Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of Report (date of earliest event reported): November 2, 2023

Westlake Corporation

(Exact name of registrant as specified in its charter)

Delaware

001-32260

76-0346924

(State or other jurisdiction
of incorporation)

(Commission File Number)

(I.R.S. Employer
Identification No.)

2801 Post Oak Boulevard,

Suite 600

Houston,

Texas

77056

(Address of principal executive offices)

(Zip Code)

Registrant's telephone number, including area code: (713) 960-9111

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	WLK	The New York Stock Exchange
1.625% Senior Notes due 2029	WLK29	The New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

Item 2.02. Results of Operations and Financial Condition.

On November 2, 2023, Westlake Corporation (the "Company"), issued a press release announcing its 2023 third quarter results. A copy of the press release is furnished with this Current Report as Exhibit 99.1.

The information furnished pursuant to this Current Report, including Exhibit 99.1, shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and will not be incorporated by reference into any registration statement filed by Westlake Corporation under the Securities Act of 1933, as amended, unless specifically identified as being incorporated therein.

Item 7.01. Regulation FD Disclosure.

The Company is holding a conference call on November 2, 2023 to discuss its 2023 third quarter results. Information about the call can be found in the press release furnished with this Current Report as Exhibit 99.1. In addition, the Company made available an investor presentation regarding its 2023 third quarter results, which is furnished with this Current Report as Exhibit 99.2.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

The following exhibits are furnished herewith:

99.1 Press release issued on November 2, 2023.

99.2 Investor Presentation.

104 The cover page from this Current Report on Form 8-K, formatted in Inline XBRL.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

WESTLAKE CHEMICAL CORPORATION

Date:

November 2, 2023

By:

/S/ ALBERT CHAO

Albert Chao
President and Chief Executive Officer

EXHIBIT 99.1

WESTLAKE CORPORATION

Contact—(713) 960-9111

Investors—Steve Bender

Media—L. Benjamin Ederington

Westlake Corporation Reports Third Quarter 2023 Results

•Record Housing and Infrastructure Products segment income from operations of $256 million

•Record Housing and Infrastructure Products segment EBITDA of $327 million

•Net cash provided by operating activities of $696 million and free cash flow of $451 million

HOUSTON--(BUSINESS WIRE)--Westlake Corporation (NYSE: WLK) (the "Company" or "Westlake") today announced third quarter 2023 results.

SUMMARY FINANCIAL HIGHLIGHTS ($ in millions except per share data)


	Three Months Ended September 30, 2023		Three Months Ended June 30, 2023		Three Months Ended September 30, 2022

Westlake Corporation
Net sales	$	3,115	$	3,251	$	3,956
Income from operations	$	349	$	396	$	516
Operating income margin	11%		12%		13%
Net income attributable to Westlake Corporation	$	285	$	297	$	401
Diluted earnings per common share	$	2.20	$	2.31	$	3.10
EBITDA	$	682	$	690	$	804
EBITDA margin	22%		21%		20%

Performance and Essential Materials ("PEM") Segment
Net sales	$	1,971	$	2,136	$	2,711
Income from operations	$	105	$	215	$	353
Operating income margin	5%		10%		13%
EBITDA	$	339	$	435	$	561
EBITDA margin	17%		20%		21%

Housing and Infrastructure Products ("HIP") Segment
Net sales	$	1,144	$	1,115	$	1,245
Income from operations	$	256	$	190	$	186
Operating income margin	22%		17%		15%
EBITDA	$	327	$	244	$	254
EBITDA margin	29%		22%		20%

BUSINESS HIGHLIGHTS

In the third quarter of 2023, Westlake achieved quarterly net sales of $3.1 billion, quarterly net income of $285 million and quarterly EBITDA (earnings before interest expense, income taxes, depreciation and amortization) of $682 million, including record Housing and Infrastructure Products (HIP) segment quarterly income from operations of $256 million and EBITDA of $327 million. The Company benefitted from resilient North American housing and infrastructure construction activities and higher operating rates despite generally lower average sales prices. The third quarter results included a reserve for an ongoing legal matter, inventory charges and other items that reduced third quarter 2023 EBITDA by approximately $20 million.

Sales volumes for Housing and Infrastructure Products increased 7% while Performance and Essential Materials (PEM) sales volumes increased 2% from the second quarter of 2023. Overall sales volumes for the Company increased 4% sequentially from the previous quarter. When compared to the third quarter of 2022, HIP sales volumes were unchanged while PEM sales volumes decreased 1%, resulting in a 1% overall sales volume decline for the Company.

