Track market-moving stories before they get noisy

, /PRNewswire/ -- Dow (NYSE: DOW): 

FINANCIAL HIGHLIGHTS

Net sales were $12.1 billion, up 20% year-over-year, reflecting increases in all operating segments and regions. Local price increased 20% versus the year-ago period, led by gains in Packaging & Specialty Plastics, with higher polyethylene prices in all regions. Currency increased 1% year-over-year. Volume decreased 1% year-over-year. Gains in Performance Materials & Coatings across both businesses were more than offset by declines in Packaging & Specialty Plastics largely due to planned maintenance activity.   GAAP net income was $802 million. Op. EBIT1 was $1.6 billion, up $1.7 billion year-over-year, primarily driven by higher prices as well as the Company's self-help initiatives. GAAP earnings per share (EPS) was $0.99; operating EPS1 was $1.44, compared to a loss of $0.42 in the year-ago period. Op. EPS excludes significant items totaling $0.45 per share, driven by costs associated with Transform to Outperform, partially offset by an income tax adjustment associated with a payment from NOVA Chemicals.   Cash provided by operating activities – continuing operations was $1.3 billion, primarily driven by higher earnings across all businesses, more than offsetting an expected working capital build reflecting revenue growth.   Returns to shareholders totaled $253 million of dividends in the quarter. CEO QUOTE

"Team Dow delivered strong second quarter results through disciplined and timely execution, reliably serving our customers, and accelerating our self-help actions," said Karen S. Carter, Dow CEO. "Market conditions were supportive this quarter, and our self-help initiatives delivered ahead of plan, further reinforcing the improvement in our earnings as we continue to strengthen Dow's resilience and agility. We now expect to generate approximately $200 million more in benefits from Transform to Outperform this year, enabling us to increase the total in-year benefits from self-help to greater than $1.3 billion. Our actions to become a leaner, more competitive company position Dow well to continue winning with our customers while delivering enhanced long-term shareholder value."

SUMMARY FINANCIAL RESULTS

Three Months Ended Jun 30

In millions, except per share amounts

2Q26

2Q25

vs. SQLY

[B / (W)]

Net Sales

$12,092

$10,104

$1,988

GAAP Income (Loss) Net of Tax

$802

$(801)

$1,603

Operating EBIT¹

$1,648

$(21)

$1,669

Operating EBITDA¹

$2,312

$703

$1,609

GAAP Earnings (Loss) Per Share

$0.99

$(1.18)

$2.17

Operating Earnings Per Share¹

$1.44

$(0.42)

$1.86

Cash Provided by (Used for) Operating Activities
– Cont. Ops

$1,324

$(470)

$1,794

1. Op. Earnings Per Share, Op. EBIT, Op. EBIT Margin and Op. EBITDA, Free Cash Flow and Cash Flow Conversion are non-GAAP measures. See appendix for further discussion.
®TM Trademark of The Dow Chemical Company or an affiliated company of Dow 

SEGMENT HIGHLIGHTS

Packaging & Specialty Plastics

Three Months Ended Jun 30

In millions

2Q26

2Q25

vs. SQLY

[B / (W)]

Net Sales

$6,385

$5,025

$1,360

Operating EBIT

$1,278

$71

$1,207

Packaging & Specialty Plastics segment net sales in the quarter were $6.4 billion, up 27% versus the year-ago period. Local price increased 30% year-over-year, primarily driven by higher polyethylene prices in all regions. Currency increased net sales by 1%. Volume decreased 4% year-over-year, driven by lower volumes in both businesses, including higher planned maintenance activity in Hydrocarbons & Energy, resulting in lower merchant sales.  

Op. EBIT was $1.3 billion, an increase of $1.2 billion compared to the year-ago period, driven by higher integrated margins as a result of higher polyethylene prices contributing to margin expansion and tailwinds from the Company's self-help initiatives, which were partly offset by higher planned maintenance activity.

Packaging and Specialty Plastics business reported a net sales increase versus the year-ago period, reflecting higher polyethylene prices, most notably in flexible packaging applications and in all regions. This more than offset lower polyethylene volumes, driven by declines in Europe, the Middle East, Africa and India (EMEAI) and Asia Pacific impacted by the Middle East conflict.

Hydrocarbons & Energy business reported a net sales increase year-over-year, driven by higher olefins prices, which more than offset lower volumes due to planned maintenance activity in the U.S. Gulf Coast and the idling of a cracker in EMEAI in mid-2025, which successfully restarted in June.

Industrial Intermediates & Infrastructure

Three Months Ended Jun 30

In millions

2Q26

2Q25

vs. SQLY

[B / (W)]

Net Sales

$3,166

$2,786

$380

Operating EBIT

$246

$(185)

$431

Industrial Intermediates & Infrastructure segment net sales in the quarter were $3.2 billion, up 14% versus the year-ago period. Local price increased 15% year-over-year, reflecting gains in both businesses and in all regions. Currency increased net sales by 1%. Volume decreased 2% year-over-year, driven by lower volumes in Polyurethanes & Construction Chemicals, including impacts from the Middle East conflict, which were partially offset by increased volume in Industrial Solutions. 

Op. EBIT was $246 million, an increase of $431 million versus the year-ago period, driven by higher margins, tailwinds from the Company's self-help initiatives, lower planned maintenance activity and the suspension of the recognition of equity losses from Sadara.

Polyurethanes & Construction Chemicals business reported an increase in net sales compared to the year-ago period, primarily driven by local price gains, which were partly offset by lower volumes. Volume growth across industrial market applications was more than offset by impacts from the Middle East conflict.

Industrial Solutions business reported an increase in net sales, with local price gains in all regions compared to the year-ago period. Volume growth was driven by recent alkoxylation investments and increased demand for data center applications, partially offset by impacts from the Middle East conflict.

