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DOW Lags Q2 Earnings and Sales Estimates on Lower Prices
ZACKS· 2025-07-24 15:50
Key Takeaways DOW reported an adjusted Q2 loss of 42 cents per share, missing estimates on both earnings and revenues.Lower prices across all segments and weak volumes resulted in a 7% drop in Q2 sales for DOW.DOW expects near-term projects and cost cuts as key to offsetting oversupply and pricing pressures.Dow Inc. (DOW) recorded a loss (on a reported basis) of $835 million or $1.18 per share for second-quarter 2025. This compares to a profit of $439 million or 62 cents per share a year ago. The bottom lin ...
陶氏化学,亏损78亿!
DT新材料· 2025-07-24 15:41
Core Viewpoint - Dow Chemical reported a significant decline in performance across all departments for Q2, reflecting a broader market downturn similar to BASF's 81% drop in net profit [1][2]. Financial Performance Summary - **Net Sales**: $10.104 billion, down 7% year-on-year and down 3% quarter-on-quarter [2][10]. - **Volume**: Decreased by 1% year-on-year and 2% quarter-on-quarter, with growth in the US and Canada offset by declines in Europe, the Middle East, Africa, and India [3]. - **Prices**: Fell by 7% year-on-year and 3% quarter-on-quarter due to pressure on global chemical product prices [4]. - **GAAP Net Loss**: $801 million, compared to a profit of $458 million in the same quarter last year, resulting in a total loss of $1.091 billion for the first half of the year [5][10]. - **Operating EBIT**: Loss of $21 million, down from a profit of $819 million year-on-year, primarily due to price declines and reduced equity earnings [5][10]. - **Cash Flow from Operations**: Negative $470 million, a decrease of $1.3 billion year-on-year, indicating significant pressure on profit margins [6][10]. Departmental Performance - **Packaging and Specialty Plastics**: - Net Sales: $5.0 billion, down 9% year-on-year [11][12]. - Operating EBIT: $71 million, down 89% year-on-year [11][12]. - **Industrial Intermediates and Infrastructure**: - Net Sales: $2.786 billion, down 5.6% year-on-year [13]. - Operating EBIT: Loss of $185 million, compared to a profit of $7 million in the same quarter last year [13]. - **High Performance Materials and Coatings**: - Net Sales: $2.129 billion, down 5% year-on-year but up 3% quarter-on-quarter [14][15]. - Operating EBIT: $152 million, a slight increase year-on-year [14][15]. Future Outlook - Dow Chemical anticipates improvements from recent growth projects and long-term strategic investments, which are expected to enhance its position in higher-value applications and attractive end markets [16]. - The company is optimizing its asset base by shutting down three upstream assets in Europe and selling its 50% stake in a joint venture, continuing a series of over 20 asset actions initiated since 2023 [16][17].
7月24日电,“绩劣股”集体重挫,意法半导体大跌近18%,奇波雷墨西哥烧烤、陶氏化学跌超12%,IBM跌超10%。



news flash· 2025-07-24 14:13
智通财经7月24日电,"绩劣股"集体重挫,意法半导体大跌近18%,奇波雷墨西哥烧烤、陶氏化学跌超 12%,IBM跌超10%。 ...
Cramer's Mad Dash: Dow Inc.
CNBC Television· 2025-07-24 14:04
Company Performance & Financials - Dow Chemical (Dowo Chemicals) had to cut the dividend [1] - The dividend cut is expected to last for 3 years, indicating a prolonged negative cycle [2] - The situation is described as a "title file dividend" [3] Industry Dynamics & Challenges - The industrial economy is not helping the plastic industry [2] - China is dumping plastic, causing pricing issues [2] - Initial pricing was good, but then "liberation day pricing" fell apart [2] Company Strategy & Leadership - Jim Ferling (Kling), the CEO, is considered a good leader, but the company needs to buy back stock [1][3] - A potential stock buyback could save $1 million [3]
Dow(DOW) - 2025 Q2 - Earnings Call Transcript
2025-07-24 13:02
Dow (DOW) Q2 2025 Earnings Call July 24, 2025 08:00 AM ET Company ParticipantsAndrew Riker - VP - IRJim Fitterling - Chairman, Director & CEOKaren Carter - COOJeff Tate - CFOVincent Andrews - Managing DirectorMichael Sison - Managing DirectorDavid Begleiter - Managing DirectorMatthew Blair - MD - Refiners, Chemicals & Renewable Fuels ResearchKevin McCarthy - PartnerJosh Spector - Executive Director - Chemicals Equity ResearchFrank Mitsch - PresidentJohn Roberts - Managing DirectorConference Call Participant ...
