Westlake Corporation Reports Third Quarter 2026 Results

Jean‑Marc Gilson, President and Chief Executive Officer of Westlake Corporation

“Our third quarter of 2026 financial results reflected lower levels of North American residential construction activity and customer inventory destocking in our HIP segment combined with lower selling prices and margins in our PEM segment as initial price increases realized in the second quarter of 2026 following the onset of the Middle East conflict moderated. Earnings in PEM's European businesses were significantly impacted by higher energy costs, weak demand, and increased import pressure from Asia. In response to these structural challenges in Europe, we took action to optimize our footprint in the third quarter by announcing the closure of a PVC plant in Cologne, Germany. HIP's third quarter margins were also impacted by higher diesel and freight costs. Despite these headwinds, Westlake generated $220 million of free cash flow during the quarter, in part due to the benefits from our three-pillar profitability improvement plan, which remains on track to deliver $600 million of EBITDA uplift in 2026”

Jean‑Marc Gilson, President and Chief Executive Officer of Westlake Corporation

“Higher borrowing costs have increased potential homebuyers' affordability concerns, which we expect to weigh on HIP's near-term sales volumes. Nevertheless, we remain positive on the medium- to long-term outlook for HIP sales and earnings growth supported by our investments in growth segments of the market and infrastructure spending. While PEM selling prices have stabilized with upward momentum entering the fourth quarter of 2026, we recognize that an environment of heightened price volatility persists, which requires us to stay vigilant in identifying and executing cost reduction and footprint optimization actions”

Jon Baksht, Senior Vice President and Chief Financial Officer of Westlake Corporation

“Our investment-grade rated balance sheet, with $2.0 billion of cash and investments at the end of the third quarter continues to be a differentiated source of strength for Westlake that supports our ability to continue to invest in attractive markets, such as our recent roofing acquisition and the acquisitions of both ACI and Wilhelmshaven earlier in 2026, while continuing to return cash to shareholders through a solid dividend that has grown for 22 consecutive years since our IPO in 2004”