Core Viewpoint - Dow Inc. (DOW) is expected to report second-quarter 2025 results on July 24, with anticipated challenges from weak demand and pricing pressures despite productivity initiatives [1][6]. Revenue Estimates - The Zacks Consensus Estimate for DOW's revenues in the upcoming quarter is $10,445.6 million, indicating a year-over-year decline of 4.6% [4]. - Revenue estimates for specific segments include: - Packaging & Specialty Plastics: $5,197.9 million, a decline of 5.8% year over year [4]. - Industrial Intermediates & Infrastructure: $2,884.6 million, a decline of 2.3% year over year [4]. - Performance Materials & Coatings: $2,142.1 million, a decline of 4.5% year over year [7]. Factors Affecting Performance - DOW is facing headwinds from soft demand in Europe and China, with lower consumer spending and weak construction and manufacturing activities impacting performance [8][9]. - Inflationary pressures are affecting demand in consumer durables and construction, while automotive demand in Europe is also weak [9]. - The Performance Materials & Coatings segment is challenged by weak siloxane prices due to increased supply in Asia, particularly from China [10]. Cost-Saving Initiatives - DOW is implementing cost-saving measures aimed at reducing direct and labor costs, targeting $1 billion in savings to improve margins [11]. - The company expects to realize around $300 million in benefits from these actions in 2025, with full benefits anticipated by 2026 [11]. Earnings Prediction - The Earnings ESP for DOW is -53.04%, indicating a low likelihood of an earnings beat this quarter, with a consensus estimate of a loss of 8 cents [12][13]. - DOW currently holds a Zacks Rank of 5 (Strong Sell) [13].

Core Viewpoint - Dow Inc.'s shares have declined by 22% over the past three months due to soft end-market demand and pricing pressures in a challenging macroeconomic environment [1] Group 1: Stock Performance - Dow has underperformed compared to the Zacks Chemicals Diversified industry's decline of 16.6% and the S&P 500's fall of 4.3% in the same period [2] - The stock has been trading below the 200-day simple moving average (SMA) since October 7, 2024, indicating a bearish trend [5][7] Group 2: Demand Challenges - Demand softness in Europe and China is impacting Dow, with lower consumer spending and weak construction and manufacturing activities [9] - The infrastructure end market, including residential construction, remains weak, and inflationary pressures are affecting demand in consumer durables [10] Group 3: Pricing Pressures - Dow's Performance Materials & Coatings unit is facing weak siloxane prices due to supply additions in Asia, which have negatively impacted sales [11] Group 4: Growth and Cost Management - Dow is focused on high-return growth projects and cost actions, expecting to deliver approximately $6 billion in cash support through infrastructure asset sales and cost savings [13] - The company plans to cut costs by $1 billion, including a workforce reduction of around 1,500 roles globally [13] Group 5: Financial Health - Dow has a strong balance sheet with over $11 billion in liquidity and has returned $2.5 billion to shareholders in 2024 [14] - The company offers a healthy dividend yield of 9.1%, which is perceived as safe and reliable despite a high payout ratio of 239% [15] Group 6: Earnings Estimates - The Zacks Consensus Estimate for Dow's 2025 earnings has been revised downward over the past 60 days, indicating declining earnings prospects [16] Group 7: Valuation - Dow is currently trading at a forward P/E of 43X, representing a 138% premium compared to the industry average of 18.07X [17]