Housing and Infrastructure Products average sales prices decreased 5% while Performance and Essential Materials average sales prices decreased 10% from the second quarter of 2023. Overall sales prices for the Company decreased 8% sequentially from the previous quarter. When compared to the third quarter of 2022, HIP average sales prices decreased 8% while PEM average sales prices decreased 26%, resulting in a 20% overall decline in sales prices for the Company.

In the third quarter of 2023, HIP's operating income margin increased to 22% from 17% in the second quarter of 2023 and HIP's EBITDA margin increased to 29% from 22% in the second quarter of 2023, while PEM's operating income margin decreased to 5% from 10% and PEM's EBITDA margin decreased to 17% from 20% over the same period of time. When compared to the third quarter of 2022, HIP's operating income margin increased to 22% from 15% and HIP's EBITDA margin increased to 29% from 20%, while PEM's operating income margin decreased to 5% from 13% and PEM's EBITDA margin decreased to 17% from 21%.

EXECUTIVE COMMENTARY

"The diversity of our business was evident in the third quarter of 2023 as record quarterly income from operations and EBITDA in our HIP segment supported our overall profitability, while our PEM segment results reflected the soft economic conditions in global markets. Economic conditions were challenging in the third quarter with higher interest rates weighing on demand and lowering global industrial activity. Against this backdrop, we were pleased to sequentially grow both our PEM and HIP segment sales volumes and to generate record HIP segment quarterly EBITDA. We also made solid progress with our cost reduction program achieving savings of $30 million in the third quarter and now expect to generate an aggregate $95-$110 million of cost savings in 2023. Additionally, in August, we took the important step of increasing our quarterly dividend by 40%, reflecting our confidence in the Company’s future and the strength of our business," said Albert Chao, President and Chief Executive Officer.

"As we enter the fourth quarter of 2023, weak macroeconomic conditions, including elevated inflation and high interest rates, remain in place driving softer demand for all of our products and low sales prices in our PEM segment. Despite this near-term outlook, we believe our products are well-positioned in each of our segments. PEM volumes and profitability are supported by our North American structural feedstock and energy cost advantage, a high degree of vertical integration and our product diversity. Our record HIP segment results reflect the strength of our portfolio and our ability to navigate these challenging market conditions. In addition to the typical seasonal decline in sales in the fourth quarter, we expect some impact to sales volume from the elevated level in borrowing rates. Finally, we continue to seek opportunities to redeploy our robust free cash flow and solid balance sheet in ways that enhance shareholder value."

RESULTS

Consolidated Results

For the three months ended September 30, 2023, the Company reported quarterly net income of $285 million, or $2.20 per share, on net sales of $3,115 million. The year-over-year decrease in net income of $116 million from the third quarter of 2022 was primarily due to lower average sales prices and integrated margins for caustic soda and PVC.

Third quarter 2023 net income of $285 million decreased by $12 million compared to the second quarter of 2023. The sequential decrease in net income compared to the prior quarter was primarily due to lower prices and integrated margins for most of the products in our PEM segment, partially offset by higher operating rates and sales volumes.

EBITDA of $682 million for the third quarter of 2023 decreased by $122 million compared to third quarter 2022 EBITDA of $804 million. Third quarter 2023 EBITDA decreased by $8 million compared to second quarter 2023 EBITDA of $690 million. A reconciliation of EBITDA to net income, income from operations, and net cash provided by operating activities can be found in the financial schedules at the end of this press release.

Cash and Debt

Net cash provided by operating activities was $696 million for the third quarter of 2023. As of September 30, 2023, cash and cash equivalents were $3,057 million and total debt was $4,873 million. Capital expenditures in the third quarter of 2023 were $245 million. For the third quarter of 2023, free cash flow (net cash provided by operating activities less capital expenditures) was $451 million, a decrease of $178 million as compared to the third quarter of 2022, primarily due to lower net income, but an increase of $136 million as compared to the second quarter of 2023, primarily due to more favorable working capital management. A reconciliation of free cash flow to net cash provided by operating activities can be found in the financial schedules at the end of this press release.

Performance and Essential Materials Segment

Performance and Essential Materials income from operations for the third quarter of 2023 of $105 million decreased by $248 million from third quarter 2022 income from operations of $353 million. This decrease in income from operations versus the prior-year period was due to lower average sales prices and integrated margins for most of our major products, particularly for PVC, caustic soda and epoxy resins. While overall sales volumes were in-line with the prior-year period, PEM's average sales prices were negatively impacted by both market price declines and an unfavorable sales mix due to higher sales volumes in export markets where pricing is typically lower. As a result, PEM's segment operating margin declined from 13% in the third quarter of 2022 to 5% in the third quarter of 2023 and EBITDA margin decreased from 21% to 17% over the same period of time.

