Dow launches Transform to Outperform to raise the competitive industry benchmark for productivity and growth to enable improved returns

Core Viewpoint - Dow has announced a comprehensive plan called "Transform to Outperform" aimed at simplifying operations, streamlining processes, and modernizing customer service, targeting at least $2 billion in near-term operational EBITDA improvement through AI and automation [1][2][8] Group 1: Transformation Goals and Benefits - The transformation aims to achieve significant growth and productivity gains, enhancing Dow's competitive position and resilience [2] - Approximately two-thirds of the expected benefits will come from productivity improvements, while one-third will be from growth [2] - The company has established a dedicated internal team to guide the transformation process [2] Group 2: Financial Projections and Costs - Dow anticipates one-time costs of approximately $1.1 to $1.5 billion associated with the transformation, including $600 to $800 million in severance for around 4,500 roles [3] - The estimated cash costs to achieve operational EBITDA targets are projected to be $800 to $1,000 million in 2026, $300 to $500 million in 2027, and $0 in 2028 [4] Group 3: Commitment to Long-Term Strength - The transformation is designed to ensure Dow's continued global leadership by leveraging best-in-class processes and technologies [5] - The company emphasizes a focus on safe and reliable operations while driving accountability and continuous improvement [5] - Local stakeholders will be engaged in each region during the implementation of the announced actions [5] Group 4: Company Overview - Dow is a leading materials science company with a focus on high-growth markets such as packaging, infrastructure, mobility, and consumer applications [6] - The company operates manufacturing sites in 29 countries and employs approximately 34,600 people, with sales of around $40 billion in 2025 [6]