10-KPeriod: FY2024

DOW INC. Annual Report, Year Ended Dec 31, 2024

Filed February 4, 2025For Securities:DOW

Summary

Dow Inc. reported net sales of $43 billion for the year ended December 31, 2024, a decrease of 4% compared to the prior year, primarily driven by a 4% decrease in local pricing across all segments and regions. While total sales volume remained flat year-over-year, the company experienced a slight decline in its Packaging & Specialty Plastics segment, offset by growth in Industrial Intermediates & Infrastructure and Performance Materials & Coatings. The company continued to focus on strategic growth projects, including a net-zero ethylene complex in Alberta, Canada, and investments in circular economy initiatives, such as the acquisition of a mechanical recycling company and partnerships to expand plastic waste transformation. Dow's financial performance reflects efforts to manage costs and optimize its portfolio, with a reported net income of $1.12 billion and earnings per share of $1.57 for 2024, an improvement from the previous year. The company also maintained its commitment to shareholder returns through dividends and share repurchases. Looking ahead, Dow is implementing cost reduction measures and capital expenditure adjustments to navigate macroeconomic uncertainty while staying aligned with its long-term sustainability and innovation strategies. Key areas of focus include expanding capacity in high-growth markets and advancing its decarbonization goals.

Financial Statements
Beta

Key Highlights

  • 1Dow Inc. reported net sales of $43 billion for 2024, a 4% decrease from 2023, primarily due to a 4% decline in local pricing across all segments.
  • 2Net income available for common stockholders was $1.12 billion, resulting in earnings per share of $1.57 for 2024, an increase from $0.82 in 2023.
  • 3The company made significant progress on its sustainability goals, including advancing construction of its net-zero ethylene complex in Alberta, Canada, and acquiring a mechanical recycling company, Circulus Holdings, LLC.
  • 4Dow continued its portfolio optimization by completing the sale of its flexible packaging laminating adhesives business.
  • 5Strategic investments are being made to support growth in key markets, including expansions in specialty amines and alkoxylation capacity.
  • 6The company announced targeted cost reduction initiatives and a workforce reduction of approximately 1,500 roles in January 2025 to address macroeconomic uncertainty.
  • 7Dow's strong balance sheet and liquidity position remain a key strength, with $12.0 billion in cash and committed credit facilities at December 31, 2024.

Frequently Asked Questions

Dow reported net sales of $43 billion for 2024, a 4% decrease from 2023, mainly due to lower pricing. Net income was $1.12 billion, and earnings per share was $1.57, an improvement from the previous year. The company generated $2.9 billion in cash from operating activities, but free cash flow was negative $37 million due to significant capital expenditures.

Dow's strategic priorities include investing in high-growth markets, advancing its decarbonization and circular economy goals, and maintaining shareholder returns. For 2025, the company plans to reduce costs by approximately $1 billion and capital expenditures by $300-500 million to navigate economic uncertainty while continuing to invest in long-term growth projects like the Alberta net-zero complex.

Dow is committed to sustainability, with targets to reduce Scope 1 and 2 CO2e emissions by 5 million metric tons by 2030 and achieve carbon neutrality by 2050. In 2024, it acquired a recycling company and partnered on plastic waste transformation, aiming to commercialize 3 million metric tons of circular and renewable solutions annually by 2030. The company is also advancing its net-zero ethylene complex project in Alberta, Canada.

Dow maintains a strong liquidity position with $12.0 billion in cash and committed credit facilities at year-end 2024. The company has no significant long-term debt maturities until 2027 and expects to meet its obligations through operating cash flows and existing liquidity sources. Net debt to total capitalization was 43.5% at year-end 2024.