Westlake's HIP Segment Reports $4.3B Revenue

Westlake recently held a teach-in event where they introduced their Housing & Infrastructure Products (HIP) team, highlighting the company's strong leadership and experience. The HIP segment, which includes Westlake Royal Building Products, Westlake Pipe & Fittings, and Westlake Global Compounds, reported a total revenue of $4.3 billion, with $3.6 billion from housing and $0.7 billion from infrastructure.

The HIP segment serves approximately 21,800 customers through 45 distribution centers and 70 manufacturing sites, offering a diverse portfolio with about 62,000 SKUs and employing around 8,100 individuals. This segment has positioned itself to capture growth opportunities in the housing and infrastructure markets, with an expected total addressable market (TAM) of approximately $84 billion and an organic compound annual growth rate (CAGR) of 5%-7%.

Westlake's HIP segment has experienced substantial growth since 2016, driven by both organic market growth and strategic mergers and acquisitions. The company has made significant investments in expanding its portfolio through acquisitions like Boral North America Building Products, Dimex Post Industrial Recycled Products, Lasco Fittings, and others.

The company's strong brands and expertise across attractive markets have contributed to its market-leading positions in various segments, including concrete tile, plastic shutters, decorative stone, clay tile, premium PVC and poly-ash trim, new construction windows, composite roofing, and more.

Westlake's HIP segment also benefits from favorable long-term macro trends such as underbuilding of homes, demographic shifts, and repair and remodel activity. This has created compelling growth opportunities, with an expected TAM CAGR of 3%-5% and an organic CAGR of 5%-7%.

The market has reacted to these announcements by moving the company's shares -0.2% to a price of $152.52. For more information, read the company's full 8-K submission here.

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