10-QPeriod: Q1 FY2026

DOW INC. Quarterly Report for Q1 Ended Mar 31, 2026

Filed April 24, 2026For Securities:DOW

Summary

Dow Inc. reported a net loss of $533 million, or $0.74 per diluted share, for the first quarter of 2026, a wider loss compared to the $307 million ($0.44 per share) loss in the same period of 2025. This deterioration in profitability was primarily driven by a significant increase in equity in losses from nonconsolidated affiliates, largely due to an adjustment in the liability associated with the guarantee of Sadara's project financing debt. Net sales also decreased by 6% to $9.8 billion, impacted by lower prices across most segments and regions, although a favorable currency impact provided some offset. Despite the net loss, the company demonstrated a strong rebound in operating cash flow, generating $1,124 million compared to $91 million in the prior year. This improvement was significantly boosted by a substantial cash receipt related to a favorable judgment in the ethylene asset matter with Nova Chemicals Corporation. Capital expenditures were reduced, leading to a positive Free Cash Flow of $621 million for the quarter, a significant improvement from a negative $581 million in the prior year. The company also announced a new CEO, Karen S. Carter, effective July 1, 2026, and maintained its quarterly dividend.

Financial Highlights

46 data points
Beta

Revenue

$9.79B

6.5% Gross Margin

Net Income

-$535.00M

-5.5% Net Margin

EPS (Diluted)

$-0.74

Total Assets

$59.78B

Cash & Equivalents

$4.11B

Free Cash Flow

$1.12B

Financial Statements
Beta
Revenue$9.79B
Cost of Revenue$9.15B
Gross Profit$640.00M
SG&A Expenses$417.00M
Interest Expense$219.00M
Net Income-$535.00M
EPS (Basic)$-0.74
EPS (Diluted)$-0.74
Shares Outstanding (Basic)721.20M
Shares Outstanding (Diluted)721.20M

Key Highlights

  • 1Reported a net loss of $533 million for Q1 2026, widening from a $307 million loss in Q1 2025.
  • 2Net sales decreased by 6% to $9.8 billion, primarily due to lower prices across most segments and regions.
  • 3Equity in losses of nonconsolidated affiliates significantly increased to $303 million, driven by an adjustment to the Sadara debt guarantee liability.
  • 4Operating cash flow improved substantially to $1,124 million from $91 million year-over-year, aided by a large cash receipt from the Nova Chemicals legal matter.
  • 5Free Cash Flow turned positive at $621 million, a significant improvement from a negative $581 million in the prior year, reflecting lower capital expenditures.
  • 6The company announced Karen S. Carter as its new CEO, effective July 1, 2026.
  • 7Maintained its quarterly dividend of $0.35 per share.

Frequently Asked Questions

The wider net loss was primarily driven by a significant increase in equity in losses from nonconsolidated affiliates, which rose to $303 million from $20 million. This increase was largely attributed to an adjustment in the company's liability related to its guarantee of Sadara's project financing debt.

The company saw a dramatic improvement in its cash flow position. Operating cash flow surged to $1,124 million from $91 million in the prior year, largely due to a substantial cash receipt from the Nova Chemicals legal matter. Coupled with reduced capital expenditures, this resulted in positive Free Cash Flow of $621 million, a significant turnaround from a negative $581 million in the prior year.

The company stated that while heightened geopolitical tensions in the Middle East have impacted global chemical industry conditions, its operations in cost-advantaged regions like the U.S. & Canada and Latin America have not been directly affected. The company's feedstock flexibility has also enabled competitive operation of its European assets. It remains focused on navigating these conditions while capturing growth and delivering cost savings.

'Transform to Outperform' is a set of actions approved in January 2026 designed to simplify the operating model, reduce the cost structure, and accelerate growth. In the first quarter of 2026, the company recorded $27 million in pretax charges related to this initiative, primarily for severance and related benefits. The company expects this initiative to improve near-term Operating EBITDA.