10-KPeriod: FY2025

DOW INC. Annual Report, Year Ended Dec 31, 2025

Filed February 3, 2026For Securities:DOW

Summary

Dow Inc. reported a challenging 2025, marked by a 7% decrease in net sales to $40 billion, primarily driven by a 7% decline in local prices across all segments and geographic regions. This performance reflects ongoing macroeconomic headwinds, including slower global GDP growth and industry overcapacity. In response, Dow implemented significant cost-saving measures, including a workforce reduction of approximately 1,500 roles and a 50% dividend cut. The company also announced further restructuring actions to rationalize its global asset footprint, including the planned shutdown of ethylene and chlor-alkali/vinyl assets in Germany and siloxanes operations in the UK. Despite these challenges, Dow continues to advance its sustainability strategy, focusing on decarbonization and circular economy initiatives, including investments in advanced recycling and partnerships to reduce plastic waste. The company's outlook for 2026 anticipates improved volume growth in Industrial Intermediates & Infrastructure due to capacity expansions, while Packaging & Specialty Plastics is expected to benefit from increased polyethylene demand and new capacity. Performance Materials & Coatings anticipates modest demand improvement due to potential central bank rate cuts. Dow also announced a comprehensive set of actions called "Transform to Outperform" aimed at improving near-term Operating EBITDA through simplification, cost reduction, and faster growth.

Financial Highlights

52 data points
Beta

Revenue

$39.97B

6.3% Gross Margin

Net Income

-$2.62B

-6.6% Net Margin

EPS (Diluted)

$-3.70

Total Assets

$58.54B

Cash & Equivalents

$3.82B

Free Cash Flow

$1.03B

Financial Statements
Beta
Revenue$39.97B
Cost of Revenue$37.44B
Gross Profit$2.53B
SG&A Expenses$1.39B
Operating Income-$2.44B
Interest Expense$865.00M
Net Income-$2.62B
EPS (Basic)$-3.70
EPS (Diluted)$-3.70
Shares Outstanding (Basic)711.60M
Shares Outstanding (Diluted)711.60M

Key Highlights

  • 1Dow Inc. reported a 7% year-over-year decrease in net sales for 2025, reaching $40 billion, primarily due to a 7% decline in local prices across all segments.
  • 2The company experienced a net loss of $2.62 billion ($3.70 per share) in 2025, a significant shift from a net income of $1.12 billion ($1.57 per share) in 2024.
  • 3In response to challenging market conditions and to improve cost structure, Dow announced targeted cost actions including a workforce reduction of approximately 1,500 roles and a 50% dividend cut.
  • 4Significant restructuring actions were approved, including the planned shutdown of an ethylene cracker in Böhlen, Germany, chlor-alkali and vinyl assets in Schkopau, Germany, and siloxanes operations in Barry, UK.
  • 5A goodwill impairment charge of $690 million was recorded for the Polyurethanes & Construction Chemicals reporting unit due to margin compression and lower operating rates.
  • 6Dow continues to invest in sustainability, with projects like the net-zero ethylene complex in Alberta, Canada, and collaborations focused on circularity and plastic waste reduction.
  • 7The company announced "Transform to Outperform," a strategic initiative expected to deliver at least $2 billion in near-term Operating EBITDA improvement through operational simplification and cost reduction, involving an estimated 4,500 role reductions.

Frequently Asked Questions

Dow reported a challenging financial performance in 2025. Net sales decreased by 7% to $40 billion, largely driven by a 7% decrease in local prices across all segments. The company reported a net loss of $2.62 billion, a significant decline from the net income of $1.12 billion in 2024. This was impacted by factors such as macroeconomic headwinds, industry overcapacity, and significant restructuring and impairment charges.

In response to challenging market conditions, Dow has implemented several strategic actions. These include targeted cost reductions aimed at saving $1 billion over two years, a workforce reduction of approximately 1,500 roles, and a 50% reduction in its quarterly dividend. The company is also rationalizing its global asset footprint through planned shutdowns of certain facilities in Europe and the UK. Furthermore, Dow announced 'Transform to Outperform,' a comprehensive plan to simplify its operating model, reduce costs, and drive faster growth, which includes an additional workforce reduction of approximately 4,500 roles.

Dow continues to prioritize its sustainability strategy, focusing on decarbonization and advancing a circular economy. Key initiatives include the ongoing construction of the world's first net-zero Scope 1 and 2 emissions integrated ethylene and derivatives complex in Alberta, Canada, although the project completion has been delayed. Dow is also investing in advanced recycling technologies and partnerships to transform plastic waste into circular solutions, aiming to commercialize 3 million metric tons of circular and renewable solutions annually by 2030. The company is committed to reducing its net annual Scope 1 and 2 CO2e emissions by 5 million metric tons by 2030 and achieving carbon neutrality by 2050.

Dow anticipates improved volume growth in Industrial Intermediates & Infrastructure in 2026 due to recent capacity expansions in alkoxylation, which support growing end-markets like home and personal care. The Packaging & Specialty Plastics segment is expected to see continued volume growth driven by increased global polyethylene demand and the full-year benefit of new U.S. Gulf Coast polyethylene capacity. For Performance Materials & Coatings, the company expects modest demand improvement in certain sectors due to potential interest rate cuts, while other areas face a more challenging environment. Pricing is expected to remain relatively stable in Performance Materials & Coatings, with market supply and demand dynamics influencing prices in Packaging & Specialty Plastics.