The partnership maintains robust profitability with a 30.7% gross margin in 2026Q1, though revenue growth remains inconsistent and heavily dependent on non-recurring factors.
| 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 |
|---|
| Sales/Revenue | 1.23B | 1.17B | 1.14B | 1.19B | 1.59B | 1.21B | 966.67M | 1.09B | 1.29B | 1.17B | 986.74M | 1.01B | 1.75B | 2.13B | 2.25B |
| Revenue Growth % | 13.4% | 2.71% | -4.61% | -25.26% | 31.14% | 25.67% | -11.47% | -15.07% | 9.6% | 18.87% | -2.03% | -42.43% | -17.77% | -5.4% | - |
| Cost of Goods Sold | 847.22M | 818.85M | 716.96M | 803.33M | 1.22B | 773.15M | 587.79M | 712.44M | 908.46M | 769.31M | 595.4M | 624.34M | 1B | 1.26B | 1.61B |
| COGS % of Revenue | - | 70.19% | 63.12% | 67.46% | 76.31% | 63.64% | 60.81% | 65.25% | 70.66% | 65.59% | 60.34% | 61.99% | 57.37% | 58.99% | 71.74% |
| Gross Profit | 387.53M | 347.85M | 418.94M | 387.46M | 377.37M | 441.71M | 378.88M | 379.43M | 377.16M | 403.67M | 391.33M | 382.88M | 745.81M | 872.61M | 635.65M |
| Gross Margin % | 31.39% | 29.81% | 36.88% | 32.54% | 23.69% | 36.36% | 39.19% | 34.75% | 29.34% | 34.41% | 39.66% | 38.01% | 42.63% | 41.01% | 28.26% |
| Gross Profit Growth % | - | -16.97% | 8.12% | 2.67% | -14.57% | 16.58% | -0.14% | 0.6% | -6.57% | 3.15% | 2.21% | -48.66% | -14.53% | 37.28% | - |
| Operating Expenses | 27.99M | 28.27M | 28.5M | 29.75M | 29.68M | 31.02M | 25.89M | 29.28M | 27.59M | 29.26M | 24.89M | 23.55M | 29.26M | 25.45M | 24.1M |
| OpEx % of Revenue | - | 2.42% | 2.51% | 2.5% | 1.86% | 2.55% | 2.68% | 2.68% | 2.15% | 2.49% | 2.52% | 2.34% | 1.67% | 1.2% | 1.07% |
| Selling, General & Admin | 27.99M | 28.27M | 28.5M | 29.75M | 29.68M | 31.02M | 25.89M | 29.28M | 27.59M | 29.26M | 24.89M | 23.55M | 29.26M | 25.45M | 24.1M |
| SG&A % of Revenue | - | 2.42% | 2.51% | 2.5% | 1.86% | 2.55% | 2.68% | 2.68% | 2.15% | 2.49% | 2.52% | 2.34% | 1.67% | 1.2% | 1.07% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 160K | 0 | 0 | 0 |
| Operating Income | 359.54M | 319.58M | 390.44M | 357.71M | 347.69M | 410.69M | 352.99M | 350.15M | 349.57M | 374.41M | 366.44M | 359.33M | 716.56M | 847.16M | 611.55M |
| Operating Margin % | 29.12% | 27.39% | 34.37% | 30.04% | 21.82% | 33.81% | 36.52% | 32.07% | 27.19% | 31.92% | 37.14% | 35.68% | 40.95% | 39.81% | 27.19% |
| Operating Income Growth % | - | -18.15% | 9.15% | 2.88% | -15.34% | 16.35% | 0.81% | 0.17% | -6.63% | 2.17% | 1.98% | -49.85% | -15.42% | 38.53% | - |
| EBITDA | 465.71M | 447.56M | 502.34M | 467.91M | 468.76M | 519.5M | 456.14M | 457.47M | 458.41M | 488.39M | 464.65M | 440.54M | 794.17M | 920.62M | 675.81M |
| EBITDA Margin % | 37.72% | 38.36% | 44.22% | 39.29% | 29.42% | 42.76% | 47.19% | 41.9% | 35.66% | 41.64% | 47.09% | 43.74% | 45.39% | 43.27% | 30.05% |
| EBITDA Growth % | 6.92% | -10.91% | 7.36% | -0.18% | -9.77% | 13.89% | -0.29% | -0.21% | -6.14% | 5.11% | 5.47% | -44.53% | -13.74% | 36.23% | - |
| D&A (Non-Cash Add-back) | 106.17M | 127.98M | 111.9M | 110.2M | 121.07M | 108.81M | 103.15M | 107.32M | 108.84M | 113.98M | 98.21M | 81.21M | 77.61M | 73.46M | 64.26M |
| EBIT | 360.64M | 322.02M | 395.69M | 361.94M | 349.25M | 410.75M | 353.72M | 353.25M | 352.03M | 376.2M | 367.05M | 359.49M | 719.71M | 854.86M | 615.74M |
