Fri, May 2, 7:19 PM (10 days ago)
**Westlake Corporation (WLK) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $2,846 million, down 4% from $2,975 million in Q1 2024. - **Net Loss:** $40 million, compared to a net income of $174 million in Q1 2024. - **Earnings per Share (EPS):** $(0.31) diluted, down from $1.34 in Q1 2024. - **Gross Profit Margin:** 8%, down from 16% in Q1 2024. - **Operating Loss:** $32 million, compared to an operating income of $223 million in Q1 2024. - **Cash Flow from Operations:** $(77) million, down from $169 million in Q1 2024. **Segment Performance:** - **Performance and Essential Materials:** Revenue down 4% to $1,850 million, operating loss of $163 million. - **Housing and Infrastructure Products:** Revenue down 5% to $996 million, operating income of $148 million. **Key Metrics and Trends:** - **Sales Prices and Volumes:** Average sales prices and volumes decreased by 2% each. - **Costs:** Higher energy and feedstock costs impacted margins. - **Cash Flow:** Negative cash flow from operations due to lower prices, demand, and turnaround activities. - **Debt:** $4,592 million in long-term debt, compliant with all covenants. - **Liquidity:** $2,297 million in cash and cash equivalents, $183 million in available-for-sale securities. **Future Operations and Uncertainties:** - **Macroeconomic Factors:** Tariffs, trading relationships, energy prices, and inflation impact margins and demand. - **Legal and Regulatory:** Ongoing legal proceedings and regulatory compliance may affect financials. - **Environmental:** Reserves for environmental contingencies total $70 million, with potential future impacts. - **Strategic Initiatives:** Focus on cost reduction, operational efficiency, and strategic investments. **Forward-Looking Statements:** - **Outlook:** Uncertainty in import tariffs, energy prices, and macroeconomic conditions may continue to impact margins and demand. - **Strategies:** Emphasis on integration, efficiency, and strategic investments to mitigate risks and capitalize on opportunities. **Non-GAAP Measures:** - **EBITDA:** $288 million, down from $546 million in Q1 2024. - **Free Cash Flow:** $(325) million, down from $(103) million in Q1 2024. **Conclusion:** Westlake Corporation faced significant challenges in Q1 2025, with decreased revenue, net loss, and negative cash flow from operations. The company is navigating macroeconomic uncertainties, higher costs, and legal/regulatory pressures while focusing on strategic initiatives to improve future performance.