Ryan Pirnat

Ryan Pirnat asked for more color on competitive market pressures in pipe and fittings, specifically how much pricing was down compared to the broader HIP segment's flat pricing. He also inquired about the outlook for caustic soda market balance and pricing over the next couple of months.

Answer

Steve Bender, Executive Vice President and Chief Financial Officer, explained that while construction slowdowns create pricing pressure in pipe and fittings, product innovation, like PVC-O, allows for market penetration with solid margins. He highlighted Westlake's integrated solution of pipe, fittings, and engineering. For caustic soda, Mr. Bender noted price traction with two announced initiatives totaling $140/ton, expecting some realization from industrial and manufacturing demand.

Ryan Pirnat asked for more color on competitive market pressures in pipe and fittings, specifically how pricing for pipe and fittings compared to the broader HIP segment's flat pricing year-on-year. He also inquired about Westlake's outlook for caustic soda market balance and pricing over the next couple of months.

Answer

Steve Bender, Executive Vice President and Chief Financial Officer, Westlake Corporation, explained that while construction slowdown and affordability pressures create some pricing pressure in pipe and fittings, product innovation (like PVC-O) allows for market penetration with solid margins. He highlighted Westlake's unique integrated solution of fittings, pipe, and engineering. For caustic soda, he noted price traction with two announced initiatives totaling $140/ton, expecting some realization due to industrial and manufacturing demand.

Ryan Pirnat asked about improved order patterns from customers ahead of the construction season and industry-wide MDI inventory levels in Europe and Asia.

Answer

Peter Huntsman (Chairman, CEO and President) indicated it's too early to confirm improved order patterns due to weather and Chinese New Year, but noted 'very early green shoots' in Europe. He stated Huntsman's inventories are very low, and industry supply chains are generally lean due to a focus on cash and inventory control.

Ryan Pirnat asked about improved customer order patterns ahead of the construction season and MDI inventory levels in Europe and Asia.

Answer

Peter Huntsman, Chairman, CEO, and President, stated it's too early to confirm improved order patterns due to weather and Chinese New Year delays, but noted 'very early green shoots' in Europe. He indicated Huntsman's inventories are very low, and anecdotally, industry supply chains are lean, suggesting potential for sudden shortages if demand rebounds.

Ryan Pirnat asked for additional color on the healthcare business, specifically on the medical device space, following discussions about medical packaging and biopharma. He also inquired about the outlook for the construction market, given ongoing softness.

Answer

Lori Koch, CEO, expressed excitement about healthcare and water, noting strong performance across Livio (biopharma) and medical packaging, with nice growth also seen in the medical device space. She announced a new leader for the healthcare business. Antonella Franzen, Chief Financial Officer, reiterated that the shelter business (tied to construction) was down about 4% organically for the year, with expectations for a second-half 2026 recovery, and that even normalizing to flat would provide a nice lift.

Ryan Pirnat requested additional color on the healthcare business performance, specifically in medical packaging, biopharma, and the medical device space, and inquired about the outlook for the construction market into 2026.

Answer

CEO Lori Koch expressed excitement for healthcare and water, noting strong mid-to-high single-digit growth in healthcare, driven by Liveo (biopharma) and medical packaging, with nice growth also seen in the med device space. CFO Antonella Franzen stated that the shelter business was down about 4% organically in 2025, with expectations for a slight improvement to flat in 2026, potentially providing a nice lift.