Westlake Corporation · NYSE:WLK
Westlake — Q1 2025 Earnings Presentation
16 slides from Westlake's earnings presentation, May 2, 2025
Slide 1: Earnings Presentation 1Q 2025
1 Earnings Presentation 1Q 2025
Slide 2: First Quarter 2025 Highlights
2 First Quarter 2025 Highlights Operational Milestones $2.5 billion cash position provides significant optionality • 1Q’25 PEM EBITDA impacted by $100 million of YoY higher feedstock and energy costs and $80 million from planned turnarounds and unplanned outages • Reducing 2025 capital spending targ
Slide 3: Westlake Corporation 1Q 2025
3 Westlake Corporation 1Q 2025 Average sales price fell 1% QoQ due to unfavorable changes in sales mix in our HIP segment Westlake 1Q 2025 vs. 4Q 2024 Average Sales Price -0.7% Volume +0.8% Westlake 1Q 2025 vs. 1Q 2024 Average Sales Price -2.3% Volume -2.0% (1) Reconciliations of EBITDA, Housing and
Slide 4: Housing and Infrastructure Products (HIP) Segment Performance
4 Housing and Infrastructure Products (“HIP”) Segment Performance HIP Segment 1Q 2025 vs. 4Q 2024 Average Sales Price -1.9% Volume +3.5% HIP Segment 1Q 2025 vs. 1Q 2024 Average Sales Price -2.9% Volume -1.7% Solid 4% sequential sales volume growth despite some customer pre- buying that shifted sales
Slide 5: Housing and Infrastructure Products Update
5 Housing and Infrastructure Products Update 2 2025 HIP revenue and EBITDA margin now expected to be towards the low ends of the previously-communicated ranges of $4.4 – $4.6 billion and 20% – 22% to reflect the slow start to the year as well as the impact of changes in sales mix on revenue and EBIT
Slide 6: Performance and Essential Materials (PEM) Segment Performance
6 PEM Segment 1Q 2025 vs. 4Q 2024 Average Sales Price 0.0% Volume -0.6% PEM Segment 1Q 2025 vs. 1Q 2024 Average Sales Price -2.0% Volume -2.2% Higher YoY prices for North American feedstocks and energy (natural gas, ethane, ethylene), in part due to winter storms, reduced EBITDA by ~$100 million EBI
Slide 7: Performance and Essential Materials Update
7 Performance and Essential Materials Update 2 VCM tie-in conducted in 1Q’25 allows for the replacement of old mercury cell capacity with new, more environmentally-friendly membrane cell production with no material impact to our overall capacity 3 Continued energy and feedstock advantage in North Am
Slide 8: Westlake's History of Maintaining a Strong Balance Sheet
8 Westlake’s History of Maintaining a Strong Balance Sheet Strong Balance Sheet With Significant Availability to Support Future Growth and Investment Net Debt to EBITDA ex. Identified Items(1,2) vs. Strong Credit Ratings Support Additional Funding S&P BBB+ Fitch BBB Moody’s Baa2 1.0x Peer Average 4.
Slide 9: Financial Reconciliations
99 Financial Reconciliations
Slide 10: Consolidated Statements of Operations
10 Consolidated Statements of Operations Housing and Infrastructure Products Sales $ 996 $ 1,044 $ 981 Performance and Essential Materials Sales 1,850 1,931 1,862 Net sales 2,846 2,975 2,843 Cost of sales Gross profit Selling, general and administrative expenses Amortization of intangibles Restructu
Slide 11: Reconciliation of EBITDA to Net Income and Operating Cash Flow
11 Net cash provided by (used for) operating activities $ (77) $ 169 $ 434 Changes in operating assets and liabilities and other Deferred income taxes Net income (loss) Less: Other income, net Interest expense Provision for income taxes Income (loss) from operations Add: Depreciation and amortizatio
Slide 12: Reconciliation of Segment EBITDA to Operating Income
12 Three months ended March 31, Three months ended December 31, 2025 2024 2024 Housing and Infrastructure Products EBITDA $ 203 $ 264 $ 188 Less: Depreciation and Amortization 53 50 56 Other income, net 2 4 3 Housing and Infrastructure Products Operating Income 148 210 129 Performance and Essential
Slide 13: Reconciliation of Free Cash Flow
13 Reconciliation of Free Cash Flow to Net Cash Provided by (Used For) Operating Activities Net cash provided by (used for) operating activities $ (77) $ 169 $ 434 Less: Additions to property, plant and equipment Free Cash Flow $ (325) $ (103) $ 149 248 272 285 (In millions of dollars) Three months
Slide 14: Reconciliation of EBITDA ex. Identified Items
14 Reconciliation of EBITDA to Net Income, Cash Flow from Operating Activities and EBITDA ex. Identified Items LTM 1Q 2025 FY 2024 FY 2023 FY 2022 FY 2021 FY 2020 FY 2019 FY 2018 FY 2017 FY 2016 FY 2015 EBITDA 1,953$ 2,211$ 1,962$ 4,179$ 3,693$ 1,246$ 1,407$ 2,101$ 1,841$ 1,016$ 1,244$ Less: Income
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