WESTLAKE CORPWLK
WESTLAKE CORP Segments Disclosure
Segment and Geographic Information
Segment Information
The Company has two principal operating segments, which are the Company's reportable segments, Housing and Infrastructure Products and Performance and Essential Materials. These segments are strategic business units that each offer a variety of different materials and products. The Company manages each segment separately as each business requires different technology and marketing strategies. The operating results of each segment are reviewed by the Company's Chief Executive Officer, the chief operating decision maker ("CODM"). The CODM evaluates segment performance based on income from operations. The CODM reviews each segment's actual and forecasted income from operations to allocate resources and assess performance.
The Housing and Infrastructure Products segment manufactures and markets products including residential siding, trim and mouldings, stone, roofing, windows, outdoor living products, PVC pipe and fittings and compounds made from PVC and other polymers. As of December 31, 2025, the Company owned or leased 64 manufacturing facilities in North America, Europe and Asia. The Company's North American PVC facilities within the Performance and Essential Materials segment supply most of the PVC required for the building products and pipe and fittings plants. The raw materials for stone, roofing and accessories, windows, shutters and specialty tool products are externally purchased. PVC required for the compounds plants is either internally sourced from Company's North American or Asian facilities or externally purchased at market prices based on the location of the plants.
The Company's Performance and Essential Materials segment manufactures and markets polyethylene, ethylene co-products, PVC, VCM, ethylene dichloride ("EDC"), chlor-alkali (chlorine and caustic soda), chlorinated derivative products and epoxy resins. The Company's ethylene production is used in the Company's polyethylene and VCM operations. In addition, the Company sells ethylene and ethylene co-products, primarily propylene, crude butadiene, pyrolysis gasoline and hydrogen, to external customers. The Company's primary North American manufacturing facilities are located in its Calvert City, Kentucky; Lake Charles, Plaquemine and Geismar, Louisiana; Longview and Deer Park, Texas; Lakeland, Florida and Argo, Illinois sites. The Company's primary European facility is located in Germany. The Company produces ethylene and polyethylene at its facilities in Lake Charles, Louisiana; Calvert City, Kentucky and Longview, Texas. The Company produces chlorine, caustic soda, VCM, EDC, PVC, hydrogen and chlorinated derivative materials at its facilities in Lake Charles, Plaquemine and Geismar, Louisiana; Calvert City, Kentucky; Natrium, West Virginia; Longview, Washington; Beauharnois, Quebec and in Germany. Epoxy resins primarily comprise of Epoxy Specialty Resins and Base Epoxy Resins and Intermediaries. Epoxy Specialty Resins are produced at manufacturing facilities in Duisburg and Esslingen in Germany; Argo and Lakeland in the United States; one plant in Spain and one plant in South Korea. Base Epoxy Resins and Intermediaries are produced at Company's plant in Deer Park, United States. In addition, the Company also has other manufacturing facilities and product development facilities in North America, Europe and Asia. Certain production facilities under the Performance and Essential Materials segment ceased operations in 2025. See Note 18 for more detailed information.
No single customer accounted for 10% or more of net sales for the years ended December 31, 2025, 2024 or 2023.
The accounting policies of the individual segments are the same as those described in Note 1.
| Year Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| Net external sales | ||||||||||||||||||||
Housing and Infrastructure Products | ||||||||||||||||||||
Housing Products | $ | 3,513 | $ | 3,644 | $ | 3,494 | ||||||||||||||
Infrastructure Products | 635 | 673 | 718 | |||||||||||||||||
Total Housing and Infrastructure Products | 4,148 | 4,317 | 4,212 | |||||||||||||||||
| Performance and Essential Materials | ||||||||||||||||||||
| Performance Materials | 4,018 | 4,626 | 4,656 | |||||||||||||||||
| Essential Materials | 3,004 | 3,199 | 3,680 | |||||||||||||||||
| Total Performance and Essential Materials | 7,022 | 7,825 | 8,336 | |||||||||||||||||
Total reportable segments and consolidated | $ | 11,170 | $ | 12,142 | $ | 12,548 | ||||||||||||||
| Intersegment sales | ||||||||||||||||||||
| Performance and Essential Materials | 406 | 484 | 408 | |||||||||||||||||
Total reportable segments | $ | 406 | $ | 484 | $ | 408 | ||||||||||||||
Significant segment expenses | ||||||||||||||||||||
| Housing and Infrastructure Products | ||||||||||||||||||||
| Raw material, energy, manufacturing and logistics costs | $ | 2,898 | $ | 2,882 | $ | 2,873 | ||||||||||||||
| Depreciation and amortization | 154 | 138 | 132 | |||||||||||||||||
| Total cost of sales | $ | 3,052 | $ | 3,020 | $ | 3,005 | ||||||||||||||
| Selling, general and administrative expenses | 416 | 410 | 400 | |||||||||||||||||
