Core Viewpoint - Dow Chemical (DOW.US) experienced a 5.8% decline in stock price, closing at $26.16, following a report of a 9% year-over-year decrease in net sales for Q4, amounting to $9.46 billion, and an adjusted earnings loss of $0.34 per share, which was better than the market expectation of a $0.46 loss [1] Group 1 - The company anticipates Q1 net sales to be $9 billion, which is below the market average expectation of $10.33 billion [1] - Dow Chemical plans a comprehensive restructuring, aiming to cut approximately 4,500 jobs, representing 13% of its total workforce, to enhance profitability by at least $2 billion [1]

Core Insights - Dow Inc. reported a significant loss of $1,543 million or $2.15 per share for Q4 2025, compared to a loss of $53 million or 8 cents per share in the same quarter last year, primarily due to lower prices and volumes [1] - On an adjusted basis, the loss was 34 cents, which was better than the Zacks Consensus Estimate of a loss of 46 cents [1] Financial Performance - Net sales for the quarter were $9,460 million, down 9% year over year, missing the Zacks Consensus Estimate of $9,487.1 million [2] - Volume decreased by 2% year over year, largely due to declines in the Packaging & Specialty Plastics unit, with local prices falling 8% year over year [2] - Cash flow from operating activities for continuing operations was $298 million, a decrease of $513 million from the same period last year, with full-year cash flow at $1.1 billion compared to $2.9 billion in 2024 [6] Segment Highlights - **Packaging & Specialty Plastics**: Sales fell 11% year over year to $4,744 million, missing the consensus estimate of $4,834 million, with volume down 2% and local prices down 9% [3] - **Industrial Intermediates & Infrastructure**: Sales decreased 9% year over year to $2,688 million, beating the consensus estimate of $2,653 million, with local prices down 9% and volume down 1% [4] - **Performance Materials & Coatings**: Revenues fell 6% year over year to $1,852 million, exceeding the consensus estimate of $1,836 million, with volume down 2% and local prices down 4% [5] Strategic Initiatives - Dow is committed to delivering near-term cost savings through the "Transform to Outperform" initiative, targeting at least $2 billion in near-term operating EBITDA improvement, with two-thirds expected from productivity enhancements [7] - This initiative is in addition to an earlier announced $1 billion cost savings program [7] Market Performance - Dow's shares have declined by 27.9% over the past year, compared to a 20.8% decline in the Zacks Chemicals Diversified industry [9]

Dow (NYSE:DOW) Q4 2025 Earnings call January 29, 2026 08:00 AM ET Company ParticipantsAndrew Riker - VP of Investor RelationsDavid Begleiter - Managing DirectorFrank Mitsch - PresidentJeff Tate - CFOJim Fitterling - Chair and CEOKaren S. Carter - COOKevin McCarthy - PartnerMatthew Blair - Managing DirectorMike Sison - Managing DirectorVincent Andrews - Managing DirectorConference Call ParticipantsChris Parkinson - Senior Research Analyst of Chemicals, Agriculture and PackagingDuffy Fischer - Equity Research ...

Dow (NYSE:DOW) Q4 2025 Earnings call January 29, 2026 08:00 AM ET Company ParticipantsAndrew Riker - VP of Investor RelationsDavid Begleiter - Managing DirectorFrank Mitsch - PresidentJeff Tate - CFOJim Fitterling - Chair and CEOKaren S. Carter - COOKevin McCarthy - PartnerMatthew Blair - Managing DirectorMike Sison - Managing DirectorVincent Andrews - Managing DirectorConference Call ParticipantsChris Parkinson - Senior Research Analyst of Chemicals, Agriculture and PackagingDuffy Fischer - Equity Research ...

