Dow Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.98%.
Did DOW Beat Earnings? Q4 2025 Results
Dow closed out a punishing 2025 with a fourth quarter that offered modest relief against low expectations, posting an adjusted loss of $0.34 per share against a consensus estimate of negative $0.51 — a 33.33% beat — even as the underlying business remained under significant strain. Revenue of $9.46 billion came in just a hair below the $9.47 billion analysts had anticipated, down 9.1% from a year earlier, as local prices fell 8% year-over-year and operating EBIT collapsed to $33 million from $454 million in Q4 2024. The steepest damage came from Industrial Intermediates & Infrastructure, which swung to an operating EBIT loss of $201 million, weighed down by worsening equity losses at Kuwait MEG joint ventures. A $1.30 billion charge for significant items — including a $671 million goodwill impairment in Polyurethanes & Construction Chemicals — pushed the GAAP net loss to $1.48 billion for the quarter. Looking ahead, CEO Jim Fitterling pointed to the company's "Transform to Outperform" initiative, targeting at least $2 billion in additional near-term earnings, with Dow already delivering more than $400 million in accelerated cost savings. The company also declared its 458th consecutive quarterly dividend at $0.35 per share.
- Local price declined 8% year-over-year across all segments
- Volume decreased 2% year-over-year, led by lower merchant olefins sales in EMEAI
- Lower integrated margins and reduced operating rates pressured profitability
- Cost reduction program delivered over $400 million in savings from the $1 billion target
- Goodwill impairment of $690 million related to Polyurethanes & Construction Chemicals
- Non-cash pension settlement charges of $323 million from termination of U.S. and U.K. pension plans
- Asset-related impairment charges of $303 million for chlor-alkali, propylene oxide and brine production in Latin America
- Idling of a cracker in EMEAI earlier in 2025 reduced merchant olefins volumes
“Dow's self-help measures continue to gain traction and were evident in our fourth quarter results. In 2025, we achieved well over half of our more than $6.5 billion in near-term cash and cost support actions, including the accelerated delivery of more than $400 million in cost savings from our $1 billion program. As we move forward, Transform to Outperform represents a comprehensive and radical simplification of our operating model. It aims to deliver step-change productivity across every business and function and growth with our customers. We expect these efforts to provide at least $2 billion in additional near-term earnings while helping Dow set new competitive standards and improve shareholder returns.”
Dow CEO, on the earnings call
Forward Guidance & Outlook
CEO Jim Fitterling acknowledged an 'unprecedented industry downturn' but emphasized ongoing self-help measures. The Transform to Outperform initiative represents a comprehensive and radical simplification of Dow's operating model, aiming to deliver step-change productivity gains across every business and function while enabling consistent growth. The company expects these efforts to provide at least $2 billion in additional near-term earnings. Dow has achieved well over half of its more than $6.5 billion in near-term cash and cost support actions, including accelerated delivery of more than $400 million in cost savings from its $1 billion program. The company plans to reduce complexity, adopt best available technologies, and streamline end-to-end processes to improve efficiency, better serve customers, and deliver improved shareholder returns.
DOW YoY Financials
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DOW Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.