WESTLAKE CORP
For the period ended Sep 30, 2026. Filed Nov 4, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 4, 2026
WLK$63.49-4.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-05.
0001262823-26-000032
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-04.
0001262823-26-000080
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 150 previous paragraphs and 148 current paragraphs.
103 unchanged; 36 reworded; 9 added; 10 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 18 previous and 19 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (9)
Current report
Acquisition of a Roofing Business
Current report
On October 1, 2026, the Company's subsidiary, Westlake Royal Roofing LLC, completed the acquisition of a rolled steel metal panel business for a preliminary purchase price of approximately $36 million, subject to various adjustments. The assets acquired and liabilities assumed and the results of operations of the acquired business will be included in the Housing and Infrastructure Products segment from the acquisition date. Due to the timing of the acquisition, the opening balance for the acquisition will be accounted for in our Annual Report on Form 10-K for the fiscal year ending December 31, 2026.
Current report
Cologne Facility Closure
Current report
On September 29, 2026, the Company announced a plan to cease operation of its PVC production plant located in Cologne, Germany, subject to completion of local consultation obligations. The plant has an annual production capacity of approximately 365 million pounds. The production at the Cologne plant is expected to cease in the first quarter of 2027. The Company plans to continue supplying customers with PVC from its other chlorovinyl facilities, including the recently acquired production site located in Wilhelmshaven, Germany. The total costs recognized for the three and nine months ended September 30, 2026 were $51 million, of which $50 million was included in the restructuring, transaction and integration-related costs and the rest in the cost of sales in the Company's consolidated statements of operations and Performance and Essential Materials segment operating results. The total cost of $51 million consisted of accelerated depreciation and amortization and asset write-downs of $34 million and severance and separation costs of $17 million. These plant shutdown related costs recorded represent management's best estimate based on information currently available and are subject to change as additional information becomes available. The Company expects to recognize additional charges of $150 million primarily consisting of accelerated depreciation and amortization, and asset write-down charges of $84 million, contract termination costs of $57 million and other plant shutdown costs of $9 million in future periods in connection with the closure. We expect to complete the closure of the facility by the end of 2027.
Current report
The impairment of goodwill of $727 million represents a North American Chlorovinyls goodwill impairment charge recognized in the third quarter of 2025, within the Performance and Essential Materials segment.
Current report
Other income, net for all the periods presented consisted primarily of interest income. Other income, net, was lower due to lower cash and cash equivalent balances in the 2026 periods compared to the 2025 periods.
Current report
The effective income tax rate was lower in the third quarter of 2026, primarily due to lower income before income taxes, which increased the impact of the income tax benefits from the increase in foreign losses in jurisdictions with statutory rates above 21%, income attributable to noncontrolling interests, and U.S. federal research and development credits available to the Company. These tax benefits were partially offset by reserves for uncertain tax positions, withholding tax accruals on unremitted foreign earnings, non-deductible executive compensation, and state taxes. The effective income tax rate was higher in the third quarter of 2025 primarily due to income tax benefits on loss before income taxes that were limited by the non-deductible goodwill impairment charge associated with the North American Chlorovinyls reporting unit, a valuation allowance recorded against Westlake Epoxy Netherlands's net operating loss, and the impact of earnings mix across jurisdictions.
Current report
The effective income tax rate in the nine months ended September 30, 2026, was higher primarily due to higher income before income taxes which reduced the impact of the income tax benefits from the increase in foreign losses in jurisdictions with statutory rates above 21%, income attributable to noncontrolling interests, and U.S. federal research and development credits available to the Company. These tax benefits were partially offset by reserves for uncertain tax positions, withholding tax accruals on unremitted foreign earnings, non-deductible executive compensation, and state taxes. The effective income tax rate was lower in the nine months ended September 30, 2025 primarily due to income tax benefits on loss before income taxes that were limited by the non-deductible goodwill impairment charge associated with the North American Chlorovinyls reporting unit, a valuation allowance recorded against Westlake Epoxy Netherlands's net operating loss, and the impact of earnings mix across jurisdictions.
Current report
The increase of $1,293 million in income from operations for the PEM segment for the nine months ended September 30, 2026, as compared to the nine months ended September 30, 2025, was primarily due to higher sales prices for polyethylene, PVC resin, caustic soda and epoxy resin, and higher sales volumes for polyethylene and lower ethane feedstock costs. This increase was partially offset by lower sales volumes for caustic soda and chlorine, recognition of a $51 million charge in September 2026 related to the announced closure of the PVC facility in Cologne, Germany, and higher fuel costs in the nine months ended September 30, 2026, as compared to the nine months ended September 30, 2025. The loss from operations for the nine months ended September 30, 2025 included a non-cash impairment charge of $727 million related to North American Chlorovinyls goodwill.
Removed paragraphs (10)
Previous report
Acquisition of PVC and VCM Production Site in Wilhelmshaven, Germany
Previous report
On June 15, 2026, the Company's German subsidiary, Westlake Vinnolit GmbH & Co. KG, completed the acquisition of a PVC and vinyl chloride monomer ("VCM") production site located in Wilhelmshaven, Germany (the "Wilhelmshaven plant") for a preliminary purchase price of approximately $109 million, subject to various adjustments. The Wilhelmshaven plant has the capacity to produce 838 million pounds of PVC and 882 million pounds of VCM annually. The Wilhelmshaven plant benefits from advantageous logistical infrastructure, including a deep-water dock that enables efficient raw-materials supply. The acquisition is expected to expand the Company's global chlorovinyls manufacturing footprint and complement the Company's existing chlorovinyl production facilities in Europe and North America. The assets acquired and liabilities assumed and the results of operations of the Wilhelmshaven plant are included in the Performance and Essential Materials segment.
Previous report
Redemption of 3.60% 2026 Senior Notes
Previous report
On May 29, 2026 the Company redeemed all $496 million aggregate principal amount of its outstanding 3.60% 2026 Senior Notes at a price equal to 100% of the principal amount of the notes being redeemed, plus accrued and unpaid interest through the redemption date.
Previous report
Replacement of Credit Agreement
Previous report
Other income, net in the second quarter of 2026 was consistent with the second quarter of 2025 and in the six months ended June 30, 2026 was consistent with the six months ended June 30, 2025. Other income, net, for all the periods presented primarily comprised of interest income.
Previous report
The effective tax rates were higher in the second quarter of 2026 compared to the second quarter of 2025 and in the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily due to a higher valuation allowance recorded against Westlake Epoxy Netherlands's net operating loss in the second quarter of 2025 and in the six months ended June 30, 2025 and higher state taxes in the second quarter of 2026 and in the six months ended June 30, 2026.
