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WLK · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is Westlake Corporation (WLK) stock moving?
Westlake fell from a Nov 4 intraday high of $71.75 to a $63.16 close on Nov 10, about 12% below that peak and roughly back to late-October levels. The drop followed a mixed third quarter: sales of $2.981B beat the $2.950B estimate, but adjusted EPS of $0.45 missed the $0.57 consensus, and EBITDA excluding identified items fell to $408M from $679M in Q2 with the EBITDA margin down to 14% from 21%. Reported net income was only $6M. The Performance and Essential Materials segment carried most of the weakness, with an operating loss, while Housing and Infrastructure Products sales were flat. Volume on Nov 4 was about 1.96M shares, roughly double the recent average, confirming heavy post-earnings selling; volume has since eased to about 0.8-0.9M. Analysts have not turned negative: Truist and UBS keep Buy ratings with $81 targets (both lowered), and Citigroup keeps Neutral but raised its target to $70. The Cologne PVC closure, announced Sep 29 with about $205M of pre-tax charges, is a cost-cutting step expected to improve European profitability, and the completed PVCO pipe plant adds capacity. Against that, management flagged weak European demand, higher energy costs, Asian import pressure, moderating North American PVC and polyethylene prices after the Iran-related spike, and housing softness from rising rates. The stock is trading near the $64 level it held in late October, so the near-term direction depends on whether it holds that area.
News behind the analysis
- Truist Securities Maintains Buy on Westlake, Lowers Price Target to $81Truist keeps its Buy rating on Westlake but cuts its price target to $81 after the third-quarter results.
- Citigroup Maintains Neutral on Westlake, Raises Price Target to $70Citigroup keeps a Neutral rating and raises its price target to $70, still above the Nov 10 close of $63.16.
- UBS Maintains Buy on Westlake, Lowers Price Target to $81UBS keeps its Buy rating on Westlake and lowers its price target to $81 following the quarterly report.
- Westlake Q3 2026 Earnings Call TranscriptTranscript of the Nov 4 third-quarter 2026 earnings call, where management discussed results and market conditions.
- Westlake Corporation Reports Third Quarter 2026 ResultsNet sales were $2.981B and net income attributable to the company was $6M, or $0.05 per diluted share; excluding identified items, EPS was $0.45 and EBITDA was $408M.
- Westlake Q3 Adj. EPS $0.45 Misses $0.57 Estimate, Sales $2.981B Beat $2.950B EstimateAdjusted EPS of $0.45 missed the $0.57 consensus while sales of $2.981B beat the $2.950B estimate.
- Westlake Pipe & Fittings Completes PVCO Pipe Manufacturing ExpansionWestlake Pipe & Fittings finished building a new PVCO pipe plant in Wichita Falls, Texas.
About Westlake Corporation
Westlake Corporation is a Houston-based maker of commodity chemicals, plastics and building products, with plants in North America, Europe and Asia; it is controlled by the Chao family. Unusually for a chemical company, it makes its own raw materials, like ethylene and chlorine, and also turns them into finished home-building products such as PVC pipe, siding, trim and roofing.
How it makes money
It reports two segments. Performance and Essential Materials (PEM) sells polyethylene, PVC resin, caustic soda, chlor-alkali products and epoxy resins to industrial customers. This segment brings in roughly 60-70% of sales, and its profits swing with commodity prices and spreads. Housing and Infrastructure Products (HIP) sells PVC pipe and fittings, siding, trim, roofing, windows and compounds for building. It makes up roughly a third of sales and has usually been the steadier earner. Total yearly sales are roughly $11-12 billion (about $3.0 billion in Q3 2026). The company also owns the general partner and a large stake in Westlake Chemical Partners (WLKP).
What usually moves WLK
- PVC, caustic soda and polyethylene prices and spreads
- US natural gas/ethane feedstock and energy costs, especially vs. Europe
- North American housing starts and renovation demand
- Plant outages, restructuring and European plant closures
- Global demand and oversupply from Chinese chemical producers