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Mar 31, 2022

Dow Q1 2022 Earnings Report

Dow's financial performance demonstrated growth, driven by price and volume gains across all segments and regions.

Key Takeaways

Dow reported strong first-quarter 2022 results, with net sales up 28% year-over-year and operating EPS significantly higher than the year-ago period. The company benefited from healthy end-market demand, disciplined execution, and its differentiated portfolio.

GAAP earnings per share (EPS) was $2.11; Operating EPS was $2.34, compared to $1.36 in the year-ago period.

Net sales were $15.3 billion, up 28% versus the year-ago period, reflecting gains in all operating segments, businesses and regions.

Local price increased 28% versus the year-ago period, with gains in all operating segments, businesses and regions.

Returns to shareholders totaled $1.1 billion in the quarter, comprised of $513 million in dividends and $600 million in share repurchases.

Total Revenue
$15.3B
Previous year: $11.9B
+28.5%
EPS
$2.34
Previous year: $1.36
+72.1%
Operating EBIT Margin
15.9%
Previous year: 13.1%
+21.4%
Gross Profit
$2.86B
Previous year: $1.82B
+57.3%
Cash and Equivalents
$3.14B
Previous year: $4.13B
-24.0%
Free Cash Flow
$1.3B
Total Assets
$63.3B
Previous year: $60.4B
+4.8%

Dow

Dow

Dow Revenue by Segment

Dow Revenue by Geographic Location

Forward Guidance

Dow anticipates strong demand across its end-markets, leveraging its global scale, cost-advantaged positions, and feedstock flexibility to navigate the dynamic geopolitical environment. The company is focused on decarbonization and expects to grow underlying earnings by more than $3 billion through sustainable innovations.

Positive Outlook

  • Strong demand across end-markets
  • Global scale and cost-advantaged positions
  • Industry-leading feedstock and derivative flexibility
  • Advancing strategy to decarbonize
  • Increasing demand for low-carbon, sustainable and circular innovations

Challenges Ahead

  • Dynamic geopolitical environment
  • Higher energy costs
  • Impacts from planned maintenance activity at Sadara
  • Lower polyethylene and MEG margins in Asia Pacific
  • Rising raw materials

Revenue & Expenses

Visualization of income flow from segment revenue to net income