Westlake Q3 sales beat estimates on higher sales prices, profitability plan benefits

Overview

• Chemicals and building products maker's Q3 sales rose, beating analyst expectations

• Adjusted net income improved yr/yr, driven by higher sales prices and profitability plan benefits

• Company recorded charges for previously announced facility shutdowns, including a PVC plant in Germany

Outlook

• Company expects higher borrowing costs to weigh on HIP near-term sales volumes

• Westlake sees medium- to long-term HIP growth supported by infrastructure spending and investments

• Company says PEM selling prices have stabilized with upward momentum entering Q4 2026

Result Drivers

• PEM SEGMENT PRICING - Higher average sales prices in Performance and Essential Materials segment contributed to yr/yr earnings improvement

• EUROPEAN ENERGY AND DEMAND - PEM segment earnings were negatively affected by higher energy costs, weak demand, and increased import pressure in Europe

• HIP VOLUME AND COSTS - Housing and Infrastructure Products segment was impacted by lower sales volumes, especially for pipe & fittings, and higher distribution costs

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 7 "strong buy" or "buy", 11 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the commodity chemicals peer group is "buy."

• Wall Street's median 12-month price target for Westlake Corp is $76.00, about 11% above its November 3 closing price of $68.47

• The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 23 three months ago

Reuters Recommended Reads

• Nov 2 - Celanese Q3 sales rise 6%

• Nov 2 - Chemours Q3 adjusted profit misses estimates despite titanium pricing gains

• Nov 3 - DuPont Q3 sales beat estimates, lifts 2026 profit outlook

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)