

(172)

(32)

(671)

Interest expense

(56)

(39)

(51)

Other income, net

38

37

59

Loss before income taxes

(190)

(34)

(663)

Provision for (benefit from) income taxes

(33)

1

(130)

Net loss

(157)

(35)

(533)

Net income attributable to noncontrolling interests

12

5

11

Net loss attributable to Westlake Corporation

$ (169)

$ (40)

$ (544)

Loss per common share attributable to Westlake Corporation:

Basic

$ (1.31)

$ (0.31)

$ (4.22)

Diluted

$ (1.31)

$ (0.31)

$ (4.22)

9

‌Reconciliation of Net Loss Attributable to Westlake Corporation and Loss Per Diluted Share to Net Loss and Diluted Loss Per Share excl. Identified Items

Three months ended March 31, Three months ended

December 31,

2026 2025 2025

(In millions of dollars, except per share data)

$ (157)

$ (35)

$ (533)

12

5

11

(169)

(40)

(544)

69

7

413

$ (100)

$ (33)

$ (131)

$ (1.31)

$ (0.31)

$ (4.22)

0.54

0.05

3.20

$ (0.77)

$ (0.26)

$ (1.02)

Net loss

Less:

Net income attributable to noncontrolling interests

Net loss attributable to Westlake Corporation

Add:

Identified Items, after-tax

Net loss attributable to Westlake Corporation excl. Identified Items

Diluted loss per common share attributable to Westlake Corporation

Add:

Identified Items per share

Diluted loss per common share attributable to Westlake Corporation excl. Identified Items

10

‌Reconciliation of EBITDA excl. Identified Items to EBITDA, Net Loss, Loss from Operations and Net Cash Provided by (Used for) Operating Activities

Three months ended March 31, 2026 2025

Three months ended

December 31,

2025

(In millions of dollars)

Net cash provided by (used for) operating activities

$ (94)

$ (77)

$

225

Changes in operating assets and liabilities and other

(29)

41

(975)

Deferred income taxes

(34)

1

217

Net loss

(157)

(35)

(533)

Less:

Other income, net

38

37

59

Interest expense

(56)

(39)

(51)

Benefit from (provision for) income taxes

33

(1)

130

Loss from operations

(172)

(32)

(671)

Add:

Depreciation and amortization

284

283

297

Other income, net

38

37

59

EBITDA

$ 150

$ 288

$

(315)

Add:

Identified Items

85

7

511

EBITDA excl. Identified Items

$ 235

$ 295

$

196

Loss from operations margin

(6%)

(1%)

(26%)

EBITDA excl. Identified Items margin

9%

10%

8%

11

‌Reconciliation of HIP EBITDA excl. Identified Items, PEM EBITDA excl. Identified Items and Corporate EBITDA to Operating Income (Loss)

Three months ended March 31,

Three months ended December 31,

2026 2025 2025

(In millions of dollars)

Housing and Infrastructure Products EBITDA excl. Identified Items

$

186

$

203

$

146

Less:

Identified Items

68

-

16

Depreciation and Amortization

60

53

61

Other income, net

2

2

3

Housing and Infrastructure Products Operating Income

56

148

66

Performance and Essential Materials EBITDA excl. Identified Items

36

80

45

Less:

Identified Items

17

7

495

Depreciation and Amortization

221

227

233

Other income, net

9

9

34

Performance and Essential Materials Operating Loss

(211)

(163)

(717)

Corporate EBITDA

13

12

5

Less:

Depreciation and Amortization

3

3

3

Other income, net

27

26

22

Corporate Operating Loss

(17)

(17)

(20)

Housing and Infrastructure Products Operating Income

56

148

66

Performance and Essential Materials Operating Loss

(211)

(163)

(717)

Corporate Operating Loss

(17)

(17)

(20)

Total Operating Loss

$

(172)

$

(32)

$

(671)

12

‌Reconciliation of Free Cash Flow to Net Cash Provided by (Used for) Operating Activities

Three months ended March 31, Three months ended

December 31,

2026 2025 2025

(In millions of dollars)

Net cash provided by (used for) operating activities

$ (94)

$ (77)

$

225

Less:

Additions to property, plant and equipment

209

248

241

Free Cash Flow

$ (303)

$ (325)

$

(16)

13

‌Safe Harbor Language

This presentation contains certain forward-looking statements including statements regarding our cost savings objectives and our ability to maintain synergies, pricing and demand for our products and across the industrial and manufacturing sectors, global macroeconomic conditions, anticipated sales volumes, industry outlook for both of our segments, our ability to execute our integrated strategy, projected benefits from the shutdown of certain of our PEM facilities, our cost control and efficiency efforts (such as achieving a $600 million uplift to EBITDA in 2026 from our profitability improvement plan), our future operating results, including revenues and EBITDA, our expectations regarding previously communicated ranges of our HIP segment's revenue and EBITDA margin for 2026, our competitive position, the effects of changing demographics in the markets that we serve, anticipated residential construction, repair and remodel activities and infrastructure spending growth, long-term housing market fundamentals, changes in sales mix of our products, expectations regarding homebuilder confidence, our relationships with our customers and their adoption of our products, the benefits of our acquisition of ACI, and the effects of the conflict in the Middle East, including the benefits of our energy and feedstock cost advantages in the North American chemicals market. Actual results may differ materially depending on factors, including, but not limited to, the following: general economic and business conditions; the cyclical nature of the chemical and building products industries; the availability, cost and volatility of raw materials and energy; uncertainties associated with the United States, European and worldwide economies, including those due to political tensions and conflict in the Middle East, Russia, Ukraine and elsewhere; uncertainties associated with climate change; the potential impact on the demand for ethylene, polyethylene and polyvinyl chloride due to initiatives such as recycling and customers seeking alternatives to polymers; current and potential governmental regulatory actions in the United States and other countries; industry production capacity and operating rates; the supply/demand balance for our products; competitive products and pricing pressures; instability in the credit and financial markets; access to capital markets; terrorist acts; operating interruptions; changes in laws or regulations, including trade policies; disruptions in global trade; the effects of government shutdowns; technological developments; information systems failures and cyber attacks; foreign currency exchange risks; our ability to implement our business strategies; creditworthiness of our customers; the effect and results of litigation and settlements of litigation; and other factors described in our reports filed with the Securities and Exchange Commission. Many of these factors are beyond our ability to control or predict. Any of these factors, or a combination of these factors, could materially affect our future results of operations and the ultimate accuracy of the forward-looking statements. These forward-looking statements are not guarantees of our future performance, and our actual results and future developments may differ materially from those projected in the forward-looking statements. Management cautions against putting undue reliance on forward-looking statements. Every forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to publicly update or revise any forward-looking statements except as required by applicable law.

Investor Relations Contacts

Steve Bender

Executive Vice President & Chief Financial Officer

Jeff Holy

Vice President & Chief Accounting Officer

Westlake Corporation

2801 Post Oak Boulevard, Suite 600, Houston, Texas 77056 | 713-960-9111

14

Disclaimer

Westlake Corporation published this content on May 05, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 05, 2026 at 11:54 UTC.