Dow(US:DOW)2026-02-03 12:53Business Segments - The Company operates through six global business segments, including Packaging & Specialty Plastics, Industrial Intermediates & Infrastructure, and Performance Materials & Coatings[31]. - The Packaging & Specialty Plastics segment utilizes a broad polyolefin product portfolio and proprietary technologies to deliver sustainable solutions across various markets, including food packaging and health[32]. - Hydrocarbons & Energy is a leading global producer of ethylene, propylene, and aromatics, which are essential for the Company's derivative businesses[35]. - Industrial Solutions provides a broad portfolio of solutions that enhance manufacturing processes across various end-markets, including coatings and electronics[46]. - The Polyurethanes business is the world's largest producer of propylene oxide, propylene glycol, and polyether polyols, serving various end-markets including automotive and building insulation[48]. Sustainability Initiatives - The Company aims to commercialize 3 million metric tons of circular and renewable solutions annually by 2030 as part of its sustainability strategy[41]. - The world's first net-zero integrated ethylene complex in Alberta, Canada, is expected to decarbonize 20% of the Company's global ethylene capacity while delivering 2 million metric tons of organic growth[42]. - The Company continues to collaborate with Mura Technology to advance circularity through recycled plastics and has invested in advanced recycling initiatives[42]. - The Polyurethanes & Construction Chemicals business commercialized low-carbon offerings under the Decarbia portfolio, achieving decarbonization potential of 40% to 90% depending on product grades[59]. - The Company is committed to achieving carbon neutrality by 2050, including all scopes of emissions and product benefits[95]. - By 2030, the Company aims to reduce its net annual Scope 1 and 2 CO2 emissions by 5 million metric tons, representing a 15% reduction from 2020 levels[95]. - Over 90% of the Company's growth investments in product innovation deliver sustainability benefits, particularly in the Coatings & Performance Monomers business[69]. - The Company is focused on advancing a circular economy by transforming materials usage and extending their life cycle[84]. Financial Performance and Strategic Decisions - The Company recognized a $303 million pretax impairment charge related to assets in Latin America, including $71 million for Packaging & Specialty Plastics[45]. - The strategic review in 2025 will lead to the shutdown of an ethylene cracker in Böhlen, Germany, by the end of 2027 to optimize the global asset footprint[44]. - The company recorded a goodwill impairment charge of $690 million for the Polyurethanes & Construction Chemicals reporting unit due to lower fair value[58]. - The Company plans to shut down certain CAV assets in Schkopau, Germany, by the end of 2027 as part of a strategic review to optimize its global asset footprint[57]. - The Company will shut down its basics siloxanes operations in Barry, UK, by mid-2026 to optimize margins and reduce energy-intensive operations[71]. - The Company continues to align investment spending with cash flows and strategic priorities to enhance competitiveness and increase mid-cycle earnings[56]. Capacity Expansion and Innovation - A new polyethylene unit on the U.S. Gulf Coast was completed in 2025 to meet demand in specialty packaging and health applications[42]. - In 2025, the company expanded propylene glycol capacity in Thailand by 80,000 metric tons per year, bringing total capacity to 250,000 metric tons per year, the largest in the region[54]. - The Industrial Solutions business increased global alkoxylation capacity by 70% compared to the 2020 baseline, supporting demand in fast-growing markets[55]. - Investments in sustainable barrier coatings for food and beverage packaging are underway, addressing market needs in high-performance computing and electric vehicle electronics[67]. - The company is focused on expanding manufacturing capacity and efficiency in the Coatings & Performance Monomers and Consumer Solutions businesses to enhance competitiveness[68]. Employee Engagement and Safety - As of December 31, 2025, Dow employed approximately 34,600 full-time employees[107]. - In 2025, 61% of Dow's workforce and 96% of Dow's people leaders participated in at least one Employee Resource Group (ERG)[99]. - The annual employee opinion survey in 2025 had a response rate of 64%, providing insights into workplace culture and employee satisfaction[105]. - The Company has achieved an Occupational Safety and Health Administration Total Recordable Injury and Illness Rate of 0.20 in 2025, indicating strong safety performance[94]. - Dow has conducted global pay disparity studies for over 20 years to ensure fair treatment between genders and ethnic minorities[100]. - The Total Rewards programs are designed to attract, retain, and motivate employees, aligning with their compensation, health, and career needs[101]. - Dow's inclusion strategy is supported by three Inclusion Councils and aims to enhance employee engagement and satisfaction[102]. Risk Management - The Company's total daily Value-at-Risk (VAR) increased from $162 million at December 31, 2024, to $182 million at December 31, 2025[404]. - The interest rate VAR decreased to $114 million in 2025, while equity securities VAR increased to $16 million due to higher volatility[404]. - The Company uses hedging transactions to manage market risks related to foreign exchange rates, interest rates, and commodity prices[397]. - Dow's primary foreign currency exposures are in European currencies, Chinese yuan, Japanese yen, Thai baht, and Argentinian peso[398].