Westlake expects a thinner housing margin, even if sales grow
Westlake expects a lower year-end margin in housing products than a year ago. The division's sales forecast includes businesses acquired this year.
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Westlake Corporation
Westlake makes chemicals, plastics, and housing and infrastructure products. Its Performance and Essential Materials business supplies industrial materials, while Housing and Infrastructure Products serves construction and related markets.
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- WLK
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- 0001262823
Westlake's two divisions respond to different demand and pricing cycles. The housing-products forecast points to a lower margin than the same seasonal quarter last year, while chemicals pricing showed some improvement entering the fourth quarter.
Quarterly results
| Measure | 2026 | 2025 |
|---|---|---|
| Revenue | $2,981 | $2,838 |
| EBITDA excluding identified items | $408 | $313 |
Third-quarter net income attributable to shareholders was $6 million, or $58 million excluding identified items. EBITDA excluding identified items fell from $679 million in the second quarter. EBITDA means earnings before interest, taxes, depreciation and amortization.
Housing products and closure costs
Housing and Infrastructure Products expects fourth-quarter sales of $900 million to $1 billion and an EBITDA margin of roughly 13%. The same quarter last year produced $901 million of sales and a 16% margin excluding identified items. The division includes ACI, acquired in January 2026, and a rolled-steel roofing-panel business acquired on October 1, 2026. Those additions change the business mix from the earlier period.
The Cologne closure belongs to the separate chemicals operation. Announced in September, it has generated $51 million of recognized costs, with another $150 million expected. Westlake plans to supply customers from other plants, including the Wilhelmshaven site acquired in 2026.
Cash and borrowing
Third-quarter free cash flow was $220 million after capital spending, bringing the first nine months to $28 million. At September 30, cash and cash equivalents were $1.764 billion, available-for-sale securities were $207 million and debt principal was $5.155 billion.
Read our comparison of Westlake's year-end housing-products outlook.
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