10-QPeriod: Q1 FY2025

DOW INC. Quarterly Report for Q1 Ended Mar 31, 2025

Filed April 25, 2025For Securities:DOW

Summary

Dow Inc. reported a net loss of $307 million ($0.44 per diluted share) for the first quarter of 2025, a significant shift from a net income of $516 million ($0.73 per diluted share) in the same period last year. This decline was driven by persistent macroeconomic challenges, including slower GDP growth, high raw material costs, and increased global market volatility. Net sales decreased by 3% to $10.4 billion, attributed to lower local pricing across most segments and regions, partially offset by a 2% increase in sales volume. The company is actively responding to these conditions by implementing cost-reduction initiatives, including a workforce reduction of approximately 1,500 roles, and has revised its capital expenditure outlook. A significant strategic move is the delay in construction of its Path2Zero project in Alberta, Canada, and a review of select European assets for potential idling or shutdown. Despite the net loss, Dow maintains a strong liquidity position with significant available credit facilities, aiming to ensure financial flexibility and long-term competitiveness.

Financial Highlights

48 data points
Beta

Revenue

$10.43B

6.4% Gross Margin

Net Income

-$310.00M

-3.0% Net Margin

EPS (Diluted)

$-0.44

Total Assets

$57.50B

Cash & Equivalents

$1.47B

Free Cash Flow

$91.00M

Financial Statements
Beta
Revenue$10.43B
Cost of Revenue$9.76B
Gross Profit$671.00M
SG&A Expenses$366.00M
Interest Expense$216.00M
Net Income-$310.00M
EPS (Basic)$-0.44
EPS (Diluted)$-0.44
Shares Outstanding (Basic)706.90M
Shares Outstanding (Diluted)706.90M

Key Highlights

  • 1Reported a net loss of $307 million for Q1 2025, compared to a net income of $516 million in Q1 2024.
  • 2Net sales declined 3% year-over-year to $10.4 billion, primarily due to lower pricing.
  • 3Sales volume increased by 2% globally, indicating some demand resilience.
  • 4Company announced significant cost-reduction actions, including a workforce reduction of 1,500 roles, targeting $1 billion in savings by 2026.
  • 5Delayed the construction of the Path2Zero project in Alberta, Canada, and revised full-year capital expenditures down to $2.5 billion.
  • 6Initiated a strategic review of select European assets, with potential idling or shutdown of three facilities.
  • 7Maintained strong liquidity with $11.2 billion in cash and available credit facilities as of March 31, 2025.

Frequently Asked Questions

The net loss was primarily driven by persistent macroeconomic challenges such as slower GDP growth, high raw material and energy costs, and increased global market volatility. These factors negatively impacted sales prices and overall profitability.

Dow is implementing several strategic actions, including a workforce reduction of approximately 1,500 employees to achieve $1 billion in cost savings by 2026. They are also delaying the Path2Zero project, reviewing European assets for potential closure, and revising capital expenditure plans.

Dow maintains a strong liquidity position, with $11.2 billion in cash and available credit facilities as of March 31, 2025. The company has no significant long-term debt maturities until 2027, providing financial flexibility.

Net sales decreased across all major segments: Packaging & Specialty Plastics (down 2%), Industrial Intermediates & Infrastructure (down 5%), and Performance Materials & Coatings (down 4%). Operating EBIT also declined significantly in Packaging & Specialty Plastics and Industrial Intermediates & Infrastructure, while Performance Materials & Coatings saw a modest increase. The company is navigating challenging demand dynamics and regulatory environments.