We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
DOW Q4 Earnings Beat Estimates, Sales Miss on Lower Prices
Read MoreHide Full Article
Key Takeaways
Dow beat Q4 adjusted earnings estimates but posted a wider loss and a 9% sales decline.
DOW saw lower prices and volumes hit results, with volume down 2% and prices falling 8%.
DOW launched Transform to Outperform, targeting at least $2B in near-term EBITDA gains.
Dow Inc. (DOW - Free Report) recorded a loss (on a reported basis) of $1,543 million or $2.15 per share for fourth-quarter 2025, wider than a loss of $53 million or 8 cents per share a year ago. The bottom line was hurt by lower prices and volumes.
On an adjusted basis (barring one-time items), DOW logged a loss of 34 cents for the reported quarter. The figure was narrower than the Zacks Consensus Estimate of a loss of 46 cents.
Dow recorded net sales of $9,460 million for the quarter, down 9% year over year. It missed the Zacks Consensus Estimate of $9,487.1 million. Lower sales across all segments adversely impacted the top line.
Volume fell 2% year over year, largely due to declines in the Packaging & Specialty Plastics unit resulting from lower merchant olefins sales in Europe, the Middle East, Africa and India (EMEAI). Local prices fell 8% year over year and also declined 3% sequentially.
Packaging & Specialty Plastics: The division’s sales fell 11% year over year to $4,744 million in the reported quarter. The figure missed the consensus estimate of $4,834 million. Volume fell 2% year over year on lower merchant olefins sales in EMEAI, resulting from the idling of a cracker. Local prices fell 9% year over year, primarily due to lower downstream polymer pricing.
Industrial Intermediates & Infrastructure: Sales for the unit were down 9% year over year to $2,688 million. The figure beat the consensus estimate of $2,653 million. Local prices fell 9% year over year, indicating reductions in both businesses. Volume decreased 1% due to declines in polyurethanes and construction chemicals.
Performance Materials & Coatings: Revenues from the division fell 6% year over year to $1,852 million. The figure was ahead of the consensus estimate of $1,836 million. Volume fell 2% year over year due to lower volumes in coatings and performance monomers. Local prices fell 4% year over year due to losses in both businesses.
DOW’s Financials
Cash flow from operating activities for continuing operations was $298 million in the quarter, representing a decrease of $513 million from the same period last year. This decline was primarily due to lower earnings. For the full year, cash flow from operating activities for continuing operations was $1.1 billion compared with $2.9 billion in 2024.
Shareholder returns through dividends for the quarter amounted to $251 million and $1.5 billion for full-year 2025.
Dow’s Outlook
Dow noted that it remains committed to delivering near-term cost savings amid the industry downturn. It has launched the “Transform to Outperform” initiative to improve productivity, reduce complexity, streamline its end-to-end processes and enable improved returns. The plan targets at least $2 billion near-term operating EBITDA improvement, with two-thirds of the benefits expected to be realized from productivity improvements. The benefits will be accretive to DOW’s earlier announced $1 billion cost savings program.
DOW Stock’s Price Performance
DOW’s shares are down 27.9% in a year compared with the Zacks Chemicals Diversified industry’s 20.8% decline.
Image Source: Zacks Investment Research
DOW’s Zacks Rank & Key Picks
DOW currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks worth a look in the basic materials space include Albemarle Corporation (ALB - Free Report) , Coeur Mining, Inc. (CDE - Free Report) and Avino Silver & Gold Mines Ltd. (ASM - Free Report) .
Albemarle is slated to report fourth-quarter results on Feb. 11. The Zacks Consensus Estimate for earnings is pegged at a loss of 54 cents. ALB beat the Zacks Consensus Estimate in three of the last four quarters while missing it in one, with the average earnings surprise being 35.3%. ALB carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Coeur is scheduled to report fourth-quarter results on Feb. 18. The Zacks Consensus Estimate for CDE’s fourth-quarter earnings is pegged at 33 cents. CDE beat the Zacks Consensus Estimate in two of the last two quarters and missed twice, with the average earnings surprise being 106.6%. CDE currently carries a Zacks Rank #1.
