Westlake Chemical Partners LP (NYSE:WLKP) Reports Q3 2025 Earnings Miss, Revenue In Line

Westlake Chemical Partners LP (NYSE:WLKP) reported financial results for the third quarter of 2025, delivering earnings that fell short of analyst expectations while revenue came in nearly in line with forecasts. The market reaction has been moderately positive in early trading, suggesting investors may be looking past the earnings miss toward the company's stable, long-term contractual framework.

Earnings and Revenue Versus Estimates

The partnership's performance against key analyst estimates for the quarter presents a mixed picture.

• Earnings Per Share (EPS): Reported Q3 2025 net income was $0.42 per limited partner unit. This fell short of the analyst consensus estimate of $0.4488.
• Revenue (Sales): Total net sales for the quarter were $308.9 million, which was essentially in line with the analyst estimate of $309.06 million.

The slight miss on the bottom line appears to be the primary driver of the stock's negative performance over the past month. However, the minimal pre-market gain indicates the market may have already priced in these results or is focusing on other stabilizing factors within the report.

Third Quarter 2025 Performance Summary

The earnings release detailed several key financial and operational developments for the quarter.

• Profitability: Net income attributable to the partnership was $14.7 million, a decrease from the $18.1 million reported in the third quarter of 2024.
• Cash Flow: Cash flows from operating activities were $105.2 million, a significant improvement from the second quarter of 2025 but down from $126.1 million in the prior-year period. This sequential improvement was attributed to the completion of the planned Petro 1 turnaround.
• Distributable Cash Flow: MLP distributable cash flow was $14.9 million, down from $17.9 million in Q3 2024. The partnership noted this decrease was primarily due to higher maintenance capital expenditures.
• Dividend: The board approved a quarterly distribution of $0.4714 per common unit, marking the 45th consecutive quarterly payout to unitholders.

Strategic Context and Outlook

A significant announcement accompanying the earnings was the renewal of the Ethylene Sales Agreement with parent company Westlake Corporation. President and CEO Jean-Marc Gilson emphasized the importance of this agreement, which provides "predictable, fee-based cash flow structure with take-or-pay protections for 95% of OpCo's production." This contract renewal with no changes to terms is a critical element for the partnership's revenue stability, insulating it from the spot price declines in ethylene witnessed during the quarter.

Looking ahead, analysts have provided estimates for the upcoming periods. For the fourth quarter of 2025, the consensus is for sales of $319.26 million and earnings per share of $0.4131. For the full year 2025, analysts are estimating sales of $1.17 billion and earnings per share of $1.3923. The press release did not provide a specific quantitative financial outlook from management for comparison.

For a detailed look at historical earnings, future estimates, and analyst projections for Westlake Chemical Partners LP, you can review the data here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial advice, or a recommendation to buy or sell any security.