Sequentially, Performance and Essential Materials income from operations decreased by $110 million as compared to the second quarter of 2023. The sequential decrease was largely due to lower average sales prices and integrated margins, especially for caustic soda, and certain charges incurred during the quarter, which were only partially offset by higher PVC global operating rates and sales volumes.

Housing and Infrastructure Products Segment

For the third quarter of 2023, Housing and Infrastructure Products income from operations of $256 million increased by $70 million from third quarter 2022 income from operations of $186 million. This increase in income from operations versus the prior-year period was the result of lower materials costs. While overall sales volume remained in-line with the prior-year period, we experienced solid growth in select categories such as siding & trim and municipal water systems. HIP's segment operating margin increased from 15% in the third quarter of 2022 to 22% in the third quarter of 2023 while EBITDA margin increased from 20% to 29%.

Sequentially, Housing and Infrastructure Products income from operations increased by $66 million as compared to the second quarter of 2023. This increase in income from operations versus the prior quarter was the result of higher sales volume, particularly for municipal water applications and North American housing products.

iii

Forward-Looking Statements

The statements in this release and the related teleconference relating to matters that are not historical facts, including statements regarding our outlook for the performance of our business segments (such as product rates), macro demand conditions, future demand for our products and sales prices, our attempts to improve controllable costs, and our ability to deploy free cash flow and to enhance shareholder value are forward-looking statements. These forward-looking statements are subject to significant risks and uncertainties. Actual results could differ materially, based on factors including, but not limited to: general economic and business conditions; the cyclical nature of the chemical and building products industries; availability, cost and volatility of raw materials and energy; uncertainties associated with the United States and worldwide economies, including those due to political tensions and conflict in the Middle East and elsewhere, including the conflict between Russia and Ukraine; uncertainties associated with pandemic infectious diseases; uncertainties associated with climate change; the potential impact on demand for our products due to initiatives such as recycling; industry production capacity and operating rates; the supply/demand balance for Westlake's products; competitive products and pricing pressures; instability in the credit and financial markets; access to capital markets; terrorist acts; operating interruptions; changes in laws or regulations, including trade policies; technological developments; information systems failures and cyberattacks; foreign currency exchange risks; the ability to implement our business strategies; and other uncertainties. For more detailed information about the factors that could cause actual results to differ materially, please refer to Westlake's Annual Report on Form 10-K for the year ended December 31, 2022, which was filed with the SEC in February 2023, and Quarterly Report on Form 10-Q for the quarter ended June 30, 2023, which was filed with the SEC in August 2023.

Use of Non-GAAP Financial Measures

This release makes reference to certain "non-GAAP" financial measures, such as EBITDA and free cash flow. A non-GAAP financial measure is generally defined by the Securities and Exchange Commission ("SEC") as a numerical measure of a registrant's historical or future financial performance, financial position or cash flows that (1) excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statement of income, balance sheet or statement of cash flows (or equivalent statements) of the registrant; or (2) includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. We report our financial results in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"), but believe that certain non-GAAP financial measures, such as EBITDA and free cash flow, provide useful supplemental information to investors regarding the underlying business trends and performance of the Company's ongoing operations and are useful for period-over-period comparisons of such operations. These non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the financial measures prepared in accordance with U.S. GAAP. A reconciliation of (i) EBITDA to net income, income from operations and net cash provided by operating activities and (ii) free cash flow to net cash provided by operating activities can be found in the financial schedules at the end of this press release.

About Westlake

Westlake is a global manufacturer and supplier of materials and innovative products that enhance life every day. Headquartered in Houston, with operations in Asia, Europe and North America, we provide the building blocks for vital solutions — from housing and construction, to packaging and healthcare, to automotive and consumer. For more information, visit the company's web site at www.westlake.com.

Westlake Corporation Conference Call Information:

A conference call to discuss Westlake Corporation's third quarter 2023 results will be held Thursday, November 2, 2023 at 11:00 AM Eastern Time (10:00 AM Central Time). To access the conference call, it is necessary to pre-register at https://register.vevent.com/register/BIf37d4bda7ce244168b3b62b894d43e67. Once registered, you will receive a phone number and unique PIN number.

A replay of the conference call will be available beginning two hours after its conclusion. The conference call and replay will be available via webcast at https://edge.media-server.com/mmc/p/5953h5g5.