Previous report
The decrease in loss from operations for the PEM segment by $455 million was primarily due to higher sales prices for polyethylene, PVC resin, caustic soda and epoxy resin, and higher sales volumes for polyethylene and lower ethane feedstock costs. These decreases were partially offset by higher fuel costs in the six months ended June 30, 2026 as compared to the six months ended June 30, 2025.
Previous report
On May 29, 2026, the Company redeemed all $496 million aggregate principal amount of its outstanding 3.60% 2026 Senior Notes at a redemption price equal to 100% of the principal amount of the notes being redeemed, plus accrued and unpaid interest through the redemption date.
Previous report
On July 8, 2026, our subsidiary, Westlake Polymers LLC, entered into an amendment to the OpCo Revolver and our subsidiary, Westlake Chemical Finance Corporation, entered into an amended to the MLP Revolver, which extended the maturity dates of the OpCo Revolver and the MLP Revolver and removed the 0.10% credit spread adjustments that had previously applied to the SOFR-based interest rates under the OpCo Revolver and the MLP Revolver. The OpCo Revolver and the MLP Revolver are now scheduled to mature on July 11, 2031.
Reworded paragraphs (36)
Previous wording
In February 2026, a military conflict primarily involving the United States, Israel and Iran commenced in the Middle East. As a result, the global energy, petrochemical and transportation markets have experienced significant volatility and supply constraints with naphtha based petrochemical producers in particular facing significantly higher production costs and feedstock supply limitations. Although we do not have operations in the Middle East and the substantial majority of our energy and feedstock requirements are sourced from North America and do not use naphtha-based supply, the ongoing disruptions to global shipping and elevated logistical costs continue to create inflationary pressures across our broader supply-chain. These disruptions may continue for an undeterminable period of time, leading to higher costs for feedstocks and energy and logistics services. We are actively assessing these conditions and their potential impact on our global operations. Please also see our Outlook section below for discussion of potential impacts on our HIP and PEM segments.
Current wording
In February 2026, a military conflict primarily involving the United States, Israel and Iran commenced in the Middle East. As a result, the global energy, petrochemical and transportation markets have experienced significant volatility and supply constraints with naphtha-based petrochemical producers in particular facing significantly higher production costs and feedstock supply limitations. Although we do not have operations in the Middle East and the substantial majority of our energy and feedstock requirements are sourced from North America and do not use naphtha-based supply, the ongoing disruptions to global shipping and elevated logistical costs continue to create inflationary pressures across our broader supply-chain. These disruptions may continue for an undeterminable period of time and may continue to increase costs for feedstocks, energy, and logistics services. We are actively assessing these conditions and their potential impact on our global operations. Please also see our Outlook section below for discussion of potential impacts on our HIP and PEM segments.
Previous wording
Our HIP segment is primarily comprised of residential building products, PVC pipe and fittings, and compound products made from PVC and other polymers. Our sales are affected by the level of new home construction and home repair and remodeling activity, particularly in North America, water infrastructure spending for our pipe and fittings business, as well as the decisions of distributors and dealers on the levels of inventory they carry, their views on product demand, their financial condition and the manner in which they choose to manage inventory risk, and customer decision on product selection based on price, aesthetics, and performance among other characteristics. Performance of our HIP businesses generally reflects the trends of building permits and housing starts in the New Residential Construction Survey by the U.S. Census Bureau and the Repair and Remodeling Index (RRI) provided by the National Association of Home Builders (the "NAHB") among others. We also expect that the preceding historically low level of residential housing construction that has resulted in an undersupply of existing housing may benefit our HIP segment in the medium to long-term. Furthermore, the ongoing geopolitical volatility in the Middle East has impacted the global supply of crude oil and increased crude oil prices, increasing our distribution and certain raw material costs. Additionally, while recent U.S. Federal Reserve actions to cut interest rates have supported an improved outlook for North American housing demand, a prolonged Middle East conflict and other uncertainties may create sustained inflationary pressures which may impede further interest rate reductions, or cause interest rates to rise, adversely affecting demand for our products and our margins.
Current wording
Our HIP segment is primarily comprised of residential building products, PVC pipe and fittings, and compound products made from PVC and other polymers. Our sales are affected by the level of new home construction and home repair and remodeling activity, particularly in North America, water infrastructure spending for our pipe and fittings business, as well as the decisions of distributors and dealers on the levels of inventory they carry, their views on product demand, their financial condition and the manner in which they choose to manage inventory risk, and customer decision on product selection based on price, aesthetics, and performance among other characteristics. Performance of our HIP businesses generally reflects the trends of building permits and housing starts in the New Residential Construction Survey by the U.S. Census Bureau and the Remodeling Market Index (RMI) provided by the National Association of Home Builders (the "NAHB") among others. We also expect that the preceding historically low level of residential housing construction that has resulted in an undersupply of existing housing and recent water infrastructure demands may benefit our HIP segment in the medium- to long-term. The ongoing geopolitical volatility in the Middle East has impacted the global supply and price of crude oil, contributing to an increase in diesel fuel prices. The increase in oil and diesel prices has resulted in higher raw material and freight costs globally. The resulting increase in inflation expectations contributed to higher borrowing costs which, together with the U.S. Federal Reserve's increase in interest rates in September 2026, have impacted the outlook for North American housing demand, which already faced supply constraints and affordability limitations. Several of our pipe and fittings customers chose to increase their inventory levels at the onset of the Middle East conflict to secure supply in anticipation of cost inflation. The resulting excess inventory contributed to lower pipe and fittings sales volume in the third quarter of 2026, which may continue until customer inventory levels normalize. A prolonged Middle East conflict and other uncertainties may create sustained inflationary pressures, which may in turn lead to additional interest rate increases that could continue to adversely affect demand for our products and our margins.
Previous wording
Our PEM segment manufactures products such as ethylene, PE, chlor-alkali, chlorinated derivative products, ethylene dichloride, VCM and PVC, many of which are used in our integrated vinyls production chain. The chlor-alkali and petrochemical industries exhibit cyclical commodity characteristics, and margins are influenced by changes in the balance between global supply and demand and the resulting operating rates, the level of general economic activity, turnaround activities and the price of raw materials. We have continued to experience lower prices, increased supply and weaker demand for most of our PEM products globally since 2022. However, the current geopolitical volatility in the Middle East due to the conflict that commenced in February 2026 created feedstock shortages and higher production costs for naphtha-based manufacturers in Asia, driving up global prices for performance and essential materials products. Our North American operations have been less affected by the conflict and hold a competitive advantage due to lower natural gas and power costs, creating opportunities to increase price and supply to domestic and global markets. However, we remain cautious of headwinds impacting our operations in Europe and Asia, including slower economic growth in China, margin compression, and trade disruptions from tariffs. Significant uncertainties remain regarding the duration of the war in Ukraine, the resolution of the Middle East conflict, the subsequent recovery period, return of supply-chain stability in the Middle East and potential broader demand destruction due to inflationary pressures.
