Dow(DOW) - 2024 Q4 - Annual Results

Financial Performance - Net sales for Q4 2024 were $10.4 billion, down 2% year-over-year and down 4% sequentially[3] - GAAP net loss was $35 million, or $0.08 per share, with operating earnings per share at $0.00[3] - Operating EBIT was $454 million, a decrease of $105 million year-over-year and down $187 million sequentially[3] - Full year 2024 net sales totaled $43.0 billion, compared to $44.6 billion in 2023, with GAAP net income increasing to $1.2 billion from $660 million[3] - Net income available for Dow Inc. common stockholders was a loss of $53 million in Q4 2024, compared to a loss of $105 million in Q4 2023[34] - Net income for 2024 was $1,201 million, a significant increase from $660 million in 2023, representing an 82% growth[39] - Total net sales for 2024 were $42,964 million, down 4% from $44,622 million in 2023[41] - For the three months ended Dec 31, 2024, reported net income was $(53) million, with an EPS of $(0.08) after significant items totaling $(76) million[45] - For the twelve months ended Dec 31, 2024, reported net income was $1,116 million, with an EPS of $1.57, while operating results (non-GAAP) showed net income of $1,212 million and an EPS of $1.71[51] Cash Flow and Operating Activities - Cash provided by operating activities was $811 million, down $817 million year-over-year but up $11 million sequentially[3] - Cash provided by operating activities for continuing operations was $2,903 million in 2024, down from $5,164 million in 2023, a decrease of 43.7%[39] - Free Cash Flow for the year ended December 31, 2024, was not explicitly stated but is a key financial measure for funding obligations and returns to shareholders[31] - Free cash flow for the three months ended Dec 31, 2024, was $44 million, a significant decrease from $870 million in the same period of 2023[60] - Total cash used for financing activities decreased to $1,168 million in 2024 from $3,115 million in 2023, a reduction of 62.5%[39] - The company reported a cash flow conversion rate of 67.3% for the three months ended Dec 31, 2024[60] Segment Performance - The Packaging & Specialty Plastics segment reported net sales of $5.3 billion, down 6% year-over-year[6] - The Industrial Intermediates & Infrastructure segment had flat net sales of $2.9 billion year-over-year, with operating EBIT increasing by $69 million[11] - Performance Materials & Coatings segment net sales increased by 4% year-over-year to $2 billion, with operating EBIT improving by $52 million[16] - Operating EBIT for the Packaging & Specialty Plastics segment decreased to $447 million in Q4 2024 from $664 million in Q4 2023, a decline of 32.7%[43] - The Performance Materials & Coatings segment reported an operating EBIT of $(9) million in Q4 2024, compared to $(61) million in Q4 2023, showing improvement[43] - The corporate segment's operating EBIT improved to $(68) million in Q4 2024 from $(59) million in Q4 2023, indicating a positive trend[43] Assets and Liabilities - Total assets decreased to $57,312 million as of December 31, 2024, from $57,967 million as of December 31, 2023, indicating a decline of approximately 1.1%[36] - Long-term debt increased to $15,711 million in 2024 from $14,907 million in 2023, representing an increase of about 5.4%[36] - Cash and cash equivalents decreased to $2,189 million in 2024 from $2,987 million in 2023, a decline of approximately 26.7%[36] - The company reported a decrease in cash and cash equivalents at the end of the year to $2,189 million from $2,987 million in 2023, a decline of 26.7%[39] Cost Management and Restructuring - The company plans to implement $1 billion in targeted cost reductions and reduce 2025 CapEx plans by $300 - 500 million[20] - The company reported a significant restructuring charge of $34 million in Q4 2024, compared to a credit of $21 million in Q4 2023[34] - The company incurred restructuring and efficiency costs of $(315) million for the twelve months ended Dec 31, 2024, impacting net income by $(245) million[51] - Restructuring charges for the three months ended Sep 30, 2024, amounted to $(79) million, affecting net income by $(62) million[58] External Factors and Challenges - The company anticipates ongoing challenges due to geopolitical factors, including the conflicts in Russia and Ukraine, which may impact future performance[25] - The Argentine peso devaluation resulted in a loss of $(177) million for the twelve months ended Dec 31, 2023, impacting overall financial results[51] - The company faced significant litigation-related charges of $(71) million for the twelve months ended Dec 31, 2023[51] Research and Development - Research and development expenses decreased to $202 million in Q4 2024 from $213 million in Q4 2023, reflecting a reduction of approximately 5.2%[34]