Westlake Corporation (WLK) is sliding after reporting first-quarter 2026 results showing a wider loss profile than investors were positioned for, alongside notable one-time items. The company posted a net loss attributable to Westlake of $169 million (a loss of $1.31 per share) on net sales of $2.652 billion, with EBITDA of $150 million.

The quarter included $85 million of identified items, led by a $67 million charge to settle litigation involving direct purchasers of PVC pipe and fittings in the U.S., plus $18 million of charges related to previously announced facility shutdowns and cost-saving actions. Excluding identified items, Westlake reported a net loss of $100 million (a loss of $0.77 per share) and EBITDA of $235 million, highlighting that underlying profitability is still pressured even after adjustments.

In Housing and Infrastructure Products (HIP), net sales were $993 million and segment profitability weakened versus the prior year, with the company pointing to subdued North American residential construction and lower average sales prices as offsets to infrastructure-related demand strength. In Performance and Essential Materials (PEM), results remained challenged, though management indicated late-quarter margin improvement and emphasized that the closure of the Strait of Hormuz in March contributed to higher PVC resin and polyethylene prices via higher global feedstock and energy costs, which it expects to benefit PEM margins through at least summer 2026.