Performance Materials & Coatings

Three Months Ended Jun 30

In millions

2Q26

2Q25

vs. SQLY

[B / (W)]

Net Sales

$2,361

$2,129

$232

Operating EBIT

$133

$152

($19)

Performance Materials & Coatings segment net sales in the quarter were $2.4 billion, up 11% versus the year-ago period. Local price increased 4% year-over-year, driven by an increase in Coatings & Performance Monomers. Currency increased net sales by 1%. Volume increased 6% year-over-year, driven by higher volumes in both businesses, led by growth in downstream silicones.  

Op. EBIT was $133 million, a decrease of $19 million versus the year-ago period, as tailwinds from the Company's self-help initiatives were more than offset by higher fixed costs, including turnaround activity in the quarter and the costs associated with the in-period shutdown of our Barry, U.K. upstream siloxanes plant.

Consumer Solutions business reported an increase in net sales versus the year-ago period, driven by volume gains in downstream silicones, led by consumer, electronics and home care applications.

Coatings & Performance Monomers business reported an increase in net sales across all regions compared to the year-ago period, led by higher price and volume in both acrylic monomers and architectural coatings.

OUTLOOK

"As we look into the second half of 2026, we will continue to build a more agile and resilient company that sets a new competitive standard," said Carter. "We will do so by advancing three priorities: growth and innovation in attractive end markets, investing in and strengthening our portfolio, and ensuring balanced capital allocation. Aligned to this, Transform to Outperform is delivering improvements in both growth and productivity, and we expect the impact of these efforts to ramp significantly throughout the remainder of this year and into 2027. Taken together, our collective actions are focused on enhancing the long-term value Dow delivers across the cycle."

Conference Call
Dow will host a live webcast of its quarterly earnings conference call with investors to discuss its results, business outlook and other matters today at 8:00 a.m. ET. The webcast and slide presentation that accompany the conference call will be posted on the events and presentations page of investors.dow.com.

About Dow
Dow (NYSE: DOW) is one of the world's leading materials science companies, serving customers in high-growth markets such as packaging, infrastructure, mobility and consumer applications. Our global breadth, asset integration and scale, customer-focused innovation and leading business positions enable us to achieve profitable growth and help deliver a sustainable future. We operate manufacturing sites in 29 countries and employed approximately 34,600 people as of year-end 2025. Dow delivered sales of approximately $40 billion in 2025. References to Dow or the Company mean Dow Inc. and its subsidiaries. Learn more about us at www.dow.com.

X: https://twitter.com/DowNewsroom 
Facebook: https://www.facebook.com/dow/ 
LinkedIn: http://www.linkedin.com/company/dow-chemical 
Instagram: http://instagram.com/dow_official 

Cautionary Statement about Forward-Looking Statements

Certain statements in this press release are "forward-looking statements" within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements often address expected future business and financial performance, financial condition, and other matters, and often contain words or phrases such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "opportunity," "outlook," "plan," "project," "seek," "should," "strategy," "target," "will," "will be," "will continue," "will likely result," "would" and similar expressions, and variations or negatives of these words or phrases.

Forward-looking statements are based on current assumptions and expectations of future events that are subject to risks, uncertainties and other factors that are beyond Dow's control, which may cause actual results to differ materially from those projected, anticipated or implied in the forward-looking statements and speak only as of the date the statements were made. These factors include, but are not limited to: sales of Dow's products; Dow's expenses, future revenues and profitability; any supply chain, operational or other disruptions, sanctions, export restrictions, or increased economic uncertainty related to the ongoing conflicts between Russia and Ukraine and in the Middle East; capital requirements and need for and availability of financing; unexpected barriers in the development of technology, including with respect to Dow's contemplated capital and operating projects; Dow's ability to realize its commitment to carbon neutrality on the contemplated timeframe, including the completion and success of its integrated ethylene cracker and derivatives facility in Alberta, Canada; size of the markets for Dow's products and services and ability to compete in such markets; Dow's ability to develop and market new products and optimally manage product life cycles; the rate and degree of market acceptance of Dow's products; significant litigation and environmental matters and related contingencies and unexpected expenses; the success of competing technologies that are or may become available; the ability to protect Dow's intellectual property in the United States and abroad; Dow's ability to realize expected benefits from Transform to Outperform on the contemplated timeframe; developments related to contemplated restructuring activities and proposed divestitures or acquisitions such as workforce reduction, manufacturing facility and/or asset closure and related exit and disposal activities, and the benefits and costs associated with each of the foregoing; fluctuations in energy and raw material prices; management of process safety and product stewardship; changes in relationships with Dow's significant customers and suppliers; changes in public sentiment and political leadership; increased concerns about plastics in the environment and lack of a circular economy for plastics at scale; changes in consumer preferences and demand; changes in laws and regulations, political conditions, tariffs and trade policies, or industry development; global economic and capital markets conditions, such as inflation, market uncertainty, interest and currency exchange rates, and equity and commodity prices; business, logistics, and supply disruptions; security threats, such as acts of sabotage, terrorism or war, including the ongoing conflicts between Russia and Ukraine and in the Middle East; weather events and natural disasters; disruptions in Dow's information technology networks and systems, including the impact of cyberattacks; risks related to Dow's separation from DowDuPont Inc. such as Dow's obligation to indemnify DuPont de Nemours, Inc. and/or Corteva, Inc. for certain liabilities; and any global and regional economic impacts of a pandemic or other public health-related risks and events on Dow's business.

Where, in any forward-looking statement, an expectation or belief as to future results or events is expressed, such expectation or belief is based on the current plans and expectations of management and expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the expectation or belief will result or be achieved or accomplished. A detailed discussion of principal risks and uncertainties which may cause actual results and events to differ materially from such forward-looking statements is included in the section titled "Risk Factors" contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, and the Company's subsequent reports filed with the U.S. Securities and Exchange Commission. These are not the only risks and uncertainties that Dow faces. There may be other risks and uncertainties that Dow is unable to identify at this time or that Dow does not currently expect to have a material impact on its business. If any of those risks or uncertainties develops into an actual event, it could have a material adverse effect on Dow's business. Dow Inc. and The Dow Chemical Company and its consolidated subsidiaries assume no obligation to update or revise publicly any forward-looking statements whether because of new information, future events, or otherwise, except as required by securities and other applicable laws.