Current wording
Our PEM segment manufactures products such as ethylene, PE, chlor-alkali, chlorinated derivative products, ethylene dichloride, VCM and PVC, many of which are used in our integrated vinyls production chain. The chlor-alkali and petrochemical industries exhibit cyclical commodity characteristics, and margins are influenced by changes in the balance between global supply and demand and the resulting operating rates, the level of general economic activity, turnaround activities, and the price of raw materials. From 2022 through 2025, we experienced lower prices, increased supply, and weaker demand for most of our PEM products globally. The geopolitical volatility in the Middle East has created feedstock shortages and higher production costs for naphtha-based manufacturers in Asia, which drove up global prices for many performance and essential material products in 2026. PEM production in Europe continues to face difficult conditions, including weak demand, elevated energy costs, and increased import pressure from Asia. Our North American operations have been less affected by the higher global oil and feedstock costs resulting from the Middle East conflict and hold a competitive advantage due to lower natural gas and power costs, creating opportunities to increase price and margins while supplying domestic and global markets. The recent heightened volatility in global oil and feedstock prices is creating a very fluid environment that may impact our ability to maintain and/or further increase prices and margins. We remain cautious of headwinds impacting the profitability of our operations globally, including slower economic growth in China, margin compression, and trade disruptions from tariffs. Significant uncertainties remain regarding the duration of the war in Ukraine, the resolution of the Middle East conflict, the subsequent recovery period, return of supply-chain stability in the Middle East and potential broader demand destruction due to inflationary pressures.
Previous wording
The table below and descriptions that follow represent the consolidated results of operations of the Company for the three andsix months ended June 30, 2026 and 2025.
Current wording
The table below and descriptions that follow represent the consolidated results of operations of the Company for the three andnine months ended September 30, 2026 and 2025.
Previous wording
For the second quarter ended June 30, 2026, net income attributable to Westlake Corporation was $260 million, or $2.01 per diluted share, on net sales of $3,271 million. This represents an increase in net income attributable to Westlake Corporation of $402 million, or $3.12 per diluted share, compared to the second quarter ended June 30, 2025, net loss attributable to Westlake Corporation of $142 million, or $1.11 per diluted share, on net sales of $2,953 million. Income from operations was $364 million for the quarter ended June 30, 2026, as compared to loss from operations of $109 million for the quarter ended June 30, 2025, an increase of $473 million. The increase in net income and income from operations was primarily due to higher sales prices for polyethylene and PVC resin, higher sales volumes for pipe and fittings, caustic soda and epoxy resin, and lower fuel and ethane feedstock costs. Additionally, the increase in net income and income from operations included contribution from the global compounding solutions businesses of the ACI/Perplastic Group (collectively, "ACI"), which was acquired in January 2026. These positive contributions were partially offset by lower pipe and fittings sales prices in the second quarter ended June 30, 2026, as compared to the second quarter ended June 30, 2025. The net income attributable to Westlake Corporation was also negatively affected by higher interest expense in the second quarter ended June 30, 2026, which resulted from a higher average debt balance as compared to the second quarter ended June 30, 2025. The net income and income from operations of the comparable second quarter ended June 30, 2025 were negatively impacted by the recognition of charges of $115 million, related to the closure of the Pernis, Netherlands facility and the closure of operations of the PVC resin unit at the Suzhou Huasu Plastics plant in China.
Current wording
For the third quarter ended September 30, 2026, net income attributable to Westlake Corporation was $6 million, or $0.05 per diluted share, on net sales of $2,981 million. This represents an increase in net income attributable to Westlake Corporation of $788 million, or $6.11 per diluted share, compared to the third quarter ended September 30, 2025, net loss attributable to Westlake Corporation of $782 million, or $6.06 per diluted share, on net sales of $2,838 million. Income from operations was $43 million for the quarter ended September 30, 2026, as compared to loss from operations of $766 million for the quarter ended September 30, 2025, an increase of $809 million. The increase in net income and income from operations was primarily due to higher sales prices for polyethylene, PVC resin, caustic soda and epoxy resin, higher sales volumes for PVC resin and chlor-alkali derivatives, and lower fuel costs. Additionally, the increase in net income and income from operations included contribution from the global compounding solutions businesses of the ACI/Perplastic Group (collectively, "ACI"), which was acquired in January 2026. These positive contributions were partially offset by lower building products, pipe and fittings and caustic soda sales volumes and higher distribution and ethane feedstock costs in the third quarter ended September 30, 2026, as compared to the third quarter ended September 30, 2025. The net loss and loss from operations for the third quarter ended September 30, 2025 were impacted due to a non-cash impairment charge of $727 million related to North American Chlorovinyls goodwill under the Performance and Essential Materials segment. The net income and income from operations for the third quarter ended September 30, 2026 were also negatively impacted by the recognition of a charge of $51 million related to the announced closure of the Cologne plant in Germany. The net income attributable to Westlake Corporation was also negatively affected by higher interest expense in the third quarter ended September 30, 2026, which resulted from higher average interest rate debt that was issued in November 2025, compared to the third quarter ended September 30, 2025.
Previous wording
For the six months ended June 30, 2026, net income attributable to Westlake Corporation was $91 million, or $0.70 per diluted share, on net sales of $5,923 million. This represents an increase in net income attributable to Westlake Corporation of $273 million, or $2.12 per diluted share, compared to the six months ended June 30, 2025, net loss attributable to Westlake Corporation of $182 million, or $1.42 per diluted share, on net sales of $5,799 million. Income from operations was $192 million for the six months ended June 30, 2026, as compared to loss from operations of $141 million for the six months ended June 30, 2025, an increase of $333 million. The increase in net income and income from operations in the six months ended June 30, 2026, as compared to the six months ended June 30, 2025, was primarily due to higher sales prices for polyethylene, PVC resin, caustic soda and epoxy resin, higher sales volumes for pipe and fittings and polyethylene, ACI related compounds sales volumes, and lower ethane feedstock costs. These positive contributions were negatively impacted by higher fuel costs, the recognition of a litigation charge of $67 million related to the settlement of certain PVC pipe antitrust litigation in March 2026, lower pipe and fittings sales prices and lower sales volumes for several of our products. The net income and income from operations of the comparable six months ended June 30, 2025, was negatively impacted by the recognition of charges of $115 million, related to the closure of the Pernis, Netherlands facility and the closure of operations of the PVC resin unit at the Suzhou Huasu Plastics plant in China.
