Dow Inc. (NYSE:DOW) posted a smaller-than-expected loss for the third quarter on Wednesday, even as revenue slipped amid persistent weakness across the chemicals industry.
The company reported an adjusted loss of $0.19 per share, beating analysts’ expectations for a $0.31 loss. Revenue came in at $9.97 billion, falling short of the $10.22 billion consensus forecast.
Total revenue declined 8% year-over-year across all business units, as lower pricing weighed on results. Local prices dropped 8% from the prior-year period, while overall volumes fell 1% year-over-year but rose 1% sequentially thanks to the ramp-up of new U.S. Gulf Coast assets. Shares rose 1.8% in premarket trading following the earnings release.
“In the third quarter, we delivered sequential earnings and cash flow improvement despite continued pressure across our industry,” said Jim Fitterling, Dow chair and CEO. “We captured resilient demand from our new polyethylene and alkoxylation assets in the U.S. Gulf Coast, delivering sequential volume and earnings growth in key end markets at higher margins.”
Operating EBIT came in at $180 million, down $461 million from a year earlier, reflecting weaker pricing and equity earnings. Sequentially, however, EBIT improved by $201 million, supported by cost reductions and reduced planned maintenance. Operating cash flow totaled $1.1 billion, up $330 million from the prior year.
By business segment, Packaging & Specialty Plastics posted the sharpest decline with net sales down 11% year-over-year to $4.9 billion. Industrial Intermediates & Infrastructure revenue fell 4% to $2.8 billion, while Performance Materials & Coatings slid 6% to $2.1 billion.
Dow reiterated that it remains on track to deliver more than $6.5 billion in near-term cash support, with over half already secured. That target includes a $1 billion reduction in capital expenditures for 2025 and an accelerated plan to achieve $1 billion in cost savings by the end of 2026.