10-QPeriod: Q2 FY2025

DOW INC. Quarterly Report for Q2 Ended Jun 30, 2025

Filed July 25, 2025For Securities:DOW

Summary

Dow Inc. reported a net loss of $835 million, or $1.18 per diluted share, for the second quarter of 2025, a significant reversal from a net income of $439 million, or $0.62 per share, in the same period last year. This downturn was primarily driven by a 7% decrease in net sales to $10.1 billion, impacted by a 7% decline in local prices across all segments and a 1% decrease in volume. Challenging macroeconomic conditions, including slower global GDP growth and industry overcapacity, continue to pressure the company's performance. In response to these conditions, Dow announced significant restructuring actions totaling $591 million in the second quarter, including asset write-downs, severance costs, and exit/disposal activities, primarily in Europe. The company also declared a quarterly dividend of $0.35 per share, a 50% reduction from the previous quarter, reflecting a strategic adjustment to enhance financial flexibility amid the prolonged industry downturn. Despite the near-term challenges, Dow remains committed to its long-term strategic investments and cost optimization efforts to strengthen its competitive position in higher-value applications.

Financial Highlights

49 data points
Beta

Revenue

$10.10B

5.8% Gross Margin

Net Income

-$839.00M

-8.3% Net Margin

EPS (Diluted)

$-1.18

Total Assets

$58.99B

Cash & Equivalents

$2.40B

Free Cash Flow

-$470.00M

Financial Statements
Beta
Revenue$10.10B
Cost of Revenue$9.52B
Gross Profit$583.00M
SG&A Expenses$347.00M
Interest Expense$209.00M
Net Income-$839.00M
EPS (Basic)$-1.18
EPS (Diluted)$-1.18
Shares Outstanding (Basic)709.50M
Shares Outstanding (Diluted)709.50M

Key Highlights

  • 1Net loss of $835 million ($1.18 per diluted share) for Q2 2025, compared to net income of $439 million ($0.62 per diluted share) in Q2 2024.
  • 2Net sales decreased 7% year-over-year to $10.1 billion, driven by a 7% decline in local prices and a 1% decrease in volume.
  • 3Significant restructuring charges of $591 million were recorded in Q2 2025, primarily related to asset rationalization in Europe.
  • 4The company announced a 50% reduction in its quarterly dividend to $0.35 per share, effective Q3 2025, to bolster financial flexibility.
  • 5Cash used for operating activities from continuing operations was $470 million in Q2 2025, a substantial decrease from $832 million provided in Q2 2024.
  • 6Completed the sale of 40% of Diamond Infrastructure Solutions for $2.4 billion, strengthening liquidity.
  • 7Received an additional Canadian dollar $1.62 billion judgment against Nova Chemicals Corporation for damages.

Frequently Asked Questions

The primary drivers for the significant decrease in net income were challenging macroeconomic conditions, leading to lower net sales due to decreased local prices and volumes across all operating segments. This was compounded by substantial restructuring charges of $591 million recorded in the second quarter of 2025.

Dow Inc. reduced its quarterly dividend by 50% to $0.35 per share due to the prolonged industry downturn and to enhance its financial flexibility amid persistently challenging macroeconomic conditions. This decision reflects the company's balanced capital allocation strategy.

The company recorded $591 million in restructuring and asset-related charges in the second quarter of 2025. These actions involve rationalizing the global asset footprint, including shutting down certain manufacturing facilities in Europe, and involve asset write-downs, severance costs, and exit and disposal costs, expected to be substantially completed over the next four years.

The sale of 40% of Diamond Infrastructure Solutions for $2.4 billion in cash proceeds significantly boosted the company's liquidity. This transaction, completed on May 1, 2025, contributed to cash flow from financing activities and provides additional financial flexibility.