WLK NYSE Russell 1000 Earnings call
Westlake Corporation (WLK) · Q2 2026 results and valuation
Share price: $63.88 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 4 Aug 2026 and 5 May 2026
Net income turned to a profit from a loss last quarter. Management sounded cautious, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
Turned profit
Net income vs Q1 2026
Outlook given
Net income 260.0M vs -157.0M
Revenue +23.3%
2 · How management spoke
Cautious
Among the least upbeat of all company calls
Answers to analysts: typical, in line with the script.
Similar to last call.
3 · What stood out
Key theme
Cost of sales was higher because the company experienced 10% volume growth during the second quarter of 2026.
Valuation
Is Westlake Corporation undervalued?
Reverse DCF. Average free cash flow of the last three fiscal years (the last year was negative) (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
The projected cash flow doesn't cover the debt, so the price is far above the model's fair value.
Current price
$63.88
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+14.2% for 10 yrs
Fair value / share
$-11.60
Buy below
$-8.70
Price vs fair value
n/a
Price vs buy-below price
n/a
Management expects
Growth +75% · from the Q2 2026 report: “Caustic production increased 75% in the second quarter, and the company expects the second half of the year to average higher than the first half.”
A guidance figure for growth, usually one year ahead, not a 10-year free-cash-flow rate.
Read between the lines
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Guidance
Westlake expects 2026 revenue and EBITDA margin in its Housing and Infrastructure Products segments to be towards the lower end of its previously communicated ranges of $4.4 billion…
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Guidance
Caustic production increased 75% in the second quarter, and the company expects the second half of the year to average higher than the first half.
Source quote
“And caustic is up 75% to the second quarter, and we expect the second half to average higher than the first half.”
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Figure
Pipe and fittings sales volume grew roughly 20% year-over-year due to continued North American infrastructure investments.
Source quote
“In fact, pipe and fittings sales volume grew roughly 20% year-over-year as a result of continued North American infrastructure investments...”
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Fading
Management expects meaningful improvement in some impacted chains, noting that the PVC core vinyls chain was less impacted by the conflict than the polyolefins chain.
Source quote
“And so we do expect to see some meaningful improvement in those chains that have been more directly impacted. And so it's unclear exactly what kind of price direction we may see as the conflict takes whatever path it chooses to take, but I would say that the PVC core vinyls chain was lesser impacted by this conflict than the polyolefins chain has been.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“PEM second quarter EBITDA of $416 million increased by $364 million versus the second quarter of 2025, driven by the benefits of our 3-pillar profitability improvement plan and a 14%...”
“End market conditions remain favorable, driven by robust demand for municipal pipe as a result of the Infrastructure Act as well as strong growth in overall U.S.”
“From the company standpoint, I think maybe what might be hiding some of those cost reductions is we did have 10% volume growth in the quarter and particularly strong volume...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 3.27B | 2.65B | +23.3% | 2.95B | +10.8% |
| Gross profit | 652.0M | 112.0M | +482.1% | 258.0M | +152.7% |
| Operating income | 364.0M | -172.0M | Turned profit | -109.0M | Turned profit |
| Net income | 260.0M | -157.0M | Turned profit | -142.0M | Turned profit |
| EPS | 2.01 | -1.31 | Turned profit | -1.11 | Turned profit |
| P/E | 12-mo loss | 12-mo loss | — | 12-mo loss | — |
Topics
Most discussed now
- Typically, Westlake is very proud of its strong investment-grade balance sheet and continuing to delever like it has with the...
- New Hence, my comment regarding trying to run its assets in the second half as hard as Westlake can.
- It will allow us to integrate that site and Westlake's European operations with low-cost feedstock produced in the U.S.
- When you consider that the 3% volume increase would translate into additional cost of sales as well, you can translate...
- These are sustainable cost savings going into the future.
Faded since Q1 2026
- Dropped Quite a few of them have actually dramatically reduce their operating rate.
- Fading Westlake is now increasing as much as it can PVC supply to take opportunities and to sell its volume in...
- Fading Its price increases that Westlake has already announced in the HIP segment have already reflected the cost that it expects...
- Fading With the poll on natural gas globally given what's happening in the Persian Gulf, you really have seen gas prices...
Latest announcements
Official filings, newest first.
- Restructuring costs; Regulation FD disclosure · SEC 8-K
- Director or officer change · SEC 8-K
- Results of operations; Regulation FD disclosure · SEC 8-K
- Other events · SEC 8-K
- Regulation FD disclosure · SEC 8-K
- Shareholder vote results · SEC 8-K
- Results of operations; Regulation FD disclosure · SEC 8-K
- Regulation FD disclosure · SEC 8-K