Current wording
For the nine months ended September 30, 2026, net income attributable to Westlake Corporation was $97 million, or $0.75 per diluted share, on net sales of $8,904 million. This represents an increase in net income attributable to Westlake Corporation of $1,061 million, or $8.23 per diluted share, compared to the nine months ended September 30, 2025, net loss attributable to Westlake Corporation of $964 million, or $7.48 per diluted share, on net sales of $8,637 million. Income from operations was $235 million for the nine months ended September 30, 2026, as compared to loss from operations of $907 million for the nine months ended September 30, 2025, an increase of $1,142 million. The increase in net income and income from operations in the nine months ended September 30, 2026, as compared to the nine months ended September 30, 2025, was primarily due to higher sales prices for polyethylene, PVC resin, caustic soda and epoxy resin, higher sales volumes for pipe and fittings, ACI related compounds sales volumes, and lower ethane feedstock costs. These positive contributions were negatively impacted by higher distribution and fuel costs, the recognition of a $51 million charge in September 2026 related to the announced closure of the Cologne plant in Germany and a litigation charge of $67 million in March 2026 related to the settlement of certain PVC pipe antitrust litigation, lower pipe and fittings sales prices and lower sales volumes for several of our products. The net loss and loss from operations for the nine months ended September 30, 2025 were impacted by a non-cash impairment charge of $727 million related to North American Chlorovinyls goodwill. The net income attributable to Westlake Corporation was also negatively affected by higher interest expense in the nine months ended September 30, 2026, which resulted from higher average interest rate debt that was issued in November 2025, compared to the nine months ended September 30, 2025.
Previous wording
Second Quarter 2026 and Six Months Ended June 30, 2026 Compared with Second Quarter 2025 and Six Months Ended June 30, 2025
Current wording
Third Quarter 2026 and Nine Months Ended September 30, 2026, Compared with Third Quarter 2025 and Nine Months Ended September 30, 2025
Previous wording
Net sales increased by $318 million in the second quarter of 2026 compared to the second quarter of 2025. Average sales prices for the second quarter of 2026 increased by 8% as compared to the second quarter of 2025, primarily because of higher sales prices for polyethylene and PVC resin, partially offset by lower pipe and fittings sales prices. Sales volumes increased by 3% in the second quarter of 2026 as compared to the second quarter of 2025, primarily due to higher sales volumes for pipe and fittings, caustic soda, and epoxy resin, and ACI related compounds sales volumes. These increases in sales volumes were partially offset by lower PVC resin and styrene sales volumes primarily due to certain North American vinyl plants and styrene plant closures in December 2025 as part of our footprint optimization actions.
Current wording
Net sales increased by $143 million in the third quarter of 2026 compared to the third quarter of 2025. Average sales prices for the third quarter of 2026 increased by 6% as compared to the third quarter of 2025, primarily because of higher sales prices for polyethylene, PVC resin, caustic soda and epoxy resin. Sales volumes decreased by 1% in the third quarter of 2026 as compared to the third quarter of 2025, primarily due to lower sales volumes for building products, pipe and fittings and caustic soda, partially offset by higher PVC resin and ACI related compounds sales volumes. These decreases in volumes were also negatively impacted by the closures of certain North American chlorovinyl facilities and a styrene facility in December 2025 as part of our footprint optimization actions.
Previous wording
Net sales increased by $124 million in the six months ended June 30, 2026, compared to the six months ended June 30, 2025. Average sales prices for the six months ended June 30, 2026, increased by 3% as compared to the six months ended June 30, 2025, primarily as a result of higher sales prices for polyethylene, PVC resin, caustic soda and epoxy resin, partially offset by lower pipe and fittings sales prices. Sales volumes decreased by 1% in the six months ended June 30, 2026 as compared to the six months ended June 30, 2025, primarily due to lower sales volumes for PVC resin, chlorine, caustic soda, styrene and building products, which were partially offset by higher pipe and fittings and polyethylene sales volumes, and ACI related compounds sales volumes.
Current wording
Net sales increased by $267 million in the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025. Average sales prices for the nine months ended September 30, 2026 increased by 4%, as compared to the nine months ended September 30, 2025, primarily as a result of higher sales prices for polyethylene, PVC resin, caustic soda and epoxy resin, partially offset by lower pipe and fittings sales prices. Sales volumes decreased by 1% in the nine months ended September 30, 2026, as compared to the nine months ended September 30, 2025, primarily due to lower sales volumes for building products, PVC resin, chlorine, caustic soda and styrene, which were partially offset by higher pipe and fittings and ACI related compounds sales volumes.
Previous wording
The increase in gross profit margin in the second quarter of 2026, as compared to the second quarter of 2025 was primarily due to higher sales prices for polyethylene and PVC resin, and higher sales volumes for pipe and fittings, caustic soda, and epoxy resin, ACI related compounds sales volumes, and lower fuel and ethane feedstock costs. These positive contributions were partially offset by lower pipe and fittings sales prices.
Current wording
The increase in gross profit margin in the third quarter of 2026, as compared to the third quarter of 2025, was primarily due to higher sales prices for polyethylene, PVC resin, epoxy resin and caustic soda, and ACI related compounds sales volumes, and lower fuel costs. These positive contributions were partially offset by higher distribution and ethane feedstock costs.
Previous wording
The increase in gross profit margin in the six months ended June 30, 2026 as compared to the six months ended June 30, 2025 was primarily due to higher sales prices for polyethylene, PVC resin, caustic soda and epoxy resin, and higher sales volumes for pipe and fittings, and polyethylene, ACI related compounds sales volumes, and lower ethane feedstock costs. These increases were negatively impacted by higher fuel costs, the recognition of a litigation charge of $67 million related to the settlement of certain PVC pipe antitrust litigation in March 2026, lower pipe and fittings sales prices and lower sales volumes for several of our products.
Current wording
The increase in gross profit margin in the nine months ended September 30, 2026, as compared to the nine months ended September 30, 2025, was primarily due to higher sales prices for polyethylene, PVC resin, caustic soda and epoxy resin, higher sales volumes for pipe and fittings and ACI related compounds, and lower ethane feedstock costs. These increases were negatively impacted by higher distribution and fuel costs, the recognition of a litigation charge of $67 million related to the settlement of certain PVC pipe antitrust litigation in March 2026 and lower sales volumes for several of our products.
