- Record Housing and Infrastructure Products (HIP) annual income
from operations of $807 million and EBITDA of $1.1 billion
- Fifth consecutive quarter of year-over-year growth in
company-wide sales volume
Westlake Corporation (NYSE: WLK) (the "Company" or "Westlake")
today announced fourth quarter and full year 2024 results.
SUMMARY FINANCIAL HIGHLIGHTS ($ in
millions except per share data and percentages)
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%
__________________________
(1)
Includes $45 million ($0.35 per
share) one-time non-cash charge related to changes in Louisiana tax
law in the fourth quarter and full year 2024
(2)
"Identified Items" for 2024
represents $75 million accrued expense to temporarily cease
operations ("mothball") of the allyl chloride (AC) and
epichlorohydrin (ECH) units at the Company's site in Pernis, the
Netherlands, and for 2023 are a $475 million non-cash impairment
charge and a $150 million charge to fully resolve certain liability
claims
(3)
Excludes Identified Items
BUSINESS HIGHLIGHTS
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.
For the full year of 2024, Westlake reported net sales of $12.1
billion, net income of $677 million (excluding "Identified Items")
and EBITDA of $2.3 billion (excluding "Identified Items"). Compared
to the prior-year financial results, the Company's 2024 results
benefitted from higher sales volume, particularly in HIP, which was
offset by lower product pricing and margins, particularly in
PEM.
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.
EXECUTIVE COMMENTARY
"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.
RESULTS
Consolidated Results
(Unless otherwise noted the financial numbers below exclude the
Identified Items)
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.
Fourth quarter 2024 net income of $7 million decreased by $176
million sequentially as compared to the third quarter of 2024. The
decrease in net income compared to the prior quarter was primarily
due to lower sales prices in Performance Materials and seasonally
lower Housing and Infrastructure Products sales volume.
EBITDA of $416 million for the fourth quarter of 2024 increased
by $26 million compared to fourth quarter 2023 EBITDA of $390
million. Fourth quarter 2024 EBITDA decreased by $164 million
compared to third quarter 2024 EBITDA of $580 million.
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.
Cash and Debt
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.
Housing and Infrastructure Products Segment
For the fourth quarter of 2024, Housing and Infrastructure
Products income from operations of $129 million increased by $8
million as compared to the fourth quarter of 2023. The
year-over-year increase was the result of higher sales volume,
particularly for pipe and fittings.
Sequentially, Housing and Infrastructure Products income from
operations decreased by $73 million as compared to the third
quarter of 2024. This decrease in income from operations versus the
prior quarter was primarily driven by lower sales volume as a
result of the typical seasonality of customer demand.
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.
Performance and Essential Materials Segment
(Unless otherwise noted the financial numbers below exclude the
Identified Items)
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.
Sequentially, Performance and Essential Materials income from
operations for the fourth quarter of 2024 decreased by $107 million
as compared to the third quarter of 2024 (excluding "Identified
Items"). This decrease in income from operations versus the prior
quarter was primarily driven by lower average sales price.
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.
Forward-Looking Statements
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.
Use of Non-GAAP Financial Measures
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.
About Westlake
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.
Westlake Corporation Conference Call Information:
A conference call to discuss Westlake Corporation's fourth
quarter and full year 2024 results will be held Monday, February
24, 2025 at 11:00 AM Eastern Time (10:00 AM Central Time). To
access the conference call, it is necessary to pre-register at
https://register.vevent.com/register/BI72061c1352d74b3482abead232a4bf93.
Once registered, you will receive a phone number and unique PIN
number.
A replay of the conference call will be available beginning two
hours after its conclusion. The conference call and replay will be
available via webcast at
https://edge.media-server.com/mmc/p/9nttceuz.
WESTLAKE CORPORATION
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Unaudited)
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
WESTLAKE CORPORATION
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited)
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
WESTLAKE CORPORATION
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
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
WESTLAKE CORPORATION
SEGMENT INFORMATION
(Unaudited)
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
WESTLAKE CORPORATION
RECONCILIATION OF EBITDA TO
NET INCOME AND INCOME FROM OPERATIONS AND
NET CASH PROVIDED BY OPERATING
ACTIVITIES (INCLUDING AND EXCLUDING IDENTIFIED ITEMS)
(Unaudited)
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%
WESTLAKE CORPORATION
RECONCILIATION OF DILUTED
EARNINGS PER COMMON SHARE TO DILUTED EARNINGS PER COMMON SHARE
EXCLUDING IDENTIFIED ITEMS
(Unaudited)
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
WESTLAKE CORPORATION
RECONCILIATION OF FREE CASH
FLOW TO NET CASH PROVIDED BY OPERATING ACTIVITIES
(Unaudited)
Three Months Ended September
30,
Three Months Ended December
31,
Twelve Months Ended December
31,
2024
2024
2023
2024
2023
(In millions of
dollars)
Net cash provided by operating
activities
$
474
$
434
$
573
$
1,314
$
2,336
Less:
Additions to property, plant and
equipment
220
285
282
1,008
1,034
Free cash flow
$
254
$
149
$
291
$
306
$
1,302
WESTLAKE CORPORATION
RECONCILIATION OF HIP SEGMENT
EBITDA TO INCOME FROM OPERATIONS
(Unaudited)
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%
WESTLAKE CORPORATION
RECONCILIATION OF PEM SEGMENT
EBITDA TO INCOME FROM OPERATIONS (INCLUDING AND EXCLUDING
IDENTIFIED ITEMS)
(Unaudited)
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%
WESTLAKE CORPORATION
SUPPLEMENTAL
INFORMATION
Product Sales Price and Volume
Variance by Operating Segments
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%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250218855957/en/
Contact—(713) 960-9111 Investors—Steve Bender Media—L. Benjamin
Ederington
Westlake (NYSE:WLK)
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