TLDR
- WLK closed at $79.85 on May 2, down 13.46%
- Q1 hit by lower production, $10M profit drop from last year
- Distributable cash flow down $12M year-over-year
- WLK stock down 45.75% in past 12 months
- Next earnings expected between August 4-8, 2025
Westlake Corporation (NYSE: $WLK) shares plunged 13.46% to $79.85 on May 2, after quarterly results from its partnership unit highlighted production shortfalls and weaker cash flow. WLK stock has now lost nearly half its value over the past year, with a one-year return of -45.75%, sharply underperforming the S&P 500’s 12.29% gain in the same span.
Q1 Earnings Reveal Weaknesses
Westlake Chemical Partners LP (NYSE: WLKP), which contributes to Westlake’s broader operations, reported net income of just $5 million for Q1 2025, or $0.14 per unit — a $10 million drop from the year-ago quarter. Distributable cash flow also declined by $12 million year-over-year, falling to $5 million for the quarter.
The company blamed a planned turnaround at its Petro 1 facility for lower production and sales volumes, which weighed heavily on profits. Global trade tensions and elevated interest rates have added to the headwinds, raising uncertainty for Westlake’s future performance.
Bright Spots in an Otherwise Tough Quarter
Despite the weak earnings, Westlake Chemical Partners maintained its record of 43 consecutive quarterly distributions since its 2014 IPO, highlighting its steady cash returns to shareholders. The partnership declared a quarterly distribution of $0.4714 per unit, reflecting a 71% increase since the original minimum payout at IPO.
Financially, the company ended Q1 with a solid cash balance of $154 million and a conservative leverage ratio of about 1 times, signaling underlying balance sheet strength despite near-term challenges.
WLK Stock Deep in the Red
Westlake’s stock performance has been bleak. WLK shares are down 30.02% year-to-date and have plunged 45.75% over the past 12 months. The three-year return stands at -34.55%, well behind the S&P 500’s 36.85% rise in that period.
However, on a five-year basis, WLK has delivered a total return of 112.44%, slightly beating the broader market’s 100.89% gain. Investors will be watching the next earnings release, expected between August 4 and 8, for signs of a rebound.
Despite current struggles, Westlake continues to offer a forward dividend yield of 2.63%, which may appeal to income-focused investors willing to ride out the volatility.