®TM Trademark of The Dow Chemical Company or an affiliated company of Dow                 

Non-GAAP Financial Measures
This earnings release includes information that does not conform to GAAP and are considered non-GAAP measures. Management uses these measures internally for planning, forecasting and evaluating the performance of the Company's segments, including allocating resources. Dow's management believes that these non-GAAP measures best reflect the ongoing performance of the Company during the periods presented and provide more relevant and meaningful information to investors as they provide insight with respect to ongoing operating results of the Company and a more useful comparison of year-over-year results. These non-GAAP measures supplement the Company's GAAP disclosures and should not be viewed as alternatives to GAAP measures of performance. Furthermore, such non-GAAP measures may not be consistent with similar measures provided or used by other companies. Non-GAAP measures included in this release are defined below. Reconciliations for these non-GAAP measures to GAAP are provided in the Selected Financial Information and Non-GAAP Measures section starting on page 10. Dow does not provide forward-looking GAAP financial measures or a reconciliation of forward-looking non-GAAP financial measures to the most comparable GAAP financial measures on a forward-looking basis because the Company is unable to predict with reasonable certainty the ultimate outcome of pending litigation, unusual gains and losses, foreign currency exchange gains or losses and potential future asset impairments, as well as discrete taxable events, without unreasonable effort. These items are uncertain, depend on various factors, and could have a material impact on GAAP results for the guidance period.

Operating Earnings Per Share is defined as "Earnings (loss) per common share - diluted" excluding the after-tax impact of significant items.

Operating EBIT is defined as earnings (i.e., "Income (loss) before income taxes") before interest, excluding the impact of significant items.

Operating EBIT Margin is defined as Operating EBIT as a percentage of net sales.

Operating EBITDA is defined as earnings (i.e., "Income (loss) before income taxes") before interest, depreciation and amortization, excluding the impact of significant items.

Free Cash Flow is defined as "Cash provided by (used for) operating activities - continuing operations," less capital expenditures. Under this definition, Free Cash Flow represents the cash generated by the Company from operations after investing in its asset base. Free Cash Flow, combined with cash balances and other sources of liquidity, represent the cash available to fund obligations and provide returns to shareholders. Free Cash Flow is an integral financial measure used in the Company's financial planning process.

Cash Flow Conversion is defined as "Cash provided by (used for) operating activities - continuing operations," divided by Operating EBITDA. Management believes Cash Flow Conversion is an important financial metric as it helps the Company determine how efficiently it is converting its earnings into cash flow.

Operating Return on Capital (ROC) is defined as net operating profit after tax, excluding the impact of significant items, divided by total average capital, also referred to as ROIC.

Dow Inc. and Subsidiaries

Consolidated Statements of Income

In millions, except per share amounts (Unaudited)

Three Months Ended

Six Months Ended

Jun 30,
2026

Jun 30,
2025

Jun 30,
2026

Jun 30,
2025

Net sales

$   12,092

$   10,104

$   21,886

$   20,535

Cost of sales

9,925

9,521

19,079

19,281

Research and development expenses

207

188

388

388

Selling, general and administrative expenses

535

347

952

713

Amortization of intangibles

40

63

86

139

Restructuring and asset related charges - net

503

591

530

799

Equity in earnings (losses) of nonconsolidated affiliates

36

(30)

(267)

(50)

Sundry income (expense) - net

125

147

246

160

Interest income

38

39

80

67

Interest expense and amortization of debt discount

210

209

429

425

Income (loss) before income taxes

871

(659)

481

(1,033)

Provision for income taxes

69

142

124

58

Net income (loss)

802

(801)

357

(1,091)

Net income attributable to noncontrolling interests

81

34

169

51

Net income (loss) available for Dow Inc. common stockholders

$       721

$      (835)

$       188

$   (1,142)

Per common share data:

Earnings (loss) per common share - basic

$      0.99

$     (1.18)

$      0.25

$     (1.62)

Earnings (loss) per common share - diluted

$      0.99

$     (1.18)

$      0.25

$     (1.62)

Weighted-average common shares outstanding - basic

723.5

709.5

722.4

708.2

Weighted-average common shares outstanding - diluted

725.1

709.5

723.5

708.2

Dow Inc. and Subsidiaries

Consolidated Balance Sheets

In millions, except share amounts (Unaudited)

Jun 30,
2026

Dec 31,
2025

Assets

Current Assets

Cash and cash equivalents (variable interest entities restricted - 2026: $237; 2025: $31)

$         3,973

$         3,816

Accounts and notes receivable:

Trade (net of allowance for doubtful receivables - 2026: $70; 2025: $59)

6,430

4,762

Other

2,049

1,876

Inventories

7,233

6,595

Other current assets

1,186

1,013

Total current assets (variable interest entities restricted - 2026: $443; 2025: $228)

20,871

18,062

Investments

Investment in nonconsolidated affiliates

1,121

1,264

Other investments (investments carried at fair value - 2026: $2,379; 2025: $2,212)

3,289

3,017

Noncurrent receivables

563

309

Total investments

4,973

4,590

Property

Property

66,599

65,863

Less: Accumulated depreciation

44,391

43,613

Net property (variable interest entities restricted - 2026: $2,348; 2025: $2,385)

22,208

22,250

Other Assets

Goodwill

7,934

7,978

Other intangible assets (net of accumulated amortization - 2026: $5,821; 2025: $5,727)

1,371

1,486

Operating lease right-of-use assets

1,367

1,356

Deferred income tax assets

1,570

1,511

Deferred charges and other assets

1,291

1,305

Total other assets (variable interest entities restricted - 2026: $213; 2025: $226)

