Why Is Westlake (WLK) Down 3.1% Since Last Earnings Report?

Westlake Corporation (WLK) reported Q2 2026 adjusted earnings of $2.01 per share, beating the consensus estimate of $1.93, with net sales of $3.27 billion up 10.8% year-over-year. The PEM segment showed strong improvement with operating income of $185 million versus a loss of $318 million a year ago, driven by higher polyethylene and PVC resin prices. However, shares have underperformed the S&P 500 by 3.1% since the earnings release. The company maintained its HIP guidance and expects continued EBITDA improvements from its profitability plan, though analysts have assigned a Hold rating with expectations for in-line returns.