Westlake Chemical Partners (WLKP) Q2 2026 earnings summary

Executive summary

• Net income for Q2 2026 was $82.4 million on net sales of $297.1 million, down $3.4 million from Q2 2025, mainly due to lower ethylene sales prices to Westlake, despite higher sales volumes and co-product sales.

• Net income attributable to the partnership for Q2 2026 was $14.2 million ($0.40 per unit), slightly below Q2 2025's $14.6 million.

• MLP distributable cash flow for Q2 2026 increased to $17.6 million from $15.0 million in Q2 2025.

• Achieved 48 consecutive quarterly distributions since IPO in 2014, with no reductions.

• Cash flows from operating activities surged to $240.0 million for the first half of 2026, up from $54.9 million in 2025.

Financial highlights

• Q2 2026 net sales were $297.1 million, nearly flat year-over-year; excluding a $13.6 million buyer deficiency fee in Q2 2025, net sales increased by $13.6 million, or 4.8%.

• Gross profit for Q2 2026 was $94.8 million (31.9% margin), down from $97.5 million (32.8% margin) in Q2 2025.

• EBITDA for Q2 2026 was $122.7 million, compared to $124.4 million in Q2 2025.

• Distributable cash flow for Q2 2026 was $17.6 million, up from $15.0 million in Q2 2025.

• Cash and cash equivalents at June 30, 2026, were $49.3 million, with an additional $43.6 million invested under the Investment Management Agreement.

Outlook and guidance

• No planned turnarounds in 2026, supporting stable operations.

• Management expects to continue providing strong returns and predictable cash flows, supported by the ethylene sales agreement.

• Ethylene margins expected to remain stable due to fixed margin agreement, despite market volatility from Middle East conflict.

• The board approved a quarterly distribution of $0.4714 per common unit, equating to $16.6 million per quarter.

• Focus remains on long-term value and reliable distributions.