13,533

13,636

Total Assets

$       61,585

$       58,538

Liabilities and Equity

Current Liabilities

Notes payable

$             86

$             90

Long-term debt due within one year

758

222

Accounts payable:

Trade

5,385

4,151

Other

1,622

1,394

Operating lease liabilities - current

341

340

Income taxes payable

359

337

Accrued and other current liabilities

3,380

2,649

Total current liabilities (variable interest entities nonrecourse - 2026: $461; 2025: $438)

11,931

9,183

Long-Term Debt (variable interest entities nonrecourse - 2026: $179; 2025: $190)

17,151

17,849

Other Noncurrent Liabilities

Deferred income tax liabilities

353

364

Pension and other postretirement benefits - noncurrent

4,462

4,694

Asbestos-related liabilities - noncurrent

582

628

Operating lease liabilities - noncurrent

1,092

1,097

Other noncurrent obligations

8,647

7,201

Total other noncurrent liabilities (variable interest entities nonrecourse - 2026: $339; 2025: $364)

15,136

13,984

Stockholders' Equity

Common stock (authorized 5,000,000,000 shares of $0.01 par value each;

issued 2026: 791,918,759 shares; 2025: 790,287,565 shares)

8

8

Additional paid-in capital

11,073

11,112

Retained earnings

16,457

16,781

Accumulated other comprehensive loss

(7,662)

(7,660)

Treasury stock at cost (2026: 69,578,048 shares; 2025: 73,065,152 shares)

(4,016)

(4,233)

Dow Inc.'s stockholders' equity

15,860

16,008

Noncontrolling interests

1,507

1,514

Total equity

17,367

17,522

Total Liabilities and Equity

$       61,585

$       58,538

Dow Inc. and Subsidiaries

Consolidated Statements of Cash Flows

In millions (Unaudited)

Six Months Ended

Jun 30,
2026

Jun 30,
2025

Operating Activities

Net income (loss)

$          357

$     (1,091)

Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:

Depreciation and amortization

1,383

1,438

Credit for deferred income tax

(114)

(131)

Earnings of nonconsolidated affiliates less than dividends received

543

220

Net periodic pension benefit credit

(16)

(50)

Pension contributions

(78)

(76)

Net gain on sales of assets, businesses and investments

(49)

(102)

Restructuring and asset related charges - net

530

799

Other net loss

3

104

Changes in assets and liabilities, net of effects of acquired and divested companies:

Accounts and notes receivable

(1,761)

(935)

Inventories

(638)

(158)

Accounts payable

1,347

(12)

Other assets and liabilities, net

941

(372)

Cash provided by (used for) operating activities - continuing operations

2,448

(366)

Cash provided by (used for) operating activities - discontinued operations

7

(13)

Cash provided by (used for) operating activities

2,455

(379)

Investing Activities

Capital expenditures

(1,135)

(1,347)

Proceeds from incentives related to capital expenditures

49

—

Cash flow hedging related to capital expenditures

(6)

—

Investment in gas field developments

(48)

(68)

Proceeds from sales of property, businesses and consolidated companies, net of cash divested

58

131

Investments in and loans to nonconsolidated affiliates

(133)

(20)

Purchases of investments

(782)

(205)

Proceeds from sales and maturities of investments

524

552

Other investing activities, net

53

(5)

Cash used for investing activities

(1,420)

(962)

Financing Activities

Changes in short-term notes payable

17

48

Proceeds from issuance of short-term debt greater than three months

16

37

Payments on short-term debt greater than three months

(34)

(41)

Proceeds from issuance of long-term debt

81

1,107

Payments on long-term debt

(206)

(1,114)

Collections on securitization programs, net of remittances

—

18

Transaction financing, debt issuance and other costs

(3)

(85)

Employee taxes paid for share-based payment arrangements

(15)

(16)

Distributions to noncontrolling interests

(158)

(56)

Proceeds from sale of noncontrolling interests

—

2,433

Dividends paid to stockholders

(505)

(990)

Cash provided by (used for) financing activities

(807)

1,341

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(76)

253

Summary

Increase in cash, cash equivalents and restricted cash

152

253

Cash, cash equivalents and restricted cash at beginning of period

3,952

2,263

Cash, cash equivalents and restricted cash at end of period

$       4,104

$       2,516

Less: Restricted cash and cash equivalents, included in "Other current assets"

131

117

Cash and cash equivalents at end of period

$       3,973

$       2,399

Dow Inc. and Subsidiaries

Net Sales by Segment and Geographic Region

Net Sales by Segment

Three Months Ended

Six Months Ended

In millions (Unaudited)

Jun 30,
2026

Jun 30,
2025

Jun 30,
2026

Jun 30,
2025

Packaging & Specialty Plastics

$    6,385

$    5,025

$   11,304

$   10,335

Industrial Intermediates & Infrastructure

3,166

2,786

5,792

5,641

Performance Materials & Coatings

2,361

2,129

4,441

4,200

Corporate

180

164

349

359

Total

$   12,092

$   10,104

$   21,886

$   20,535

U.S. & Canada

$     4,782

$     3,988

$     8,578

$     8,215

EMEAI 1

3,930

3,272

7,114

6,546

Asia Pacific

1,817

1,737

3,555

3,595

Latin America

1,563

1,107

2,639

2,179

Total

$   12,092

$   10,104

$   21,886

$   20,535

Net Sales Variance by Segment and
Geographic Region

Three Months Ended Jun 30, 2026

Six Months Ended Jun 30, 2026

Local
Price &
Product
Mix

Currency

Volume

Total

Local
Price &
Product
Mix

Currency

Volume

Total

Percent change from prior year

Packaging & Specialty Plastics

30 %

1 %

(4) %

27 %

10 %

2 %

(3) %

9 %

Industrial Intermediates & Infrastructure

15

1

(2)

