Westlake Corporation · NYSE:WLK
Westlake — Q3 2024 Earnings Presentation
16 slides from Westlake's earnings presentation, Nov 5, 2024
Slide 1: Earnings Presentation 3Q 2024
Earnings Presentation 3Q 2024 1
Slide 2: Third Quarter 2024 Highlights
Third Quarter 2024 Highlights (1) 3Q 2024 Financial Results Improving underlying trends despite impacts from outages and weather $183M $3.1B $580M Net Income(1,2) Net Sales EBITDA(1,3) 42% decrease vs. 2Q 3% decrease vs. 2Q 22% decrease vs. 2Q $1.41 $2.9B $474M Net Income Per Share(1,2) Cash and Equ
Slide 3: Westlake Corporation 3Q 2024
Westlake Corporation 3Q 2024 (1) Extended maintenance outages reduced PEM EBITDA by ($ in millions) 3Q'24 2Q'24 QoQ% 3Q'23 YoY% ~$120 million in 3Q 2024 Sales $3,117 $3,207 (3%) $3,115 0% Operating Income (1) $ 255 $ 406 (37%) $349 (27%) Identified Item consisting of $75 (1,2) million accrued mothba
Slide 4: Housing and Infrastructure Products (HIP) Segment Performance
Housing and Infrastructure Products (“HIP”) Segment Performance ($ in millions) 3Q'24 2Q'24 QoQ% 3Q'23 YoY% Sales volume declined QoQ from the strong 2Q 2024 level in part due to Housing Products Sales $937 $1,010 (7%) $963 (3%) unusually wet weather and disruptions created by Hurricanes Beryl and I
Slide 5: Housing and Infrastructure Products Update
Housing and Infrastructure Products Update 1 Longer-term housing fundamentals remain strong due to decade-plus of under-building, increasingly favorable demographics and popularity of remote work 2 New PVCO pipe plant under construction to support the strong growth and market adoption for this innov
Slide 6: Performance and Essential Materials (PEM) Segment Performance
Performance and Essential Materials (“PEM”) Segment Performance(1) Extended maintenance outages reduced PEM EBITDA by ($ in millions) 3Q'24 2Q'24 QoQ% 3Q'23 YoY% ~$120 million in 3Q 2024 Performance Materials Sales $1,164 $1,177 (1%) $1,127 3% Essential Materials Sales $855 $836 2% $844 1% Total PEM
Slide 7: Performance and Essential Materials Update
Performance and Essential Materials Update 1 Continued energy and feedstock advantage in North America (~85% of our production capacity) with a high degree of vertical integration relative to the global industry, which supports our ability to profitably run our plants at high operating rates 2 Relat
Slide 8: High Degree of Product Integration
High Degree of Product Integration Combined With Globally Advantaged Low-Cost Position All ethane End Market Products that feedstock North America has a capability Improve Lives Every Day: long-term cost advantaged position through abundant Polyethylene • Flexible packaging supply of Ethane from sha
Slide 9: Financial Reconciliations
Financial Reconciliations 9 9
Slide 10: Consolidated Statements of Operations
Consolidated Statements of Operations Three months ended Three months ended September 30, Nine months ended September 30, June 30, 2024 2023 2024 2024 2023 (In millions of dollars, except per share data) Performance and Essential Materials Sales $ 2,019 $ 1,971 $ 2,013 $ 5,963 $ 6,456 Housing and In
Slide 11: Reconciliation of Net Income and Earnings Per Share excl. Identified Item
Reconciliation of Net Income Attributable to Westlake Corporation and Earnings Per Diluted Share to Net Income and Diluted Earnings Per Share excl. Identified Item Three months ended Three months ended September 30, Nine months ended September 30, June 30, 2024 2023 2024 2024 2023 (In millions of do
Slide 12: Reconciliation of EBITDA excl. Identified Item
Reconciliation of EBITDA excl. Identified Item to EBITDA, Net Income, Income from Operations and Net Cash Provided by Operating Activities Three months ended Three months ended September 30, Nine months ended September 30, June 30, 2024 2023 2024 2024 2023 (In millions of dollars) Net cash provided
Slide 13: Reconciliation of PEM, HIP and Corporate EBITDA to Operating Income
Reconciliation of PEM EBITDA excl. Identified Item, HIP EBITDA and Corporate EBITDA to Operating Income (Loss) Three months ended Three months ended September 30, June 30, Nine months ended September 30, 2024 2023 2024 2024 2023 (In millions of dollars) Performance and Essential Materials EBITDA exc
Slide 14: Reconciliation of Free Cash Flow to Operating Cash Flow
Reconciliation of Free Cash Flow to Net Cash Provided by Operating Activities Three months ended Three months ended September 30, Nine months ended September 30, June 30, 2024 2023 2024 2024 2023 (In millions of dollars) Net cash provided by operating activities $ 474 $ 696 $ 237 $ 880 $ 1,763 Less:
Slide 15: Safe Harbor Language
Safe Harbor Language This presentation contains certain forward-looking statements including statements regarding our cost savings objectives and our ability to maintain synergies, pricing and demand for our products and across the industrial and manufacturing sectors, global macroeconomic condition
Slide 16: Westlake
Vestlake