Document


	Three Months Ended						Twelve Months Ended
	December 31,		September 30,		December 31,		December 31,
	2024		2024		2023		2024		2023

Westlake Corporation
Net sales	$	2,843	$	3,117	$	2,826	$	12,142	$	12,548
Income (loss) from operations	$	66	$	180	$	(552)	$	875	$	729
Net income (loss) attributable to Westlake Corporation (1)	$	7	$	108	$	(497)	$	602	$	479
Diluted earnings (loss) per common share (1)	$	0.06	$	0.83	$	(3.86)	$	4.64	$	3.70
EBITDA	$	416	$	505	$	(235)	$	2,211	$	1,962

Identified Items (2)	$	—	$	75	$	625	$	75	$	625
EBITDA excl. Identified Items	$	416	$	580	$	390	$	2,286	$	2,587
EBITDA margin (3)	15%		19%		14%		19%		21%

Housing and Infrastructure Products ("HIP") Segment
Net sales	$	981	$	1,098	$	946	$	4,317	$	4,212
Income from operations	$	129	$	202	$	121	$	807	$	710

EBITDA	$	188	$	262	$	173	$	1,050	$	949
EBITDA margin	19%		24%		18%		24%		23%

Performance and Essential Materials ("PEM") Segment
Net sales	$	1,862	$	2,019	$	1,880	$	7,825	$	8,336
Income (loss) from operations	$	(41)	$	(9)	$	(664)	$	129	$	59

EBITDA	$	220	$	222	$	(424)	$	1,086	$	965

Identified Items (2)	$	—	$	75	$	625	$	75	$	625
EBITDA excl. Identified Items	$	220	$	297	$	201	$	1,161	$	1,590
EBITDA margin (3)	12%		15%		11%		15%		19%

In the fourth quarter of 2024, Westlake reported net sales of $2.8 billion and net income of $7 million, or $0.06 per share including $0.35 per share from a one-time non-cash tax charge. Fourth quarter EBITDA (earnings before interest expense, income taxes, depreciation and amortization) of $416 million was higher than EBITDA of $390 million (excluding "Identified Items") in the prior-year period driven by higher sales volume in each segment.

Westlake's fourth quarter of 2024 sales increased 1% year-over-year, driven by 3% sales volume growth, representing the fifth consecutive quarter of year-over-year sales volume growth, and a 2% decline in average sales price. Housing and Infrastructure Products sales increased 4%, driven by 7% sales volume growth that more than offset a 3% decline in average sales price. Performance and Essential Materials sales decreased 1% over the same period of time, as 1% sales volume growth was slightly less than a 2% decline in average sales price.

"Westlake generated solid sales volume growth in 2024, in part due to innovative new product introductions, export opportunities enabled by our globally-advantaged feedstock & energy cost position in our Performance and Essential Materials segment in spite of globally weak macroeconomic conditions the industry is experiencing, and our position as a leading supplier to faster-growing national homebuilders in our Housing and Infrastructure Products segment. HIP segment EBITDA increased more than 10% compared to 2023 as our sales volume growth outperformed the growth in the overall market while our cost-saving actions improved profitability. While earnings in our PEM segment were lower compared to 2023 due to lower average sales price as a result of weak global industrial and manufacturing activity, we made important progress during 2024 to improve our cost structure through productivity enhancements and the decision to mothball the AC and ECH units at our epoxy site in Pernis, The Netherlands," said Jean-Marc Gilson, President and Chief Executive Officer.

"Compared to the prior-year period our fourth quarter sales volume grew in each segment, highlighted by 7% sales volume growth in our HIP segment, which was solid compared to a challenging macroeconomic backdrop that impacted the industry. However, during the fourth quarter sales volume growth was largely offset by lower average sales price in each segment. While company-wide sales were relatively flat with the prior-year period, Westlake was able to increase EBITDA by 7% in the fourth quarter through targeted cost-reduction actions," continued Mr. Gilson.

"Looking ahead to 2025, we are optimistic on the outlook for our HIP segment, underpinned by the need to expand the supply of residential housing in the U.S. after over 15 years of under-building to support population growth and resulting housing demand. While global macroeconomic conditions remain challenging to start the year, our PEM segment is well-positioned to capitalize on an eventual recovery in global industrial and manufacturing activity. Our focus for 2025 will be on improving the components of earnings growth that are within our control, including executing on our cost-saving plans, increasing the value that we provide to our customers, ensuring the safety and reliability of our plants, and commercializing new product innovations," concluded Mr. Gilson.