WESTLAKE CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022

	(In millions of dollars, except per share data and share amounts)
Net sales	$	3,115	$	3,956	$	9,722	$	12,495
Cost of sales	2,529		3,180		7,702		8,989
Gross profit	586		776		2,020		3,506
Selling, general and administrative expenses	206		215		641		635
Amortization of intangibles	31		39		92		124
Restructuring, transaction and integration-related costs	—		6		6		24
Income from operations	349		516		1,281		2,723
Interest expense	(40)		(44)		(124)		(134)
Other income, net	56		24		101		52
Income before income taxes	365		496		1,258		2,641
Provision for income taxes	70		84		249		592
Net income	295		412		1,009		2,049
Net income attributable to noncontrolling interests	10		11		33		34
Net income attributable to Westlake Corporation	$	285	$	401	$	976	$	2,015
Earnings per common share attributable to Westlake Corporation:
Basic	$	2.22	$	3.12	$	7.61	$	15.65
Diluted	$	2.20	$	3.10	$	7.56	$	15.54
Weighted average common shares outstanding:
Basic	127,854,464		127,943,400		127,685,210		128,118,160
Diluted	128,583,927		128,747,012		128,509,618		129,003,750

WESTLAKE CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)


	September 30, 2023		December 31, 2022

	(In millions of dollars)
ASSETS
Current assets
Cash and cash equivalents	$	3,057	$	2,228
Accounts receivable, net	1,939		1,801
Inventories	1,672		1,866
Prepaid expenses and other current assets	89		78

Total current assets	6,757		5,973
Property, plant and equipment, net	8,570		8,525

Other assets, net	6,069		6,052
Total assets	$	21,396	$	20,550

LIABILITIES AND EQUITY
Current liabilities (accounts payable and accrued and other liabilities)	$	2,360	$	2,298
Current portion of long-term debt, net	299		—

Long-term debt, net	4,574		4,879

Other liabilities	2,878		2,908
Total liabilities	10,111		10,085
Total Westlake Corporation stockholders' equity	10,754		9,931
Noncontrolling interests	531		534
Total equity	11,285		10,465
Total liabilities and equity	$	21,396	$	20,550

WESTLAKE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


	Nine Months Ended September 30,
	2023		2022

	(In millions of dollars)
Cash flows from operating activities
Net income	$	1,009	$	2,049
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	815		785
Deferred income taxes	(67)		44
Net loss on disposition and others	43		86
Other balance sheet changes	(37)		(404)
Net cash provided by operating activities	1,763		2,560
Cash flows from investing activities
Acquisition of business, net of cash acquired	—		(1,171)
Additions to investments in unconsolidated subsidiaries	(18)		(177)
Additions to property, plant and equipment	(752)		(811)

Other, net	20		11
Net cash used for investing activities	(750)		(2,148)
Cash flows from financing activities

Distributions to noncontrolling interests	(33)		(34)
Dividends paid	(156)		(123)



Proceeds from exercise of stock options	39		17
Repayment of senior notes	—		(250)
Repurchase of common stock for treasury	(23)		(68)
Other, net	(2)		(22)
Net cash used for financing activities	(175)		(480)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(12)		(67)
Net increase (decrease) in cash, cash equivalents and restricted cash	826		(135)
Cash, cash equivalents and restricted cash at beginning of period	2,246		1,941
Cash, cash equivalents and restricted cash at end of period	$	3,072	$	1,806

vii

WESTLAKE CORPORATION

SEGMENT INFORMATION

(Unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022

	(In millions of dollars)
Net external sales
Performance and Essential Materials
Performance Materials	$	1,127	$	1,689	$	3,549	$	5,678
Essential Materials	844		1,022		2,907		2,969
Total Performance and Essential Materials	1,971		2,711		6,456		8,647
Housing and Infrastructure Products
Housing Products	963		1,018		2,699		3,106
Infrastructure Products	181		227		567		742
Total Housing and Infrastructure Products	1,144		1,245		3,266		3,848
	$	3,115	$	3,956	$	9,722	$	12,495
Income (loss) from operations
Performance and Essential Materials	$	105	$	353	$	723	$	2,197
Housing and Infrastructure Products	256		186		589		607
Corporate and other	(12)		(23)		(31)		(81)
	$	349	$	516	$	1,281	$	2,723
Depreciation and amortization
Performance and Essential Materials	$	225	$	196	$	652	$	572
Housing and Infrastructure Products	51		65		157		206
Corporate and other	1		3		6		7
	$	277	$	264	$	815	$	785
Other income, net
Performance and Essential Materials	$	9	$	12	$	14	$	25
Housing and Infrastructure Products	20		3		30		9
Corporate and other	27		9		57		18
	$	56	$	24	$	101	$	52

viii

WESTLAKE CORPORATION

RECONCILIATION OF EBITDA TO NET INCOME, INCOME FROM OPERATIONS AND

NET CASH PROVIDED BY OPERATING ACTIVITIES

(Unaudited)


