Westlake Chemical (WLK) Stock Forecast & Price Target

Westlake Corp has demonstrated a positive performance outlook, with year-over-year volume increases of 6% and 8% in its Housing and Infrastructure Products (HIP) and Performance and Essential Materials (PEM) segments, respectively, despite pricing challenges. The company is positioned to benefit from ongoing infrastructure spending, which is expected to enhance its pipeline and fittings business while gaining market share in the siding and trim categories. Additionally, projections indicate continued revenue growth, with EBITDA margins improving to 23.3% in 2026 and favorable PVC pricing anticipated to support recovery in the construction sector.

Westlake Corp is experiencing challenging market conditions, particularly in its chlorovinyls segment, with management forecasting lower margins of 20-22% for the year compared to the previous 24.3%. Q1 and FY25 EBITDA estimates have been reduced to $445 million and $2.30 billion, respectively, reflecting ongoing pressures such as higher raw material costs and sluggish demand stemming from a post-COVID slowdown in Asia and consumer pressures in North America. The company's average prices within the Performance and Essential Materials segment fell 2% year-over-year and 7% sequentially in the fourth quarter, indicating persistent weakness which could further hinder financial performance.