For the three months ended December 31, 2024, the Company reported net income of $7 million, or $0.06 per share, on net sales of $2.8 billion. The year-over-year decrease in net income of $86 million was primarily due to a one-time non-cash charge of approximately $45 million in the fourth quarter of 2024 for the revaluation of state deferred tax assets and deferred tax liabilities caused by recent legislative changes in Louisiana.

For the full year of 2024, net income of $677 million decreased by $392 million as compared to 2023 net income of $1.1 billion. Income from operations of $1.0 billion for the full year of 2024 decreased by $0.4 billion as compared to income from operations of $1.4 billion for the full year of 2023. The decreases in net income and income from operations were primarily due to lower average selling price, particularly in Performance and Essential Materials.

A reconciliation of EBITDA and net income to EBITDA excluding Identified Items and net income excluding Identified Items as well as a reconciliation of EBITDA to net income, income from operations (including and excluding Identified Items) and net cash provided by operating activities as well as a reconciliation of free cash flow to net cash flow provided by operating activities can be found in the financial schedules at the end of this press release.

Net cash provided by operating activities was $434 million for the fourth quarter of 2024 and $1.3 billion for the full year of 2024. Capital expenditures for the fourth quarter and full year of 2024 were $285 million and $1.0 billion, respectively. For the fourth quarter and full year of 2024, free cash flow (net cash provided by operating activities less capital expenditures) was $149 million and $306 million, respectively. As of December 31, 2024, the Company's cash and cash equivalents balance was $2.9 billion and total debt was $4.6 billion.

For the full year of 2024, Housing and Infrastructure Products net sales of $4.3 billion increased by $0.1 billion as compared to 2023. Housing Products net sales of $3.6 billion increased by $0.1 billion due to solid sales volume growth, particularly in siding & trim and roofing. Infrastructure Products net sales of $0.7 billion was in line with 2023 as higher sales volume offset lower average sales price. Housing and Infrastructure Products income from operations of $807 million increased by $97 million as compared to the full year of 2023 primarily due to growth in Housing Products net sales and cost-saving initiatives.

For the fourth quarter of 2024, Performance and Essential Materials loss from operations was $41 million as compared to the fourth quarter of 2023's loss from operations of $39 million due to lower selling prices for most of our major products, particularly for chlorine, PVC resin and polyethylene. This negative impact was partially offset by higher sales volume, particularly for polyethylene and PVC resin.

For the full year of 2024, Performance and Essential Materials net sales of $7.8 billion decreased by $0.5 billion as compared to 2023. Performance Materials net sales of $4.6 billion in 2024 were relatively in line with 2023 net sales of $4.7 billion as higher sales volume, particularly for PVC resin and epoxy resin, offset lower average sales price, particularly for PVC resin and epoxy resin. Essential Materials net sales of $3.2 billion decreased by $0.5 billion from 2023 primarily due to lower caustic soda average sales price. Performance and Essential Materials income from operations of $204 million decreased by $480 million as compared to 2023. This decrease in income from operations versus the prior-year was primarily driven by lower average sales price and margins.

The statements in this release and the related teleconference relating to matters that are not historical facts, including statements regarding our outlook for the performance of our business segments (such as our optimistic outlook for our HIP segment), global macroeconomic conditions (including an eventual recovery in global industrial and manufacturing activity), housing demand, impacts of tariffs and duties, continuing stabilization of sales prices and volumes in both domestic and export markets for most of our products, our market position, our ability to improve safety, reliability and efficiency of our plants, further commercialization of new product innovations, our cost savings initiatives, including the effect of our decision to mothball part of our epoxy operations, global demand for our products, and our ability to deliver greater value to customers are forward-looking statements.

