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Westlake Rides Infrastructure Boom Amid Market Slump
27 Aug
Summary
- HIP unit sales grew 8% due to infrastructure and data center demand.
- Westlake completed several acquisitions to expand its product reach.
- Company improved cash generation and reduced outstanding debt.
Westlake Corporation is experiencing growth in its Housing and Infrastructure Products (HIP) division, with sales rising 8% to $1.25 billion in the second quarter of 2026. This increase was fueled by demand for pipe and fittings linked to U.S. infrastructure projects and data centers. The company's housing products also saw a 3% sales increase. Westlake has strategically expanded its offerings through acquisitions, including ACI for specialty materials and a German PVC site to bolster its chlorovinyls presence in Europe.
Financially, Westlake demonstrated strong performance by significantly improving cash generation in the second quarter of 2026. Operating activities provided $318 million in cash, enabling the company to achieve positive free cash flow after capital expenditures. This improved liquidity allowed Westlake to redeem approximately $500 million of its outstanding senior notes, reinforcing its financial stability. As of June 30, 2026, the company held $1.64 billion in cash and cash equivalents.
