Slide 1: Earnings Presentation 4Q and Full Year 2024
1 Earnings Presentation 4Q and Full Year 2024
Slide 2: Fourth Quarter and Full Year 2024 Highlights
2 Fourth Quarter and Full Year 2024 Highlights Fifth consecutive quarter of YoY sales volume growth with momentum into 2025 • Record Housing and Infrastructure Products (HIP) 2024 income from operations of $807 million driven by our position as a key supplier to faster-growing national homebuilders
Slide 3: Westlake Corporation 4Q and FY 2024
3 Westlake Corporation 4Q and FY 2024(1) Strong YoY EBITDA growth of 7% in 4Q’24 driven by sales volume growth and cost reduction efforts Exceeded our FY’24 cost reduction target by achieving $170 million of cost savings, including $50 million in 4Q’24 Westlake 4Q 2024 vs. 3Q 2024 Average Sales Pric
Slide 4: Housing and Infrastructure Products (HIP) Segment Performance
4 Housing and Infrastructure Products (“HIP”) Segment Performance HIP Segment 4Q 2024 vs. 3Q 2024 Average Sales Price -1.3% Volume -9.4% HIP Segment 4Q 2024 vs. 4Q 2023 Average Sales Price -3.4% Volume +6.9% Strong 7% YoY sales volume growth driven by continuing strong demand for pipe & fittings and
Slide 5: Historical HIP Performance
5 Historical HIP Performance $260 $388 $534 $955 $949 $1,050 13.5% 18.5% 17.2% 20.0% 22.5% 24.3% 2019 2020 2021 2022 2023 2024 EBITDA EBITDA Margin⁽¹⁾ HIP EBITDA ($M) AND EBITDA MARGIN (%) • Strong end market demand • Partnerships with nationwide homebuilders who are gaining market share • Coast-to-
Slide 6: Housing and Infrastructure Products Update
6 Housing and Infrastructure Products Update 2 Expecting another year of solid sales growth for Westlake Royal Building Products in 2025, consistent with its 5%-7% long-term sales growth target, and HIP’s sales volume and order books are solid to start the year 3 New PVCO pipe plant under constructi
Slide 7: Performance and Essential Materials (PEM) Segment Performance
7 PEM Segment 4Q 2024 vs. 3Q 2024 Average Sales Price -7.0% Volume -0.7% PEM Segment 4Q 2024 vs. 4Q 2023 Average Sales Price -1.9% Volume +1.0% Lower average sales price, both QoQ and YoY, driven by lower prices for PVC resin and polyethylene, partially offset by higher prices for caustic soda 4Q’24
Slide 8: Performance and Essential Materials Update
8 Performance and Essential Materials Update 2 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 3 Rel
Slide 9: Financial Reconciliations
99 Financial Reconciliations
Slide 10: Consolidated Statements of Operations
10 Consolidated Statements of Operations Housing and Infrastructure Products Sales $ 981 $ 946 $ 1,098 $ 4,317 $ 4,212 Performance and Essential Materials Sales 1,862 1,880 2,019 7,825 8,336 Net sales 2,843 2,826 3,117 12,142 12,548 Cost of sales Gross profit Selling, general and administrative expe
Slide 11: Reconciliation of Net Income and Earnings Per Diluted Share excl. Identified Items
11 Reconciliation of Net Income Attributable to Westlake Corporation and Earnings Per Diluted Share to Net Income and Diluted Earnings Per Share excl. Identified Items Net income (loss) $ 19 $ (487) $ 120 $ 647 $ 522 Less: Net income attributable to noncontrolling interests Net income (loss) attribu
Slide 12: Reconciliation of EBITDA to Net Cash Provided by Operating Activities
12 Net cash provided by operating activities $ 434 $ 573 $ 474 $ 1,314 $ 2,336 Changes in operating assets and liabilities and other Deferred income taxes Net income Less: Other income, net Interest expense Provision for income taxes Income from operations Add: Depreciation and amortization Other in
Slide 13: Segment EBITDA to Operating Income Reconciliation
13 Three months ended December 31, Three months ended September 30, Twelve months ended December 31, 2024 2023 2024 2024 2023 Housing and Infrastructure Products EBITDA $ 188 $ 173 $ 262 $ 1,050 $ 949 Less: Depreciation and Amortization 56 50 54 213 207 Other income, net 3 2 6 30 32 Housing and Infr
Slide 14: Reconciliation of Free Cash Flow to Net Cash Provided by Operating Activities
14 Reconciliation of Free Cash Flow to Net Cash Provided by Operating Activities Net cash provided by operating activities $ 434 $ 573 $ 474 $ 1,314 $ 2,336 Less: Additions to property, plant and equipment Free Cash Flow $ 149 $ 291 $ 254 $ 306 $ 1,302 285 282 220 1,008 1,034 (In millions of dollars
Slide 15: Safe Harbor Language
15 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 condit
Slide 16: Westlake
Westlake