Westlake (NYSE:WLK) Shares Gap Up Following Better-Than-Expected Earnings

Westlake Corporation (NYSE:WLK)’s stock price gapped up prior to trading on Tuesday following a stronger than expected earnings report. The stock had previously closed at $93.02, but opened at $102.72. Westlake shares last traded at $103.2290, with a volume of 172,984 shares trading hands.

The specialty chemicals company reported ($0.25) EPS for the quarter, topping analysts’ consensus estimates of ($1.47) by $1.22. Westlake had a negative net margin of 8.34% and a negative return on equity of 0.78%. The business had revenue of $2.53 billion for the quarter, compared to the consensus estimate of $2.61 billion. During the same period in the previous year, the firm earned $0.06 EPS. The business’s revenue for the quarter was down 10.9% on a year-over-year basis.

Westlake Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, March 18th. Stockholders of record on Tuesday, March 3rd will be given a dividend of $0.53 per share. This represents a $2.12 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date is Tuesday, March 3rd. Westlake’s dividend payout ratio is -28.57%.

Westlake News Summary

Here are the key news stories impacting Westlake this week:

• Positive Sentiment: Adjusted EPS beat — Westlake reported an adjusted loss of ($0.25) in Q4, significantly better than the consensus loss and narrower than prior expectations, which traders viewed as a positive surprise. Westlake shares jump as adjusted loss narrows despite sales decline
• Positive Sentiment: Dividend maintained — The company declared a quarterly dividend (record date Mar 3), supporting income-focused investors and providing a cash-return signal. Dividend announcement / MarketBeat summary
• Positive Sentiment: Commercial expansion — Westlake expanded its epoxy distribution partnership with Brenntag into India, extending its Asia‑Pacific reach and tapping infrastructure/industrial demand there. Westlake Unit Expands India Distribution Partnership With Brenntag
• Positive Sentiment: Board strengthening — The company added experienced industry leadership to the board (including CEO Jean‑Marc Gilson’s board seat), which investors may interpret as improved governance and strategic continuity. Westlake Corporation Appoints New Directors to its Board
• Neutral Sentiment: Earnings release, slides and call — Full Q4 and FY press release, slide deck and earnings‑call transcript are available for details on adjustments, segment performance and management commentary (useful for modeling but informational). Westlake Corporation Reports Fourth Quarter and Full Year 2025 Results Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Analyst notes & metric reviews — Coverage (Zacks, Benzinga preview) unpacks key metrics vs. estimates; useful context for forward estimates but not immediate catalysts. Here’s What Key Metrics Tell Us About Westlake (WLK) Q4 Earnings
• Negative Sentiment: Revenue miss and sales decline — Net sales of $2.53B missed estimates and were down ~10.9% year‑over‑year, signaling weaker demand that pressures near‑term top‑line growth. Westlake (WLK) Reports Q4 Loss, Misses Revenue Estimates
• Negative Sentiment: Profitability remains challenged — The company reported negative net margin and a full‑year loss, and some outlets flagged a significant 2025 loss; these are longer‑term headwinds until volumes/pricing recover. Westlake Reports Challenging 2025 Results with Significant Loss

Analysts Set New Price Targets

A number of equities research analysts have commented on the company. Morgan Stanley set a $80.00 price objective on Westlake in a research report on Monday, December 15th. Truist Financial increased their price target on shares of Westlake from $82.00 to $99.00 and gave the stock a “buy” rating in a research report on Wednesday, January 21st. Citigroup reaffirmed a “buy” rating and set a $100.00 price objective (up from $85.00) on shares of Westlake in a research report on Tuesday, January 13th. KeyCorp reiterated a “sector weight” rating on shares of Westlake in a research report on Tuesday, December 16th. Finally, Alembic Global Advisors set a $80.00 target price on shares of Westlake in a research note on Monday, November 17th. One analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Westlake has a consensus rating of “Hold” and an average target price of $89.47.

Insider Activity

In other Westlake news, Chairman Albert Chao sold 40,836 shares of the company’s stock in a transaction that occurred on Monday, December 22nd. The stock was sold at an average price of $73.57, for a total transaction of $3,004,304.52. Following the completion of the sale, the chairman owned 627,722 shares of the company’s stock, valued at $46,181,507.54. This represents a 6.11% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 1.30% of the company’s stock.

Hedge Funds Weigh In On Westlake

Several large investors have recently made changes to their positions in the business. Daiwa Securities Group Inc. boosted its position in Westlake by 2.9% in the 4th quarter. Daiwa Securities Group Inc. now owns 4,108 shares of the specialty chemicals company’s stock valued at $304,000 after buying an additional 117 shares during the last quarter. PNC Financial Services Group Inc. lifted its stake in shares of Westlake by 11.8% during the second quarter. PNC Financial Services Group Inc. now owns 1,433 shares of the specialty chemicals company’s stock valued at $109,000 after acquiring an additional 151 shares during the period. The Manufacturers Life Insurance Company boosted its holdings in Westlake by 0.6% in the second quarter. The Manufacturers Life Insurance Company now owns 28,134 shares of the specialty chemicals company’s stock valued at $2,136,000 after acquiring an additional 165 shares during the last quarter. Police & Firemen s Retirement System of New Jersey boosted its holdings in Westlake by 4.1% in the second quarter. Police & Firemen s Retirement System of New Jersey now owns 5,020 shares of the specialty chemicals company’s stock valued at $381,000 after acquiring an additional 198 shares during the last quarter. Finally, CWM LLC increased its position in Westlake by 54.5% in the second quarter. CWM LLC now owns 567 shares of the specialty chemicals company’s stock worth $43,000 after purchasing an additional 200 shares during the period. Institutional investors and hedge funds own 28.40% of the company’s stock.

Westlake Price Performance

The company has a current ratio of 1.99, a quick ratio of 1.39 and a debt-to-equity ratio of 0.39. The stock has a market capitalization of $13.37 billion, a P/E ratio of -14.05, a PEG ratio of 46.82 and a beta of 0.91. The company has a fifty day simple moving average of $85.26 and a two-hundred day simple moving average of $79.30.

About Westlake

Westlake Corp. is a global manufacturer of petrochemicals, polymers and building products, serving customers across industrial and residential markets. The company’s core operations encompass the production of vinyls—primarily polyvinyl chloride (PVC) and its key feedstock vinyl chloride monomer (VCM)—as well as chlor-alkali products including caustic soda and chlorine. In addition, Westlake produces ethylene, propylene and specialty elastomers, along with construction-related materials such as vinyl siding, trim, windows and roofing systems.

Operating a network of vertically integrated plants and distribution centers, Westlake serves markets in North America, Europe and Asia.