Core Insights - Dow Inc. reported a significant loss of $1,543 million or $2.15 per share for Q4 2025, compared to a loss of $53 million or 8 cents per share in the same quarter last year, primarily due to lower prices and volumes [1] - On an adjusted basis, the loss was 34 cents, which was better than the Zacks Consensus Estimate of a loss of 46 cents [1] Financial Performance - Net sales for the quarter were $9,460 million, down 9% year over year, missing the Zacks Consensus Estimate of $9,487.1 million [2] - Volume decreased by 2% year over year, largely due to declines in the Packaging & Specialty Plastics unit, with local prices falling 8% year over year [2] - Cash flow from operating activities for continuing operations was $298 million, a decrease of $513 million from the same period last year, with full-year cash flow at $1.1 billion compared to $2.9 billion in 2024 [6] Segment Highlights - **Packaging & Specialty Plastics**: Sales fell 11% year over year to $4,744 million, missing the consensus estimate of $4,834 million, with volume down 2% and local prices down 9% [3] - **Industrial Intermediates & Infrastructure**: Sales decreased 9% year over year to $2,688 million, beating the consensus estimate of $2,653 million, with local prices down 9% and volume down 1% [4] - **Performance Materials & Coatings**: Revenues fell 6% year over year to $1,852 million, exceeding the consensus estimate of $1,836 million, with volume down 2% and local prices down 4% [5] Strategic Initiatives - Dow is committed to delivering near-term cost savings through the "Transform to Outperform" initiative, targeting at least $2 billion in near-term operating EBITDA improvement, with two-thirds expected from productivity enhancements [7] - This initiative is in addition to an earlier announced $1 billion cost savings program [7] Market Performance - Dow's shares have declined by 27.9% over the past year, compared to a 20.8% decline in the Zacks Chemicals Diversified industry [9]

Dow (NYSE:DOW) Q4 2025 Earnings call January 29, 2026 08:00 AM ET Company ParticipantsAndrew Riker - VP of Investor RelationsDavid Begleiter - Managing DirectorFrank Mitsch - PresidentJeff Tate - CFOJim Fitterling - Chair and CEOKaren S. Carter - COOKevin McCarthy - PartnerMatthew Blair - Managing DirectorMike Sison - Managing DirectorVincent Andrews - Managing DirectorConference Call ParticipantsChris Parkinson - Senior Research Analyst of Chemicals, Agriculture and PackagingDuffy Fischer - Equity Research ...

Core Insights - The company reported a significant decline in net sales and increased losses in the fourth quarter of 2025, with net sales of $9.46 billion, down 9% year-over-year and 5% sequentially [5][40]. - The GAAP net loss for the quarter was $1.5 billion, compared to a loss of $35 million in the same quarter last year [5][34]. - The company is implementing a comprehensive cost reduction program, which is expected to yield significant savings and improve productivity [6]. Financial Performance - Net sales for the fourth quarter of 2025 were $9,460 million, down from $10,405 million in the fourth quarter of 2024 [2][34]. - GAAP income (loss) net of tax was $(1,477) million, compared to $(35) million in the previous year [2][34]. - Operating EBIT was $33 million, a decrease of $421 million year-over-year, primarily due to price declines and lower operating rates [5][34]. - Operating EBITDA was $741 million, down from $1,205 million in the same quarter last year [2][34]. - Cash provided by operating activities was $298 million, down from $811 million year-over-year [5][34]. Segment Performance - The Packaging & Specialty Plastics segment reported net sales of $4,744 million, down 11% year-over-year, driven by lower downstream polymer prices [7][40]. - The Industrial Intermediates & Infrastructure segment saw net sales of $2,688 million, a 9% decline compared to the previous year, with operating EBIT falling to $(201) million [12][40]. - The Performance Materials & Coatings segment had net sales of $1,852 million, down 6% year-over-year, with operating EBIT increasing to $25 million [18][40]. Outlook and Strategic Initiatives - The company is focused on delivering near-term cost savings and simplifying its operating model through the "Transform to Outperform" initiative, which aims to enhance productivity and shareholder returns [6][22]. - The CEO emphasized the importance of reducing complexity and adopting advanced technologies to improve operational efficiency [6][22]. - The company expects these efforts to generate at least $2 billion in additional near-term earnings [6]. Shareholder Returns - The company returned $251 million to shareholders in dividends during the fourth quarter [5][34]. - For the full year 2025, total returns to shareholders amounted to $1.5 billion in dividends [5]. Cash Flow and Capital Expenditures - Cash provided by operating activities for continuing operations was $1,062 million for the year, down from $2,903 million in 2024 [38]. - Capital expenditures for the year were $2,479 million, compared to $2,940 million in the previous year [38]. - The company ended the year with cash and cash equivalents of $3,816 million, up from $2,189 million in 2024 [38].