	Three Months Ended June 30,		Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2023		2022		2023		2022

	(In millions of dollars, except percentages)
Net cash provided by operating activities	$	555	$	696	$	947	$	1,763	$	2,560
Changes in operating assets and liabilities and other	(283)		(417)		(572)		(821)		(467)
Deferred income taxes	35		16		37		67		(44)
Net income	307		295		412		1,009		2,049
Less:
Other income, net	23		56		24		101		52
Interest expense	(42)		(40)		(44)		(124)		(134)
Provision for income taxes	(70)		(70)		(84)		(249)		(592)
Income from operations	396		349		516		1,281		2,723
Add:
Depreciation and amortization	271		277		264		815		785
Other income, net	23		56		24		101		52
EBITDA	$	690	$	682	$	804	$	2,197	$	3,560
Net external sales	$	3,251	$	3,115	$	3,956	$	9,722	$	12,495
Operating Income Margin	12%		11%		13%		13%		22%
EBITDA Margin	21%		22%		20%		23%		28%

RECONCILIATION OF FREE CASH FLOW TO NET CASH PROVIDED BY OPERATING ACTIVITIES

(Unaudited)


	Three Months Ended June 30,		Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2023		2022		2023		2022

	(In millions of dollars)
Net cash provided by operating activities	$	555	$	696	$	947	$	1,763	$	2,560
Less:
Additions to property, plant and equipment	(240)		(245)		$	(318)	(752)		(811)
Free Cash Flow	$	315	$	451	$	629	$	1,011	$	1,749

WESTLAKE CORPORATION

RECONCILIATION OF SEGMENT EBITDA TO INCOME FROM OPERATIONS

(Unaudited)


	Three Months Ended June 30,		Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2023		2022		2023		2022

	(In millions of dollars, except percentages)
Performance and Essential Materials Segment
Income from operations	$	215	$	105	$	353	$	723	$	2,197
Add:
Depreciation and amortization	217		225		196		652		572
Other income, net	3		9		12		14		25
EBITDA	$	435	$	339	$	561	$	1,389	$	2,794
Net external sales	$	2,136	$	1,971	$	2,711	$	6,456	$	8,647
Operating Income Margin	10%		5%		13%		11%		25%
EBITDA Margin	20%		17%		21%		22%		32%


	Three Months Ended June 30,		Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2023		2022		2023		2022

	(In millions of dollars, except percentages)







Housing and Infrastructure Products Segment
Income from operations	$	190	$	256	$	186	$	589	$	607
Add:
Depreciation and amortization	51		51		65		157		206
Other income, net	3		20		3		30		9
EBITDA	$	244	$	327	$	254	$	776	$	822
Net external sales	$	1,115	$	1,144	$	1,245	$	3,266	$	3,848
Operating Income Margin	17%		22%		15%		18%		16%
EBITDA Margin	22%		29%		20%		24%		21%

WESTLAKE CORPORATION

SUPPLEMENTAL INFORMATION

NET SALES PERCENTAGE CHANGE DUE TO AVERAGE SALES PRICE AND VOLUME

(Unaudited)


	Third Quarter 2023 vs. Third Quarter 2022				Third Quarter 2023 vs. Second Quarter 2023
	Average Sales Price		Volume		Average Sales Price		Volume
Performance and Essential Materials	-26	%	-1	%	-10	%	+2	%
Housing and Infrastructure Products	-8	%	—	%	-5	%	+7	%
Company	-20	%	-1	%	-8	%	+4	%

1 Earnings Presentation 3Q 2023

2 Third Quarter 2023 Highlights (1) Reconciliation of EBITDA to Net Income, Income from Operations and Net Cash Provided by Operating Activities can be found on page 11 (2) Reconciliation of Free Cash Flow to Net Cash Provided by Operating Activities can be found on page 13 (3) EBITDA margin is calculated by dividing EBITDA by Net Sales 3Q 2023 Financial Results Record Housing and Infrastructure Products (HIP) segment earnings provide stability • Sales volume increased 4% vs. 2Q’23 due to demand growth in HIP and improved plant operations • EBITDA margin (3) of 22% stable vs. 2Q’23 (21%) as higher margin in HIP from lower material costs offset lower margin in Performance and Essential Materials (PEM) due to sales price declines • Raising 2023 cost savings target to $95 - $110 million after achieving $30 million of cost savings in 3Q’23 and $80 million year-to-date • Generated free cash flow of $451 million in the quarter and $1.5 billion in the twelve months ended September 30, 2023 • Raised quarterly dividend by 40% to $0.50/share $3.1B Net Sales 4% decrease vs. 2Q $285M Net Income 4% decrease vs. 2Q $682M EBITDA(1) 1% decrease vs. 2Q $2.20 Net Income Per Share $451M Free Cash Flow(2) $3.1B Cash and Equivalents