14

3

3

(3)

3

Performance Materials & Coatings

4

1

6

11

—

2

4

6

Total

20 %

1 %

(1) %

20 %

6 %

2 %

(1) %

7 %

Total, excluding the Hydrocarbons & Energy
  business

18 %

1 %

— %

19 %

6 %

2 %

— %

8 %

U.S. & Canada

17 %

— %

3 %

20 %

5 %

— %

(1) %

4 %

EMEAI 1

21

3

(4)

20

7

6

(4)

9

Asia Pacific

14

—

(9)

5

3

1

(5)

(1)

Latin America

32

—

9

41

12

—

9

21

Total

20 %

1 %

(1) %

20 %

6 %

2 %

(1) %

7 %

Europe, Middle East, Africa and India. Dow Inc. and Subsidiaries

Selected Financial Information and Non-GAAP Measures

Operating EBIT by Segment

Three Months Ended

Six Months Ended

In millions (Unaudited)

Jun 30,
2026

Jun 30,
2025

Jun 30,
2026

Jun 30,
2025

Packaging & Specialty Plastics

$    1,278

$         71

$    1,486

$       413

Industrial Intermediates & Infrastructure

246

(185)

128

(313)

Performance Materials & Coatings

133

152

250

201

Corporate

(9)

(59)

(62)

(92)

Total

$    1,648

$        (21)

$    1,802

$       209

Depreciation and Amortization by Segment

Three Months Ended

Six Months Ended

In millions (Unaudited)

Jun 30,
2026

Jun 30,
2025

Jun 30,
2026

Jun 30,
2025

Packaging & Specialty Plastics

$       361

$       369

$       743

$       729

Industrial Intermediates & Infrastructure

137

153

285

299

Performance Materials & Coatings

158

192

339

392

Corporate

8

10

16

18

Total

$       664

$       724

$    1,383

$    1,438

Operating EBITDA by Segment

Three Months Ended

Six Months Ended

In millions (Unaudited)

Jun 30,
2026

Jun 30,
2025

Jun 30,
2026

Jun 30,
2025

Packaging & Specialty Plastics

$    1,639

$       440

$    2,229

$    1,142

Industrial Intermediates & Infrastructure

383

(32)

413

(14)

Performance Materials & Coatings

291

344

589

593

Corporate

(1)

(49)

(46)

(74)

Total

$    2,312

$       703

$    3,185

$    1,647

Equity in Earnings (Losses) of Nonconsolidated
Affiliates by Segment

Three Months Ended

Six Months Ended

In millions (Unaudited)

Jun 30,
2026

Jun 30,
2025

Jun 30,
2026

Jun 30,
2025

Packaging & Specialty Plastics 1

$         19

$           7

$        (44)

$         46

Industrial Intermediates & Infrastructure 1

15

(39)

(227)

(97)

Performance Materials & Coatings

1

1

2

1

Corporate

1

1

2

—

Total

$         36

$        (30)

$      (267)

$        (50)

Reconciliation of "Net income (loss)" to "Operating EBIT"

Three Months Ended

Six Months Ended

In millions (Unaudited)

Jun 30,
2026

Jun 30,
2025

Jun 30,
2026

Jun 30,
2025

Net income (loss)

$       802

$      (801)

$       357

$   (1,091)

+ Provision for income taxes

69

142

124

58

Income (loss) before income taxes

$       871

$      (659)

$       481

$   (1,033)

-  Interest income

38

39

80

67

+ Interest expense and amortization of debt discount

210

209

429

425

-  Significant items

(605)

(468)

(972)

(884)

Operating EBIT (non-GAAP)

$    1,648

$        (21)

$    1,802

$       209

Packaging & Specialty Plastics and Industrial Intermediates & Infrastructure include losses of $81 million and $211 million, respectively, in the six months ended June 30, 2026, related to the Sadara guarantee liability adjustment, a significant item. Dow Inc. and Subsidiaries

Selected Financial Information and Non-GAAP Measures

Significant Items Impacting Results for the Three Months Ended Jun 30, 2026

In millions, except per share amounts (Unaudited)

Pretax 1

Net 
income
(loss) 2

EPS 3

Income Statement Classification

Reported results

$     871

$     721

$     0.99

Less: Significant items

Transform to Outperform 4

(526)

(418)

(0.58)

SG&A ($81 million); Restructuring and
  asset related charges - net
  ($445 million)

2025 Restructuring Program asset
  related charges and exit and disposal
  costs 5

(58)

(46)

(0.06)

Restructuring and asset related charges
  - net

2025 Restructuring implementation
  costs 6

(28)

(23)

(0.03)

Cost of sales ($27 million); 
  R&D ($1 million)

Indemnification and other transaction
  related credits 7

7

7

0.01

Sundry income (expense) - net

Income tax related items 8

—

150

0.21

Provision for income taxes

  Total significant items

$    (605)

$    (330)

$   (0.45)

Operating results (non-GAAP)

$   1,476

$   1,051

$     1.44

Significant Items Impacting Results for the Three Months Ended Jun 30, 2025

In millions, except per share amounts (Unaudited)

Pretax 1

Net 
income
(loss) 2

EPS 3

Income Statement Classification

Reported results

$    (659)

$    (835)

$   (1.18)

Less: Significant items

2025 Restructuring Program severance
  and related benefit costs and asset
  related charges 5

(591)

(474)

(0.67)

Restructuring and asset related charges
  - net

Implementation costs 6

(5)

(4)

(0.01)

Cost of sales ($1 million);

 SG&A ($4 million)

Net gain on divestitures and asset sale 9

103

77

0.11

Sundry income (expense) - net

Litigation related charges, awards and
  adjustments 10

42

33

0.05

Cost of sales

Indemnification and other transaction
  related costs 7

(17)

(17)

(0.02)

Sundry income (expense) - net

Income tax related items 8

—

(153)

(0.22)

Provision for income taxes

  Total significant items

$    (468)

