DOW Lags Q2 Earnings and Sales Estimates on Lower Prices

Core Insights - Dow Inc. reported a loss of $835 million or $1.18 per share for Q2 2025, a significant decline from a profit of $439 million or 62 cents per share in the same quarter last year, primarily due to lower prices and restructuring charges [1] - On an adjusted basis, the company recorded a loss of 42 cents per share, missing the Zacks Consensus Estimate of a loss of 11 cents [1][9] - Net sales for the quarter were $10,104 million, down 7% year over year, and also missed the Zacks Consensus Estimate of $10,277 million [2] Financial Performance - Volume declined by 1% year over year, with growth in the U.S. and Canada offset by reductions in EMEAI [3] - Cash flow from operating activities was negative $470 million, a decline of $1.3 billion from the same period last year [7] - Shareholder returns for the quarter amounted to $496 million in dividends [7] Segment Performance - Packaging & Specialty Plastics: Sales fell 8.9% year over year to $5,025 million, missing estimates [4] - Industrial Intermediates & Infrastructure: Sales decreased by 5.6% year over year to $2,786 million, also below estimates [5] - Performance Materials & Coatings: Revenues fell 5% year over year to $2,129 million, missing estimates [6] Market Outlook - The company highlighted the emergence of new market entrants exporting at anti-competitive prices, indicating signs of oversupply [8] - Dow's near-term growth projects and long-term strategic investments are expected to enhance its presence in high-value applications [9][10] - The company remains committed to reducing its cost base and optimizing its global asset network to reinforce its competitive edge [10] Stock Performance - Dow's shares have declined by 43% over the past year, compared to a 15.9% decline in the industry [13]