3 Westlake Corporation 3Q 2023 (1) Reconciliations of EBITDA, Performance and Essential Materials EBITDA, Housing and Infrastructure Products EBITDA and Corporate EBITDA to the applicable GAAP measures can be found on pages 11 and 12 Record HIP segment quarterly EBITDA of $327 million as lower material costs combined with QoQ volume growth to drive record HIP EBITDA margin of 29% Achieved cost savings of ~$30 million in 3Q’23 and ~$80 million year-to- date in 2023 PEM segment average sales price fell 10% QoQ, driven primarily by caustic soda and PVC resin, as a result of continued soft global economic conditions 3Q’23 EBITDA was reduced by ~$20 million due to charges incurred, including a legal reserve and inventory charges 3Q'23 2Q'23 QoQ% 3Q'22 YoY% $3,115 $3,251 (4%) $3,956 (21%) $349 $396 (12%) $516 (32%) Performance and Essential Materials $339 $435 (22%) $561 (40%) Housing and Infrastructure Products $327 $244 34% $254 29% Corporate $16 $11 - ($11) - $682 $690 (1%) $804 (15%) Operating Income Sales EBITDA(1) ($ in millions) Sequential sales volume growth in each segment, driven by demand growth for HIP and improved plant operations

4 Combined Segments Offer Lower Volatility and Greater Reliability to Westlake Investors and Customers Benefits of a Combined PEM & HIP Portfolio Earnings Stability Greater Demand Insight More Investment Opportunities Leveraging M&A Discipline Cross Functional Innovation PEM HIP Vertically Integrated Creates New Opportunities to Apply Proven M&A Skills • Leveraging M&A expertise in disciplined capital deployment and successful integration • Provides bolt-on acquisition opportunities • Allows opportunistic capital allocation to best opportunities across many businesses Enhances Innovation Across Both Segments • Leveraging PEM’s material science and HIP’s product expertise • Strongly supports introduction of sustainable and technically advanced products More Stability in Earnings & Cashflow • PEM and HIP have different cycles and margin drivers • HIP provides captive off-take for PEM improving operating rates and domestic sales mix • Vertical integration lowers unit cost production and creates more reliable operations across both segments PEM’s Cashflow Profile Supports Stronger Investment in HIP • HIP has more access to capital from Westlake vs. smaller and private equity- owned competition • Innovation and efficiency gains due to combined economies of scale

5 Housing and Infrastructure Products (“HIP”) Segment Performance HIP Segment 3Q 2023 vs. 2Q 2023 Average Sales Price -4.6% Volume +7.1% HIP Segment 3Q 2023 vs. 3Q 2022 Average Sales Price -7.9% Volume -0.2% Sequentially higher sales volume driven by solid demand growth for Pipe & Fittings and Siding & Trim Material costs decreased more than average sales prices, both QoQ and YoY, driving record EBITDA margin Rising mortgage rates are decreasing homebuyer affordability, which is negatively impacting our near-term sales volume Infrastructure Products sales fell 8% due to lower sales volume and selling price in our Compounds business (1) Reconciliations of HIP EBITDA to the applicable GAAP measure can be found on page 12 (2) HIP EBITDA margin is calculated by dividing HIP EBITDA by Total HIP Sales 3Q'23 2Q'23 QoQ% 3Q'22 YoY% Housing Products Sales $963 $918 5% $1,018 (5%) Infrastructure Products Sales $181 $197 (8%) $227 (20%) Total HIP Sales $1,144 $1,115 3% $1,245 (8%) Operating Income $256 $190 35% $186 38% EBITDA(1) $327 $244 34% $254 29% EBITDA Margin (2) 29% 22% - 20% - ($ in millions)

6 Housing and Infrastructure Products Update 2 Decreases in material costs more than offset lower average sales prices leading to significant margin expansion compared to both the prior quarter and prior year 3 We expect sales volume to decline sequentially in the fourth quarter due to seasonal trends and recent increases in mortgage rates that are raising homebuyer affordability concerns 4 Longer-term fundamentals for housing strength remain intact due to decade-plus of under- building, increasingly favorable demographics and increasing popularity of remote work 1 Strong demand growth for Pipe & Fittings and Siding & Trim products drove higher sequential sales volume despite continued challenges to residential housing demand from elevated mortgage rates

