Westlake (NYSE:WLK) Trading 14.6% Higher Following Better-Than-Expected Earnings

Westlake Corporation (NYSE:WLK) shares rose 14.6% during trading on Tuesday following a stronger than expected earnings report. The stock traded as high as $80.10 and last traded at $80.12. Approximately 2,161,209 shares traded hands during mid-day trading, an increase of 74% from the average daily volume of 1,243,379 shares. The stock had previously closed at $69.89.

The specialty chemicals company reported $2.01 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.83 by $0.18. The firm had revenue of $3.27 billion during the quarter, compared to the consensus estimate of $3.24 billion. Westlake had a negative net margin of 14.91% and a negative return on equity of 1.89%. The business’s revenue for the quarter was up 10.8% compared to the same quarter last year. During the same period last year, the business posted ($1.11) earnings per share.

Westlake Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, June 11th. Shareholders of record on Wednesday, May 27th were issued a $0.53 dividend. The ex-dividend date of this dividend was Wednesday, May 27th. This represents a $2.12 dividend on an annualized basis and a yield of 2.6%. Westlake’s payout ratio is currently -16.69%.

More Westlake News

Here are the key news stories impacting Westlake this week:

• Positive Sentiment: Westlake reported earnings of $2.01 per diluted share, above consensus estimates ranging from $1.83 to $1.93, compared with a $1.11 loss in the year-ago quarter. Revenue rose 10.8% year over year to $3.27 billion, also narrowly exceeding expectations. Westlake Tops Q2 Earnings Estimates
• Positive Sentiment: Net income attributable to Westlake reached $260 million, while EBITDA climbed to $679 million from $210 million a year earlier and $150 million in the prior quarter. The improvement was driven by higher pricing in Performance and Essential Materials (PEM), stronger volumes in Housing and Infrastructure Products (HIP), lower North American natural-gas costs and cost-reduction initiatives. Westlake Corporation Reports Second Quarter 2026 Results
• Positive Sentiment: PEM returned to operating income of $185 million from a $318 million loss a year earlier, helped by a 14% increase in average selling prices. Westlake said its three-pillar profitability plan remains on track to generate a potential $600 million operating-income benefit.
• Positive Sentiment: The company generated $318 million in operating cash flow, reduced debt by approximately $500 million and returned $99 million to shareholders through dividends and share repurchases. It also replaced its revolving credit facility with a new $1.5 billion facility maturing in 2031. Westlake Q2 Results and Improved Operations
• Neutral Sentiment: Investors should monitor cyclical chemical pricing, Middle East-related supply-chain volatility, inflation and slower North American housing activity. HIP operating income declined $10 million year over year despite higher volumes, while management noted that geopolitical disruptions could create both pricing benefits and demand risks.

Analysts Set New Price Targets

Several analysts have recently commented on the stock. Bank of America reduced their price objective on shares of Westlake from $104.00 to $85.00 and set a “neutral” rating for the company in a research report on Tuesday, June 30th. UBS Group reiterated a “buy” rating and set a $117.00 price objective (down from $130.00) on shares of Westlake in a report on Friday, June 5th. Wells Fargo & Company reduced their target price on Westlake from $125.00 to $110.00 and set an “equal weight” rating for the company in a research note on Wednesday, May 6th. BMO Capital Markets reaffirmed a “market perform” rating and set a $96.00 price target on shares of Westlake in a research note on Monday, July 6th. Finally, Royal Bank Of Canada reduced their price objective on Westlake from $145.00 to $130.00 and set an “outperform” rating for the company in a research note on Monday, May 11th. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, ten have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus target price of $97.64.

Institutional Trading of Westlake

Several hedge funds have recently made changes to their positions in the company. Caitong International Asset Management Co. Ltd purchased a new position in Westlake in the 3rd quarter valued at approximately $28,000. Quarry LP purchased a new stake in Westlake in the fourth quarter valued at approximately $31,000. Fifth Third Bancorp lifted its position in Westlake by 71.3% during the fourth quarter. Fifth Third Bancorp now owns 562 shares of the specialty chemicals company’s stock valued at $42,000 after purchasing an additional 234 shares during the last quarter. CIBC Private Wealth Group LLC purchased a new position in Westlake in the 3rd quarter worth approximately $53,000. Finally, NewEdge Advisors LLC increased its holdings in shares of Westlake by 49.6% in the 2nd quarter. NewEdge Advisors LLC now owns 745 shares of the specialty chemicals company’s stock worth $57,000 after buying an additional 247 shares during the last quarter. 28.40% of the stock is currently owned by institutional investors.

Westlake Stock Up 14.6%

The stock’s fifty day moving average price is $79.08 and its 200 day moving average price is $94.18. The company has a current ratio of 2.17, a quick ratio of 1.56 and a debt-to-equity ratio of 0.56. The stock has a market cap of $10.26 billion, a P/E ratio of -6.29 and a beta of 0.63.

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.