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Mar 31
Dow Q1 2025 Earnings Report
Dow posted a quarterly net loss and flat sales performance in a challenging macroeconomic environment.
Key Takeaways
Dow reported a net loss of $290 million in Q1 2025 on $10.4 billion in revenue. Adjusted EPS came in at $0.02, reflecting ongoing margin pressures from higher input costs. The company launched a $6 billion action plan aimed at bolstering financial flexibility.
Dow launched a $6 billion plan to improve cash flow, including delaying the Fort Saskatchewan project.
Q1 net sales were flat sequentially and down 3% year-over-year due to lower pricing across all segments.
Operating EBIT fell sharply to $230 million, reflecting margin pressures and higher costs.
Cash flow from operations dropped significantly due to seasonal working capital build and earnings pressure.
Dow
Dow
Dow Revenue by Segment
Dow Revenue by Geographic Location
Revenue by Segment
Packaging & Specialty Revenue
CapyFin.comIndustrial Intermediates Revenue
CapyFin.comPerformance Materials Revenue
CapyFin.comCorporate Revenue
CapyFin.comRevenue by Geographic Location
U.S. & Canada Revenue
CapyFin.comEMEAI Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.comLatin America Revenue
CapyFin.com Forward Guidance
Dow expects to generate $6 billion in near-term cash support through asset sales, cost savings, and CapEx cuts, navigating persistent macroeconomic uncertainty.
Positive Outlook
- Up to $3B expected from infrastructure asset sale with Macquarie Asset Management.
- Over $1B to be received from NOVA judgment in 2025.
- At least $1B in cost savings targeted by 2026, including $300M in 2025.
- $1B reduction in 2025 CapEx from delayed Fort Saskatchewan project.
- Improved financial flexibility through proactive cost and asset management.
Challenges Ahead
- Challenging global demand environment and soft GDP outlook.
- Margin compression due to higher energy and feedstock costs.
- Lower prices across all operating segments.
- Significant decline in cash flow from operations.
- Ongoing regulatory and demand challenges in European operations.