Westlake (WLK) 16th Annual Wells Fargo Industrials & Materials Conference summary

Market and geopolitical impacts

• Middle East conflict has raised naphtha prices, increasing PVC production costs for global competitors, while North American producers benefit from stable natural gas-based feedstocks.

• Pricing initiatives in PVC accelerated since the conflict, with significant price increases realized from January through June.

• Polyethylene markets tightened due to 15% of global capacity being offline from Middle East disruptions, supporting higher prices.

Business performance and demand trends

• Infrastructure and repair/remodeling segments show meaningful improvement, offsetting weaker new construction demand.

• Caustic soda prices rose $75/ton YTD, with strong industrial demand supporting further price increases.

• Epoxy business returned to profitability after shuttering a loss-making Rotterdam plant and focusing on specialty materials.

Strategic initiatives and cost optimization

• Six loss-making, export-oriented plants shuttered last year, driving structural cost savings and footprint optimization.

• On track to achieve $600 million in structural cost savings across footprint optimization, cost reduction, and plant reliability.