10-QPeriod: Q2 FY2026

DOW INC. Quarterly Report for Q2 Ended Jun 30, 2026

Filed July 24, 2026For Securities:DOW

Summary

Dow Inc. reported a significant turnaround in its financial performance for the three and six months ended June 30, 2026, compared to the prior year. Net sales surged by 20% in the second quarter to $12.1 billion, driven by broad-based price increases across all segments and regions, particularly in Packaging & Specialty Plastics. This top-line growth, coupled with disciplined cost management and the benefits of the 'Transform to Outperform' initiative, resulted in a return to profitability, with net income available to common stockholders of $721 million for the quarter, a substantial improvement from a net loss in the prior year. Despite a slight decrease in overall volume, the company demonstrated strong operational execution. Restructuring charges, while still present, were managed effectively. The company's strategic focus on growth and innovation, along with cost optimization, positions it for continued value creation. Investors should note the positive momentum in sales and profitability, indicating a recovery from challenging prior periods, and the ongoing efforts to streamline operations for long-term competitiveness.

Key Highlights

  • 1Net sales increased by 20% year-over-year to $12.1 billion for the second quarter of 2026, reflecting strong price realization across segments.
  • 2The company returned to profitability, reporting net income available to common stockholders of $721 million ($0.99 per share) for the quarter, a significant improvement from a net loss of $835 million ($1.18 per share) in the prior year.
  • 3Packaging & Specialty Plastics segment saw robust growth, with net sales up 27% driven by a 30% increase in local price.
  • 4Operating EBIT improved significantly, reaching $1.66 billion in the second quarter of 2026, compared to $38 million in the prior year, showcasing enhanced operational efficiency.
  • 5Cash provided by operating activities from continuing operations was $1,324 million in the second quarter of 2026, a substantial increase from a negative $207 million in the prior year, signaling strong cash generation.
  • 6The 'Transform to Outperform' initiative is showing positive traction, contributing to Operating EBITDA improvements and cost structure simplification.
  • 7Capital expenditures remain substantial at $632 million for the quarter, indicating continued investment in future growth and modernization, with expectations for full-year spending around $2.5 billion.

Frequently Asked Questions

The primary driver for Dow's improved financial performance is a significant increase in net sales, up 20% year-over-year to $12.1 billion. This growth was largely fueled by a 20% increase in local pricing across all operating segments and geographic regions, particularly strong in the Packaging & Specialty Plastics segment. This revenue growth, combined with effective cost management and the benefits from the 'Transform to Outperform' initiative, led to a return to profitability.

Dow has experienced a dramatic improvement in profitability. For the second quarter of 2026, the company reported a net income available to Dow Inc. common stockholders of $721 million, or $0.99 per share. This is a substantial turnaround from the net loss of $835 million, or $1.18 per share, reported in the second quarter of 2025. This recovery is a key indicator of the company's improved financial health.

Dow's 'Transform to Outperform' initiative is progressing, with the company reporting $190 million in Operating EBITDA improvement from these efforts in the first half of 2026. The initiative aims to simplify the operating model, reduce costs, and drive faster growth. Restructuring and asset-related charges were $503 million in the second quarter of 2026, primarily related to severance costs for 'Transform to Outperform' and charges from the 2025 Restructuring Program. While these charges remain significant, the company is focused on realizing the intended operational and financial benefits.

Dow demonstrated strong cash flow generation, with cash provided by operating activities from continuing operations reaching $1,324 million in the second quarter of 2026, a significant increase from the prior year. Free Cash Flow (non-GAAP) was $1,313 million for the first six months of 2026. The company maintains substantial liquidity, with $3,973 million in cash and cash equivalents and $8.2 billion in committed and available credit facilities at June 30, 2026, indicating a solid financial position to meet its obligations and fund strategic priorities.