Dow Inc. (NYSE:DOW) Fourth-Quarter 2025 Earnings Preview
DowDow(US:DOW) Financial Modeling Prep·2026-01-28 12:00

Core Viewpoint - Dow Inc. is facing significant challenges in the chemicals industry, with analysts predicting a negative earnings per share (EPS) of -$0.46 and revenue of approximately $9.47 billion for Q4 2025, alongside an anticipated 8.8% decline in revenue year over year [1][2][6] Group 1: Financial Performance - Dow's shares have decreased by 32.8% over the past year, which is a more substantial decline compared to the 21% drop in the Zacks Chemicals Diversified industry [3] - The company has experienced mixed earnings results, surpassing the Zacks Consensus Estimate in two of the last four quarters but missing it twice, resulting in an average negative earnings surprise of 35.8% [3] - The most recent quarter showed a positive earnings surprise of 38.7% [3] Group 2: Financial Metrics - Dow has a negative price-to-earnings (P/E) ratio of -17.47, indicating ongoing losses [4] - The price-to-sales ratio is 0.48, suggesting the stock is valued at less than half of its sales per share [4] - The enterprise value to sales ratio is 0.85, reflecting the company's valuation in relation to its sales [4] Group 3: Cost Management and Financial Health - The company is implementing cost-cutting measures aimed at achieving $1 billion in reductions, with an expected benefit of $400 million in 2025 [2] - Despite a negative earnings yield of -5.72%, Dow's current ratio of 1.94 indicates good short-term financial health, with nearly twice as many current assets as current liabilities [5] - The debt-to-equity ratio of 1.12 suggests that the company has more debt than equity, highlighting its financial challenges [5]