Dow(DOW) - 2025 Q2 - Earnings Call Transcript
2025-07-24 13:00
Financial Data and Key Metrics Changes - In Q2 2025, net sales were $10.1 billion, down 7% year-over-year and down 3% sequentially, reflecting declines across all operating segments [7][20] - EBITDA for the quarter was $700 million, lower than the same period last year [7] - A 50% dividend reduction was announced, effective in Q3 2025, to maintain financial flexibility amid a prolonged downturn [8][40] Business Line Data and Key Metrics Changes - **Packaging and Specialty Plastics**: Net sales decreased year-over-year due to lower downstream polymer pricing, despite higher volumes in polyethylene [13][18] - **Industrial Intermediates and Infrastructure**: Net sales declined both year-over-year and sequentially, with a 2% volume decrease attributed to challenging market conditions [15][16] - **Performance Materials and Coatings**: Net sales decreased year-over-year but increased 3% sequentially, driven by higher demand for downstream silicones [18][19] Market Data and Key Metrics Changes - Domestic demand in North America for packaging remains stable, but export markets are experiencing slower growth due to tariff policies [21] - Manufacturing activity in China is flat, and consumer spending in the U.S. and Europe remains steady, although confidence is below historical norms [22][23] - Building permits in the U.S. are near five-year lows, indicating weak infrastructure market conditions [21] Company Strategy and Development Direction - The company is focused on operational discipline and financial flexibility to navigate the current downturn and position itself for future growth [6][9] - Strategic actions include cash support initiatives, divestitures of non-core product lines, and shutting down three upstream assets in Europe to address structural challenges [9][31] - The completion of new growth projects, such as the PolySeven polyethylene train, is expected to enhance production capacity and efficiency [35][36] Management's Comments on Operating Environment and Future Outlook - Management noted that the global macroeconomic backdrop remains challenging, with ongoing tariff and geopolitical uncertainties impacting demand [20] - Expectations for Q3 EBITDA are approximately $800 million, reflecting anticipated improvements in integrated margins and higher volumes from growth investments [25][26] - The company remains committed to maintaining a competitive dividend while focusing on restoring earnings growth and managing costs [40][41] Other Important Information - The company expects to receive approximately $1.2 billion in cash proceeds from a legal judgment related to a jointly owned ethylene asset [34] - A strategic partnership with Macquarie Asset Management has provided $2.4 billion in cash for infrastructure assets, with potential for further cash inflow [33][34] Q&A Session Summary Question: Contextualizing the dividend in relation to operating net income - Management indicated that the dividend reduction was based on extensive analysis of economic recovery, with a focus on restoring earnings growth alongside maintaining a competitive dividend [48] Question: Philosophy behind maintaining a fixed dividend - The fixed dividend is significant for institutional and retail investors, and reducing it provides more capital flexibility during the downturn [52][53] Question: Industry operating rates and polyethylene supply-demand fundamentals - Management acknowledged that while some capacity closures have occurred, polyethylene demand continues to grow above GDP rates, necessitating new capacity [55] Question: Anticompetitive behavior and its impact - Polyurethanes have seen significant anticompetitive activity, and the company is actively engaged in trade negotiations to mitigate these impacts [95][96] Question: Plans for cash saved from the dividend - The cash saved from the dividend reduction is intended to maintain flexibility and support balance sheet strength, rather than immediate reinvestment [80][81]
Dow Inc. (DOW) Reports Q2 Loss, Misses Revenue Estimates
ZACKS· 2025-07-24 12:11
