Dow Inc. (NYSE:DOW) shares are trading higher premarket on Thursday after the company reported third-quarter 2025 financial results.
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The chemical company reported an adjusted loss of 19 cents per share, beating the Wall Street's projected 29-cent loss, according to consensus estimates. Revenue fell 8% year over year (Y/Y) to $9.97 billion, missing the $10.23 billion estimate.
Dow posted a GAAP net income of $124 million for the quarter, compared to $240 million in the same quarter a year ago.
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Additionally, operating EBIT stood at $180 million, down from $641 million in the same period a year ago.
Operating cash flow from continuing operations was $1.13 billion, an increase from $800 million in the prior year quarter, driven by working capital improvements.
Segment Performance
Packaging & Specialty Plastics revenue fell 11% Y/Y to $4.89 billion, driven by weaker downstream polymer prices.
Industrial Intermediates & Infrastructure revenue declined 4% year-over-year (Y/Y ) to $2.83 billion, due to a decline across both businesses.
Performance Materials & Coatings revenue dropped 6% Y/Y to $2.08 billion, though operating profit declined slightly from the year-ago quarter due to lower prices and seasonal lower demand for coatings applications.
Overall, volume decreased by 1% year-over-year (Y/Y), primarily due to decreases in Europe, the Middle East, Africa, and India. Local prices fell 8% Y/Y in the quarter.
Management Commentary
Jim Fitterling, Dow chair and CEO, said, "Our teams are engaging in productive conversations with governments around the world to keep product moving and to ensure a fair-trade environment."
"Additionally, 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."
"While the near-term market backdrop remains largely unchanged across the end markets Dow serves, we continue to take actions to build on our strong foundation and enable greater long-term shareholder returns when macroeconomic conditions improve."
Outlook
Dow expects fourth-quarter 2025 net sales of approximately $9.4 billion versus the consensus of $10.2 billion.
- Packaging & Specialty Plastics: Sales flat to down 2% Q/Q on lower integrated margins.
- Industrial Intermediates & Infrastructure: Sales down 4%-8% Q/Q, due to seasonality.
- Performance Materials & Coatings: Sales down 9%–13% Q/Q due to seasonality and higher planned maintenance activity.
The company expects cost savings of around $400 million in 2025 and $1 billion by 2026.
Investors can gain exposure to the stock via Amplify ETF Trust Amplify Natural Resources Dividend Income ETF (NYSE:NDIV).
DOW Price Action: Dow shares were up 8.29% at $23.50 during premarket trading on Thursday. The stock is near its 52-week low of $20.40, according to Benzinga Pro data.
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