These forward-looking statements are subject to significant risks and uncertainties. Actual results could differ materially, based on factors including, but not limited to: general economic and business conditions; the cyclical nature of the industry; the availability, cost and volatility of raw materials and energy; uncertainties associated with the United States, European and worldwide economies, including those due to political tensions and conflict in the Middle East, Russia and Ukraine and elsewhere; uncertainties associated with barriers to international trade, including the imposition of tariffs and duties or trade disputes; uncertainties associated with climate change; the potential impact on demand for ethylene, polyethylene and polyvinyl chloride due to initiatives such as recycling and customers seeking alternatives to polymers; current and potential governmental regulatory actions in the United States and other countries; industry production capacity and operating rates; the supply/demand balance for Westlake's products; competitive products and pricing pressures, including from global competitors; instability in the credit and financial markets; access to capital markets; terrorist acts; operating interruptions; changes in laws and regulations, including trade policies; technological developments; information systems failures and cyberattacks; foreign currency exchange risks; our ability to implement our business strategies; creditworthiness of our customers; the effect and results of litigation and settlements of litigation; and other risk factors. For more detailed information about the factors that could cause actual results to differ materially, please refer to Westlake's Annual Report on Form 10-K for the year ended December 31, 2023, which was filed with the SEC in February 2024, and Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, which was filed with the SEC in November 2024.

This release makes reference to certain "non-GAAP" financial measures, such as EBITDA, free cash flow and other measures that exclude the effects of the Identified Items, as defined in Regulation G of the U.S. Securities Exchange Act of 1934, as amended. For this purpose, a non-GAAP financial measure is generally defined by the Securities and Exchange Commission ("SEC") as a numerical measure of a registrant's historical or future financial performance, financial position or cash flows that (1) excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statement of income, balance sheet or statement of cash flows (or equivalent statements) of the registrant; or (2) includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. We report our financial results in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"), but believe that certain non-GAAP financial measures, such as EBITDA, free cash flow and measures that exclude the effects of the Identified Items, provide useful supplemental information to investors regarding the underlying business trends and performance of the Company's ongoing operations and are useful for period-over-period comparisons of such operations. These non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the financial measures prepared in accordance with U.S. GAAP. A reconciliation of (i) EBITDA to net income, income from operations and net cash provided by operating activities, (ii) free cash flow to net cash provided by operating activities, and (iii) other measures reflecting adjustments for the effects of the Identified Items can be found in the financial schedules at the end of this press release.

Westlake is a global manufacturer and supplier of materials and innovative products that enhance life every day. Headquartered in Houston, with operations in Asia, Europe and North America, we provide the building blocks for vital solutions — from housing and construction, to packaging and healthcare, to automotive and consumer. For more information, visit the Company's web site at www.westlake.com.


	Three Months Ended December 31,				Twelve Months Ended December 31,
	2024		2023		2024		2023

	(In millions of dollars, except per share data and share amounts)
Net sales	$	2,843	$	2,826	$	12,142	$	12,548
Cost of sales	2,515		2,627		10,185		10,329
Gross profit	328		199		1,957		2,219
Selling, general and administrative expenses	226		224		874		865
Impairment of goodwill and long-lived assets	—		475		—		475
Amortization of intangibles	28		30		117		122
Restructuring, transaction and integration-related costs	8		22		91		28
Income (loss) from operations	66		(552)		875		729
Interest expense	(39)		(41)		(159)		(165)
Other income, net	69		35		222		136
Income (loss) before income taxes	96		(558)		938		700
Provision for (benefit from) income taxes	77		(71)		291		178
Net income (loss)	19		(487)		647		522
Net income attributable to noncontrolling interests	12		10		45		43
Net income (loss) attributable to Westlake Corporation	$	7	$	(497)	$	602	$	479
Earnings (loss) per common share attributable to Westlake Corporation:
Basic	$	0.06	$	(3.86)	$	4.66	$	3.73
Diluted	$	0.06	$	(3.86)	$	4.64	$	3.70
Weighted average common shares outstanding:
Basic	128,564,101		128,165,690		128,535,226		127,806,317
Diluted	129,115,674		128,165,690		129,206,922		128,598,441


	December 31,
	2024		2023

	(In millions of dollars)
ASSETS
Current assets
Cash and cash equivalents	$	2,919	$	3,304
Accounts receivable, net	1,483		1,601
Inventories	1,697		1,622
Prepaid expenses and other current assets	115		82

Total current assets	6,214		6,609
Property, plant and equipment, net	8,633		8,519