Previous wording
The increase in selling, general and administrative expenses in the second quarter of 2026 compared with the second quarter of 2025 and in the six months ended June 30, 2026 compared with the six months ended June 30, 2025, were primarily due to higher employee compensation, legal and other consulting and technology-related expenses. The higher selling, general and administrative expenses were also partially due to ACI related expenses.
Current wording
The increase in selling, general and administrative expenses in the third quarter of 2026 compared with the third quarter of 2025 and in the nine months ended September 30, 2026, compared with the nine months ended September 30, 2025, was primarily due to higher employee compensation, legal and other consulting and technology-related expenses. The higher selling, general and administrative expenses were also partially due to ACI and Wilhelmshaven plant related expenses.
Previous wording
Amortization expenses related to intangible assets were consistent in the second quarter of 2026, with the second quarter of 2025, and in the six months ended June 30, 2026 with the six months ended June 30, 2025.
Current wording
Amortization expenses related to intangible assets were consistent for all the periods presented.
Previous wording
Restructuring, transaction and integration-related costs in the second quarter of 2026 primarily consisted of facility closure costs, which are recognized over time. The restructuring, transaction and integration-related costs in the second quarter of 2025 comprised of $108 million related to the closure of the Pernis, Netherlands facility and $7 million related to the closure of the PVC resin unit at the Suzhou Huasu Plastics plant located in China.
Current wording
Restructuring, transaction and integration-related costs in the third quarter of 2026 primarily consisted of a $50 million charge in September 2026 related to the announced closure of the PVC facility in Cologne, Germany and costs related to the closures of certain North American chlorovinyl facilities and a styrene facility in December 2025, which are recognized over time. The restructuring, transaction and integration-related costs in the third quarter of 2025 primarily consisted of $15 million related to the closure of the Pernis facility located in the Netherlands.
Previous wording
Restructuring, transaction and integration-related costs in the six months ended June 30, 2026, primarily consisted of facility closure costs, which are recognized over time, related to the closures of certain North American chlorovinyls facilities, the styrene facility and the Pernis, Netherlands facility. The restructuring, transaction and integration-related costs in the six months ended June 30, 2025, primarily comprised of $108 million related to the closure of the Pernis facility located in the Netherlands and $7 million related to the closure of the PVC resin unit at the Suzhou Huasu Plastics plant located in China.
Current wording
Restructuring, transaction and integration-related costs in the nine months ended September 30, 2026, primarily consisted of a $50 million charge in September 2026 related to the announced closure of the PVC facility in Cologne, Germany and costs related to the closures of certain North American chlorovinyl facilities and a styrene facility in December 2025, which are recognized over time. The restructuring, transaction and integration-related costs in the nine months ended September 30, 2025, primarily consisted of $130 million related to the closure of the Pernis facility located in the Netherlands and $9 million related to the closure of the PVC resin unit at the Suzhou Huasu Plastics plant located in China.
Previous wording
Interest expense in the second quarter of 2026 as compared to the second quarter of 2025, and in the six months ended June 30, 2026, as compared to the six months ended June 30, 2025, was higher due to a higher average debt balance as a result of the issuance of $600 million aggregate principal amount of 5.550% senior notes due 2035 and $600 million aggregate principal amount of 6.375% senior notes due 2055 in November 2025. The impact of these debt increases was partially offset by the repurchase of $254 million aggregate principal amount of the outstanding 3.60% 2026 Senior Notes pursuant to a tender offer in November 2025 and the redemption of $496 million aggregate principal amount of the remaining outstanding 3.60% 2026 Senior Notes in May 2026.
Current wording
Interest expense in the third quarter of 2026 as compared to the third quarter of 2025, and in the nine months ended September 30, 2026, as compared to the nine months ended September 30, 2025, was higher due to a higher average debt balance as a result of the issuance of $600 million aggregate principal amount of 5.550% 2035 Senior Notes and $600 million aggregate principal amount of 6.375% 2055 Senior Notes. The 5.550% 2035 Senior Notes and the 6.375% 2055 Senior Notes bear higher interest rates compared to the 3.60% 2026 Senior Notes, of which $254 million aggregate principal amount of the 3.60% 2026 Senior Notes were repurchased pursuant to a tender offer in November 2025 and the remaining $496 million aggregate principal amount of the 3.60% 2026 Senior Notes were redeemed in May 2026.
Previous wording
Net sales for the HIP segment increased by $92 million in the second quarter of 2026 compared to the second quarter of 2025. Total sales volumes for the HIP segment increased by 10% in the second quarter of 2026 as compared to the second quarter of 2025, due to higher pipe and fittings and ACI compounds sales volumes. Average sales prices for the HIP segment decreased by 3% in the second quarter of 2026 as compared to the second quarter of 2025, primarily due to lower sales prices for pipe and fittings. Higher sales of infrastructure products in the second quarter of 2026 were largely attributable to compounds sold by ACI, which was acquired in January 2026.
Current wording
Net sales for the HIP segment decreased by $4 million in the third quarter of 2026 compared to the third quarter of 2025. Total sales volumes for the HIP segment decreased by 2% in the third quarter of 2026 as compared to the third quarter of 2025, due to lower pipe and fittings and building products sales volumes that were partially offset by higher ACI related compounds sales volumes. Average sales prices for the HIP segment increased by 1% in the third quarter of 2026, as compared to the third quarter of 2025, primarily due to higher sales prices for building products. Lower sales of housing products in the third quarter of 2026 were primarily due to lower sales volumes for our roofing, siding and trim, building products. Higher sales of infrastructure products in the third quarter of 2026 were largely attributable to compounds sold by ACI, which was acquired in January 2026.
Previous wording
Net sales for the HIP segment increased by $89 million in the six months ended June 30, 2026 compared to the six months ended June 30, 2025. Total sales volumes for the HIP segment increased by 7% in the six months ended June 30, 2026, as compared to the six months ended June 30, 2025, due to higher pipe and fittings and ACI compounds sales volumes, partially offset by lower building products sales volumes. Average sales prices for the HIP segment decreased by 3% in the six months ended June 30, 2026 as compared to the six months ended June 30, 2025, primarily due to lower sales prices for pipe and fittings. Lower sales of housing products in the six months ended June 30, 2026 were primarily due to lower sales volumes for our roofing building products. Higher sales of infrastructure products in the second quarter of 2026 were largely attributable to compounds sold by ACI.
