Stock pay is large next to buybacks. Stock-based pay expense $125M vs $146M spent repurchasing shares over the 3 fiscal years to 2025.
Over three fiscal years Westlake recorded $125M of stock-based pay expense and spent $146M repurchasing shares (repurchases can include shares withheld to cover employees' taxes).Over three fiscal years Westlake recorded $125M of stock-based pay expense and spent $146M repurchasing shares.
Operating margin at a 6-year low.-14% in 2025, the weakest of the last 6 years.
Westlake's operating margin fell to -14% in 2025, its lowest in the 6 years of filings we have.
Annual revenue fell three years running. Fiscal-year revenue down each year from 2022 to 2025.
Westlake's fiscal-year revenue declined in each of the three years to 2025.
Loss over 12 months, profit last quarter. Lost money in the 12 months to June 2026, but made a $260M profit in the quarter to June 2026.
Westlake reported a net loss over the last twelve months, but its most recent quarter was profitable ($260M). One quarter isn't a trend, but it's closer to profitability than the 12-month figure suggests.
Sector-normalized EBITDA, earnings, and free cash flow yields.
Earnings yield-14.1%
SEC filings · 12 months to Jun 2026Negative (a loss or cash outflow), so it counts as zero whatever the share price30% base weight · Z-score -1.00Sector median: 0.0364 · MAD: 0.0364
EBITDA yield-0.6%
SEC filings · 12 months to Jun 2026Negative (a loss or cash outflow), so it counts as zero whatever the share price50% base weight · Z-score -1.64Sector median: 0.0854 · MAD: 0.0520
Free cash flow yield-3.0%
SEC filings · 12 months to Jun 2026 · operating cash flow − capital spendingNegative (a loss or cash outflow), so it counts as zero whatever the share price20% base weight · Z-score -1.00Sector median: 0.0261 · MAD: 0.0261
Valuation, growth and profitability scores: higher is better. Risk: 0 is lower, 2 is higher. Risk is a relative proxy, not a bankruptcy probability. Scores depend on available sector peers.
Questions investors ask about Westlake
Is Westlake getting weaker?
Its latest SEC filing (Aug 5, 2026) got stronger: operating margin rose 4.6 points to -11.0%. Its overall score is unchanged at 24/100 since Oct 28, 2026.
How is Westlake valued vs its peers?
Priced higher than most peers relative to what it earns. Valuation scores 8/100 against 1,371 basic materials peers.Earnings yield -14.1% vs a peer median of 3.6% (weaker than 100% of peers).Earnings yield -14.1% vs peers 3.6% (weaker than 100% of peers).
Is Westlake growing?
More slowly than most of its peers. Growth scores 23/100 against 1,371 basic materials peers.3-year revenue growth -6.6% vs a peer median of -0.0% (weaker than 74% of peers).3-year revenue growth -6.6% vs peers -0.0% (weaker than 74% of peers).
How profitable is Westlake?
Less profitable than most of its peers. Profitability scores 5/100 against 1,371 basic materials peers.Return on assets -6.4% vs a peer median of 2.5% (weaker than 94% of peers).Return on assets -6.4% vs peers 2.5% (weaker than 94% of peers).
How risky is Westlake?
Moderate risk relative to 1,371 basic materials peers, judged on debt, liquidity and share-price swings.Current ratio 2.45× vs a peer median of 1.76× (stronger than 70% of peers).Current ratio 2.45× vs peers 1.76× (stronger than 70% of peers).Debt / equity 0.58× vs a peer median of 0.36× (weaker than 66% of peers).Debt / equity 0.58× vs peers 0.36× (weaker than 66% of peers). A relative measure, not a bankruptcy probability.
Latest filing: what changed
Quarter ended Jun 30, 2026 · filed Aug 5, 2026 · compared with the quarter ended Mar 31, 2026
Got stronger
Operating margin rose 4.6 points to -11.0%
Worth watching: Westlake is in the bottom fifth of its sector on profitability. From 2021 to 2025, 63% of companies in that position posted a loss over the following year, against 4% for the top fifth.
Previous quarter
Latest quarter
Change
Revenue (12 months)
11.0B USD
11.3B USD
+2.9%
Net income (12 months)
−1.6B USD
−1.2B USD
−24.6%
Operating margin
-15.7%
-11.0%
+4.6 pts
Free cash flow (12 months)
−508.0M USD
−265.0M USD
−47.8%
Debt
5.6B USD
5.1B USD
−9.0%
Cash
2.3B USD
1.6B USD
−27.7%
Shares outstanding
128.1M
127.8M
−0.3%
From the company’s own SEC filings, as filed. Twelve-month figures roll forward one quarter at a time.
Industry valuation context
Industry: Specialty Chemicals · 32 companies
Valuations in Specialty Chemicals are above their usual range since 2016.
74% of months since 2016 were valued lower than now.
17% of companies are in the most expensive fifth of their own price-to-sales history.
Over 24 months, company values −8% and earnings +13% (medians): earnings grew faster than prices.
Median price-to-sales is −36% vs the whole market, against a usual −31%.
2016Shaded: most expensive fifth of its range2026
This is a cyclical group: after a downturn, trailing earnings and sales fall faster than prices, which can make valuations look high near a cycle's low.
Describes valuations since 2016; it does not predict prices. US companies worth $1B+, from SEC filings and month-end prices, as of Aug 2026. Today's companies and industry labels are used throughout. Measured on earnings, EBITDA, sales and free cash flow yields. How this works
Financials
Fiscal years from SEC annual filings · change vs the prior year
Key ratios
FY 2021
FY 2022
FY 2023
FY 2024
FY 2025
Change
Gross margin
29.7%
25.8%
17.7%
16.1%
7.3%
▼ 8.8 pts
Operating margin
23.8%
19.3%
5.8%
7.2%
-14.1%
▼ 21 pts
Net margin
17.1%
14.2%
3.8%
5.0%
-13.5%
▼ 18 pts
Return on assets (ROA)
10.9%
10.9%
2.3%
2.9%
-7.6%
▼ 10 pts
Return on equity (ROE)
25.3%
22.6%
4.7%
5.7%
-17.2%
▼ 23 pts
Free cash flow margin
14.7%
14.5%
10.4%
2.5%
-4.7%
▼ 7.3 pts
Current ratio
2.25×
2.60×
2.37×
2.80×
2.24×
▼ 20%
Quick ratio
1.65×
1.79×
1.79×
2.04×
1.65×
▼ 19%
Debt to equity
0.65×
0.49×
0.48×
0.44×
0.64×
▲ 46%
Interest coverage
15.91×
17.23×
4.42×
5.50×
-9.23×
▼ 268%
WLK price history
Price history is added with the daily price update and will appear after the next one.