Financial Data and Key Metrics Changes - The fourth quarter operating EBITDA was $741 million, reflecting a sequential decline due to lower seasonal demand and margin compression across many end markets [4] - The company identified over $6.5 billion in near-term cash support items, delivering more than half in 2025, including accelerated cost savings from a $1 billion cost-out program [4][5] - The cash and cash equivalent balance was above $3.8 billion at the end of 2025, with approximately $14 billion of available liquidity [36] Business Line Data and Key Metrics Changes - In the Packaging and Specialty Plastics segment, fourth quarter net sales were $4.7 billion, with a year-over-year and sequential decrease primarily due to lower downstream polymer prices [8] - The Industrial Intermediates and Infrastructure segment reported net sales of $2.7 billion, down 9% year-over-year and 5% sequentially, mainly due to lower local prices and seasonally lower building and construction volumes [10] - The Performance Materials and Coatings segment had net sales of $1.9 billion, a 6% decrease compared to the same period last year, driven by a reduction in local prices [11] Market Data and Key Metrics Changes - Global polyethylene fundamentals are expected to remain stable heading into 2026, with a net draw in inventory supporting price increases announced for January and February [15] - Housing starts and existing home sales remain below historical averages, but there are signs of positive momentum, with existing home sales increasing for four consecutive months [16] - The demand for industrial applications remains challenged, impacting the overall performance of the Industrial Intermediates and Infrastructure segment [10] Company Strategy and Development Direction - The company announced the "Transform to Outperform" program, aiming for at least $2 billion in near-term EBITDA improvement, focusing on productivity gains and growth [5][21] - Plans to shut down upstream high-cost assets and complete incremental growth investments to serve higher-value markets are in place [5][25] - The Path to Zero project in Fort Saskatchewan has been delayed by two years to align with market recovery, with a focus on maximizing project returns [32][33] Management's Comments on Operating Environment and Future Outlook - Management acknowledged persistent macroeconomic challenges and trade volatility but emphasized the company's ability to manage internal factors [4] - The outlook for first quarter EBITDA is approximately $750 million, accounting for anticipated margin expansion and seasonal uplift [17] - Management remains focused on maintaining financial flexibility while navigating a challenging macro environment [36] Other Important Information - The company completed a strategic partnership with Macquarie Group, receiving approximately $3 billion for a 49% equity stake in select U.S. Gulf Coast infrastructure assets [36] - A 50% dividend reduction was implemented to support financial flexibility [36] Q&A Session Summary Question: Update on capacity curtailments and Alberta project - Management noted that 15%-20% of European capacity is being rationalized and emphasized the importance of the Path to Zero project for future upcycles [45][47] Question: Clarifications on Alberta project timeline and potential partnerships - The two-year delay is confirmed, with no anticipated off-ramps unless extreme scenarios arise; management remains open to value-creating opportunities [51][52] Question: Export market and polyethylene capacity - Approximately 30%-40% of Packaging and Specialty Plastics volumes from North American assets go to the export market; long-term advantages are expected from low-cost positions in the Americas [55][56] Question: Cash flow from operations and expectations for 2026 - Management highlighted a solid cash balance and outlined various actions expected to support cash flow needs in 2026, including cost reductions and growth investments [59][60] Question: Outlook for feedstock costs - Management expressed confidence in the availability and pricing of natural gas and ethane, anticipating stable NGL prices despite short-term fluctuations [75][76]

Chemical maker Dow Inc. is the latest company to announce substantial layoffs as it pivots to a stronger reliance on artificial intelligence and automation. The company, on Thursday, announced it would cut 4,500 jobs as part of a streamlining operation it calls "Transform to Outperform." The cuts will provide a $2 billion boost in near-term revenue, the company said, but will bring with them between $1.1 billion and $1.5 billion in one-time costs, including severance and other costs. The moves represent ...

Dow Inc. (DOW) came out with a quarterly loss of $0.34 per share versus the Zacks Consensus Estimate of a loss of $0.47. This compares to break-even earnings per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +26.85%. A quarter ago, it was expected that this materials science would post a loss of $0.31 per share when it actually produced a loss of $0.19, delivering a surprise of +38.71%.Over the last four quarters, the company ha ...

As part of a cost-saving program, the chemicals giant will lean on artificial intelligence to increase productivity. ...

4Q 2025 Results January 29, 2026 Agenda ▪ Performance Update ▪ Operating Segment Details ▪ Outlook ▪ Transform to Outperform to Deliver >$2B Near-Term Op. EBITDA Uplift ▪ Navigating the Near-Term with Financial Flexibility and Decisive Actions Performance Update Solid 4Q Results Supported by Strong Self Help Actions to Manage the Near-Term and Strengthen Long-Term Competitiveness Accelerating Strategic Actions in 2026 3 Net Sales $3.3B Operating EBITDA Returned to Shareholders Full Year 2025 $40.0B $1.5B No ...

Thursday, Dow reported a fourth-quarter per-share loss of 34 cents from sales of $9.5 billion. Wall Street was looking for a 46-cent loss from sales of $9.5 billion. ...