•
Jun 30, 2023

Dow Q2 2023 Earnings Report

Dow's Q2 2023 earnings were reported, showcasing sequential earnings improvement and strong cash flow generation amidst a challenging macroeconomic environment.

Key Takeaways

Dow Inc. reported Q2 2023 results with an operating EPS of $0.75, down from $2.31 in the year-ago period but up from $0.58 in the prior quarter. Net sales were $11.4 billion, a 27% decrease year-over-year. The company generated over $1.3 billion in operating cash flow and returned $743 million to shareholders through dividends and share repurchases.

Operating earnings per share (EPS) was $0.75, compared to $2.31 in the year-ago period and $0.58 in the prior quarter.

Net sales were $11.4 billion, down 27% versus the year-ago period.

Cash provided by operating activities was more than $1.3 billion.

Returns to shareholders totaled $743 million, including $493 million in dividends and $250 million in share repurchases.

Total Revenue
$11.4B
Previous year: $15.7B
-27.1%
EPS
$0.75
Previous year: $2.31
-67.5%
Operating EBIT Margin
7.7%
Gross Profit
$1.55B
Previous year: $2.77B
-44.1%
Cash and Equivalents
$2.92B
Previous year: $2.37B
+23.5%
Free Cash Flow
$786M
Previous year: $1.4B
-43.9%
Total Assets
$58.3B
Previous year: $62.1B
-6.2%

Dow

Dow

Dow Revenue by Segment

Forward Guidance

Dow expects the macroeconomic environment to remain challenging in the second half of the year and will continue to execute cost savings actions and advance strategic priorities.

Positive Outlook

  • The company is on track to deliver $1 billion of cost savings this year.
  • Dow continues to benefit from a solid financial position.
  • The company is focused on cash flow generation.
  • Disciplined and balanced capital allocation priorities will continue.
  • Investments will deliver long-term value creation for stakeholders.

Challenges Ahead

  • The macro environment is expected to remain challenging in the second half of the year.
  • Lower demand.
  • Lower prices.
  • Slower macroeconomic activity.
  • Declines in all operating segments and regions.

Revenue & Expenses

Visualization of income flow from segment revenue to net income