Westlake's pipe volumes fall 17% after customers stocked up early, while resin prices steady

Pipe buyers who rushed to lock in supply in the spring are now working through that stock. Westlake's third-quarter 2026 results, published on November 4, show volumes in its Housing and Infrastructure Products (HIP) segment down 17% on the second quarter, with pipe and fittings singled out as the main drag on earnings.

Westlake is worth watching from both ends of the pipe business. It makes PVC pipe and fittings in its HIP segment, and it sells polyethylene and PVC resin through its Performance and Essential Materials (PEM) segment.

Get The Poly Fuseletter every TuesdayThree-minute read. Free. One-click unsubscribe.

The pipe side

HIP sales were $1,087 million, close to the $1,091 million of a year earlier but well below the $1,252 million of the second quarter. EBITDA came in at $195 million, an 18% margin, against $276 million in Q2 and $215 million in Q3 2025.

Westlake said some pipe and fittings demand moved forward from the third quarter into the second, as customers sought to secure supply after the conflict in the Middle East began. Excluding plant closures and acquisitions, volume was down 6% year over year.

Infrastructure Products sales rose $78 million to $241 million, mainly because of the ACI acquisition Westlake completed in January 2026. Last week we covered the completion of its new PVCO pressure pipe plant in Wichita Falls, Texas, so the infrastructure side of the business is still adding capacity.

The resin side

PEM sales rose 8% year over year to $1.894 billion, on 9% higher prices. Volume was down 1% as reported, but up 4% excluding plant closures and acquisitions. Westlake credited higher average prices for polyethylene and PVC resin. Sequentially, though, average prices fell 8%, and PEM EBITDA excluding identified items dropped to $215 million from $416 million in Q2, as the second-quarter price increases moderated.

"PEM selling prices have stabilized with upward momentum entering the fourth quarter of 2026." Jean-Marc Gilson, President and CEO, Westlake

For pipe makers buying polyethylene, that is the line to note. After a sharp spike and a pullback, resin is not getting cheaper heading into winter.

The bigger picture

Westlake is also closing its PVC plant in Cologne, Germany, and says its profitability plan is on track for $600 million of EBITDA uplift in 2026. Gilson pointed to higher borrowing costs weighing on homebuyers and on near-term HIP volumes, but said the company remains "positive on the medium- to long-term outlook for HIP sales and earnings growth".

Our read

Pull-forward quarters are noisy, and this one says more about timing than about underlying demand. The bigger signal is that a major US resin producer is calling prices stable to firmer while investing in new pipe capacity. Pipe makers planning 2027 should expect resin to stay a live margin question.

What it means for hiring

After a stock-up quarter, demand planning matters more. We expect pipe makers to value supply chain and S&OP leaders who can read distributor inventory and smooth out production swings.
With resin prices firming again, purchasing and pricing roles carry real weight. Commercial leaders who can pass on cost changes without losing share are worth paying up for.
New capacity like Westlake's PVCO plant needs people to run and sell it. In our view, plant managers and municipal sales leaders with pressure pipe experience will stay in short supply.

Share Ask Joe about this →