Westlake (NYSE:WLK) Shares Up 14.6% Following Earnings Beat

Westlake Corporation (NYSE:WLK)’s stock price traded up 14.6% during mid-day trading on Tuesday after the company announced better than expected quarterly earnings. The stock traded as high as $80.10 and last traded at $80.12. Approximately 2,161,209 shares traded hands during 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 for the quarter, beating analysts’ consensus estimates of $1.83 by $0.18. Westlake had a negative return on equity of 1.89% and a negative net margin of 14.91%.The business had revenue of $3.27 billion for the quarter, compared to the consensus estimate of $3.24 billion. During the same quarter last year, the business posted ($1.11) earnings per share. The company’s revenue for the quarter was up 10.8% on a year-over-year basis.

Westlake Dividend Announcement

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

Westlake News Roundup

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.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on the stock. Mizuho lowered their price objective on shares of Westlake from $110.00 to $88.00 and set a “neutral” rating for the company in a report on Wednesday, July 1st. Weiss Ratings reiterated a “sell (d)” rating on shares of Westlake in a research report on Friday, July 17th. UBS Group reissued a “buy” rating and issued a $117.00 price target (down from $130.00) on shares of Westlake in a research note on Friday, June 5th. BMO Capital Markets restated a “market perform” rating and set a $96.00 price target on shares of Westlake in a research report on Monday, July 6th. Finally, Truist Financial reduced their price objective on Westlake from $127.00 to $104.00 and set a “buy” rating on the stock in a research note on Monday, July 20th. One investment 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 issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $97.64.

Institutional Trading of Westlake

A number of large investors have recently made changes to their positions in WLK. Royal Bank of Canada increased its position in Westlake by 90.0% during the first quarter. Royal Bank of Canada now owns 38,687 shares of the specialty chemicals company’s stock valued at $3,869,000 after acquiring an additional 18,321 shares during the last quarter. AQR Capital Management LLC lifted its holdings in Westlake by 9.6% in the 1st quarter. AQR Capital Management LLC now owns 19,094 shares of the specialty chemicals company’s stock worth $1,881,000 after purchasing an additional 1,668 shares in the last quarter. United Services Automobile Association bought a new stake in shares of Westlake in the first quarter worth about $211,000. Cetera Investment Advisers lifted its position in Westlake by 43.6% during the second quarter. Cetera Investment Advisers now owns 4,350 shares of the specialty chemicals company’s stock valued at $330,000 after purchasing an additional 1,320 shares during the last quarter. Finally, Prudential Financial Inc. boosted its position in shares of Westlake by 18.2% during the second quarter. Prudential Financial Inc. now owns 3,788 shares of the specialty chemicals company’s stock valued at $288,000 after buying an additional 582 shares during the period. 28.40% of the stock is currently owned by institutional investors.

Westlake Stock Up 14.6%

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

Westlake Company Profile

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.