Core Insights - Dow Inc. (DOW) has agreed to sell its 50% stake in DowAksa Advanced Composites Holdings BV to its joint venture partner Aksa Akrilik Kimya Sanayii A.S. for an estimated $125 million, reflecting an enterprise value of approximately 10 times the projected 2025 operating EBITDA [1][9] - The divestiture aligns with DOW's strategy to focus on its core, high-value downstream businesses, and is expected to close in the third quarter of 2025 [2][9] - DOW's stock has experienced a significant decline of 47.1% over the past year, compared to a 24.9% decline in the industry [3] Financial and Strategic Actions - DOW remains committed to disciplined execution and enhancing profitability while addressing macroeconomic and geopolitical uncertainties, including delaying the construction of the Fort Saskatchewan Path2Zero project [4] - The company is expanding its review of European assets, particularly in polyurethanes, to tackle challenging demand conditions and regulatory issues, with expected cash support of around $6 billion from these actions [5] Market Position - DOW currently holds a Zacks Rank of 4 (Sell), while other companies in the Basic Materials sector, such as Akzo Nobel N.V. and Newmont Corporation, have higher rankings, indicating better market performance [6]

Group 1 - Dow has signed a sale and purchase agreement to sell its 50% interest in DowAksa Advanced Composites Holdings BV to Aksa Akrilik Kimya Sanayii A.Ş. for expected proceeds of $125 million, reflecting an enterprise value of approximately 10x the estimated 2025 operating EBITDA [1][2] - The decision to exit the joint venture aligns with Dow's strategy to focus on core, high-value downstream businesses, and the proceeds will support the company's balanced capital allocation approach [2][4] - The sale is anticipated to close in the third quarter of 2025, pending customary regulatory approvals and other closing conditions [2] Group 2 - Dow is a leading materials science company with a focus on high-growth markets such as packaging, infrastructure, mobility, and consumer applications, delivering sales of approximately $43 billion in 2024 [3] - The company operates manufacturing sites in 30 countries and employs around 36,000 people, emphasizing its commitment to sustainability and profitable growth [3]

Group 1 - Dow has completed the sale of its Telone™ soil fumigation product to TriCal Soil Solutions, Inc. for $121 million, aligning with its strategy to focus on core operations [1][2] - The transaction represents approximately 10 times the 2024 Operating EBITDA, indicating a strong valuation for the divested product line [2] - The sale is expected to allow the Telone product line to benefit from focused investments aimed at capitalizing on growth in agricultural market segments [2] Group 2 - Dow is a leading materials science company with a focus on high-growth markets such as packaging, infrastructure, mobility, and consumer applications, achieving sales of approximately $43 billion in 2024 [3] - The company operates manufacturing sites in 30 countries and employs around 36,000 people, emphasizing its global presence and scale [3] - Proceeds from the divestiture will support Dow's balanced capital allocation approach, further enabling the company to concentrate on high-value downstream markets [4]