Westlake Swings to $260M Q2 Profit on Higher Prices, Lower Costs; Legal Wins Bolster Outlook
WLK sits 39% above its 52-week low of $56.33.
Summary
Westlake Corporation reported Q2 2026 net income of $260 million, a sharp reversal from a $142 million loss a year ago, driven by higher product prices, lower costs, and the dismissal of major antitrust lawsuits.
Key Events · Earnings and Guidance · WLK
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Q2 Net Income Swings to $260M
Net income attributable to Westlake was $260 million ($2.01 diluted EPS) vs. a $142 million loss in Q2 2025, driven by higher sales prices for polyethylene and PVC resin, increased volumes, and lower ethane feedstock costs.
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Gross Margin Doubles to 20%
Gross profit margin expanded to 20% from 9% a year ago, reflecting improved pricing power and cost discipline. Six-month gross margin improved to 13% from 8%.
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Major Antitrust Lawsuits Dismissed
On July 29, 2026, the District Court of Amsterdam dismissed two ethylene antitrust lawsuits, including a €1.025 billion claim by Shell Chemical Europe, removing a significant legal overhang.
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Balance Sheet Strengthened
Redeemed $496 million of 3.60% 2026 Senior Notes in May 2026 and entered a new $1.5 billion revolving credit facility maturing in 2031. Cash and equivalents stood at $1.643 billion at quarter-end.
Analysis · WLK · Industrial Applications And Services
A dramatic earnings turnaround defined Westlake's Q2 2026, with net income reaching $260 million compared to a $142 million loss a year ago. Higher sales prices for polyethylene and PVC resin, increased pipe and fittings volumes, and lower ethane feedstock costs fueled the swing. Gross margin expanded to 20% from 9%. The quarter also brought the dismissal of two major ethylene antitrust lawsuits, including a €1.025 billion claim, removing a significant legal overhang. The balance sheet was strengthened by redeeming $496 million in near-term notes and replacing the credit facility with a new $1.5 billion revolver maturing in 2031. Two acquisitions—the Wilhelmshaven PVC/VCM plant and ACI/Perplastic Group—expand the global footprint. Restructuring costs fell sharply as plant closures wind down. With $1.6 billion in cash and a clean legal slate, the company enters the second half with strong momentum, though the sustainability of higher prices and the impact of Middle East conflict on supply chains remain key variables.
At the time of this filing, WLK was trading at $78.26 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $10B. The 52-week trading range was $56.33 to $124.23. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.