Current wording
Net sales for the HIP segment increased by $85 million in the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025. Total sales volumes for the HIP segment increased by 4% in the nine months ended September 30, 2026, as compared to the nine months ended September 30, 2025, due to higher pipe and fittings and ACI compounds sales volumes, partially offset by lower building products sales volumes. Average sales prices for the HIP segment decreased by 1% in the nine months ended September 30, 2026, as compared to the nine months ended September 30, 2025, primarily due to lower sales prices for pipe and fittings, partially offset by higher building products sales prices. Lower sales of housing products in the nine months ended September 30, 2026, were primarily due to lower sales volumes for our roofing building products. Higher sales of infrastructure products in the nine months ended September 30, 2026 were largely attributable to compounds sold by ACI.
Previous wording
The decrease in income from operations for the HIP segment in the second quarter of 2026, as compared to the second quarter of 2025, was primarily due to lower sales prices for pipe and fittings, which was partially offset by higher pipe and fittings and ACI related compounds sales volumes.
Current wording
The decrease in income from operations for the HIP segment in the third quarter of 2026, as compared to the third quarter of 2025, was primarily due to lower sales volumes for pipe and fittings and building products and an increase in distribution costs, which was partially offset by higher ACI related compounds sales volumes.
Previous wording
The decrease in income from operations for the HIP segment in the six months ended June 30, 2026, as compared to the six months ended June 30, 2025, was primarily due to lower sales prices for pipe and fittings and lower sales volumes for building products. The HIP segment performance was also negatively impacted by the recognition of a litigation charge of $67 million related to PVC pipe antitrust litigation settlement for certain plaintiffs in the second quarter of 2026. The impact of these decreases was partially offset by higher pipe and fittings and ACI related compounds sales volumes.
Current wording
The decrease in income from operations for the HIP segment in the nine months ended September 30, 2026, as compared to the nine months ended September 30, 2025, was primarily due to lower sales prices for pipe and fittings and lower sales volumes for building products. The HIP segment performance was also negatively impacted by the increase in distribution costs and recognition of a litigation charge of $67 million related to PVC pipe antitrust litigation settlement for certain plaintiffs in the first quarter of 2026. The impact of these decreases was partially offset by higher pipe and fittings and ACI related compounds sales volumes.
Previous wording
Net sales for the PEM segment increased by $226 million in the second quarter of 2026, compared to the second quarter of 2025. Average sales prices for the PEM segment increased by 14% in the second quarter of 2026, as compared to the second quarter of 2025, due to higher sales prices for polyethylene and PVC resin. Sales volume for the PEM segment decreased by 2% in the second quarter of 2026, as compared to the second quarter of 2025, due to lower PVC resin and styrene sales volumes, partially offset by higher caustic soda and epoxy sales volumes. Lower PVC resin and styrene sales volumes were due to certain North American plant closures in December 2025 as part of our footprint optimization actions. The higher Performance Materials sales were primarily due to higher polyethylene and PVC resin sales prices, partially offset by the closure of certain North American vinyl plants in December 2025. The higher Essential Materials sales were primarily due to higher caustic soda sales, partially offset by the closure of the styrene plant in December 2025.
Current wording
Net sales for the PEM segment increased by $147 million in the third quarter of 2026, compared to the third quarter of 2025. Average sales prices for the PEM segment increased by 9% in the third quarter of 2026, as compared to the third quarter of 2025, due to higher sales prices for polyethylene, PVC resin, caustic soda and epoxy resin. Sales volume for the PEM segment decreased by 1% in the third quarter of 2026, as compared to the third quarter of 2025, due to lower caustic soda and styrene sales volumes, offset by higher PVC resin and chlor-alkali derivative sales volumes. Lower styrene sales volumes were due to the closure of a styrene facility in December 2025 as part of our footprint optimization actions. The higher PVC resin sales volumes were driven by the PVC resin sales generated from the Wilhelmshaven plant, which was acquired in June 2026, and were partially offset by certain North American PVC resin plant closures in December 2025. The higher Performance Materials sales were primarily due to higher polyethylene and PVC resin sales prices, partially offset by the closure of certain North American chlorovinyl facilities in December 2025. The lower Essential Materials sales were primarily due to lower caustic soda sales and the closure of a styrene facility in December 2025.
Previous wording
Net sales for the PEM segment increased by $35 million in the six months ended June 30, 2026 compared to the six months ended June 30, 2025. Average sales prices for the PEM segment increased by 6% in the six months ended June 30, 2026, as compared to the six months ended June 30, 2025, primarily due to higher polyethylene, PVC resin, caustic soda and epoxy resin sales prices. Sales volume for the PEM segment decreased by 5% in the six months ended June 30, 2026 as compared to the six months ended June 30, 2025, due to lower PVC resin, caustic soda, chlorine and styrene sales volumes. The higher Performance Materials sales were primarily due to higher polyethylene and epoxy resin sales, partially offset by lower PVC resin sales resulting from the closure of certain North American vinyl plants in December 2025. The lower Essential Materials sales were primarily due to lower chlorine sales and the closure of the styrene plant in December 2025.
Current wording
Net sales for the PEM segment increased by $182 million in the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025. Average sales prices for the PEM segment increased by 7% in the nine months ended September 30, 2026, as compared to the nine months ended September 30, 2025, primarily due to higher polyethylene, PVC resin, caustic soda and epoxy resin sales prices. Sales volume for the PEM segment decreased by 4% in the nine months ended September 30, 2026, as compared to the nine months ended September 30, 2025, due to lower PVC resin, caustic soda, chlorine and styrene sales volumes. The higher Performance Materials sales were primarily due to higher polyethylene and epoxy resin and PVC resin sales from our recently acquired Wilhelmshaven plant, partially offset by lower PVC resin sales resulting from the closure of certain North American chlorovinyl facilities in December 2025. The lower Essential Materials sales were primarily due to lower chlorine sales and the closure of a styrene facility in December 2025.
Previous wording
The increase of $503 million in income from operations for the PEM segment in the second quarter of 2026 as compared to the second quarter of 2025 was due to higher sales prices for polyethylene and PVC resin and higher sales volumes for caustic soda and epoxy resin, and lower fuel costs and ethane feedstock costs in the second quarter of 2026 as compared to the second quarter of 2025.
Current wording
The increase of $838 million in income from operations for the PEM segment in the third quarter of 2026 as compared to the third quarter of 2025, was due to higher sales prices for polyethylene, PVC resin, caustic soda and epoxy resin and lower fuel costs, partially offset by the recognition of a $51 million charge in September 2026 related to the announced closure of the PVC facility in Cologne, Germany and higher ethane feedstock costs in the third quarter of 2026, as compared to the third quarter of 2025. The loss from operations for the third quarter ended September 30, 2025, included a non-cash impairment charge of $727 million related to North American Chlorovinyls goodwill.
