WLKHIGH SIGNALOPERATIONAL10-K

Westlake Corporation is executing a significant operational restructuring with facility closures in the Netherlands and North America while experiencing substantially reduced profitability and cash generation.

The company is closing multiple production facilities including units in Pernis, Netherlands and North American chlorovinyls assets in Louisiana and Mississippi, indicating a strategic consolidation of operations. This restructuring comes amid challenging operating conditions that have meaningfully impacted the company's financial performance, suggesting management is taking decisive action to right-size the business for current market conditions.

Comparing 2026-02-26 vs 2025-02-25View on EDGAR →
FINANCIAL ANALYSIS

Westlake's financial performance deteriorated meaningfully year-over-year, with gross profit substantially reduced alongside a significant decline in operating cash flow generation. The company increased its debt burden by over $1 billion while stockholders' equity declined, indicating either investment in restructuring activities or challenging market conditions requiring additional financing. The combination of reduced profitability, lower cash generation, and higher leverage suggests the company is navigating through a difficult operating environment while funding its strategic facility closures.

FINANCIAL STATEMENT CHANGES
Operating Cash Flow
Cash Flow
-64.6%
$1.3B→$465.0M

Operating cash flow fell 64.6% — earnings quality concerns; investigate working capital changes and non-cash items.

Gross Profit
P&L
-58.5%
$2.0B→$813.0M

Gross margin compression — rising input costs, pricing pressure, or unfavorable product mix shift.

Current Liabilities
Balance Sheet
+24.8%
$2.2B→$2.8B

Current liabilities rose 24.8% — increased short-term obligations, watch current ratio.

Total Debt
Balance Sheet
+22.4%
$4.6B→$5.6B

Debt rose 22.4% — additional borrowing for investment or operations; monitor coverage ratios.

Stockholders Equity
Balance Sheet
-16.5%
$10.5B→$8.8B

Equity decreased 16.5% — buybacks or losses reducing book value, monitor solvency ratios.

LANGUAGE CHANGES
NEW — 2026-02-26
PRIOR — 2025-02-25
ADDED
There were 127,910,338 shares of the registrant's common stock outstanding as of February 18, 2026.
government or other governments, and any effects on trading relationships among the United States and other countries; and results of the closures of certain of our facilities, including the units located in Pernis, Netherlands, certain of the North American chlorovinyls production assets located in Louisiana and Mississippi, and the styrene production plant located in Louisiana (such as the timing and amount of recognition of related costs and our expectations regarding our financial performance following such closures).
Production Capacity Unless we state otherwise, annual production capacity estimates used throughout this Form 10-K represent rated capacity of the facilities at December 31, 2025.
Business Overview Westlake Corporation is a vertically integrated global manufacturer and marketer of both housing and infrastructure products and performance and essential materials that are designed to enhance the lives of people every day.
We operate in two principal operating segments, Housing and Infrastructure Products (HIP) and Performance and Essential Materials (PEM).
+7 more — sign up free →
REMOVED
There were 128,229,509 shares of the registrant's common stock outstanding as of February 18, 2025.
Industry and Market Data Industry and market data used throughout this Form 10-K were obtained through internal company research, surveys and studies conducted by unrelated third parties and publicly available industry and general publications.
Business General We are a vertically integrated global manufacturer and marketer of performance and essential materials and housing and infrastructure products that enhance the lives of people every day.
We operate in two principal operating segments, Performance and Essential Materials and Housing and Infrastructure Products.
Performance and Essential Materials includes Westlake North American Vinyls, Westlake North American Chlor-alkali Derivatives, Westlake European Asian Chlorovinyls, Westlake Olefins, Westlake Polyethylene and Westlake Epoxy.
+7 more — sign up free →
MORE OPERATIONAL SIGNALS
NVDAHIGHNVIDIA has repositioned itself from a "full-stack computing infrastructure compa...
2026-02-25
NVDAHIGHNVIDIA has repositioned itself from a "full-stack computing infrastructure compa...
2026-02-25
NOWHIGHServiceNow has fundamentally repositioned itself as an AI-first platform company...
2026-01-29
TSLAHIGHTesla has fundamentally repositioned itself from an electric vehicle company to ...
2026-01-29
ANALYZE ANY FILING FREE

See what changed in your portfolio's filings

500+ US-listed companies analyzed. Language delta, financial analysis, instant signal scoring.

Try Tracenotes free →