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Westlake Corporation is a vertically integrated global manufacturer and marketer of both housing and infrastructure products and performance and essential materials that are designed to enhance the lives of people every day. Our products include some of the most widely used materials in the world, which are fundamental to many diverse consumer and industrial markets, including residential const…
The business is unprofitable at the operating level (-14.13% margin). The thesis depends entirely on whether and when it reaches sustainable profitability.
Revenue declined 8.0% YoY. Margins deteriorated 21.3pp alongside, both lines moving the wrong way.
Free cash flow declined 273% versus the prior year, cash generation momentum has weakened. ROIC dropped from 3.67% to -7.99%, capital efficiency is deteriorating.
Profitability & Returns
Revenue (TTM)
$10.98B
▼ -8.0% YoY
Net Income (TTM)
-$1.64B
▼ -350.5% YoY
Op. Margin
-15.65%
▼ -21.3pp YoY
ROIC
-8.94%
▼ -11.7pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$508M
▼ -273.2% YoY
Op. Cash Flow (TTM)
$448M
▼ -64.6% YoY
Net Debt
$3.90B
Cash & Equiv.
$2.48B
5Y CAGR: +8.3%
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