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DOW Q1 Earnings and Sales Beat Estimates Amid Pricing Weakness
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Key Takeaways
Dow reported a wider Q1 loss of $553M, lower prices and volumes pressured results.
DOW sales fell 6.1% YoY, with volume down 2% and local prices dropping 7%.
Dow sees pricing momentum improving and advances its Transform to Outperform plan.
Dow Inc. (DOW - Free Report) recorded a loss (on a reported basis) of $553 million or 74 cents per share for first-quarter 2026, wider than a loss of $307 million or 44 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 incurred a loss of 14 cents for the reported quarter. The figure was narrower than the Zacks Consensus Estimate of a loss of 39 cents.
Dow recorded net sales of $9,794 million for the quarter, down 6.1% year over year. It beat the Zacks Consensus Estimate of $9,499.8 million. The downside reflects flat sales in Performance Materials & Coatings and declines in the other segments.
Volume fell 2% year over year due to declines in Industrial Intermediates & Infrastructure, hurt by the Middle East conflict. Local prices fell 7% year over year.
Packaging & Specialty Plastics: The division’s sales fell 7.4% year over year to $4,919 million in the reported quarter. The figure beat the consensus estimate of $4,834 million. Volume fell 1% 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 polyethylene prices.
Industrial Intermediates & Infrastructure: Sales for the unit were down 8% year over year to $2,626 million. The figure beat the consensus estimate of $2,595 million. Local prices fell 8% year over year, indicating reductions in both businesses. Volume decreased 4% due to declines in polyurethanes and construction chemicals.
Performance Materials & Coatings: Revenues from the division rose 0.4% year over year to $2,080 million. The figure exceeded the consensus estimate of $1,947 million. Volume increased 2% year over year due to higher volumes in downstream silicones and acrylic monomers. Local prices fell 4% year over year due to a decline in Coatings & Performance Monomers.
DOW’s Financials
Cash flow from operating activities for continuing operations was $1,124 million in the quarter, representing growth of 1,135% year over year. Cash and cash equivalents at the end of the quarter were $4,110 million Shareholder returns through dividends for the quarter amounted to $252 million.
Dow’s Outlook
Dow stated that it is already witnessing strong positive momentum from its recently implemented pricing actions across all businesses and regions, along with supportive improvements in operating rates. The company added that it is leveraging its purpose-built asset base, established supply chain networks and strong operational reliability to continue prioritizing customers while navigating challenges related to the Middle East conflict.
The company emphasized that its “Transform to Outperform” initiative is aimed at simplifying operations, reengineering processes and cost structures, and modernizing customer engagement.
DOW Stock’s Price Performance
DOW’s shares are up 30.4% in a year compared with the Zacks Chemicals Diversified industry’s 15.9% growth.
Image Source: Zacks Investment Research
DOW’s Zacks Rank & Key Picks
DOW currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks worth a look in the basic materials space are Galiano Gold Inc. (GAU - Free Report) , Materion Corporation (MTRN - Free Report) , and Nexa Resources S.A. (NEXA - Free Report) .
Materion is expected to report first-quarter results on April 29. The Zacks Consensus Estimate for MTRN’s first-quarter earnings is pegged at $1.24 per share. MTRN currently carries a Zacks Rank #2.
NEXA is scheduled to report first-quarter results on May 6. The Zacks Consensus Estimate for NEXA’s first-quarter earnings is pegged at 61 cents per share. NEXA currently has a Zacks Rank #2.
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DOW Q1 Earnings and Sales Beat Estimates Amid Pricing Weakness
Key Takeaways
Dow Inc. (DOW - Free Report) recorded a loss (on a reported basis) of $553 million or 74 cents per share for first-quarter 2026, wider than a loss of $307 million or 44 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 incurred a loss of 14 cents for the reported quarter. The figure was narrower than the Zacks Consensus Estimate of a loss of 39 cents.
Dow recorded net sales of $9,794 million for the quarter, down 6.1% year over year. It beat the Zacks Consensus Estimate of $9,499.8 million. The downside reflects flat sales in Performance Materials & Coatings and declines in the other segments.
Volume fell 2% year over year due to declines in Industrial Intermediates & Infrastructure, hurt by the Middle East conflict. Local prices fell 7% year over year.
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 7.4% year over year to $4,919 million in the reported quarter. The figure beat the consensus estimate of $4,834 million. Volume fell 1% 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 polyethylene prices.
Industrial Intermediates & Infrastructure: Sales for the unit were down 8% year over year to $2,626 million. The figure beat the consensus estimate of $2,595 million. Local prices fell 8% year over year, indicating reductions in both businesses. Volume decreased 4% due to declines in polyurethanes and construction chemicals.
Performance Materials & Coatings: Revenues from the division rose 0.4% year over year to $2,080 million. The figure exceeded the consensus estimate of $1,947 million. Volume increased 2% year over year due to higher volumes in downstream silicones and acrylic monomers. Local prices fell 4% year over year due to a decline in Coatings & Performance Monomers.
DOW’s Financials
Cash flow from operating activities for continuing operations was $1,124 million in the quarter, representing growth of 1,135% year over year. Cash and cash equivalents at the end of the quarter were $4,110 million
Shareholder returns through dividends for the quarter amounted to $252 million.
Dow’s Outlook
Dow stated that it is already witnessing strong positive momentum from its recently implemented pricing actions across all businesses and regions, along with supportive improvements in operating rates. The company added that it is leveraging its purpose-built asset base, established supply chain networks and strong operational reliability to continue prioritizing customers while navigating challenges related to the Middle East conflict.
The company emphasized that its “Transform to Outperform” initiative is aimed at simplifying operations, reengineering processes and cost structures, and modernizing customer engagement.
DOW Stock’s Price Performance
DOW’s shares are up 30.4% in a year compared with the Zacks Chemicals Diversified industry’s 15.9% growth.
Image Source: Zacks Investment Research
DOW’s Zacks Rank & Key Picks
DOW currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks worth a look in the basic materials space are Galiano Gold Inc. (GAU - Free Report) , Materion Corporation (MTRN - Free Report) , and Nexa Resources S.A. (NEXA - Free Report) .
Galiano is slated to report quarterly results on May 13. The Zacks Consensus Estimate for earnings is pegged at 17 cents per share. GAU has a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Materion is expected to report first-quarter results on April 29. The Zacks Consensus Estimate for MTRN’s first-quarter earnings is pegged at $1.24 per share. MTRN currently carries a Zacks Rank #2.
NEXA is scheduled to report first-quarter results on May 6. The Zacks Consensus Estimate for NEXA’s first-quarter earnings is pegged at 61 cents per share. NEXA currently has a Zacks Rank #2.