| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 72 | — | 17.8x | Top tier | |
Growth | 14 | -4.0% | 7.1% | Bottom tier | |
Quality | 15 | -7.5% | 4.5% | Bottom tier | |
Safety | 33 | — | 2.6x | Bottom tier | |
Capital Return | 63 | 2.98% | 2.12% | Around median | |
Momentum | 24 | -2.6% | 2.9% | Bottom tier | |
Sentiment | 39 | 8 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Westlake Corporation operates through two interconnected segments: Performance and Essential Materials PEM, and Housing and Infrastructure Products HIP. The PEM segment sells polyethylene, PVC resin, caustic soda, chlorine, and epoxy resins, benefiting from the fact that more than 85% of the company’s production capacity is located in North America and relies primarily on lower-cost natural gas and natural gas liquids. The HIP segment generates revenue from pipes and fittings, siding materials, roofing, stone, and other housing and infrastructure products, with a presence among national homebuilders, distributors, municipal projects, and data centers.
In Q2 FY2026, Westlake recorded net sales of $3.3 billion, EBITDA of $679 million, net income of $260 million, and EPS of $2.01, compared with a net loss of $12 million in Q2 FY2025. This equates to a calculated EBITDA margin of approximately 20.6%. The improvement was driven by higher PEM prices, benefits from the profitability improvement plan, and growth in HIP volumes.
HIP generated sales of $1.3 billion, representing approximately 39% of the company’s sales in Q2 FY2026, up 8% year over year, while its EBITDA totaled $276 million. The segment’s margin declined to 22% from 24% due to lower average prices and higher freight and raw material costs. In contrast, PEM EBITDA reached $416 million, up $364 million year over year, with average selling prices rising 14% and volumes growing 7% after excluding the impact of plant closures.
The analyst consensus on WLK is “Neutral,” with an average price target of $103.86, within a wide range of $85 to $127; the average is below the 52-week range high of $124.23, while the highest target is slightly above that high. A positive P/E ratio is unavailable due to the losses reported under EDGAR, while the 52-week range extends from $56.33 to $124.23, so the valuation depends heavily on the sustainability of the PEM recovery and achievement of the FY2026 savings target, weighed against the weak HIP outlook and volatile chemicals prices.
Figures in the text are as of 2026-09-02; the live price is shown at the top of the page.
Sales totaled $3.3 billion, EBITDA reached $679 million, and net income was $260 million with EPS of $2.01. PEM benefited from a 21% increase in average selling prices compared with Q1 FY2026 and lower natural gas and ethane costs in North America. The profitability improvement plan also contributed approximately $150 million to the year-over-year improvement, while HIP sales volume grew organically by 6%.
The company achieved approximately $300 million in benefits during the first half of FY2026 and maintained its full-year target of $600 million. The pillars include closing the epoxy plant in Pernis, the styrene plant in Lake Charles, and three U.S. chlorovinyl plants, along with reducing costs and improving plant reliability. Management says the operating savings are sustainable, but completing the target requires continued improvement in production reliability following the unplanned outages in Q2 FY2026.
Pipe and fittings sales volume grew approximately 20% year over year in Q2 FY2026, driven by municipal and infrastructure spending and data center construction in the United States. This helped HIP record sales of $1.3 billion, up 8%, despite weakness in homebuilding. Westlake also plans to start up the PVCO plant in Wichita Falls by the end of FY2026, but some Q3 orders may have been pulled forward into Q2 to secure supplies.
Automated analysis for informational purposes only — not investment advice.
More than 85% of Westlake’s production capacity is based in North America, where costs are primarily linked to natural gas and natural gas liquids. In Q2 FY2026, higher oil prices raised costs for producers in Asia and Europe and contributed to higher PEM prices, while Westlake’s gas and ethane costs declined. This gap supported PEM earnings, but it also means that a reversal in oil trends or weaker global prices could compress margins.
Westlake acquired ACI in January 2026, and the transaction, together with growth in pipes and fittings, contributed to an approximately $100 million year-over-year increase in HIP sales in Q2 FY2026. In June 2026, the company closed the purchase of the PVC and VCM plants in Wilhelmshaven, Germany, which have a deepwater port capable of receiving feedstock from North America. Management expects the site to support the integration of the European supply chain and to begin making a more visible contribution to PEM sales and earnings during FY2027.
As of June 30, 2026, Westlake had cash and investments of $1.9 billion, compared with total debt of $5.1 billion. During Q2 FY2026, the company repaid the remaining $500 million of its 2026 notes, and its average debt maturity was more than 17 years with an average coupon of 4%. Operating activities also generated $318 million in cash, the company spent $30 million on share repurchases, and it returned nearly $100 million to shareholders through dividends and repurchases.