7 Performance and Essential Materials (“PEM”) Segment Performance (1) Reconciliations of PEM EBITDA to the applicable GAAP measure can be found on page 12 (2) PEM EBITDA margin is calculated by dividing PEM EBITDA by Total PEM Sales PEM Segment 3Q 2023 vs. 2Q 2023 Average Sales Price -9.5% Volume +1.8% PEM Segment 3Q 2023 vs. 3Q 2022 Average Sales Price -25.9% Volume -1.4% Lower average sales price on both a QoQ and YoY basis, particularly for caustic soda and PVC resin, due to weak global demand resulting from soft macroeconomic conditions Sequentially lower EBITDA margin due to lower average sales price, higher feedstock and energy costs and certain charges Higher QoQ sales volume as a result of higher operating rates due to improved plant operations Sales prices for North American PVC resin and polyethylene improved during the quarter with September prices at their highest levels since May 2023 3Q'23 2Q'23 QoQ% 3Q'22 YoY% Performance Materials Sales $1,127 $1,140 (1%) $1,689 (33%) Essential Materials Sales $844 $996 (15%) $1,022 (17%) Total PEM Sales $1,971 $2,136 (8%) $2,711 (27%) Operating Income $105 $215 (51%) $353 (70%) EBITDA(1) $339 $435 (22%) $561 (40%) EBITDA Margin (2) 17% 20% - 21% - ($ in millions)

8 Performance and Essential Materials Update 2 Feedstock and energy costs were a headwind to margins compared to the second quarter, primarily due to higher ethane and natural gas costs 3 Operational issues experienced in the second quarter were successfully resolved, leading to improved plant operations and higher sales volume in the third quarter 4 During the third quarter, sales prices improved for some products, such as polyethylene and PVC resin, due to rising global feedstock costs and export prices 1 Weak global demand drove lower average sales price compared to both the prior-quarter and prior-year periods, particularly for caustic soda, PVC resin and epoxy

99 Financial Reconciliations

10 Consolidated Statements of Operations Performance and Essential Materials Sales $ 1,971 $ 2,711 $ 2,136 $ 6,456 $ 8,647 Housing and Infrastructure Products Sales 1,144 1,245 1,115 3,266 3,848 Net sales 3,115 3,956 3,251 9,722 12,495 Cost of sales Gross profit Selling, general and administrative expenses Amortization of intangibles Restructuring, transaction and integration-related costs Income from operations Interest expense Other income, net Income before income taxes Provision for income taxes Net income Net income attributable to noncontrolling interests Net income attributable to Westlake Corporation $ 285 $ 401 $ 297 $ 976 $ 2,015 Earnings per common share attributable to Westlake Corporation: Basic $ 2.22 $ 3.12 $ 2.32 $ 7.61 $ 15.65 Diluted $ 2.20 $ 3.10 $ 2.31 $ 7.56 $ 15.54 11 33 34 10 10 307 84 249 592 3 396 (42) 23 2022 2023 2022 (In millions of dollars, except per share data) 377 70 70 (40) (44) (124) (134) 412 1,009 2,049 365 496 1,258 2,641 56 24 101 52 295 - 6 6 24 349 516 1,281 2,723 635 31 39 92 124 30 213 2023 206 215 641 Three months ended September 30, Nine months ended September 30, Three months ended June 30, 586 776 2,020 3,506 2023 2,609 642 2,529 3,180 7,702 8,989

11 Reconciliation of EBITDA to Net Income, Income from Operations and Net Cash Provided by Operating Activities Net cash provided by operating activities $ 696 $ 947 $ 555 $ 1,763 $ 2,560 Changes in operating assets and liabilities and other Deferred income taxes Net income Less: Other income, net Interest expense Provision for income taxes Income from operations Add: Depreciation and amortization Other income, net EBITDA $ 682 $ 804 $ 690 $ 2,197 $ 3,560 Three months ended September 30, Nine months ended September 30, 20232023 2022 2023 2022 Three months ended June 30, (In millions of dollars) (44) (283)(417) (572) (821) (467) 35 16 37 67 307295 412 1,009 2,049 (42)(40) (44) (124) (134) 23 56 24 101 52 396 349 516 1,281 2,723 (70)(70) (84) (249) (592) 271 277 264 815 785 23 56 24 101 52

