Westlake Faces Q1 Loss on Higher Costs
Image courtesy of Westlake.
Westlake Corporation reported a net loss of $40 million in the first quarter of 2025, compared to net income of $174 million during the same period in 2024. Net sales totaled $2.8 billion, down slightly from $2.98 billion a year earlier. EBITDA fell to $288 million from $546 million in Q1 2024.
The decline in earnings was primarily attributed to increased feedstock and energy costs, particularly in North America, along with planned and unplanned outages in the Performance and Essential Materials (PEM) segment. PEM reported a loss from operations of $163 million, compared to income of $22 million in Q1 2024.
The Housing and Infrastructure Products (HIP) segment saw sequential growth in sales volume, with strong demand in compounds, siding and trim. HIP reported operating income of $148 million and an EBITDA margin of 20%, up from 19% in Q4 2024.
Westlake expects improved operating rates going forward, noting the completion of a major turnaround and limited planned outages for the rest of 2025. Leadership highlighted the company’s financial strength, integrated model, and ability to navigate continued macroeconomic uncertainty.
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