Dow Reports Third Quarter 2025 Results

Dow has released its financial results for the third quarter of 2025, revealing a mixed performance across various segments. The company, a global leader in materials science, faced challenges in revenue and earnings but showed resilience in cash flow and operational improvements.

Financial Highlights

For the third quarter of 2025, Dow reported net sales of $10.0 billion, an 8% decline year-over-year. The company's GAAP net income stood at $124 million, with an operating EBIT of $180 million, down $461 million from the previous year. GAAP earnings per share (EPS) were $0.08, while operating EPS was a loss of $0.19. Cash provided by operating activities from continuing operations was $1.1 billion, up $330 million year-over-year.

Business and Operational Highlights

Dow's performance varied across its segments. The Packaging & Specialty Plastics segment saw a net sales decrease of 11% year-over-year, primarily due to lower downstream polymer prices. The Industrial Intermediates & Infrastructure segment reported a 4% decline in net sales, while the Performance Materials & Coatings segment experienced a 6% drop in net sales compared to the previous year.

Volume increased by 1% sequentially, driven by the startup of new assets in the U.S. Gulf Coast. However, local prices were down 8% year-over-year and 3% sequentially.

Strategic Initiatives and Corporate Developments

Dow has been actively engaging in cost reduction actions, which contributed to a sequential increase in operating EBIT by $201 million. The company also reported significant cash flow improvements, driven by working capital enhancements and advance payments for low carbon solutions and other long-term supply agreements. Returns to shareholders included $249 million in dividends for the quarter.

Management's Perspective

Jim Fitterling, Dow's chair and CEO, highlighted the company's efforts to navigate the challenging market environment. He emphasized the importance of productive conversations with governments to ensure a fair-trade environment and the company's focus on capturing resilient demand from new assets in the U.S. Gulf Coast. Fitterling also mentioned the company's progress in cost reduction and its commitment to delivering $6.5 billion in near-term cash support.

Future Outlook

Looking ahead, Dow remains focused on maintaining financial flexibility and strengthening its competitiveness. The company plans to continue its cost-saving initiatives, rationalize higher-cost areas, and apply a disciplined approach to its balance sheet and cash flow. While the near-term market conditions remain challenging, Dow aims to build on its strong foundation to drive higher earnings and long-term shareholder returns.

Original SEC Filing: DOW INC. [ DOW ] - 8-K - Oct. 23, 2025