Free cash flow has deteriorated to a negative 11.4% margin in 2026Q1, yet the company continues to distribute $68 million in quarterly dividends despite the lack of internal cash generation.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'00 | Dec'99 |
|---|
| Cash from Operations | 448M | 465M | 1.31B | 2.34B | 3.4B | 2.39B | 1.3B | 1.3B | 1.41B | 1.54B | 833.85M | 1.08B | 1.03B | 752.73M | 624.05M | 362.3M | 283.28M | 235.52M | 186.09M | 62.17M | 237.18M | 318.45M | 150.78M | 78.09M | -21.33M | 173.38M | 132.88M |
| Operating CF Margin % | - | 4.16% | 10.82% | 18.62% | 21.5% | 20.33% | 17.28% | 16.03% | 16.32% | 19.13% | 16.43% | 24.17% | 23.38% | 20.02% | 17.48% | 10.01% | 8.93% | 10.13% | 5.04% | 1.95% | 9.55% | 13.05% | 7.59% | 5.49% | -1.99% | 12.45% | 12.56% |
| Operating CF Growth % | -174.88% | -64.61% | -43.75% | -31.19% | 41.81% | 84.58% | -0.31% | -7.66% | -8.39% | 84.45% | -22.71% | 4.5% | 37.15% | 20.62% | 72.25% | 27.89% | 20.28% | 26.56% | 199.34% | -73.79% | -25.52% | 111.2% | 93.09% | 466.16% | -112.3% | 30.47% | - |
| Net Income | -1.64B | -1.47B | 647M | 522M | 2.3B | 2.07B | 373M | 462M | 1.03B | 1.34B | 419.86M | 665.04M | 685.02M | 610.42M | 385.56M | 258.97M | 221.39M | 52.99M | -29.54M | 114.73M | 194.56M | 226.82M | 120.72M | 14.76M | -7.06M | 55M | 37.8M |
| Depreciation & Amortization | 1.18B | 1.18B | 1.11B | 1.1B | 1.06B | 840M | 773M | 713M | 641M | 601M | 377.67M | 245.76M | 208.49M | 157.81M | 144.54M | 131.4M | 128.73M | 123.2M | 111.93M | 104.27M | 87.11M | 82.7M | 83.17M | 88.18M | 88.02M | 78.76M | 86.46M |
| Stock-Based Compensation | -7M | 41M | 41M | 43M | 36M | 31M | 29M | 25M | 22M | 23M | 14.19M | 10.2M | 9.26M | 6.97M | 6.13M | 6.39M | 6.16M | 5.64M | 4.18M | 2.87M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -142M | -177M | -35M | -175M | -21M | 23M | 146M | 54M | 62M | -534M | 100.68M | 39.78M | 58.97M | 93.73M | -5.79M | 14.11M | 14.15M | 31.21M | -13.88M | 5.29M | 13.85M | 45.74M | 65.19M | 7.11M | -4.72M | 0 | 0 |
| Other Non-Cash Items | 939M | 1.08B | 16M | 517M | 51M | 44M | 54M | 50M | 24M | 19M | -40.04M | -7.98M | 6.05M | 7.15M | -6.52M | -6.39M | -6.16M | 1.87M | 20.52M | -1.65M | 4.91M | 2.99M | 3.93M | 7.09M | 9.59M | 39.62M | 8.62M |
| Working Capital Changes | 72M | -186M | -469M | 332M | -24M | -614M | -78M | -3M | -374M | 90M | -38.5M | 126.04M | 64.6M | -123.36M | 100.14M | -42.18M | -80.99M | 20.61M | 92.89M | -163.34M | -64.33M | -39.8M | -122.23M | -39.05M | -107.16M | 0 | 0 |
| Change in Receivables | -18M | 15M | 87M | 225M | 325M | -528M | -161M | 59M | -58M | -40M | 50.29M | 62.72M | 33.16M | -14.83M | 6.45M | -45.77M | -33.48M | 5.67M | 148.85M | -200.66M | -7.41M | 0 | -39.31M | -42.18M | 0 | 0 | 0 |
| Change in Inventory | 66M | 51M | -97M | 250M | -140M | -309M | 29M | 112M | -123M | -32M | -61.98M | 99.43M | 51.09M | -46.63M | 91.48M | -40.75M | -80.61M | -41.45M | 199.9M | -71.59M | -47.27M | -20.05M | -119.06M | -9.89M | -42.64M | 0 | 0 |
| Change in Payables | -102M | -67M | -20M | -26M | -153M | 242M | 67M | -89M | -100M | 86M | 11.95M | -21.6M | -97.24M | 13.82M | -12.72M | 20.31M | 25.64M | 67.04M | -202.87M | 77.44M | 59.15M | 0 | 30.82M | 25.2M | 0 | 0 | 0 |
| Cash from Investing | -1.06B | -1.22B | -1B | -1.04B | -2.48B | -3.21B | -509M | -1.95B | -754M | -652M | -2.56B | -1.01B | -773.21M | -1B | -466.97M | -202.78M | -80.28M | -103.19M | -171.95M | -124.81M | -404.34M | -87.59M | -79.96M | -41.58M | -38.69M | -87.69M | -25.25M |
| Capital Expenditures | -956M | -995M | -1.01B | -1.03B | -1.11B | -658M | -525M | -787M | -702M | -577M | -628.48M | -491.43M | -431.1M | -679.36M | -391.19M | -176.84M | -81.27M | -99.77M | -172.56M | -135.72M | -136.26M | -85.76M | -52.71M | -44.93M | -43.59M | 0 | 0 |