| Depreciation and amortization | 77 | 75 | 75 | |||||||||||||||||
| Restructuring, transaction and integration-related costs | 16 | 5 | 22 | |||||||||||||||||
Performance and Essential Materials | ||||||||||||||||||||
| Raw material, energy, manufacturing and logistics costs | $ | 6,827 | $ | 6,808 | $ | 6,926 | ||||||||||||||
Depreciation and amortization | 881 | 838 | 823 | |||||||||||||||||
Total cost of sales | $ | 7,708 | $ | 7,646 | $ | 7,749 | ||||||||||||||
| Year Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
Selling, general and administrative expenses | 416 | 394 | 401 | |||||||||||||||||
Depreciation and amortization | 53 | 54 | 58 | |||||||||||||||||
Impairment of goodwill and long-lived assets | 727 | — | 475 | |||||||||||||||||
Restructuring, transaction and integration-related costs | 624 | 86 | 2 | |||||||||||||||||
Income (loss) from operations | ||||||||||||||||||||
Housing and Infrastructure Products | $ | 587 | $ | 807 | $ | 710 | ||||||||||||||
| Performance and Essential Materials | (2,100) | 129 | 59 | |||||||||||||||||
Total reportable segments | $ | (1,513) | $ | 936 | $ | 769 | ||||||||||||||
| Depreciation and amortization | ||||||||||||||||||||
Housing and Infrastructure Products | $ | 231 | $ | 213 | $ | 207 | ||||||||||||||
| Performance and Essential Materials | 934 | 892 | 881 | |||||||||||||||||
Total reportable segments | 1,165 | 1,105 | 1,088 | |||||||||||||||||
| Corporate and other | 13 | 9 | 9 | |||||||||||||||||
Consolidated | $ | 1,178 | $ | 1,114 | $ | 1,097 | ||||||||||||||
| Other income, net | ||||||||||||||||||||
Housing and Infrastructure Products | $ | 5 | $ | 30 | $ | 32 | ||||||||||||||
| Performance and Essential Materials | 57 | 65 | 25 | |||||||||||||||||
Total reportable segments | 62 | 95 | 57 | |||||||||||||||||
| Corporate and other | 90 | 127 | 79 | |||||||||||||||||
Consolidated | $ | 152 | $ | 222 | $ | 136 | ||||||||||||||
| Provision for (benefit from) income taxes | ||||||||||||||||||||
Housing and Infrastructure Products | $ | 162 | $ | 336 | $ | 194 | ||||||||||||||
| Performance and Essential Materials | (310) | 68 | (63) | |||||||||||||||||
Total reportable segments | (148) | 404 | 131 | |||||||||||||||||
| Corporate and other | 22 | (113) | 47 | |||||||||||||||||
Consolidated | $ | (126) | $ | 291 | $ | 178 | ||||||||||||||
| Capital expenditures | ||||||||||||||||||||
Housing and Infrastructure Products | $ | 189 | $ | 185 | $ | 164 | ||||||||||||||
| Performance and Essential Materials | 795 | 821 | 857 | |||||||||||||||||
Total reportable segments | 984 | 1,006 | 1,021 | |||||||||||||||||
| Corporate and other | 11 | 2 | 13 | |||||||||||||||||
Consolidated | $ | 995 | $ | 1,008 | $ | 1,034 | ||||||||||||||
A reconciliation of total reportable segments income (loss) from operations to consolidated income (loss) before income taxes is as follows:
| Year Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
Total reportable segments income (loss) from operations | $ | (1,513) | $ | 936 | $ | 769 | ||||||||||||||
Corporate and other loss from operations | (65) | (61) | (40) | |||||||||||||||||
| Interest expense | (171) | (159) | (165) | |||||||||||||||||
| Other income, net | 152 | 222 | 136 | |||||||||||||||||
Income (loss) before income taxes | $ | (1,597) | $ | 938 | $ | 700 | ||||||||||||||
| December 31, 2025 | December 31, 2024 | |||||||||||||
| Total assets | ||||||||||||||
Housing and Infrastructure Products | $ | 4,913 | $ | 4,855 | ||||||||||
Performance and Essential Materials (1) | 12,091 | 13,151 | ||||||||||||
Total reportable segments | 17,004 | 18,006 | ||||||||||||
| Corporate and other | 2,957 | 2,744 | ||||||||||||
Consolidated | $ | 19,961 | $ | 20,750 | ||||||||||
Geographic Information
| Year Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
Net sales to external customers (2) | ||||||||||||||||||||
| United States | $ | 7,954 | $ | 8,751 | $ | 8,955 | ||||||||||||||
| Foreign | ||||||||||||||||||||
| Canada | 777 | 792 | 808 | |||||||||||||||||
| Germany | 583 | 594 | 602 | |||||||||||||||||
Mexico | 194 | 206 | 217 | |||||||||||||||||
China | 162 | 195 | 220 | |||||||||||||||||
Brazil | 153 | 142 | 215 | |||||||||||||||||
Italy | 144 | 145 | 135 | |||||||||||||||||
France | 125 | 120 | 138 | |||||||||||||||||
| Other | 1,078 | 1,197 | 1,258 | |||||||||||||||||
| $ | 11,170 | $ | 12,142 | $ | 12,548 | |||||||||||||||
| December 31, 2025 | December 31, 2024 | |||||||||||||
Property, plant and equipment, net | ||||||||||||||
| United States | $ | 7,305 | $ | 7,465 | ||||||||||
| Foreign | ||||||||||||||
| Germany | 873 | 766 | ||||||||||||
| Other | 427 | 402 | ||||||||||||
| $ | 8,605 | $ | 8,633 | |||||||||||
______________________________
(1)Includes equity method investments of $1,062 and $1,081 as of December 31, 2025 and 2024, respectively.
(2)Net sales are attributed to countries based on location of customer.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 22, 2023 | |
| 2021 | Feb 23, 2022 | |
| 2020 | Feb 24, 2021 | |
| 2019 | Feb 19, 2020 | |
| 2018 | Feb 20, 2019 | |
| 2017 | Feb 21, 2018 | |
| 2016 | Feb 22, 2017 | |
| 2015 | Feb 24, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.