Previous wording
CASH FLOW DISCUSSION FOR THE SIX MONTHS ENDED JUNE 30, 2026 AND 2025
Current wording
CASH FLOW DISCUSSION FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2026 AND 2025
Previous wording
The $166 million favorable change in net cash flows from operating activities in the first six months of 2026, as compared to the first six months of 2025, was mainly due to higher income, as discussed under Results of Operations above, and a favorable change attributable to the significant cash outflow in connection with the Petro 1 ethylene facility turnaround in the first six months of 2025, partially offset by unfavorable changes in working capital. The unfavorable changes in working capital in the first six months of 2026 were substantially driven by the higher accounts receivables and payable balances primarily associated with the increased operating activities during the six months ended June 30, 2026 as compared to the six months ended June 30, 2025.
Current wording
The $379 million favorable change in net cash flows from operating activities in the first nine months of 2026, as compared to the first nine months of 2025, was mainly due to higher income, as discussed under Results of Operations above, and a favorable change attributable to the significant cash outflow in connection with the Petro 1 ethylene facility turnaround in the first nine months of 2025 and favorable changes in working capital of $60 million. The favorable changes in working capital were primarily driven by the favorable changes in accounts receivable and accounts payable balances, partially offset by unfavorable changes in inventory balances. Changes in accounts payable and inventory balances were primarily due to an increase in feedstock and raw material costs during the nine months ended September 30, 2026, as compared to the nine months ended September 30, 2025.
Previous wording
Net cash used for investing activities in the first six months of 2026, as compared to the first six months of 2025, decreased by $135 million. The decrease was primarily due to lower purchases of available-for-sale securities in thefirst six months of 2026 as compared to our initial investments of $192 million in the first six months of 2025. Additionally, our capital expenditures were lower by $99 million, from $515 million in the first six months of 2025 to $416 million in the first six months of 2026. These decreases in cash outflows were partially offset by the payment of $171 million, net of cash acquired of $18 million, for the ACI and Wilhelmshaven plant acquisitions in the six months of June 30, 2026.
Current wording
Net cash used for investing activities in the first nine months of 2026, as compared to the first nine months of 2025, decreased by $189 million. The decrease was primarily due to a decrease in capital expenditures of $163 million, from $754 million in the first nine months of 2025 to $591 million in the first nine months of 2026, lower purchases of available-for-sale securities in the first nine months of 2026 as compared to our initial investments of $198 million in the first nine months of 2025. These decreases in cash outflows were partially offset by the payment of $171 million, net of cash acquired of $18 million, for the ACI and Wilhelmshaven plant acquisitions in the nine months ended September 30, 2026. Other investing activities during the nine months ended September 30, 2026 include the settlement of our foreign currency swap agreements, which did not have a material net impact on the cash used for investing activities.
Previous wording
Net cash used for financing activities during the first six months of 2026 as compared to first six months of 2025 increased by $507 million, which was primarily due to the redemption of $496 million aggregate principal amount of outstanding 3.60% 2026 Senior Notes in May 2026. Other financing activities in the first six months of 2026 included the payment of $137 million of cash dividends, $23 million of cash distributions to noncontrolling interests and the repurchase of $30 million of our outstanding common stock for treasury. The financing activities in the first six months of 2025 included $136 million payment of cash dividends, $23 million of cash distributions to noncontrolling interests and the repurchase of $30 million of our outstanding common stock for treasury.
Current wording
Net cash used for financing activities during the first nine months of 2026 as compared to first nine months of 2025 increased by $504 million, which was primarily due to the redemption of $496 million aggregate principal amount of outstanding 3.60% 2026 Senior Notes in May 2026. Other financing activities in the first nine months of 2026 included the payment of $205 million of cash dividends, $32 million of cash distributions to noncontrolling interests and the repurchase of $30 million of our outstanding common stock for treasury. The financing activities in the first nine months of 2025 included $204 million payment of cash dividends, $33 million of cash distributions to noncontrolling interests and the repurchase of $30 million of our outstanding common stock for treasury.
Previous wording
In November 2014, our Board of Directors authorized a $250 million stock repurchase program (the "2014 Program"). In November 2015, our Board of Directors approved the expansion of the 2014 Program by an additional $150 million. In August 2018, our Board of Directors approved the further expansion of the existing 2014 Program by an additional $150 million. In August 2022, our Board of Directors approved the further expansion of the existing 2014 Program by an additional $500 million. There were repurchases of 355,721 common stock under the 2014 Program during the three months ended June 30, 2026, for an aggregate purchase price of $30 million under the 2014 Program. As of June 30, 2026, we had repurchased 10,285,404 shares of our common stock for an aggregate purchase price of approximately $727 million under the 2014 Program. Purchases under the 2014 Program may be made either through the open market or in privately negotiated transactions. Decisions regarding the amount and the timing of purchases under the 2014 Program will be influenced by our cash on hand, our cash flows from operations, general market conditions and other factors. The 2014 Program may be discontinued by our Board of Directors at any time.
Current wording
In November 2014, our Board of Directors authorized a $250 million stock repurchase program (the "2014 Program"). In November 2015, our Board of Directors approved the expansion of the 2014 Program by an additional $150 million. In August 2018, our Board of Directors approved the further expansion of the existing 2014 Program by an additional $150 million. In August 2022, our Board of Directors approved the further expansion of the existing 2014 Program by an additional $500 million. There were no repurchases of common stock under the 2014 Program during the three months ended September 30, 2026. As of September 30, 2026, we had repurchased 10,285,404 shares of our common stock for an aggregate purchase price of approximately $727 million under the 2014 Program. Purchases under the 2014 Program may be made either through the open market or in privately negotiated transactions. Decisions regarding the amount and the timing of purchases under the 2014 Program will be influenced by our cash on hand, our cash flows from operations, general market conditions and other factors. The 2014 Program may be discontinued by our Board of Directors at any time.
Previous wording
As of June 30, 2026, our cash and cash equivalents totaled $1,643 million.
Current wording
As of September 30, 2026, our cash and cash equivalents totaled $1,764 million.
Previous wording
As of June 30, 2026, our available-for-sale securities totaled $209 million. See Note 3 "Financial Instruments" to the unaudited consolidated financial statements appearing elsewhere in this Form 10-Q for a discussion of our available-for-sale securities.
Current wording
As of September 30, 2026, our available-for-sale securities totaled $207 million. See Note 3 "Financial Instruments" to the unaudited consolidated financial statements appearing elsewhere in this Form 10-Q for a discussion of our available-for-sale securities.