12 Reconciliation of PEM, HIP and Corporate EBITDA to Operating Income (Loss) Three months ended September 30, Three months ended June 30, Nine months ended September 30, 2023 2022 2023 2023 2022 Performance and Essential Materials EBITDA $ 339 $ 561 $ 435 $ 1,389 $ 2,794 Less: Depreciation and Amortization 225 196 217 652 572 Other Income (Expenses) 9 12 3 14 25 Performance and Essential Materials Operating Income (Loss) 105 353 215 723 2,197 Housing and Infrastructure Products EBITDA 327 254 244 776 822 Less: Depreciation and Amortization 51 65 51 157 206 Other Income (Expenses) 20 3 3 30 9 Housing and Infrastructure Products Operating Income (Loss) 256 186 190 589 607 Corporate EBITDA 16 (11) 11 32 (56) Less: Depreciation and Amortization 1 3 3 6 7 Other Income (Expenses) 27 9 17 57 18 Corporate Operating Income (Loss) (12) (23) (9) (31) (81) Performance and Essential Materials Operating Income (Loss) 105 353 215 723 2,197 Housing and Infrastructure Products Operating Income (Loss) 256 186 190 589 607 Corporate Operating Income (Loss) (12) (23) (9) (31) (81) Total Operating Income (Loss) 349$ 516$ 396$ 1,281$ 2,723$ (In millions of dollars)

13 Reconciliation of Free Cash Flow to Net Cash Provided by Operating Activities Net cash provided by operating activities $ 696 $ 947 $ 555 $ 1,763 $ 2,560 Additions to property, plant and equipment Free Cash Flow $ 451 $ 629 $ 315 $ 1,011 $ 1,749 (245) (318) (240) (752) (811) (In millions of dollars) Three months ended September 30, Three months ended June 30, Nine months ended September 30, 2023 2022 2023 2023 2022

14 Safe Harbor Language This presentation contains certain forward-looking statements including statements regarding creating value for our shareholders, pricing and demand for our products, industry outlook for both of our segments, our cost control and efficiency efforts, our ability to capture integrated chain margin, anticipated benefits of a combined portfolio, our expectations regarding seasonal trends, our investment criteria to drive growth and our expectations regarding secular demand for products in our Housing and Infrastructure Products segment and regarding polyethylene products. Actual results may differ materially depending on factors, including, but not limited to, the following: the effects of our recently completed acquisitions, including our future financial condition, results of operations, strategy and plans; and expected synergies and other benefits from the acquisitions and our ability to realize such synergies and other benefits; general economic and business conditions; the cyclical nature of the chemical and building products industries; the availability, cost and volatility of raw materials and energy; uncertainties associated with the United States, European and worldwide economies, including those due to political tensions and unrest in the Middle East and elsewhere including the conflict between Russia and Ukraine; current and potential governmental regulatory actions in the United States and other countries; industry production capacity and operating rates; the supply/demand balance for our products; competitive products and pricing pressures; instability in the credit and financial markets; access to capital markets; terrorist acts; operating interruptions (including leaks, explosions, fires, weather-related incidents, mechanical failure, unscheduled downtime, labor difficulties, transportation interruptions, spills and releases and other environmental risks); changes in laws or regulations, including trade policies; technological developments; information systems failures and cyber attacks; foreign currency exchange risks; our ability to implement our business strategies; creditworthiness of our customers; and other factors described in our reports filed with the Securities and Exchange Commission. Many of these factors are beyond our ability to control or predict. Any of these factors, or a combination of these factors, could materially affect our future results of operations and the ultimate accuracy of the forward-looking statements. These forward-looking statements are not guarantees of our future performance, and our actual results and future developments may differ materially from those projected in the forward-looking statements. Management cautions against putting undue reliance on forward-looking statements. Every forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to publicly update or revise any forward-looking statements. Investor Relations Contacts Steve Bender Executive Vice President & Chief Financial Officer Jeff Holy Vice President & Treasurer Westlake Corporation 2801 Post Oak Boulevard, Suite 600, Houston, Texas 77056 | 713-960-9111

Cover Page	Nov. 02, 2023
Document Information [Line Items]
Document Type	8-K
Document Period End Date	Nov. 02, 2023
Entity Registrant Name	Westlake Corporation
Entity Incorporation, State or Country Code	DE
Entity File Number	001-32260
Entity Tax Identification Number	76-0346924
Entity Address, Address Line One	2801 Post Oak Boulevard,
Entity Address, Address Line Two	Suite 600
Entity Address, City or Town	Houston,
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77056
City Area Code	713
Local Phone Number	960-9111
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Amendment Flag	false
Entity Central Index Key	0001262823
Common Stock [Member]
Document Information [Line Items]
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	WLK
Security Exchange Name	NYSE
One Point Six Two Five Percentage Senior Notes Due Twenty Twenty Nine [Member] [Domain]
Document Information [Line Items]
Title of 12(b) Security	1.625% Senior Notes due 2029
Trading Symbol	WLK29
Security Exchange Name	NYSE