| CapEx % of Revenue | 8.71% | 8.91% | 8.3% | 8.24% | 7.02% | 5.59% | 7% | 9.69% | 8.13% | 7.18% | 12.38% | 11.01% | 9.76% | 18.07% | 10.95% | 4.89% | 2.56% | 4.29% | 4.67% | 4.25% | 5.48% | 3.51% | 2.65% | 3.16% | 4.06% | - | - |
| Acquisitions | -56M | 0 | -26M | -25M | -1.38B | -2.58B | 26M | -1.18B | -68M | -13M | -2.44B | 43.65M | -611.09M | -201.65M | 2.3M | 0 | 914K | -6.3M | 8.04M | 8.04M | -235.67M | 0 | -33.29M | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -25M | -24M | 33M | 22M | 12M | 23M | -10M | 9M | 16M | 4M | -4M | -2.2M | 46.1M | 318K | 1.66M | 4.07M | 763K | 2.88M | -7.43M | 3M | -27.83M | 37K | 6.04M | 18.45M | 4.9M | -87.69M | -25.25M |
| Cash from Financing | 563M | 530M | -650M | -245M | -587M | 1.44B | -216M | 630M | -1.43B | 160M | 1.53B | -286.81M | 164.64M | -79.27M | -192.91M | 36.09M | 181.7M | 23.02M | 51.19M | 34.91M | -18.1M | -36.36M | -64.8M | -10.25M | -7.96M | -83.29M | -129.52M |
| Debt Issued (Net) | 933M | 933M | -300M | 0 | -250M | 1.67B | 28M | 786M | -1.17B | 21M | 1.86B | -20.66M | 0 | 0 | -1.18M | 0 | 0 | 0 | -3.81M | 1.18M | -6.82M | -31.2M | -244.59M | 3.85M | -4.58M | 0 | 0 |
| Equity Issued (Net) | -33M | -63M | -60M | -23M | -101M | -30M | -54M | 33M | -106M | 0 | -67M | -163M | 233.46M | -32.92M | -415K | -2.52M | 0 | 0 | 0 | 328K | 1.85M | 1.18M | 181.17M | 0 | 0 | 0 | 0 |
| Dividends Paid | -272M | -272M | -264M | -221M | -169M | -145M | -137M | -132M | -120M | -103M | -96.56M | -91.55M | -77.66M | -55.24M | -285.52M | -18.27M | -16.01M | -14.51M | -13.46M | -11.78M | -8.8M | -6.34M | -1.38M | 0 | 0 | 0 | 0 |
| Share Repurchases | -33M | -63M | -60M | -23M | -101M | -30M | -54M | -30M | -106M | 0 | -67.41M | -162.46M | -52.63M | -32.92M | -10.78M | -2.52M | 0 | 0 | 0 | 0 | 0 | 0 | -11.48M | 0 | 0 | 0 | 0 |
| Other Financing | -65M | -68M | -26M | -1M | -67M | -59M | -53M | -57M | -36M | 94M | -166.24M | -11.61M | 8.84M | 8.89M | 94.21M | 56.87M | 197.71M | 37.53M | 68.46M | 45.18M | -4.33M | 0 | 0 | -14.1M | -3.38M | -83.29M | -129.52M |
| Net Change in Cash | -25M | -195M | -384M | 1.07B | 305M | 604M | 587M | -25M | -779M | 1.07B | -203.07M | -218.08M | 419.3M | -328.78M | -35.82M | 195.6M | 384.71M | 155.35M | 65.33M | -27.73M | -185.25M | 194.5M | 6.01M | 26.26M | -67.97M | -83.29M | -129.52M |
| Free Cash Flow | -508M | -530M | 306M | 1.3B | 2.29B | 1.74B | 772M | 514M | 707M | 961M | 205.37M | 587.41M | 601.27M | 73.37M | 232.86M | 185.45M | 202.01M | 135.75M | 13.53M | -73.56M | 100.93M | 232.69M | 98.07M | 33.16M | -64.91M | 173.38M | 132.88M |
| FCF Margin % | -4.63% | -4.74% | 2.52% | 10.38% | 14.48% | 14.74% | 10.29% | 6.33% | 8.19% | 11.95% | 4.05% | 13.16% | 13.62% | 1.95% | 6.52% | 5.12% | 6.37% | 5.84% | 0.37% | -2.3% | 4.06% | 9.53% | 4.94% | 2.33% | -6.05% | 12.45% | 12.56% |
| FCF Growth % | -704.76% | -273.2% | -76.5% | -43.07% | 31.74% | 124.87% | 50.19% | -27.3% | -26.43% | 367.94% | -65.04% | -2.31% | 719.5% | -68.49% | 25.56% | -8.2% | 48.81% | 903.5% | 118.39% | -172.88% | -56.63% | 137.26% | 195.79% | 151.08% | -137.44% | 30.47% | - |
| FCF per Share | -3.97 | -4.11 | 2.37 | 10.12 | 17.75 | 13.49 | 6.03 | 3.99 | 5.44 | 7.42 | 1.58 | 4.44 | 4.50 | 0.55 | 1.75 | 1.40 | 1.54 | 1.03 | 0.10 | -0.56 | 0.77 | 1.78 | 0.89 | 0.33 | -0.66 | 1.75 | 1.34 |
| FCF Conversion (FCF/Net Income) | 0.31x | -0.31x | 2.18x | 4.88x | 1.51x | 1.19x | 3.93x | 3.09x | 1.41x | 1.18x | 2.09x | 1.67x | 1.52x | 1.23x | 1.62x | 1.40x | 1.28x | 4.44x | -6.30x | 0.54x | 1.22x | 1.40x | 1.25x | 5.29x | 3.02x | 3.15x | 3.52x |
| Interest Paid | -54M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 42.27M | 0 | 33.98M | 0 | 33.62M | 19.08M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | -30M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 179.88M | 0 | 108.22M | 0 | 42.68M | 16.19M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Cyclical housing demand sensitivity
