Westlake Chemical (NYSE:WLK) fell short of analyst expectations in the fourth quarter, with weaker earnings and revenue overshadowing sales growth, causing shares to dip over 2% intra-day today.
The chemical and building products manufacturer reported adjusted earnings per share of $0.06, well below the $1.16 consensus estimate. Revenue reached $2.84 billion, missing the expected $2.98 billion, as lower average sales prices offset continued volume growth.
Sales increased 1% year-over-year, marking the fifth straight quarter of volume expansion, with a 3% rise in total sales volume. However, a 2% decline in average pricing weighed on overall performance. The Housing and Infrastructure Products segment posted operating income of $129 million, up from $121 million a year earlier, while the Performance and Essential Materials division recorded a $41 million loss, deeper than the $39 million loss in the prior year.
Despite weaker margins, Westlake maintained solid cash generation, reporting $434 million in operating cash flow for Q4 and $1.31 billion for the full year 2024. The company ended the year with $2.9 billion in cash and $4.6 billion in total debt, reinforcing its financial stability despite short-term pricing headwinds.
While sales volume continued to grow, pricing pressures and macroeconomic uncertainty led to disappointing earnings, leaving investors cautious about the company’s near-term profitability outlook.