Financial Performance - Dow Inc. reported a quarterly loss of $0.42 per share, significantly worse than the Zacks Consensus Estimate of a loss of $0.11, and down from earnings of $0.68 per share a year ago, representing an earnings surprise of -281.82% [1] - The company posted revenues of $10.1 billion for the quarter ended June 2025, missing the Zacks Consensus Estimate by 1.68%, and down from $10.92 billion in the same quarter last year [2] - Over the last four quarters, Dow Inc. has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Performance - Dow Inc. shares have declined approximately 24.3% since the beginning of the year, contrasting with the S&P 500's gain of 8.1% [3] - The current consensus EPS estimate for the upcoming quarter is $0.04 on revenues of $10.58 billion, and for the current fiscal year, it is $0.24 on revenues of $41.62 billion [7] Industry Outlook - The Chemical - Diversified industry, to which Dow Inc. belongs, is currently ranked in the bottom 5% of over 250 Zacks industries, indicating a challenging environment [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Dow Inc.'s stock performance [5]
Dow(DOW) - 2025 Q2 - Earnings Call Presentation
2025-07-24 12:00
Financial Performance - Net sales reached $10.1 billion, while Operating EBITDA amounted to $703 million [7] - The company received approximately $2.4 billion in cash from the Diamond Infrastructure Solutions partnership, with a potential additional $600 million expected in the second half of 2025 [7] - A final judgment ruling awarded the company approximately $1.2 billion from the NOVA litigation, with cash inflow anticipated in the second half of 2025 [7] Cost Savings and Divestitures - The company announced two divestitures totaling approximately $250 million, at an operating EBITDA multiple of approximately 10x [7] - In-year cost savings are increasing to approximately $400 million, as part of a $1 billion program [7] Capital Allocation - A 50% dividend reduction was announced to prioritize a balanced capital allocation framework [7] - 2025 CapEx is being reduced to approximately $2.5 billion, which is approximately $1 billion lower than original plans [34] Segment Performance - Packaging & Specialty Plastics reported Op EBIT of $632 million, with margins up 1,130 bps YoY [9] - Industrial Intermediates & Infrastructure reported Op EBIT of $192 million, with margins up 680 bps YoY [18] - Performance Materials & Coatings reported Op EBIT of $6 million, with margins up 60 bps YoY [20] Outlook - 3Q25 Net Sales are expected to be ~$10.2B [29]
Dow(DOW) - 2025 Q2 - Quarterly Results
2025-07-24 10:03
[Financial Highlights & Overview](index=1&type=section&id=2Q25%20FINANCIAL%20HIGHLIGHTS) [CEO Quote and Strategic Actions](index=1&type=section&id=CEO%20QUOTE) CEO Jim Fitterling outlined aggressive actions to generate over **$6 billion** in cash and earnings growth by 2026, focusing on margin improvement and portfolio optimization - The company is taking aggressive actions to deliver near-term cash support and earnings growth levers, targeting a total of more than **$6 billion** by 2026[2](index=2&type=chunk) - Actions include improving margins, optimizing the global portfolio, and adjusting the dividend to maintain financial flexibility and shareholder value amidst weak macroeconomic conditions[2](index=2&type=chunk) [Q2 2025 Financial Performance Summary](index=1&type=section&id=SUMMARY%20FINANCIAL%20RESULTS) Q2 2025 saw a broad decline in financial performance, with net sales down 7% to **$10.1 billion**, a **GAAP net loss of $801 million**, and negative operating cash flow Q2 2025 Key Financial Metrics | In millions, except per share | 2Q25 | 2Q24 | vs. SQLY | 1Q25 | vs. PQ | | :--- | :--- | :--- | :--- | :--- | :--- | | **Net Sales (in millions)** | $10,104 | $10,915 | $(811) | $10,431 | $(327) | | **GAAP Income (Loss), Net of Tax (in millions)** | $(801) | $458 | $(1,259) | $(290) | $(511) | | **Operating EBIT (in millions)** | $(21) | $819 | $(840) | $230 | $(251) | | **Operating EBITDA (in millions)** | $703 | $1,501 | $(798) | $944 | $(241) | | **GAAP Earnings (Loss) Per Share** | $(1.18) | $0.62 | $(1.80) | $(0.44) | $(0.74) | | **Operating Earnings Per Share** | $(0.42) | $0.68 | $(1.10) | $0.02 | $(0.44) | | **Cash from Operating Activities (in millions)** | $(470) | $832 | $(1,302) | $104 | $(574) | - Net sales decreased **7% YoY**, with local prices down **7%** and volume down **1%**; sequentially, net sales were down **3%**[4](index=4&type=chunk) - GAAP net loss was **$801 million**, and operating EPS was a loss of **$0.42**, excluding **$0.76** per share of significant items, primarily restructuring and asset-related charges[4](index=4&type=chunk) - Cash provided by operating activities was negative **$470 million**, down **$1.3 billion** YoY, led by lower earnings from margin compression[4](index=4&type=chunk) [Segment