- Westlake Corporation recently announced a regular dividend of US$0.53 per share for the second quarter of 2025, payable on September 4 to shareholders of record as of August 19, while also reporting a net loss of US$142 million on sales of US$2.95 billion for the quarter ended June 30, 2025.
- Despite this quarterly loss and no share repurchases during the period, Westlake's Board continued its dividend distribution, underscoring management's commitment to returning capital to shareholders even amid earnings challenges.
- We'll examine how Westlake's shift from profit to quarterly net loss could reshape its investment outlook amid ongoing industry headwinds.
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Westlake Investment Narrative Recap
To be a shareholder in Westlake today, you need confidence in its ability to navigate industry headwinds, such as persistent oversupply and margin pressure, while leveraging trends in U.S. infrastructure spending and housing. The recent announcement of a maintained dividend, even as Westlake reported a quarterly net loss, does not materially change the importance of margin recovery as the key short-term catalyst or the risk posed by continued pricing pressure and global cost volatility.
Among the recent news, the Q2 earnings announcement stands out: Westlake shifted from a US$313 million profit to a US$142 million loss year-over-year, with sales and margins both declining. This underscores the challenge the company faces from shrinking profitability amidst ongoing industry weakness, placing even more emphasis on future cost-reduction efforts as a potential catalyst for earnings recovery.
Yet, despite dividends holding steady, investors should be watching closely for signs that industry overcapacity and weak pricing could...
Read the full narrative on Westlake (it's free!)
Westlake's outlook projects $13.5 billion in revenue and $1.1 billion in earnings by 2028. This relies on a 4.8% annual revenue growth rate and a $1.17 billion increase in earnings from a current loss of $70 million.
Uncover how Westlake's forecasts yield a $90.00 fair value, a 14% upside to its current price.
Exploring Other Perspectives
Two fair value estimates from the Simply Wall St Community range from US$87.38 to US$90, reflecting different views on Westlake’s prospects. While some see long-term opportunity in U.S. infrastructure demand, the immediate challenge remains ongoing margin pressure from global oversupply, see how your expectations compare to these perspectives.
Explore 2 other fair value estimates on Westlake - why the stock might be worth as much as 14% more than the current price!
Build Your Own Westlake Narrative
Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.
- A great starting point for your Westlake research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
- Our free Westlake research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Westlake's overall financial health at a glance.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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