$    (538)

$   (0.76)

Operating results (non-GAAP)

$    (191)

$    (297)

$   (0.42)

"Income (loss) before income taxes." "Net income (loss) available for Dow Inc. common stockholders." The income tax effect on significant items was calculated based upon the enacted tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment. "Earnings (loss) per common share - diluted," which includes the impact of participating securities in accordance with the two-class method. Includes costs to achieve of $81 million and severance and related benefit costs of $445 million associated with Transform to Outperform. For 2026, includes impairment charges related to the write-down of certain manufacturing facilities and other miscellaneous assets and exit and disposal costs associated with the Company's 2025 Restructuring program. For 2025, includes severance and related benefit costs and impairment charges related to the write-down of certain manufacturing facilities, corporate assets, leased non-manufacturing facilities and other miscellaneous assets associated with the Company's 2025 Restructuring Program. For 2026, includes implementation costs associated with the Company's 2025 Restructuring Program. For 2025, also includes implementation costs associated with the sale of membership interests of the Company's formerly wholly owned subsidiary, Dow InfraCo, LLC. Relates to credits (charges) associated with agreements entered into with DuPont and Corteva as part of the separation and distribution which, among other matters, provides for cross-indemnities and allocations of obligations and liabilities for periods prior to, at and after the completion of the separation. For 2026, amount relates to changes in the Company's ability to utilize foreign tax credits associated with cash proceeds received in March 2026 related to a legal matter with Nova Chemicals Corporation ("Nova"). For 2025, amounts relate to valuation allowances on deferred tax assets in certain foreign jurisdictions, partially offset by a tax basis adjustment related to the Company's consolidated infrastructure entity. Relates to a gain on the sale of the Company's soil fumigation product line. Includes a gain associated with the reassessment of liabilities for certain accrued legacy agricultural products groundwater contamination matters, partially offset by the settlement of a separate claim related to water storage district legacy groundwater contamination matters. Dow Inc. and Subsidiaries

Selected Financial Information and Non-GAAP Measures

Significant Items Impacting Results for the Six Months Ended Jun 30, 2026

In millions, except per share amounts (Unaudited)

Pretax 1

Net
Income 2

EPS 3

Income Statement Classification

Reported results

$     481

$     188

$     0.25

Less: Significant items

Transform to Outperform 4

(606)

(481)

(0.67)

SG&A ($134 million); Restructuring
  and asset related charges - net
  ($472 million)

2025 Restructuring Program asset
  related charges and exit and disposal
  costs 5

(58)

(46)

(0.06)

Restructuring and asset related charges
  - net

2025 Restructuring implementation
  costs 6

(49)

(40)

(0.05)

Cost of sales ($47 million);
  R&D ($1 million); SG&A ($1 million)

Sadara guarantee liability adjustment 7

(292)

(227)

(0.31)

Equity in losses of nonconsolidated
  affiliates

Litigation related charges, awards and
  adjustments 8

26

21

0.03

Sundry income (expense) - net

Indemnification and other transaction
  related credits 9

7

7

0.01

Sundry income (expense) - net

  Total significant items

$     (972)

$    (766)

$    (1.05)

Operating results (non-GAAP)

$   1,453

$     954

$     1.30

"Income (loss) before income taxes." "Net income (loss) available for Dow Inc. common stockholders." The income tax effect on significant items was calculated based upon the enacted tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment. "Earnings (loss) per common share - diluted," which includes the impact of participating securities in accordance with the two-class method. Includes costs to achieve of $134 million and severance and related benefit costs of $472 million associated with Transform to Outperform. Includes impairment charges related to the write-down of certain manufacturing facilities and other miscellaneous assets and exit and disposal costs associated with the Company's 2025 Restructuring program. Includes implementation costs associated with the Company's 2025 Restructuring Program. Includes a charge due to a change in fair value of the estimated liability associated with the Company's guarantee of Sadara's project financing debt. Relates to a gain associated with a legal matter with Nova. Relates to credits associated with agreements entered into with DuPont and Corteva as part of the separation and distribution which, among other matters, provides for cross-indemnities and allocations of obligations and liabilities for periods prior to, at and after the completion of the separation. Dow Inc. and Subsidiaries

Selected Financial Information and Non-GAAP Measures

Significant Items Impacting Results for the Six Months Ended Jun 30, 2025

In millions, except per share amounts (Unaudited)

Pretax 1

Net Income 2

EPS 3

Income Statement Classification

Reported results

$ (1,033)

$ (1,142)

$   (1.62)

Less: Significant items

Restructuring, implementation and
  efficiency costs, and asset related
  charges - net 4

(51)

(39)

(0.05)

Cost of sales ($44 million);

R&D ($1 million); SG&A ($4 million);
  Restructuring and asset related
  charges - net ($1 million); Sundry
  income (expense) - net ($1 million)

2025 Restructuring Program severance
  and related benefit costs and asset
  related charges 5

(798)

(635)

(0.90)

Restructuring and asset related charges
- net

Implementation costs 6

(5)

(4)

(0.01)

Cost of sales ($1 million);

 SG&A ($4 million)

Net gain on divestitures and asset sale 7

103

77

0.11

Sundry income (expense) - net

Litigation related charges, awards and
  adjustments 8

42

33

0.05

Cost of sales

Loss on early extinguishment of debt

(60)

(48)

(0.07)

Sundry income (expense) - net

Indemnification and other transaction
  related costs 9

(115)

(93)

(0.13)

Cost of sales ($98 million); Sundry
  income (expense) - net ($17 million)

Income tax related items 10

—

(153)

(0.22)

Provision for income taxes

  Total significant items

$    (884)

$    (862)

$   (1.22)

Operating results (non-GAAP)

$    (149)

$    (280)

$   (0.40)