Performance](index=2&type=section&id=SEGMENT%20HIGHLIGHTS) [Packaging & Specialty Plastics](index=2&type=section&id=Packaging%20%26%20Specialty%20Plastics) Packaging & Specialty Plastics saw net sales fall **9%** to **$5.0 billion** and Operating EBIT plummet to **$71 million** due to severe margin compression Packaging & Specialty Plastics Financials (in millions) | Metric | 2Q25 | 2Q24 | vs. SQLY | 1Q25 | vs. PQ | | :--- | :--- | :--- | :--- | :--- | :--- | | **Net Sales (in millions)** | $5,025 | $5,515 | $(490) | $5,310 | $(285) | | **Operating EBIT (in millions)** | $71 | $703 | $(632) | $342 | $(271) | - Net sales decreased **9% YoY**, driven by a **10%** decline in local prices, while volume increased **1%**[5](index=5&type=chunk) - Operating EBIT fell by **$632 million** YoY, primarily due to lower integrated margins; sequentially, EBIT decreased by **$271 million** due to lower margins and higher planned maintenance[6](index=6&type=chunk) - The startup of the Poly-7 asset led to lower merchant ethylene sales, impacting sequential results but is expected to drive future margin uplift through full downstream integration[5](index=5&type=chunk)[7](index=7&type=chunk) [Industrial Intermediates & Infrastructure](index=2&type=section&id=Industrial%20Intermediates%20%26%20Infrastructure) Industrial Intermediates & Infrastructure net sales decreased **6%** to **$2.8 billion**, resulting in an Operating EBIT loss of **$185 million** due to lower prices and higher maintenance Industrial Intermediates & Infrastructure Financials (in millions) | Metric | 2Q25 | 2Q24 | vs. SQLY | 1Q25 | vs. PQ | | :--- | :--- | :--- | :--- | :--- | :--- | | **Net Sales (in millions)** | $2,786 | $2,951 | $(165) | $2,855 | $(69) | | **Operating EBIT (in millions)** | $(185) | $7 | $(192) | $(128) | $(57) | - Net sales fell **6% YoY**, with local price down **5%** and volume down **2%**; sequentially, sales declined **2%** due to seasonally lower deicing fluid demand[8](index=8&type=chunk) - Operating EBIT decreased by **$192 million** YoY, driven by lower prices in both businesses and higher planned maintenance activity[11](index=11&type=chunk) - The Polyurethanes & Construction Chemicals business saw a YoY sales decrease due to lower volume and price in EMEAI[12](index=12&type=chunk) [Performance Materials & Coatings](index=3&type=section&id=Performance%20Materials%20%26%20Coatings) Performance Materials & Coatings net sales declined **5%** to **$2.1 billion**, but Operating EBIT increased to **$152 million** due to margin expansion from lower input costs Performance Materials & Coatings Financials (in millions) | Metric | 2Q25 | 2Q24 | vs. SQLY | 1Q25 | vs. PQ | | :--- | :--- | :--- | :--- | :--- | :--- | | **Net Sales (in millions)** | $2,129 | $2,243 | $(114) | $2,071 | $58 | | **Operating EBIT (in millions)** | $152 | $146 | $6 | $49 | $103 | - Operating EBIT increased by **$6 million** YoY, driven by margin expansion from lower input costs, which offset lower volumes[15](index=15&type=chunk) - Sequentially, Operating EBIT grew by **$103 million**, driven by lower input costs, seasonal volume gains, and continued downstream silicones growth[15](index=15&type=chunk) - The Coatings & Performance Monomers business saw a YoY sales decrease due to lower demand in a challenged housing market, but increased sequentially on seasonal demand for architectural coatings[17](index=17&type=chunk) [Outlook and Corporate Information](index=4&type=section&id=OUTLOOK) [Outlook](index=4&type=section&id=OUTLOOK) Dow's outlook focuses on mitigating oversupply through strategic actions, commissioning Q3 growth projects, and structurally improving cost base and asset footprint for resilient earnings - The company is facing signs of oversupply from new market entrants exporting at anti-competitive prices, requiring broader industry and regulatory engagement[18](index=18&type=chunk) - Near-term growth projects are all becoming operational in the third quarter, aiming to increase Dow's position in higher-value applications and less exposed end markets[18](index=18&type=chunk) - The company is focused on structurally improving its cost base, optimizing its global asset footprint, and maintaining operational excellence to strengthen its competitive position[18](index=18&type=chunk) [Disclosures](index=5&type=section&id=Disclosures) [Cautionary Statement about Forward-Looking Statements](index=5&type=section&id=Cautionary%20Statement%20about%20Forward-Looking%20Statements) This section provides a standard legal