As reported in recent financial statements, Westlake’s operating cash flow frequently decouples from net income, evidenced by a volatile OCF/NI ratio that reached 0.56 in 2026Q1, suggesting that non-cash charges and working capital swings are masking the underlying cash-generating capacity of the core business.
The significant gap between net income and operating cash flow indicates that accounting earnings are currently poor proxies for actual liquidity. Investors should monitor whether this divergence is driven by persistent inventory write-downs or if it reflects a structural inability to convert sales into cash during this cyclical downturn.
Based on quarterly data, Westlake’s free cash flow trajectory has shifted from positive territory in 2024Q4 to a negative 11.4% margin by 2026Q1, highlighting a rapid deterioration in the company's ability to fund operations and dividends through internal cash generation alone.
The consistent negative FCF trend suggests that the company's capital-intensive model is struggling to adapt to current market conditions. This trajectory warrants further investigation into whether the current level of cash burn is sustainable without further depleting the existing liquidity cushion.
According to recent SEC filings, Westlake maintains a high capital intensity, with CapEx/Revenue ratios consistently hovering near 8-10%, which appears increasingly burdensome given the ongoing contraction in top-line performance and the current negative operating margin environment.
The company continues to commit significant capital to maintenance and infrastructure despite the cyclical headwinds. This suggests that management may be prioritizing long-term asset integrity over short-term cash preservation, a strategy that could prove risky if the current demand trough persists longer than anticipated.
Financial data indicates that working capital changes have become a primary source of cash flow volatility, with a significant $264 million outflow in 2026Q1, suggesting that inventory management and receivables collection are becoming increasingly difficult to optimize in the current macro environment.
The erratic nature of these working capital swings implies that the company is struggling to align production levels with actual end-market demand. This instability in cash conversion cycles may indicate that the company is accumulating excess inventory that could require future impairments.
As reported in financial statements, Westlake has continued to prioritize dividend payments of $68 million per quarter despite negative free cash flow, a policy that appears increasingly aggressive given the current lack of internal cash generation and the broader industry downturn.
While the company's cash reserves provide a temporary buffer, the decision to maintain dividends while burning cash suggests a commitment to shareholder returns that may not be supported by current operational realities. Investors should monitor whether this capital allocation strategy remains viable if the current negative margin environment continues.
Quick answers to the most common questions about buying WLK stock.
Westlake Corporation (WLK) generated $465.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Westlake Corporation (WLK) reported negative free cash flow of $530.0M in 2025, indicating capital requirements exceeded cash from operations.
Westlake Corporation (WLK) spent $995.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Westlake Corporation (WLK) returned $272.0M to shareholders via cash dividends and spent $63.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.