"Income (loss) before income taxes." "Net income (loss) available for Dow Inc. common stockholders." The income tax effect on significant items was calculated based upon the enacted tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment. "Earnings (loss) per common share - diluted," which includes the impact of participating securities in accordance with the two-class method. Includes restructuring charges and implementation and efficiency costs associated with the Company's 2023 Restructuring program. Includes severance and related benefit costs and impairment charges related to the write-down of certain manufacturing facilities, corporate assets, leased non-manufacturing facilities and other miscellaneous assets associated with the Company's 2025 Restructuring program. Includes implementation costs associated with the Company's 2025 Restructuring Program and the sale of membership interests of the Company's formerly wholly owned subsidiary, Dow InfraCo, LLC. Relates to a gain on the sale of the Company's soil fumigation product line. Includes a gain associated with the reassessment of liabilities for certain accrued legacy agricultural products groundwater contamination matters, partially offset by the settlement of a separate claim related to water storage district legacy groundwater contamination matters. Primarily includes a charge related to an arbitration settlement agreement for historical product claims from a divested business. Also includes charges associated with agreements entered into with DuPont and Corteva as part of the separation and distribution which, among other matters, provides for cross-indemnities and allocations of obligations and liabilities for periods prior to, at and after the completion of the separation. Relates to valuation allowances on deferred tax assets in certain foreign jurisdictions, partially offset by a tax basis adjustment related to the Company's consolidated infrastructure entity. Dow Inc. and Subsidiaries

Selected Financial Information and Non-GAAP Measures

Reconciliation of Free Cash Flow

Three Months Ended

Six Months Ended

In millions (Unaudited)

Jun 30,
2026

Jun 30,
2025

Jun 30,
2026

Jun 30,
2025

Cash provided by (used for) operating activities - continuing
  operations (GAAP)

$     1,324

$       (470)

$    2,448

$      (366)

Capital expenditures

(632)

(662)

(1,135)

(1,347)

Free Cash Flow (non-GAAP)

$        692

$    (1,132)

$    1,313

$   (1,713)

Reconciliation of Cash Flow Conversion

Three Months Ended

In millions (Unaudited)

Sep 30,
2025

Dec 31,
2025

Mar 31,
2026

Jun 30,
2026

Cash provided by operating activities - continuing operations
  (GAAP)

$  1,130

$     298

$  1,124

$  1,324

Net income (loss) (GAAP)

$     124

$ (1,477)

$    (445)

$     802

Cash flow from operations to net income (GAAP) 1

911.3 %

N/A

N/A

165.1 %

Cash flow from operations to net income - trailing twelve months
(GAAP) 2

N/A

Operating EBITDA (non-GAAP)

$     868

$     741

$     873

$  2,312

Cash Flow Conversion (Cash flow from operations to Operating
  EBITDA) (non-GAAP)

130.2 %

40.2 %

128.8 %

57.3 %

Cash Flow Conversion - trailing twelve months (non-GAAP)

80.9 %

Cash flow from operations to net income is not applicable for the fourth quarter of 2025 and first quarter of 2026 due to a net loss for the period. Cash flow from operations to net income - trailing twelve months is not applicable due to a net loss for the trailing twelve months period. SOURCE The Dow Chemical Company

The upcoming report from Dow Inc. (DOW - Free Report) is expected to reveal quarterly earnings of $1.20 per share, indicating an increase of 385.7% compared to the year-ago period. Analysts forecast revenues of $12.01 billion, representing an increase of 18.8% year over year.

The consensus EPS estimate for the quarter has undergone a downward revision of 10.5% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.

Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.

While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.

Given this perspective, it's time to examine the average forecasts of specific Dow Inc. metrics that are routinely monitored and predicted by Wall Street analysts.

The consensus among analysts is that 'Net Sales- Performance Materials & Coatings' will reach $2.16 billion. The estimate suggests a change of +1.4% year over year.

The average prediction of analysts places 'Revenues- Corporate' at $162.67 million. The estimate suggests a change of -0.8% year over year.

Analysts expect 'Net Sales- Packaging & Specialty Plastics' to come in at $6.66 billion. The estimate points to a change of +32.5% from the year-ago quarter.

The collective assessment of analysts points to an estimated 'Net Sales- Industrial Intermediates & Infrastructure' of $3.01 billion. The estimate suggests a change of +8% year over year.

Analysts predict that the 'Operating EBITDA- Packaging & Specialty Plastics' will reach $1.84 billion. Compared to the present estimate, the company reported $440.00 million in the same quarter last year.

The combined assessment of analysts suggests that 'Operating EBITDA- Performance Materials & Coatings' will likely reach $274.51 million. Compared to the current estimate, the company reported $344.00 million in the same quarter of the previous year.

View all Key Company Metrics for Dow Inc. here>>>

Over the past month, shares of Dow Inc. have returned -5.7% versus the Zacks S&P 500 composite's +0.6% change. Currently, DOW carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Key Takeaways Dow is gaining from cost cuts and high-return growth projects despite macroeconomic challenges.DOW is taking actions to cut costs and drive productivity, targeting $1.1B in 2026 self-help benefits.DOW faces weak demand, higher feedstock costs and maintenance headwinds that may pressure near-term results. Dow Inc.’s (DOW - Free Report) shares have gained 15.5% so far this year. It has been gaining from its cost-reduction and productivity improvement efforts, strategic expansion in high-growth markets and feedstock advantages in the Americas, even as it navigates a challenging macroeconomic environment.

Dow has performed in line with the Zacks Chemicals Diversified industry’s 15.4% rise while topping the S&P 500’s increase of 9.7% year to date. Among its peers, LyondellBasell Industries N.V. (LYB - Free Report) , Eastman Chemical Company (EMN - Free Report) and BASF SE (BASFY - Free Report) have gained 21.4%, 5.1% and 2.3%, respectively, over the same period.

