A Business at a Glance
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DOW INC.
DOW
$21.2B
Mkt Cap
$29.84
-3.43%
DOW INC. (DOW) has a 5-year average return on invested capital (ROIC) of 8.5%. This is below average and may indicate limited pricing power.
DOW INC. (DOW) has a market capitalization of $21.5B. It is classified as a large-cap stock.
Yes, DOW INC. (DOW) pays a dividend with a trailing twelve-month yield of 5.80%.
DOW INC. (DOW) operates in the Plastic Materials, Synth Resins & Nonvulcan Elastomers industry, within the Materials sector.
DOW INC. (DOW) reported annual revenue of $40.0 billion in its most recent fiscal year, based on SEC EDGAR filings.
DOW INC. (DOW) has a net profit margin of -6.6%. The company is currently unprofitable.
DOW INC. (DOW) generated $-1.4 billion in free cash flow in its most recent fiscal year. Negative free cash flow may indicate heavy investment or operational challenges.
Dow Inc. is one of the world's leading materials science companies serving high-growth markets including packaging, infrastructure, mobility, and consumer applications through six global businesses organized into three operating segments: Packaging & Specialty Plastics, Industrial Intermediates & Infrastructure, and Performance Materials & Coatings. The Packaging & Specialty Plastics segment, the company's largest, operates an integrated ethylene-to-polyethylene value chain with proprietary catalyst and manufacturing technologies, producing polyethylene, polyolefin elastomers, ethylene vinyl acetate, and other specialty polymers for food packaging, health and hygiene, automotive, construction, and telecommunications applications; the segment benefits from extensive low-cost feedstock positions, unparalleled global scale and manufacturing footprint, and deep customer relationships supported by Pack Studio innovation centers in every geographic region. The company's business model is capital-intensive and asset-integrated, with manufacturing sites in 29 countries and approximately 34,600 employees; it generates revenue through both merchant sales of chemical intermediates and downstream derivative products, with ethylene transferred internally at market-based prices, and participates in several joint ventures including EQUATE, TKOC, Map Ta Phut, Sadara, and The SCGC-Dow Group that extend its geographic reach and production capacity. Dow's competitive advantages include its integrated feedstock and derivative flexibility enabling it to manage market cycles, proprietary process technologies, global distribution reach, and strategic investments in circular economy solutions including advanced recycling partnerships and net-zero carbon projects; the company delivered approximately $40 billion in sales in 2025 and is pursuing long-term sustainability targets including commercializing 3 million metric tons of circular and renewable solutions annually by 2030.
【Margin recovery and cost discipline】 Management expects sequential improvement in integrated margins driven by pricing gains, expanded asset utilization, and continued cost reduction efforts, with polyethylene fundamentals anticipated to remain stable heading into 2026 and price increases announced for January and February expected to be supported by inventory draws. The company is executing a multi-year transformation program targeting at least $2 billion in near-term EBITDA improvement, with approximately two-thirds coming from productivity gains and one-third from growth, while maintaining capital expenditures at or below depreciation and amortization across the cycle until mid-cycle earnings are achieved. Dow is advancing several strategic initiatives including the delayed Alberta net-zero project with refined timing to align capital deployment with market conditions, rationalization of higher-cost assets expected to deliver $200 million in annual EBITDA uplift by 2029 with benefits beginning in 2026, and near-term organic growth projects expected to deliver $100 million to $200 million on an annualized basis. The company remains committed to financial discipline and flexibility, targeting a 2x–2.5x net debt-to-EBITDA ratio across the cycle and shareholder returns of at least 65% of operating net income through dividends and share repurchases, while navigating a prolonged down cycle with difficult macroeconomic visibility.
| Metric | Target | Period |
|---|---|---|
| Transform to Outperform EBITDA improvement | at least $2 billion | near-term |
| Cost savings delivery | approximately $500 million | 2026 (remainder of program) |
| Strategic shutdowns EBITDA uplift | $200 million | annual by 2029 |
| Alberta project returns | at least 8%-10% | project life |
| Sadara impact | approximately $400 million | full year basis |
Transform to Outperform EBITDA improvement (near-term): “Transform to Outperform is expected to deliver at least $2 billion in near-term EBITDA improvement.”
Cost savings delivery (2026 (remainder of program)): “First, we expect to deliver the remaining more than $500 million in cost savings by the end of this year from our previously announced $1 billion program.”
Strategic shutdowns EBITDA uplift (annual by 2029): “These shutdowns are cash accretive and expected to result in an annual EBITDA uplift of $200 million by 2029, with benefits beginning in 2026, with the shutdown of our basic siloxanes capacity in Barry, U.K., by mid this year.”