Avino Silver is slated to report fourth-quarter results on March 11. The consensus estimate for ASM’s earnings is pegged at 6 cents. ASM, carrying a Zacks Rank #2 (Buy), beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 150%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
DOW Q4 Earnings Beat Estimates, Sales Miss on Lower Prices
Key Takeaways
Dow Inc. (DOW - Free Report) recorded a loss (on a reported basis) of $1,543 million or $2.15 per share for fourth-quarter 2025, wider than a loss of $53 million or 8 cents per share a year ago. The bottom line was hurt by lower prices and volumes.
On an adjusted basis (barring one-time items), DOW logged a loss of 34 cents for the reported quarter. The figure was narrower than the Zacks Consensus Estimate of a loss of 46 cents.
Dow recorded net sales of $9,460 million for the quarter, down 9% year over year. It missed the Zacks Consensus Estimate of $9,487.1 million. Lower sales across all segments adversely impacted the top line.
Volume fell 2% year over year, largely due to declines in the Packaging & Specialty Plastics unit resulting from lower merchant olefins sales in Europe, the Middle East, Africa and India (EMEAI). Local prices fell 8% year over year and also declined 3% sequentially.
Dow Inc. Price, Consensus and EPS Surprise
Dow Inc. price-consensus-eps-surprise-chart | Dow Inc. Quote
Dow’s Segment Highlights
Packaging & Specialty Plastics: The division’s sales fell 11% year over year to $4,744 million in the reported quarter. The figure missed the consensus estimate of $4,834 million. Volume fell 2% year over year on lower merchant olefins sales in EMEAI, resulting from the idling of a cracker. Local prices fell 9% year over year, primarily due to lower downstream polymer pricing.
Industrial Intermediates & Infrastructure: Sales for the unit were down 9% year over year to $2,688 million. The figure beat the consensus estimate of $2,653 million. Local prices fell 9% year over year, indicating reductions in both businesses. Volume decreased 1% due to declines in polyurethanes and construction chemicals.
Performance Materials & Coatings: Revenues from the division fell 6% year over year to $1,852 million. The figure was ahead of the consensus estimate of $1,836 million. Volume fell 2% year over year due to lower volumes in coatings and performance monomers. Local prices fell 4% year over year due to losses in both businesses.
DOW’s Financials
Cash flow from operating activities for continuing operations was $298 million in the quarter, representing a decrease of $513 million from the same period last year. This decline was primarily due to lower earnings. For the full year, cash flow from operating activities for continuing operations was $1.1 billion compared with $2.9 billion in 2024.
Shareholder returns through dividends for the quarter amounted to $251 million and $1.5 billion for full-year 2025.
Dow’s Outlook
Dow noted that it remains committed to delivering near-term cost savings amid the industry downturn. It has launched the “Transform to Outperform” initiative to improve productivity, reduce complexity, streamline its end-to-end processes and enable improved returns. The plan targets at least $2 billion near-term operating EBITDA improvement, with two-thirds of the benefits expected to be realized from productivity improvements. The benefits will be accretive to DOW’s earlier announced $1 billion cost savings program.
DOW Stock’s Price Performance
DOW’s shares are down 27.9% in a year compared with the Zacks Chemicals Diversified industry’s 20.8% decline.
Image Source: Zacks Investment Research
DOW’s Zacks Rank & Key Picks
DOW currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks worth a look in the basic materials space include Albemarle Corporation (ALB - Free Report) , Coeur Mining, Inc. (CDE - Free Report) and Avino Silver & Gold Mines Ltd. (ASM - Free Report) .
Albemarle is slated to report fourth-quarter results on Feb. 11. The Zacks Consensus Estimate for earnings is pegged at a loss of 54 cents. ALB beat the Zacks Consensus Estimate in three of the last four quarters while missing it in one, with the average earnings surprise being 35.3%. ALB carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Coeur is scheduled to report fourth-quarter results on Feb. 18. The Zacks Consensus Estimate for CDE’s fourth-quarter earnings is pegged at 33 cents. CDE beat the Zacks Consensus Estimate in two of the last two quarters and missed twice, with the average earnings surprise being 106.6%. CDE currently carries a Zacks Rank #1.
Avino Silver is slated to report fourth-quarter results on March 11. The consensus estimate for ASM’s earnings is pegged at 6 cents. ASM, carrying a Zacks Rank #2 (Buy), beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 150%.