DOW’s YTD Price Performance Image Source: Zacks Investment Research

Technical indicators show that DOW has been trading below the 50-day simple moving average (SMA) since May 18, 2026. The stock slipped below the 200-day SMA on June 24, 2026. Following a golden crossover on Feb. 5, 2026, the 50-day SMA continues to read higher than the 200-day SMA, indicating a bullish trend.

Dow’s Shares Trade Below 50-Day SMA Image Source: Zacks Investment Research

Let’s take a look at DOW’s fundamentals to analyze the stock better.

High-Return Growth Projects & Self-Help Actions Aid DowDOW benefits from its differentiated portfolio and advantaged feedstock positions in the Americas. It remains focused on investing in attractive areas. Its broad portfolio, significant low-cost feedstock positions, global footprint and market reach place it in an advantageous position against competitors. While Dow faces headwinds from heightened macroeconomic and geopolitical uncertainties, it remains focused on growth actions in attractive end markets and executing high-return incremental growth projects in cost-advantaged regions.

DOW recently entered into a landmark agreement with Xylem to develop and operate advanced water systems at the Fort Saskatchewan, Alberta, Canada, manufacturing complex. The initiative further expands collaboration between these companies, supporting the advancement of DOW's Path2Zero initiative. The company also announced a series of targeted investments totaling approximately $100 million through 2027 to strengthen its global specialty silicones manufacturing and innovation. The initiative aims to support rising demand in fast-growing sectors such as mobility, electronics, and healthcare while enhancing supply chain resilience globally.

Dow is taking action to cut costs by $1 billion to drive margins. It expects to achieve the majority of the cost savings through reductions in direct and labor costs. Dow realized more than $400 million of benefits from these actions in 2025, with the remaining benefits expected by 2026.

DOW has launched the “Transform to Outperform” initiative to improve productivity, reduce complexity, streamline its end-to-end processes and enable improved returns. The plan targets at least $2 billion near-term operating EBITDA improvement, with two-thirds of the benefits expected to be realized from productivity improvements. The company expects EBITDA benefits of roughly $500 million from this program in 2026. It expects to deliver roughly $1.1 billion in benefits from self-help actions this year.

Dow, on its first-quarter call, stated that it is already witnessing strong positive momentum from its recently implemented pricing actions across all businesses and regions, along with supportive improvements in operating rates. The company added that it is leveraging its purpose-built asset base, established supply-chain networks and strong operational reliability to continue prioritizing customers while navigating challenges related to the Middle East conflict.

DOW’s Solid Financial Health Supports Capital AllocationDOW has a strong balance sheet and generates substantial cash flows, which enable it to finance its growth investments in higher-value businesses and regions, and drive shareholder value. It ended the first quarter with solid liquidity of around $14 billion, including cash and cash equivalents of roughly $4.1 billion. It generated solid cash flow from operating activities of roughly $1.1 billion in the first quarter.

DOW returned $1.5 billion to shareholders through dividends in 2025. Dow has a policy of returning roughly 45% of its operating net income through dividends. It paid $252 million in dividends in the first quarter. It has no substantial long-term debt maturities until 2029.

DOW offers a healthy dividend yield of 5.1% at the current stock price compared with 5.2% for LyondellBasell, 3.5% for BASF and 5% for Eastman Chemical.

Soft Demand Conditions and Cost Pressures Ail DOWDow is exposed to headwinds from a tepid demand environment. Lower consumer spending amid inflationary pressures is affecting demand in Europe. Construction and manufacturing activities remain soft in the region. Demand in Asia has been affected by a weaker demand recovery in China. The property sector in China remains sluggish, with declining new home prices.

Inflationary pressures are impacting consumer durables and building and construction demand. Demand in infrastructure, including residential construction, also remains weak. Dow is also seeing softness in automotive in Europe due to weak demand. Higher costs are also expected to impact the U.S. automotive market in 2026. Weak conditions across these markets are likely to impact volumes in second-quarter 2026.

The company faces headwinds from higher feedstock costs in Asia and Europe. The Middle East conflict and the blockade of the Strait of Hormuz have led to significant supply disruptions and feedstock cost pressure in these regions. Elevated feedstock and energy costs are likely to impact margins in the second quarter.

Dow also faces headwinds from turnaround costs and operational issues in the second quarter. It sees a $60 million headwind from higher maintenance activities at one of its crackers in the U.S. Gulf Coast, impacting the Packaging & Specialty Plastics unit. Also, another $50 million headwind is expected in the Industrial Intermediates & Infrastructure division from higher planned maintenance activity. Higher maintenance activity at one of its monomers facilities is also expected to pose a $35 million headwind in Performance Materials & Coatings.

Positive Analyst Sentiment for DOW StockThe Zacks Consensus Estimate for DOW’s 2026 earnings has been going up over the past 60 days. The consensus estimate for second-quarter 2026 earnings has also been revised upward over the same time frame.

 The Zacks Consensus Estimate for 2026 earnings is currently pegged at $3, suggesting a year-over-year rise of 419.2%. Earnings are expected to increase roughly 411.9% in the second quarter.

Image Source: Zacks Investment Research

DOW Trades at a DiscountDOW is currently trading at a forward price-to-sales ratio of 0.44, below the industry. DOW is also trading at a discount to LyondellBasell, BASF and Eastman Chemical.

DOW’s P/S F12M Vs. Industry, LYB, BASFY and EMN Image Source: Zacks Investment Research

Final Thoughts: Hold Onto DOW SharesDow benefits from its differentiated portfolio and advantaged low-cost feedstock position in the Americas, which strengthens its competitive edge. Its disciplined and balanced capital allocation strategy supports long-term growth while maintaining a strong focus on cost control and operational efficiency. Backed by a solid balance sheet and healthy cash flow generation, Dow is well-positioned to fund growth investments and enhance shareholder value. However, DOW is exposed to weak demand in a challenging environment as well as cost headwinds, which may weigh on its near-term performance. Investors who already hold this Zacks Rank #3 (Hold) stock may be best served by maintaining their positions.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.