Alberta project returns (project life): “With the project delay and resulting incremental CapEx increase associated with it, we now expect returns of at least 8%-10%.”
Sadara impact (full year basis): “If you're looking on a full year basis, we would estimate that to be in the approximately $400 million range, from a Sadara impact perspective for Dow.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Segment | 2021 | 2022 | 2023 | 2024 | 2025 | % of Total |
|---|---|---|---|---|---|---|
Operating Segments | — | — | $23.15B | $21.78B | $19.97B | 100% |
Performance Materials & Coatings | $9.67B | $10.76B | $8.50B | $8.57B | — | — |
Packaging & Specialty Plastics [Domain] | $28.13B | $29.26B | $23.15B | $21.78B | — | — |
Industrial Intermediates & Infrastructure | $16.85B | $16.61B | $12.54B | $11.87B | — | — |
Corporate Segment | $317M | $272M | $438M | $745M | — | — |
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 39.3B | 40.0B | 43.0B | 44.6B | 56.9B | 55.0B |
| Net Income | -2.8B | -2.6B | 1.1B | 589M | 4.6B | 6.3B |
| EPS | $-3.78 | $-3.70 | $1.57 | $0.82 | $6.28 | $8.38 |
| Free Cash Flow | -232M | -1.4B | -26M | 2.8B | 5.6B | 4.8B |
| ROIC | 0.0% | -8.6% | 6.2% | 4.6% | 16.8% | 23.5% |
| Gross Margin | - | 6.3% | 10.7% | 10.9% | 15.1% | 19.6% |
| Debt/Equity | 1.05 | 0.98 | 0.88 | 0.83 | 0.74 | 1.02 |
| Dividends/Share | $1.73 | $2.10 | $2.80 | $2.80 | $2.80 | $2.80 |
| Operating Income | 0 | -1.8B | 2.3B | 1.3B | 6.7B | 8.8B |
| Operating Margin | 0.0% | -4.6% | 5.4% | 3.0% | 11.8% | 16.0% |
| ROE | -18.7% | -15.7% | 6.2% | 3.0% | 23.6% | 41.2% |
| Shares Outstanding | 721M | 709M | 711M | 718M | 730M | 753M |
DOW INC. passes 3 of 9 quality checks, indicating weak fundamentals.
On a free-cash-flow basis, the stock trades at 24.1x vs a median of 7.0x. The company's 5-year average ROIC is 8.5% with a gross margin of 12.5%. Total shareholder yield (dividends) is 5.8%. At current prices, the estimated annualized return to fair value is -16.8%.
DOW INC. (DOW) has a debt-to-equity ratio of 0.98. This indicates moderate leverage.
DOW INC. (DOW) reported earnings per share (EPS) of $-3.70 in its most recent fiscal year.
DOW INC. (DOW) has a return on equity (ROE) of -15.7%. A negative ROE may indicate losses or negative equity.
DOW INC. (DOW) has a 5-year average gross margin of 12.5%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 9 years of financial data for DOW INC. (DOW), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
DOW INC. (DOW) has a book value per share of $22.58, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects sequential improvement in integrated margins driven by pricing gains, expanded asset utilization, and continued cost reduction efforts, with polyethylene fundamentals anticipated to remain stable heading into 2026 and price increases announced for January and February expected to be supported by inventory draws. The company is executing a multi-year transformation program targeting at least $2 billion in near-term EBITDA improvement, with approximately two-thirds coming from productivity gains and one-third from growth, while maintaining capital expenditures at or below depreciation and amortization across the cycle until mid-cycle earnings are achieved. Dow is advancing several strategic initiatives including the delayed Alberta net-zero project with refined timing to align capital deployment with market conditions, rationalization of higher-cost assets expected to deliver $200 million in annual EBITDA uplift by 2029 with benefits beginning in 2026, and near-term organic growth projects expected to deliver $100 million to $200 million on an annualized basis. The company remains committed to financial discipline and flexibility, targeting a 2x–2.5x net debt-to-EBITDA ratio across the cycle and shareholder returns of at least 65% of operating net income through dividends and share repurchases, while navigating a prolonged down cycle with difficult macroeconomic visibility.
Based on recent SEC filings and earnings calls, DOW INC. (DOW) has provided the following forward guidance: Transform to Outperform EBITDA improvement: at least $2 billion (near-term); Cost savings delivery: approximately $500 million (2026 (remainder of program)); Strategic shutdowns EBITDA uplift: $200 million (annual by 2029); Alberta project returns: at least 8%-10% (project life); Sadara impact: approximately $400 million (full year basis).