Other assets, net	5,903		5,907
Total assets	$	20,750	$	21,035

LIABILITIES AND EQUITY
Current liabilities (accounts payable and accrued and other liabilities)	$	2,213	$	2,491
Current portion of long-term debt, net	6		299

Long-term debt, net	4,556		4,607

Other liabilities	2,932		2,874
Total liabilities	9,707		10,271
Total Westlake Corporation stockholders' equity	10,527		10,241
Noncontrolling interests	516		523
Total equity	11,043		10,764
Total liabilities and equity	$	20,750	$	21,035


	Twelve Months Ended December 31,
	2024		2023

	(In millions of dollars)
Cash flows from operating activities
Net income	$	647	$	522
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	1,114		1,097
Impairment of goodwill and long-lived assets	—		475
Deferred income taxes	(35)		(175)
Net loss on disposition and others	57		85
Other balance sheet changes	(469)		332
Net cash provided by operating activities	1,314		2,336
Cash flows from investing activities
Acquisition of business, net of cash acquired	—		—
Additions to investments in unconsolidated subsidiaries	(26)		(25)
Additions to property, plant and equipment	(1,008)		(1,034)

Other, net	33		22
Net cash used for investing activities	(1,001)		(1,037)
Cash flows from financing activities

Distributions to noncontrolling interests	(49)		(54)
Dividends paid	(264)		(221)
Proceeds from exercise of stock options	13		44



Repayment of senior notes	(300)		—
Repurchase of common stock for treasury	(60)		(23)
Other, net	10		9
Net cash used for financing activities	(650)		(245)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(47)		19
Net increase (decrease) in cash, cash equivalents and restricted cash	(384)		1,073
Cash, cash equivalents and restricted cash at beginning of period	3,319		2,246
Cash, cash equivalents and restricted cash at end of period	$	2,935	$	3,319


	Three Months Ended December 31,				Twelve Months Ended December 31,
	2024		2023		2024		2023

	(In millions of dollars)
Net external sales
Housing and Infrastructure Products
Housing Products	$	818	$	795	$	3,644	$	3,494
Infrastructure Products	163		151		673		718
Total Housing and Infrastructure Products	981		946		4,317		4,212
Performance and Essential Materials
Performance Materials	1,121		1,107		4,626		4,656
Essential Materials	741		773		3,199		3,680
Total Performance and Essential Materials	1,862		1,880		7,825		8,336




Total reportable segments and consolidated	$	2,843	$	2,826	$	12,142	$	12,548

Income (loss) from operations

Housing and Infrastructure Products	$	129	$	121	$	807	$	710
Performance and Essential Materials	(41)		(664)		129		59
Total reportable segments	88		(543)		936		769
Corporate and other	(22)		(9)		(61)		(40)
Consolidated	$	66	$	(552)	$	875	$	729

Depreciation and amortization
Housing and Infrastructure Products	$	56	$	50	$	213	$	207
Performance and Essential Materials	223		229		892		881

Total reportable segments	279		279		1,105		1,088
Corporate and other	2		3		9		9
Consolidated	$	281	$	282	$	1,114	$	1,097

Other income, net
Housing and Infrastructure Products	$	3	$	2	$	30	$	32
Performance and Essential Materials	38		11		65		25

Total reportable segments	41		13		95		57
Corporate and other	28		22		127		79
Consolidated	$	69	$	35	$	222	$	136


	Three Months Ended September 30,		Three Months Ended December 31,				Twelve Months Ended December 31,
	2024		2024		2023		2024		2023

	(In millions of dollars, except percentages)
Net cash provided by operating activities	$	474	$	434	$	573	$	1,314	$	2,336
Changes in operating assets and liabilities and other	(354)		(392)		(1,168)		(702)		(1,989)
Deferred income taxes	—		(23)		108		35		175
Net income (loss)	120		19		(487)		647		522
Add:
Mothball expenses in 2024 / Impairment charge in 2023	75		—		475		75		475
Litigation settlement charge, after-tax	—		—		115		—		115
Net income excl. Identified Items	$	195	$	19	$	103	$	722	$	1,112

