NYSE$WLK

Westlake Chemical Corp · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Westlake achieved record results due to strong demand, pricing, and the impact of recent acquisitions.

Westlake Corporation reported record second quarter 2022 results, including record net sales of $4.5 billion, a 57% increase year-over-year, and record net income of $858 million, a 64% increase year-over-year. The company benefited from solid market conditions, strong demand, and pricing dynamics, as well as the full quarter impact of recent acquisitions.

  • Record quarterly net sales of $4.5 billion, an increase of 57% vs. second quarter 2021 net sales
  • Record quarterly net income of $858 million, an increase of 64% vs. second quarter 2021 net income
  • Record quarterly EBITDA of $1.5 billion, an increase of 56% vs. second quarter 2021 EBITDA
  • Overall prices increased 32% versus the year-ago period with significant gains in both operating segments.

Headline financials

Total Revenue

$4.48B

Previous: $2.86B+56.8%
EPS (adj)

$6.60

Previous: $4.04+63.4%
Capital Expenditures

-$493M

Previous: -$129M-282.2%
Free Cash Flow

$365M

Previous: $393M-7.1%
Net Income

$858M

Previous: $522M+64.4%
Operating Income

$1.18B

Previous: $720M+63.2%
Gross Profit

$1.45B

Previous: $872M+65.7%
Cash & Equivalents

$1.32B

Previous: $1.84B-28.6%
Total Assets

$20.4B

Previous: $14.7B+38.4%
Stock-Based Comp

$9M

Previous: $8M+12.5%

Revenue & EPS history

Westlake · Revenue · Quarterly

$4.48B

Q2 2022+56.8%vs Q2 2021
Beat estimate in 4 of 15 quarters(27%)
ActualEstimate

Forward guidance

Westlake believes in the structural strength of the housing, repair and remodeling markets, and the market position for our Performance and Essential Materials remains on a solid footing. While mindful of geopolitical and economic factors which may affect their businesses, they remain confident in the fundamentals of their business and the markets in which they participate.

Tailwinds

  • Belief in the structural strength of the housing market.
  • Strong presence in the repair and remodeling market.
  • High integration within operations.
  • North American producer's structural cost advantage has expanded with higher global energy costs.
  • Solid demand for most of their products.

Headwinds

  • Continued logistics constraints.
  • Higher energy and raw material costs.
  • New housing starts might retreat from their recent highs as global interest rates rise.
  • Record breaking tailwinds experienced in the Performance and Essential Materials segment may be moderating.
  • Geopolitical and economic factors which may affect their businesses.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

+0.4%

Avg return

Earnings day

+1.0%

Avg return

5 days after

+1.1%

Avg return

30 days after

51%

33 / 65 earnings

Positive

+12.1%

Q4 2025

Best reaction

-13.4%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-4.6%-6.9%-19.4%
Q4 2025+12.1%+13.3%+22.0%
Q3 2025-7.0%-9.1%-9.1%
Q1 2025-13.4%-15.5%-23.0%
Q4 2024-0.2%+2.4%-7.4%
Q3 2024+4.3%+0.5%-6.0%
Q2 2024+7.5%+9.4%+2.2%
Q1 2024+1.5%+4.0%+9.0%
Q4 2023-6.0%+2.8%+3.2%
Q3 2023+6.4%+3.6%+14.1%
Q2 2023-2.5%-1.3%-1.3%
Q1 2023+8.1%+5.3%+0.7%
Q4 2022-3.2%-0.9%-12.6%
Q3 2022+4.1%+5.5%+13.1%
Q2 2022-2.8%-2.9%-0.9%
Q1 2022+10.3%+8.0%+4.8%
Q4 2021-0.9%+2.4%+17.4%
Q3 2021+1.9%+0.9%-6.2%
Q2 2021-1.7%+0.3%+6.9%
Q1 2021+7.6%+9.3%+10.9%
Q4 2020+0.8%-2.1%+0.6%
Q3 2020-1.1%+1.3%+10.8%
Q2 2020+0.9%+7.4%+9.7%
Q1 2020+5.9%+7.8%+30.0%
Q4 2019-2.8%-4.1%-42.7%
Q3 2019+7.5%+9.3%-1.1%
Q2 2019+0.5%-0.6%-2.8%
Q1 2019-6.4%-10.6%-15.5%
Q4 2018-1.2%-6.6%-13.8%
Q3 2018+6.8%+1.9%-5.7%
Q2 2018-7.5%-6.7%-12.1%
Q1 2018-1.2%+0.5%+8.0%
Q4 2017+1.6%+4.1%+6.2%
Q3 2017+9.2%+8.1%+15.5%
Q2 2017-1.9%-2.5%+8.9%
Q1 2017+0.7%-0.1%+0.4%
Q4 2016+4.7%+3.2%+5.8%
Q3 2016+2.7%+2.5%+11.9%
Q2 2016-0.1%-4.0%+12.0%
Q1 2016-3.7%
Q4 2015-7.0%
Q3 2015+1.6%
Q2 2015+7.1%
Q1 2015-9.3%
Q4 2014+0.1%
Q3 2014-5.2%
Q2 2014-1.9%
Q1 2014+2.4%
Q4 2013+2.1%
Q3 2013+4.9%
Q2 2013+4.6%
Q1 2013+10.9%
Q4 2012-5.2%
Q3 2012-1.6%
Q2 2012+11.2%
Q1 2011-3.6%
Q1 2012+1.3%
Q1 2010-0.8%
Q4 2011-0.8%
Q4 2009-0.8%
Q3 2010+4.7%
Q3 2011+4.7%
Q4 2010-9.3%
Q2 2011-9.3%
Q2 2010-9.3%

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