Previous wording
In addition to our cash and cash equivalents and available-for-sales securities, our credit agreement is available to provide liquidity as needed, as described under "Debt" below.
Current wording
In addition to our cash and cash equivalents and available-for-sale securities, our credit agreement is available to provide liquidity as needed, as described under "Debt" below.
Previous wording
As of June 30, 2026, the carrying value of our indebtedness totaled $5,067 million. See Note 8 "Long-Term Debt" to the unaudited consolidated financial statements appearing elsewhere in this Form 10-Q for more information on our long-term indebtedness, credit agreements and defined terms used in this section.
Current wording
As of September 30, 2026, the carrying value of our indebtedness totaled $5,064 million. See Note 8 "Long-Term Debt" to the unaudited consolidated financial statements appearing elsewhere in this Form 10-Q for more information on our long-term indebtedness, credit agreements and defined terms used in this section.
Previous wording
As of June 30, 2026 we had no borrowings or letters of credit outstanding, had borrowing availability of $1.5 billion, under the Credit Agreement, and were in compliance with the financial covenant under the Credit Agreement.
Current wording
As of September 30, 2026, we had no borrowings or letters of credit outstanding, had borrowing availability of $1.5 billion under the New Credit Agreement, and were in compliance with the financial covenant under the New Credit Agreement.
Previous wording
Our subsidiary, Westlake Polymers LLC, is the administrative agent to a $600 million revolving credit facility with Westlake Chemical OpCo LP ("OpCo") (the "OpCo Revolver") that is scheduled to mature on July 12, 2027. As of June 30, 2026, outstanding borrowings under the credit facility totaled $23 million and bore interest at SOFR plus the Applicable Margin of 1.75% plus a 0.10% credit spread adjustment. On July 12, 2022, OpCo entered into the Second Amendment (the "OpCo Revolver Amendment") to the OpCo Revolver. The OpCo Revolver Amendment, among other things, extended the maturity date to July 12, 2027, and provided for the replacement of LIBOR with SOFR. Borrowings under the OpCo Revolver now bear interest at a variable rate of either (a) SOFR plus the Applicable Margin plus a 0.10% credit spread adjustment or, if SOFR is no longer available, (b) the Alternate Base Rate plus the Applicable Margin minus 1.0%. The Applicable Margin under the OpCo Revolver is 1.75%.
Current wording
Our subsidiary, Westlake Polymers LLC, is the administrative agent to a $600 million revolving credit facility with Westlake Chemical OpCo LP ("OpCo") (the "OpCo Revolver"). As of September 30, 2026, outstanding borrowings under the credit facility totaled $23 million. On July 8, 2026, Westlake Polymers LLC entered into the Third Amendment (the "OpCo Revolver Amendment") to the OpCo Revolver. The OpCo Revolver Amendment extended the maturity date to July 11, 2031 and removed the 0.10% credit spread adjustment that had previously applied to the OpCo Revolver's Secured Overnight Financing Rate, as administered by the Federal Reserve Bank of New York ("SOFR") based interest rate. Borrowings under the OpCo Revolver now bear interest at a variable rate of either (a) SOFR plus the Applicable Margin or, if SOFR is no longer available, (b) the Alternate Base Rate plus the Applicable Margin minus 1.0%. The Applicable Margin under the OpCo Revolver is 1.75%.
Previous wording
Our subsidiary, Westlake Chemical Finance Corporation, is the lender party to a $600 million revolving credit facility with Westlake Chemical Partners LP ("Westlake Partners") (the "MLP Revolver") that is scheduled to mature on July 12, 2027. As of June 30, 2026, outstanding borrowings under the credit facility totaled $377 million and bore interest at Secured Overnight Financing Rate, as administered by the Federal Reserve Bank of New York ("SOFR") plus the Applicable Margin plus a 0.10% credit spread adjustment. On July 12, 2022, Westlake Partners entered into the Fourth Amendment (the "MLP Revolver Amendment") to the MLP Revolver. The MLP Revolver Amendment, among other things, extended the maturity date to July 12, 2027 and provided for the replacement of LIBOR with SOFR. Borrowings under the MLP Revolver now bear interest at a variable rate of either (a) SOFR plus the Applicable Margin plus a 0.10% credit spread adjustment or, if SOFR is no longer available, (b) the Alternate Base Rate plus the Applicable Margin minus 1.0%. The Applicable Margin under the MLP Revolver varies between 1.75% and 2.75%, depending on the Partnership's Consolidated Leverage Ratio.
Current wording
Our subsidiary, Westlake Chemical Finance Corporation, is the lender party to a $600 million revolving credit facility with Westlake Partners (the "MLP Revolver"). As of September 30, 2026, outstanding borrowings under the credit facility totaled $377 million. On July 8, 2026, Westlake Chemical Finance Corporation entered into the Fifth Amendment (the "MLP Revolver Amendment") to the MLP Revolver. The MLP Revolver Amendment extended the maturity date of the MLP Revolver to July 11, 2031 and removed the 0.10% credit spread adjustment that had previously applied to the SOFR-based interest rate. Borrowings under the MLP Revolver now bear interest at a variable rate of either (a) SOFR plus the Applicable Margin or, if SOFR is no longer available, (b) the Alternate Base Rate plus the Applicable Margin minus 1.0%. The Applicable Margin under the MLP Revolver varies between 1.75% and 2.75%, depending on Westlake Partners' Consolidated Leverage Ratio.
Previous wording
•results of the closures of certain of our facilities, including the units located in Pernis, Netherlands, certain of the North American chlorovinyls production assets located in Louisiana and Mississippi, and the styrene production plant located in Louisiana (such as the timing and amount of recognition of related costs and our expectations regarding our financial performance following such closures).
Current wording
•results of the closures of certain of our facilities, including the units located in Pernis, Netherlands, the PVC production plant located in Cologne, Germany, certain of the North American chlorovinyls production assets located in Louisiana and Mississippi, and the styrene production plant located in Louisiana (such as the timing and amount of recognition of related costs and our expectations regarding our financial performance following such closures).
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
On April 2, 2026, the Company entered into a credit agreement for an unsecured revolving credit facility in an aggregate principal amount of up to $1.5 billion. The new revolving credit facility replaces the Company's previous $1.5 billion revolving credit facility, which was terminated on April 2, 2026. See Liquidity and Capital Resources—Debt—Credit Agreement below, and Note 8 "Long-Term Debt" to the unaudited consolidated financial statements appearing elsewhere in this Form 10-Q, for more information.