Westlake Corporation (WLK)

Westlake reported second-quarter 2026 net sales of $3,271 million and net income of $260 million on 4 August 2026, after a loss of $169 million in the first quarter 2.

Its Performance and Essential Materials segment, the commodity chemicals arm, gained from a 14 percent higher average sales price, helped in part by logistical disruptions in the Strait of Hormuz, the chief executive said 2.

On 29 September 2026 Westlake said it would close its Cologne PVC plant, which can make about 165,000 metric tons a year, at total pre-tax charges of about $205 million 34.

The company also expects third-quarter 2026 results to be lower than the second quarter, citing lower North American PVC and polyethylene prices, higher freight costs and slower housing activity 4.

Twelve ethylene antitrust lawsuits in Europe are still pending after a Dutch court dismissed two of the fourteen on 29 July 2026 5.

Westlake began operations in 1986 and grew by building and buying plants along one chain of materials, from ethylene and chlorine into plastics such as PVC 1.

PVC, used in pipe, siding and windows, is the world's third most widely used plastic, the annual report says 1.

Big purchases shaped the company: Axiall in 2016 for about $2.5 billion, Boral's North American building products businesses in 2021 for about $2.1 billion, and Hexion's epoxy business in 2022 for about $1.2 billion 1.

Net sales rose from $11,778 million in 2021 to $15,794 million in 2022, as caustic soda and chlorine prices climbed and the new acquisitions added volume 7.

Demand for PVC resin softened in the second half of 2022, and sales slipped to $12,548 million in 2023 and $12,142 million in 2024 on lower prices 78.

In 2023 the company took a $475 million impairment on its epoxy business and a litigation charge of about $150 million 8.

In 2025 net sales fell 8 percent to $11,170 million from $12,142 million, as lower prices for PVC resin, polyethylene, chlorine and pipe met a 5 percent drop in sales volumes 1.

Westlake lost $1,508 million, or $11.70 per diluted share, in 2025, against a profit of $602 million in 2024 1.

Behind the loss were a $727 million write-off of the premium once paid for its North American chlorovinyls unit, $393 million of closure costs in Louisiana and Mississippi, and $247 million at Pernis 1.

On 5 January 2026 it bought ACI, a Portugal-based maker of specialty plastic compounds for wire and cable, for a preliminary price of about €92.4 million 1.

Housing and Infrastructure Products

This segment makes vinyl siding, trim, stone veneer, roofing, windows, decking, and PVC pipe and fittings for water and sewer lines 1.

Its brands include Royal Siding, Eldorado Stone, DaVinci Roofscapes and Certa-Lok pipe 1.

Segment net sales were $4,148 million in 2025, down from $4,317 million, and income from operations was $587 million 1.

In the second quarter of 2026 segment net sales were $1,252 million, helped by a double-digit increase in pipe and fittings sales volume 2.

Competitors named in the annual report include JM Eagle, Trex, James Hardie, CertainTeed and Cornerstone Building Brands 1.

Performance and Essential Materials

This segment makes ethylene, chlorine, caustic soda, vinyl chloride monomer (the building block of PVC), PVC, polyethylene and epoxy resins 1.

The annual report puts its capacity at about 39.2 billion pounds a year as of 18 February 2026 1.

Segment net sales were $7,022 million in 2025, and it lost $2,100 million from operations after write-offs and closure costs 1.

In the second quarter of 2026 it earned $185 million from operations, against a $188 million loss a year earlier, with a 14 percent higher average sales price 2.

Plants, people and rivals

In the fourth quarter of 2025 Westlake stopped its Aberdeen PVC plant, a Lake Charles vinyl chloride unit, a chlor-alkali unit and a styrene plant, and in 2025 it shut epoxy units at Pernis 1.

On 15 June 2026 its subsidiary Westlake Vinnolit completed the purchase of a Wilhelmshaven PVC and vinyl chloride plant, formerly in insolvency, able to make 380,000 metric tons of PVC a year 6.

CHEManager reported on 4 May 2026 that the buyer intended to take on about 350 employees of the insolvent Vynova Wilhelmshaven 9.

Jean-Marc Gilson has been president and chief executive since July 2024, after leading Mitsubishi Chemical Group from April 2021 until April 2024 1.

Albert Chao, a co-founder's son, is executive chairman and James Chao is senior chairman, both since July 2024 1.

Jonathan Baksht is senior vice president and chief financial officer, and Tommy Darby became chief accounting officer on 31 August 2026 213.

It had about 14,600 employees across 18 countries at 31 December 2025 1.

Legal matters and other problems

A 2020 European Commission decision found ethylene buyers, Westlake among them, exchanged pricing information, and fourteen damages suits followed in the Netherlands and Germany 5.

On 29 July 2026 the Amsterdam court dismissed Shell's claim of about €1,025 million and a second suit, both open to appeal 5.

The law firm Houthoff, which acted for two other defendants, wrote on 7 August 2026 that the court found harm from the infringement implausible 12.

In March 2026 Westlake agreed to pay $67 million to settle US direct purchasers' PVC pipe price-fixing claims, while indirect purchasers' claims and a Justice Department probe continue 5.

The umbrella, in words

Brands: Royal, Portsmouth and TruExterior in siding and trim, Eldorado and Cultured Stone in stone veneer, DaVinci in roofing, Certa-Lok in pipe, and Westlake Dimex in recycled products 1.

Westlake owns 40.1 percent of Westlake Chemical Partners (14,122,230 common units) plus its general partner, and holds 77.2 percent of OpCo, which runs ethylene plants at Lake Charles and Calvert City 1.

It also owns 50 percent of LACC, an ethylene plant at Lake Charles, and 95 percent and 60 percent of joint ventures in China and Taiwan 1.

It agreed to buy 95 percent of OpCo's ethylene at cost plus a fixed margin of $0.10 per pound 1.

It owns most plants but leases the land at sites in Germany, Longview, Deer Park and Argo, and leases some Houston office space from an affiliate of its principal stockholder 1.

TTWF LP and its affiliates beneficially owned about 72 percent of the common stock at 31 December 2025, so other holders cannot decide a vote alone 1.

Westlake expects the Cologne plant to stop operating in the first quarter of 2027, with about 120 jobs affected 3.

It expects to book about $75 million of non-cash and $35 million of cash charges in 2026, and the rest in 2027 3.

Hydrocarbon Engineering and Indian Chemical News carried the same plan in early October 2026 1011.

The company says its three-pillar profitability plan is on track to deliver a $600 million operating income benefit, announced on 4 August 2026 2.

Chief financial officer Jonathan Baksht said it replaced a revolving credit facility due to expire in 2027 with a new $1.5 billion revolver expiring in 2031 2.

The annual report expects about $25 million of further costs from the 2025 closures, finishing in 2027, and about $10 million at Pernis, finishing in 2030 1.

It cites the home builders' association outlook of 1,333 thousand housing starts in 2026 and 1,351 thousand in 2027 1.

The twelve pending ethylene suits and any appeal of the two dismissals are still to be decided, and the company cannot yet estimate their effect 5.