| Net Interest Income | -40.25M | -22.9M | -25.7M | -26.5M | -13.41M | -8.82M | -12.04M | -19.62M | -21.43M | -21.86M | -12.61M | -4.97M | -10.5M | -8.03M | -8.94M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 35.16M | 22.9M | 25.7M | 26.5M | 13.41M | 8.82M | 12.04M | 19.62M | 21.43M | 21.86M | 12.61M | 4.97M | 10.5M | 8.03M | 8.94M |
| Other Income/Expense | -21M | -20.45M | -20.45M | -22.27M | -11.84M | -8.75M | -11.3M | -16.53M | -18.98M | -20.07M | -12.01M | -4.81M | -7.35M | -331K | -4.75M |
| Pretax Income | 338.54M | 299.12M | 369.99M | 335.44M | 335.85M | 401.93M | 341.68M | 333.62M | 330.59M | 354.34M | 354.44M | 354.52M | 709.21M | 846.83M | 606.8M |
| Pretax Margin % | 27.42% | 25.64% | 32.57% | 28.17% | 21.08% | 33.08% | 35.35% | 30.56% | 25.71% | 30.21% | 35.92% | 35.2% | 40.53% | 39.8% | 26.98% |
| Income Tax | 617K | 547K | 835K | 813K | 1.02M | 549K | 564K | 728K | 22K | 1.28M | 1.03M | 672K | 199.39M | 300.28M | 210.88M |
| Effective Tax Rate % | 0.18% | 0.18% | 0.23% | 0.24% | 0.3% | 0.14% | 0.17% | 0.22% | 0.01% | 0.36% | 0.29% | 0.19% | 28.11% | 35.46% | 34.75% |
| Net Income | 195.12M | 298.58M | 62.39M | 54.28M | 64.17M | 82.55M | 66.17M | 60.98M | 49.35M | 48.67M | 40.94M | 39.83M | 13.58M | 546.55M | 395.92M |
| Net Margin % | 15.8% | 25.59% | 5.49% | 4.56% | 4.03% | 6.79% | 6.84% | 5.58% | 3.84% | 4.15% | 4.15% | 3.95% | 0.78% | 25.69% | 17.6% |
| Net Income Growth % | 271.62% | 378.55% | 14.94% | -15.41% | -22.26% | 24.76% | 8.5% | 23.58% | 1.39% | 18.88% | 2.78% | 193.37% | -97.52% | 38.04% | - |
| Net Income (Continuing) | 337.92M | 298.58M | 369.16M | 334.63M | 334.83M | 401.38M | 341.12M | 332.89M | 330.57M | 353.06M | 353.4M | 353.85M | 509.82M | 546.55M | 395.92M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 293.72M | 301.24M | 310.61M | 333.74M | 369.21M | 436.15M | 395.17M | 432.05M | 718.27M | 778.93M | 818.48M | 750.61M | 747.43M | 0 | 0 |
| EPS (Diluted) | 5.51 | 8.47 | 1.77 | 1.54 | 1.82 | 2.34 | 1.88 | 1.77 | 1.51 | 1.72 | 0.79 | 1.47 | 0.27 | 21.54 | 15.60 |
| EPS Growth % | 142.95% | 378.53% | 14.94% | -15.38% | -22.22% | 24.47% | 6.21% | 17.22% | -12.21% | 117.72% | -46.26% | 444.44% | -98.75% | 38.08% | - |
| EPS (Basic) | - | 8.47 | 1.77 | 1.54 | 1.82 | 2.34 | 1.88 | 1.77 | 1.53 | 1.72 | 0.80 | 1.47 | 0.27 | 21.54 | 15.60 |
| Diluted Shares Outstanding | 35.42M | 35.23M | 35.23M | 35.22M | 35.22M | 35.21M | 35.2M | 34.49M | 32.68M | 28.39M | 27.29M | 27.1M | 27.06M | 25.37M | 25.37M |
| Basic Shares Outstanding | 35.42M | 35.23M | 35.23M | 35.25M | 35.22M | 35.21M | 35.2M | 34.49M | 32.24M | 28.39M | 27.06M | 27.06M | 27.06M | 25.37M | 25.37M |
| Dividend Payout Ratio | - | 22.26% | 106.48% | 122.36% | 103.49% | 80.41% | 100.3% | 101.81% | 108.14% | 86.54% | 85.34% | 78.01% | 3334.4% | 110.43% | 85.58% |
Parent credit dependency risk
According to the latest quarterly data, WLKP's revenue growth remains inconsistent, with the most recent period showing a 28.6% increase that contrasts sharply with the broader trend of stagnation observed in prior quarters, suggesting that top-line expansion is heavily reliant on non-recurring factors rather than organic volume.