Net income (loss)	$	120	$	19	$	(487)	$	647	$	522
Less:
Other income, net	44		69		35		222		136
Interest expense	(39)		(39)		(41)		(159)		(165)
Benefit from (provision for) income taxes	(65)		(77)		71		(291)		(178)
Income (loss) from operations	180		66		(552)		875		729
Add:
Mothball expenses in 2024 / Impairment charge in 2023	75		—		475		75		475
Litigation settlement charge, pre-tax	—		—		150		—		150
Income from operations excl. Identified Items	255		66		73		950		1,354
Add:
Depreciation and amortization	281		281		282		1,114		1,097
Other income, net	44		69		35		222		136
EBITDA excl. Identified Items	580		416		390		2,286		2,587
Less:
Mothball expenses in 2024 / Impairment charge in 2023	75		—		475		75		475
Litigation settlement charge, pre-tax	—		—		150		—		150
EBITDA	$	505	$	416	$	(235)	$	2,211	$	1,962
Net external sales	$	3,117	$	2,843	$	2,826	$	12,142	$	12,548
Operating income (loss) margin	6%		2%		(20)%		7%		6%
Operating income margin excl. Identified Items	8%		2%		3%		8%		11%
EBITDA margin	16%		15%		(8)%		18%		16%
EBITDA margin excl. Identified Items	19%		15%		14%		19%		21%


	Three Months Ended September 30,		Three Months Ended December 31,				Twelve Months Ended December 31,
	2024		2024		2023		2024		2023

	(per share data)
Diluted earnings (loss) per common share attributable to Westlake Corporation	$	0.83	$	0.06	$	(3.86)	$	4.64	$	3.70
Add:
Mothball expenses in 2024 / Impairment charge in 2023	0.58		—		3.69		0.58		3.68
Litigation settlement charge	—		—		0.89		—		0.89
Diluted earnings per common share attributable to Westlake Corporation excl. Identified Items	$	1.41	$	0.06	$	0.72	$	5.22	$	8.27


	Three Months Ended September 30,		Three Months Ended December 31,				Twelve Months Ended December 31,
	2024		2024		2023		2024		2023

	(In millions of dollars, except percentages)







Housing and Infrastructure Products Segment
Income from operations	$	202	$	129	$	121	$	807	$	710
Add:
Depreciation and amortization	54		56		50		213		207
Other income, net	6		3		2		30		32
EBITDA	$	262	$	188	$	173	$	1,050	$	949
Net external sales	$	1,098	$	981	$	946	$	4,317	$	4,212
Operating income margin	18%		13%		13%		19%		17%
EBITDA margin	24%		19%		18%		24%		23%


	Three Months Ended September 30,		Three Months Ended December 31,				Twelve Months Ended December 31,
	2024		2024		2023		2024		2023

	(In millions of dollars, except percentages)
Performance and Essential Materials Segment
Income (loss) from operations	$	(9)	$	(41)	$	(664)	$	129	$	59
Add:
Mothball expenses in 2024 / Impairment charge in 2023	75		—		475		75		475
Litigation settlement charge	—		—		150		—		150
Income (loss) from operations excl. Identified Items	66		(41)		(39)		204		684
Add:
Depreciation and amortization	225		223		229		892		881
Other income, net	6		38		11		65		25
EBITDA excl. Identified Items	297		220		201		1,161		1,590
Less:
Mothball expenses in 2024 / Impairment charge in 2023	75		—		475		75		475
Litigation settlement charge	—		—		150		—		150
EBITDA	$	222	$	220	$	(424)	$	1,086	$	965
Net external sales	$	2,019	$	1,862	$	1,880	$	7,825	$	8,336
Operating income (loss) margin	—%		(2)%		(35)%		2%		1%
Operating income (loss) margin excl. Identified Items	3%		(2)%		(2)%		3%		8%
EBITDA margin	11%		12%		(23)%		14%		12%
EBITDA margin excl. Identified Items	15%		12%		11%		15%		19%


	Fourth Quarter 2024 vs. Fourth Quarter 2023				Fourth Quarter 2024 vs. Third Quarter 2024
	Average Sales Price		Volume		Average Sales Price		Volume

Housing and Infrastructure Products	-3	%	+7	%	-1	%	-9	%
Performance and Essential Materials	-2	%	+1	%	-7	%	-1	%
Company	-2	%	+3	%	-5	%	-4	%