disclaimer that forward-looking statements are subject to numerous risks and uncertainties that could cause actual results to differ materially - Forward-looking statements are subject to risks, uncertainties, and other factors beyond Dow's control, which may cause actual results to differ materially[23](index=23&type=chunk) - Key risk factors include sanctions, supply chain disruptions, inflation, interest rates, raw material prices, competition, and changes in laws and regulations[23](index=23&type=chunk) [Non-GAAP Financial Measures](index=6&type=section&id=Non-GAAP%20Financial%20Measures) Dow explains its use of non-GAAP financial measures like Operating EBIT and Free Cash Flow to provide a more relevant view of ongoing operational performance - The company uses non-GAAP measures to better reflect ongoing performance and provide a more useful comparison of year-over-year results[26](index=26&type=chunk) - Key non-GAAP measures are defined, including Operating EBIT (earnings before interest and significant items), Operating EBITDA (Operating EBIT plus D&A), and Free Cash Flow (cash from operations less capex)[27](index=27&type=chunk)[28](index=28&type=chunk)[29](index=29&type=chunk) [Financial Statements & Reconciliations](index=7&type=section&id=Financial%20Statements%20%26%20Reconciliations) [Consolidated Statements of Income](index=7&type=section&id=Consolidated%20Statements%20of%20Income) Q2 2025 consolidated income statement shows net sales of **$10.1 billion**, a pre-tax loss of **$659 million**, and a net loss of **$801 million** Consolidated Income Statement Highlights (in millions, except EPS) | Metric | Three Months Ended Jun 30, 2025 | Three Months Ended Jun 30, 2024 | | :--- | :--- | :--- | | **Net sales (in millions)** | $10,104 | $10,915 | | **Restructuring and asset related charges - net (in millions)** | $591 | $— | | **Income (loss) before income taxes (in millions)** | $(659) | $608 | | **Net income (loss) (in millions)** | $(801) | $458 | | **Earnings (loss) per common share - diluted** | $(1.18) | $0.62 | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, Dow's balance sheet shows total assets of **$59.0 billion**, total liabilities of **$40.4 billion**, and total equity of **$18.6 billion** Consolidated Balance Sheet Highlights (in millions) | Metric | Jun 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Total current assets (in millions)** | $17,712 | $16,590 | | **Total Assets (in millions)** | $58,991 | $57,312 | | **Total current liabilities (in millions)** | $10,486 | $10,288 | | **Long-Term Debt (in millions)** | $16,247 | $15,711 | | **Total Liabilities (in millions)** | $40,399 | $39,461 | | **Total Equity (in millions)** | $18,592 | $17,851 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For H1 2025, cash used for operating activities was **$366 million**, a sharp decline from prior year, driven by a **$1.1 billion** net loss Consolidated Cash Flow Highlights (Six Months Ended Jun 30, in millions) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | **Cash provided by (used for) operating activities (in millions)** | $(379) | $1,300 | | **Cash used for investing activities (in millions)** | $(962) | $(765) | | **Cash provided by (used for) financing activities (in millions)** | $1,341 | $(129) | [Selected Financial Information and Non-GAAP Measures](index=10&type=section&id=Selected%20Financial%20Information%20and%20Non-GAAP%20Measures) This section details financial breakdowns and reconciliations, showing Q2 2025 total Operating EBIT loss of **$21 million** and negative free cash flow of **$1.1 billion** Operating EBIT by Segment (Q2, in millions) | Segment | 2Q25 (in millions) | 2Q24 (in millions) | | :--- | :--- | :--- | | **Packaging & Specialty Plastics** | $71 | $703 | | **Industrial Intermediates & Infrastructure** | $(185) | $7 | | **Performance Materials & Coatings** | $152 | $146 | | **Corporate** | $(59) | $(37) | | **Total** | **$(21)** | **$819** | - Significant items in Q2 2025 reduced reported results by **$538 million** net (**$0.76** per share), primarily driven by **$474 million** in net costs from the 2025 Restructuring Program[43](index=43&type=chunk) Free Cash Flow Reconciliation (Q2, in millions) | Metric | 2Q25 (in millions) | 2Q24 (in millions) | | :--- | :--- | :--- | | **Cash from operating activities (GAAP, in millions)** | $(470) | $832 | | **Capital expenditures (in millions)** | $(662) | $(723) | | **Free Cash Flow (non-GAAP, in millions)** | **$(1,132)** | **$109** |