Midland, Michigan – October 24, 2025 – Dow Inc. (NYSE: DOW) today reported its third quarter 2025 financial results, delivering strong sequential earnings and cash flow growth despite ongoing challenges across global chemical markets.
3Q25 Financial Highlights
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Net sales totaled $10.0 billion, down 8% year-over-year (YoY) and 1% sequentially. Stronger performance in Industrial Intermediates & Infrastructure partially offset declines in Packaging & Specialty Plastics and Performance Materials & Coatings.
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Sales volume decreased 1% YoY, with softness in Europe, the Middle East, Africa and India (EMEAI) partly offset by growth in the U.S., Canada, and Asia Pacific. Sequentially, volume rose 1%, supported by new U.S. Gulf Coast assets.
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Local pricing fell 8% YoY and 3% from the prior quarter.
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GAAP net income reached $124 million, while operating EBIT stood at $180 million, down $461 million YoY due to lower prices and equity earnings, but improved sequentially by $201 million thanks to cost reductions and reduced maintenance downtime.
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GAAP EPS was $0.08, while operating EPS recorded a loss of $0.19, compared to $0.47 a year ago.
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Cash flow from operations (continuing operations) improved to $1.1 billion, up $330 million YoY and $1.6 billion sequentially, driven by working capital gains and advance payments for low-carbon projects.
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Shareholder returns totaled $249 million in quarterly dividends.
CEO Commentary
“In the third quarter, we delivered sequential improvements in both earnings and cash flow, reflecting our continued cost discipline and strategic focus,” said Jim Fitterling, Dow Chair and CEO.
“We’re engaging with governments worldwide to maintain fair trade and supply continuity, while capturing resilient demand from our new polyethylene and alkoxylation assets along the U.S. Gulf Coast. We remain on track to achieve over $6.5 billion in near-term cash support and our $1 billion cost reduction goal by 2026—demonstrating the strength of Dow’s competitive advantages.”
Segment Highlights
Packaging & Specialty Plastics (P&SP):
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Net sales of $4.9 billion, down 11% YoY due to lower polymer prices and reduced licensing revenue, partly offset by higher polyethylene demand.
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Operating EBIT of $199 million, down $419 million YoY but up sequentially as new Freeport, TX assets boosted margins and output.
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The Hydrocarbons & Energy business also declined due to lower merchant olefins sales in EMEAI.
Industrial Intermediates & Infrastructure (II&I):
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Net sales were $2.8 billion, down 4% YoY. Volume growth in the U.S. and Canada offset lower pricing globally.
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Operating EBIT increased $6 million YoY and $138 million sequentially, supported by cost controls, new alkoxylation capacity in Seadrift, TX, and stronger demand in polyurethanes and industrial solutions.
Performance Materials & Coatings (PM&C):
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Net sales reached $2.1 billion, down 6% YoY.
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Operating EBIT fell $60 million YoY, driven by price declines in siloxanes and acrylic monomers, though partially offset by lower fixed costs.
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Sequentially, sales and margins softened due to seasonal demand patterns in coatings applications.
Outlook
“While global demand remains uneven, Dow continues to leverage its financial flexibility and operational discipline,” Fitterling added.
“We’re focusing on resilient markets, streamlining high-cost operations—particularly in Europe—and reinforcing our strong balance sheet. As macroeconomic conditions improve, we’re well-positioned to drive long-term sustainable growth and shareholder value.”
About Dow
Dow (NYSE: DOW) combines global reach, asset integration, and material science expertise to deliver innovative and sustainable solutions in packaging, infrastructure, and consumer markets.
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