Core Insights - Wall Street analysts anticipate Dow Inc. (DOW) will report a quarterly loss of -$0.31 per share, reflecting a significant year-over-year decline of 166% [1] - Expected revenues for the quarter are projected at $10.18 billion, which represents a decrease of 6.5% compared to the same quarter last year [1] - Over the past 30 days, the consensus EPS estimate has been revised downward by 31.8%, indicating a reassessment of initial projections by analysts [1][2] Revenue Estimates - Analysts predict 'Revenues- Performance Materials & Coatings' will be $2.11 billion, down 4.9% from the previous year [4] - 'Revenues- Corporate' are expected to reach $154.97 million, indicating a year-over-year decline of 17.1% [4] - 'Revenues- Packaging & Specialty Plastics' are forecasted at $5.09 billion, reflecting a decrease of 7.8% from the prior-year quarter [4] Operating EBITDA Estimates - The consensus estimate for 'Operating EBITDA- Packaging & Specialty Plastics' is $513.07 million, down from $1.00 billion in the same quarter last year [5] - 'Operating EBITDA- Performance Materials & Coatings' is estimated at $281.78 million, compared to $334.00 million a year ago [6] - 'Operating EBITDA- Industrial Intermediates & Infrastructure' is projected to be $57.29 million, down from $102.00 million in the same quarter last year [6] Stock Performance - Over the past month, Dow Inc. shares have declined by 6.8%, while the Zacks S&P 500 composite has increased by 1.1% [6] - Dow Inc. holds a Zacks Rank of 4 (Sell), suggesting it is likely to underperform the overall market in the near future [6]

Investment Rating - The report indicates a negative market reaction expected for Dow's Q2 2025 performance despite adjusted net income meeting market expectations, primarily due to the strong profitability in its performance materials and coatings segment [1][2]. Core Insights - Dow reported an adjusted net income of $42 million for Q2 2025, exceeding market expectations of a $90 million loss, driven by better-than-expected performance in its high-performance materials and coatings business [2]. - The company aims to achieve over $6 billion in cash flow by 2026 through short-term cash support and profit growth leverage, while also adjusting its dividend policy based on economic cycles to enhance financial flexibility [1]. - The performance materials and coatings segment generated $213 million in operating income, a 4% year-over-year increase, attributed to seasonal demand for architectural coatings and increased sales of downstream silicone products [2]. - Conversely, the industrial intermediates and infrastructure segment reported an operating loss of $185 million, impacted by declining sales in polyurethane and construction chemicals, partially offset by growth in industrial solutions [2]. - The packaging and specialty packaging segment's revenue was $71 million, falling short of market expectations due to a decline in overall profit margins [2]. Summary by Sections Financial Performance - Q2 2025 adjusted net income was $42 million, a 147% quarter-over-quarter increase, but a 91% year-over-year decline [4]. - Revenue for Q2 2025 was $10.1 billion, a 3% decrease quarter-over-quarter and a 7% decrease year-over-year [4]. - Adjusted EBITDA for Q2 2025 was $703 million, reflecting a 26% decrease quarter-over-quarter and a 53% decrease year-over-year [4]. Segment Performance - **Performance Materials & Coatings**: Revenue of $2.129 billion, with operating income of $152 million, a 210% increase quarter-over-quarter [4]. - **Industrial Intermediates & Infrastructure**: Revenue of $2.786 billion, with an operating loss of $185 million, a significant decline from previous quarters [4]. - **Packaging & Specialty Packaging**: Revenue of $5.025 billion, with operating income dropping to $71 million, a 90% year-over-year decline [4].