10-QPeriod: Q3 FY2025

DOW INC. Quarterly Report for Q3 Ended Sep 30, 2025

Filed October 24, 2025For Securities:DOW

Summary

Dow Inc. reported net sales of $9.97 billion for the third quarter of 2025, an 8% decrease compared to the prior year, reflecting challenging macroeconomic conditions and slower global GDP growth. The company experienced a net loss of $967 million for the nine months ended September 30, 2025, a significant shift from the $1.24 billion net income in the same period of 2024, largely impacted by restructuring and asset-related charges. Despite the top-line and bottom-line pressures, Dow maintained a strong liquidity position with $4.6 billion in cash and cash equivalents and $8.4 billion in available credit facilities. The company also continued its portfolio optimization and cost reduction efforts, including significant restructuring actions aimed at rationalizing its global asset footprint and improving competitiveness. Key financial highlights include a substantial increase in cash provided by operating activities for continuing operations in the third quarter of 2025, driven by working capital improvements and advance customer payments. However, free cash flow for the first nine months of 2025 was negative at $(1.15) billion. The company also reduced its quarterly dividend by 50% to $0.35 per share in response to the prolonged industry downturn. While facing headwinds, Dow remains committed to its long-term strategy, focusing on resilient portfolio areas and operational efficiencies to navigate the current economic environment and drive future shareholder returns.

Financial Statements
Beta
Revenue$9.97B
Cost of Revenue$9.24B
Gross Profit$731.00M
SG&A Expenses$340.00M
Interest Expense$221.00M
Net Income$60.00M
EPS (Basic)$0.08
EPS (Diluted)$0.08
Shares Outstanding (Basic)711.80M
Shares Outstanding (Diluted)713.20M

Key Highlights

  • 1Net sales for Q3 2025 were $9.97 billion, down 8% year-over-year, reflecting broad-based declines across operating segments and geographies due to lower prices and volume.
  • 2The company reported a net loss of $967 million for the first nine months of 2025, a significant decrease from a net income of $1.24 billion in the same period of 2024.
  • 3Dow incurred substantial restructuring and asset-related charges totaling $822 million in the first nine months of 2025, primarily related to workforce reductions, asset rationalization, and exit/disposal activities.
  • 4Cash provided by operating activities - continuing operations increased to $764 million in the first nine months of 2025, driven by working capital improvements and advance customer payments.
  • 5Free Cash Flow for the first nine months of 2025 was a negative $(1.15) billion, down from $(81) million in the prior year period.
  • 6Dow reduced its quarterly dividend by 50% to $0.35 per share in Q3 2025, signaling a response to the challenging industry conditions and prioritizing financial flexibility.
  • 7The company maintained a strong liquidity position with $4.6 billion in cash and cash equivalents and $8.4 billion in available committed credit facilities as of September 30, 2025.

Frequently Asked Questions

The decrease in net sales of 8% to $9.97 billion in Q3 2025 compared to Q3 2024 was primarily driven by a broad-based decline in local prices, down 8%, and a 1% decrease in volume. This was observed across all operating segments and geographic regions, reflecting challenging macroeconomic conditions and industry overcapacity.

Dow incurred significant restructuring and asset-related charges of $822 million in the first nine months of 2025. These charges, primarily related to workforce reductions and rationalization of its global asset footprint, contributed to the company's net loss of $967 million for the nine-month period, a substantial change from the profit in the prior year. These actions are intended to improve long-term competitiveness and cost structure.

In response to the prolonged industry downturn and challenging macroeconomic environment, Dow reduced its quarterly dividend by 50% to $0.35 per share in Q3 2025. This decision reflects the company's commitment to balancing capital allocation, enhancing financial flexibility, and prioritizing shareholder returns when market conditions improve.

Dow maintained a strong liquidity position with $4.6 billion in cash and cash equivalents as of September 30, 2025. Additionally, the company had $8.4 billion in available committed credit facilities and undrawn credit facilities, providing significant financial flexibility to meet its obligations and strategic objectives.