Earnings and Dividends per Share
The Company has unvested restricted stock units outstanding that are considered participating securities and, therefore, computes basic and diluted earnings per share under the two-class method. Basic earnings per share for the periods are based upon the weighted average number of shares of common stock outstanding during the periods. Diluted earnings per share include the effects of certain stock options and performance stock units.
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| | Year Ended December 31, |
| | 2025 | | 2024 | | 2023 |
| Net income (loss) attributable to Westlake Corporation | | $ | (1,508) | | | $ | 602 | | | $ | 479 | |
| Less: | | | | | | |
| Net income (loss) attributable to participating securities | | (7) | | | 3 | | | 3 | |
| Net income (loss) attributable to common stockholders | | $ | (1,501) | | | $ | 599 | | | $ | 476 | |
The following table reconciles the denominator for the basic and diluted earnings per share computations shown in the consolidated statements of operations:
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| | Year Ended December 31, |
| | 2025 | | 2024 | | 2023 |
| Weighted average common shares—basic | | 128,260,331 | | | 128,535,226 | | | 127,806,317 | |
| Plus incremental shares from: | | | | | | |
| Assumed exercise of options and vesting of performance stock units | | — | | | 671,696 | | | 792,124 | |
| Weighted average common shares—diluted | | 128,260,331 | | | 129,206,922 | | | 128,598,441 | |
| | | | | | |
| Earnings per common share attributable to Westlake Corporation | | | | | | |
| Basic | | $ | (11.70) | | | $ | 4.66 | | | $ | 3.73 | |
| Diluted | | $ | (11.70) | | | $ | 4.64 | | | $ | 3.70 | |
Excluded from the computation of diluted earnings per share for the years ended December 31, 2025, 2024 and 2023 are options to purchase 920,880, 275,024 and 263,131 shares of common stock, respectively. Performance stock units assumed vesting of 167,030 for the year ended December 31, 2025 is also excluded. These options and performance stock units were excluded because the effect of including them would have been antidilutive.
Dividends per Share
Dividends per common share for the years ended December 31, 2025, 2024 and 2023 were as follows:
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| | Year Ended December 31, |
| | 2025 | | 2024 | | 2023 |
| Dividends per common share | | $ | 2.1100 | | | $ | 2.0500 | | | $ | 1.7140 | |
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.