The volatility in quarterly revenue figures indicates that the partnership lacks a clear, sustained growth trajectory independent of parent-level asset drop-downs. Investors should monitor whether the recent revenue spike represents a durable shift in throughput or merely a temporary fluctuation in the underlying cost-plus contract mechanics.
As reported in financial statements, WLKP maintains a robust gross margin profile, with the most recent quarter reaching 30.7%, which underscores the effectiveness of the fixed-margin ethylene sales agreement in shielding the partnership from the inherent cyclicality typically associated with the broader basic materials sector.
The structural stability of these margins suggests that the partnership successfully offloads commodity price risk to the parent company. However, the narrowing of margins in early 2025 warrants further investigation, as it may indicate operational inefficiencies or increased maintenance costs that could challenge the long-term viability of the current fee structure.
Based on the provided income statement data, WLKP demonstrates significant operating leverage, as SG&A expenses have remained remarkably contained at approximately $7.2 million in the most recent quarter, allowing operating income to scale efficiently alongside gross profit without the burden of excessive corporate overhead or administrative bloat.
The partnership's ability to maintain a lean cost structure appears to be a core component of its value proposition, ensuring that a high percentage of gross profit flows directly to the operating income line. This efficiency suggests that management is focused on maintaining a low-cost, utility-like operating model rather than pursuing aggressive administrative expansion.
Analysis of the reported figures reveals a significant disconnect between operating income and net income, with the latter experiencing extreme quarterly swings, such as the drop to $4.9 million in 2025Q1, which suggests that non-operating items or accounting adjustments may be distorting the true earnings quality.
The disparity between operating performance and bottom-line results implies that investors should prioritize cash distribution coverage metrics over traditional EPS figures. The lack of stock-based compensation in recent periods is a positive sign for equity holders, yet the underlying volatility in net income warrants caution regarding the predictability of future distributions.
While the partnership's fee-based model provides stability, the reliance on a single parent-level contract creates a binary risk profile, as evidenced by the lack of asset diversification and the potential for future contract renegotiations to permanently compress the partnership's currently elevated margin profile.
Short-term stability should not be confused with long-term growth potential, as the partnership appears to lack independent strategic initiatives. If the parent company's credit profile were to deteriorate, the contractual protections currently shielding WLKP could face significant pressure, potentially exposing investors to risks that are not currently reflected in the unit price.
Quick answers to the most common questions about buying WLKP stock.
For fiscal year 2025, Westlake Chemical Partners LP (WLKP) reported total revenue of $1.17B. This represents a 48.1% decline compared to $2.25B in 2012.
Westlake Chemical Partners LP (WLKP) is profitable, generating $298.6M in net income for the fiscal year ending 2025 with a net profit margin of 25.6%.
Westlake Chemical Partners LP (WLKP) reported an operating income of $319.6M, resulting in an operating profit margin of 27.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Westlake Chemical Partners LP (WLKP) generated $347.8M in gross profit for the year, representing a gross profit margin of 29.8%. This demonstrates the company's core pricing power and production efficiency.