Westlake Corporation (WLK)
NYSEMaterialsChemicals - SpecialtySnapshot 2026-09-04
$74.79+0.25%
Close 2026-09-04 · 1-day change
NYSEMaterialsChemicals - SpecialtySnapshot 2026-09-04
QuarterlyIQ Insights · WLK
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within materials on a research-validated quality screen. As of 2026-09-04.
The screen ranks WLK against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 4 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 3 of the last 3 quarter-over-quarter moves. Historically, Materials names rated neutral grew net income 46% of the time over the next year (vs 54% for the rest of the cohort, n=2582).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
A guidance track record builds as the company issues and delivers on guidance.
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Execute the PEM profitability improvement plan targeting $600 million EBITDA improvement in 2026 through footprint optimization, cost reduction, and reliability improvements.
Stated as a priority in 4 of last 4 quarters. EBITDA improved from $196 million in 2025-Q4 to $679 million in 2026-Q2, reflecting substantial earnings recovery. Management consistently emphasized the $600 million EBITDA improvement target for 2026, and the financial results show delivering progress toward this goal.
“"Three-pillar profitability improvement plan on track to deliver a $600 million operating income benefit"”
“"We continue to execute against our three-pillar profitability improvement plan"”
“"For 2026 our priority is to achieve the PEM profitability improvement plan's targeted $600 million in EBITDA improvement"”
“"Our PEM profitability improvement plan began to generate tangible benefits"”
Continue regular dividend payments to shareholders, maintaining dividend per share at approximately $0.53 quarterly.
Maintained as a priority in 4 of last 4 quarters. Dividend per share remained steady at approximately $0.53 from 2025-Q3 through 2026-Q2, reflecting consistent capital return to shareholders. Management's commitment to dividend payments is delivering stable shareholder returns.
Grow the Performance & Essential Materials segment by acquiring and integrating new chlorovinyl production assets globally, including the Wilhelmshaven, Germany plant.
Stated in 2 of last 4 quarters. The acquisition of the Wilhelmshaven plant in 2026-Q2 adds 380,000 metric tons annual PVC capacity, expanding the global chlorovinyls footprint. This follows the January 2026 ACI acquisition supporting segment growth. Management is delivering on expansion through targeted acquisitions.
“"Completed the acquisition of a PVC and VCM production site in Wilhelmshaven, Germany"”
Continue cost management initiatives including footprint optimization, restructuring, and efficiency improvements to improve margins and reduce losses.
Stated as a priority in 4 of last 4 quarters. Management has emphasized footprint optimization and cost reduction actions since 2025-Q3. Financial results show EBITDA improvement and margin gains, particularly in PEM segment, indicating delivering progress on cost management and efficiency.
“"Three-pillar profitability improvement plan includes footprint optimization, cost reduction, and reliability improvement"”
Improve cash flow generation from operating activities to support capital allocation and debt reduction.
Stated in 3 of last 4 quarters. Cash from operating activities improved from -$94 million in 2026-Q1 to $318 million in 2026-Q2, reflecting a return to positive free cash flow. Management highlighted debt reduction and credit facility renewal, indicating delivering progress on cash flow enhancement.
Over the trailing year it converted -1.07x of net income into operating cash flow.
Most sensitive to the broad stock market.
Not enough signal to read sensitivity to real (inflation-adjusted) rates, long-term interest rates, the US dollar, Fed net liquidity (low R² over the window).
19 material management or governance events in the past 24 months, led by executive changes. Historically, Materials names rated volatile grew net income 52% of the time over the next year (vs 50% for the rest of the cohort, n=717).
Not investment advice. As of 2026-09-04.
“Dividend per share was $0.53”
“Dividend per share was $0.53”
“Dividend per share was $0.53”
“Dividend per share was $0.525”
“"Acquisition of ACI in January 2026 to grow HIP segment"”
“"Cost reduction initiatives announced in 2025 began to reflect in margins"”
“"Actions taken in 2025 to optimize footprint and reduce costs expected to improve earnings in 2026"”
“"PEM profitability improvement plan generating tangible benefits"”
“"Net cash provided by operating activities was $318 million"”
“"Net cash used for operating activities was $94 million"”
“"Net cash provided by operating activities was $225 million"”