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Dow to Close Down 3 Upstream European Assets Amid Regional Headwinds
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Key Takeaways
DOW will close three upstream assets in Germany and the U.K. by the end of 2027.
The move aims to lower exposure to merchant sales and cut energy-intensive operations.
DOW expects $200M EBITDA by 2029, with $500M in cash costs over four years.
Dow Inc. (DOW - Free Report) recently announced that its board of directors has approved the closure of several facilities across its global operations. This is part of Dow’s continued implementation of the European asset actions outlined in April 2025.
This includes the planned shutdown of an ethylene cracker in Böhlen, Germany, under its Packaging & Specialty Plastics segment, and the chlor-alkali and vinyl (CAV) assets in Schkopau, Germany, within the Industrial Intermediates & Infrastructure segment, both scheduled for closure in the fourth quarter of 2027. Additionally, the company will shut down its basic siloxanes plant in Barry, the U.K., under the Performance Materials & Coatings segment, with the closure expected by mid-2026.
The closure of upstream assets in Europe will help Dow align its regional production capacity with market needs, lower its exposure to merchant sales and eliminate higher-cost, energy-intensive operations from its portfolio. These actions are expected to enhance the company’s ability to meet demand for higher-margin derivatives and improve overall profitability.
In April 2025, Dow announced plans to take action on three European assets spanning all of its operating segments. On June 30, 2025, the company’s board approved a broader restructuring strategy aimed at streamlining its global asset base, which includes these three European assets along with select corporate and other facilities.
The planned shutdowns are expected to boost operating EBITDA starting in 2026, reaching 50% of the approximately $200 million target by the end of 2027, and achieving full benefits by 2029.
Dow anticipates a total cash spending of around $500 million over the next four years to support these efforts. As part of the restructuring, the company expects to incur total charges between $630 million and $790 million. These will include both non-cash charges, such as asset impairments and write-offs, and cash-related costs like severance, asset exit and disposal and employee benefits.
The shutdown process is scheduled to begin in mid-2026 and conclude by the end of 2027, with decommissioning and demolition activities potentially extending through 2029 if necessary.
DOW stock has lost 46.8% over the past year compared with the industry’s 18.6% decline.
Image Source: Zacks Investment Research
DOW’s Zacks Rank & Key Picks
DOW currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , Agnico Eagle Mines (AEM - Free Report) and Avino Silver & Gold Mines Ltd. (ASM - Free Report) .
Carpenter Technology currently carries a Zacks Rank #2 (Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 11.1%. The company's shares have soared 157.7% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Agnico Eagle’s current-year earnings is pegged at $1.61 per share. AEM, carrying a Zacks Rank #1 (Strong Buy), surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average earnings surprise of 12.3%. The company's shares have rallied 74.4% in the past year.
Avino Silver, which currently carries a Zacks Rank #1, beat the consensus estimate in each of the trailing four quarters. In this time frame, it delivered an earnings surprise of roughly 104.1%, on average. ASM's shares have rallied 271.5% in the past year.
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Dow to Close Down 3 Upstream European Assets Amid Regional Headwinds
Key Takeaways
Dow Inc. (DOW - Free Report) recently announced that its board of directors has approved the closure of several facilities across its global operations. This is part of Dow’s continued implementation of the European asset actions outlined in April 2025.
This includes the planned shutdown of an ethylene cracker in Böhlen, Germany, under its Packaging & Specialty Plastics segment, and the chlor-alkali and vinyl (CAV) assets in Schkopau, Germany, within the Industrial Intermediates & Infrastructure segment, both scheduled for closure in the fourth quarter of 2027. Additionally, the company will shut down its basic siloxanes plant in Barry, the U.K., under the Performance Materials & Coatings segment, with the closure expected by mid-2026.
The closure of upstream assets in Europe will help Dow align its regional production capacity with market needs, lower its exposure to merchant sales and eliminate higher-cost, energy-intensive operations from its portfolio. These actions are expected to enhance the company’s ability to meet demand for higher-margin derivatives and improve overall profitability.
In April 2025, Dow announced plans to take action on three European assets spanning all of its operating segments. On June 30, 2025, the company’s board approved a broader restructuring strategy aimed at streamlining its global asset base, which includes these three European assets along with select corporate and other facilities.
The planned shutdowns are expected to boost operating EBITDA starting in 2026, reaching 50% of the approximately $200 million target by the end of 2027, and achieving full benefits by 2029.
Dow anticipates a total cash spending of around $500 million over the next four years to support these efforts. As part of the restructuring, the company expects to incur total charges between $630 million and $790 million. These will include both non-cash charges, such as asset impairments and write-offs, and cash-related costs like severance, asset exit and disposal and employee benefits.
The shutdown process is scheduled to begin in mid-2026 and conclude by the end of 2027, with decommissioning and demolition activities potentially extending through 2029 if necessary.
DOW stock has lost 46.8% over the past year compared with the industry’s 18.6% decline.
Image Source: Zacks Investment Research
DOW’s Zacks Rank & Key Picks
DOW currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , Agnico Eagle Mines (AEM - Free Report) and Avino Silver & Gold Mines Ltd. (ASM - Free Report) .
Carpenter Technology currently carries a Zacks Rank #2 (Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 11.1%. The company's shares have soared 157.7% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Agnico Eagle’s current-year earnings is pegged at $1.61 per share. AEM, carrying a Zacks Rank #1 (Strong Buy), surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average earnings surprise of 12.3%. The company's shares have rallied 74.4% in the past year.
Avino Silver, which currently carries a Zacks Rank #1, beat the consensus estimate in each of the trailing four quarters. In this time frame, it delivered an earnings surprise of roughly 104.1%, on average. ASM's shares have rallied 271.5% in the past year.