Q2 2026 Westlake Corp Earnings Call Transcript
Key Points
- Westlake Corp (WLK) delivered a substantial improvement in Q2 2026, with EBITDA of $679 million, up significantly from both the prior quarter and the year-ago period.
- The company's three-pillar profitability improvement plan contributed approximately $150 million to year-over-year EBITDA improvement, with cost savings tracking ahead of plan.
- PEM segment benefited from its globally advantaged North American feedstock and energy position, expanding integrated margins as global oil prices spiked.
- HIP segment achieved its second-highest quarterly revenue in history, with 6% organic sales volume growth driven by strong pipe and fittings demand, including data center projects.
- The company maintains a strong balance sheet with $1.9 billion in cash and investments, and reduced debt by $500 million while returning approximately $100 million to shareholders in Q2.
- Westlake Corp (WLK) experienced residual unplanned outages in Q2 2026, impacting plant reliability, though most issues were corrected by the end of the quarter.
- HIP segment EBITDA margin declined to 22% from 24% in the prior year period, due to lower average sales prices and inflation in transportation and raw material costs.
- The company expects 2026 HIP revenue and EBITDA margin to be towards the lower end of previously communicated ranges, driven by a muted outlook for North American residential construction.
- Some pipe orders and demand may have shifted from Q3 into Q2 2026 as customers sought to secure supply amid the Middle East conflict, potentially impacting Q3 sales volumes.
- Polyethylene prices exited Q2 slightly below the quarterly average, and future price trends remain heavily influenced by volatile global oil price movements.
Good morning, ladies and gentlemen. Thank you for standing by. Welcome to the Westlake Corporation second-quarter 2026 earnings conference call. (Operator Instructions) As a reminder, ladies and gentlemen, this conference is being recorded today, August 4, 2026.
I would now like to turn the call over to today's host, Jeff Holy, Westlake's Vice President and Chief Accounting Officer. Sir, you may now begin.
Thank you, Dana. Good morning, everyone, and welcome to the Westlake Corporation conference call to discuss our second-quarter 2026 results. I'm joined today by Albert Chao, our Executive Chairman; Jean-Marc Gilson, our President and CEO; Jon Baksht, our Senior Vice President and Chief Financial Officer; Steve Bender, our Special Advisor to the President; and other members of our management team.
During the call, we will refer to our two reporting segments, Performance & Essential Materials, which we refer to as PEM or Materials; and Housing & Infrastructure
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