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Dec 31, 2023

Dow Q4 2023 Earnings Report

Dow's financial performance reflects a challenging macroeconomic environment, with strategic priorities advanced and cost actions delivered.

Key Takeaways

Dow reported Q4 2023 results with net sales of $10.6 billion, a GAAP net loss of $95 million, and operating EPS of $0.43. The company achieved $1 billion in targeted cost actions for the year and returns to shareholders totaled $616 million in the quarter. The company delivered 2023 full year net sales of $44.6 billion.

GAAP loss per share was $0.15; operating earnings per share (EPS) was $0.43.

Net sales were $10.6 billion, down 10% versus the year-ago period.

Volume increased 2% versus the year-ago period, with gains across all regions except Asia Pacific.

Free cash flow was $870 million.

Total Revenue
$10.6B
Previous year: $11.9B
-10.4%
EPS
$0.43
Previous year: $0.46
-6.5%
Operating EBIT Margin
5.3%
Previous year: 5.1%
+3.9%
Gross Profit
$975M
Previous year: $1.2B
-19.0%
Cash and Equivalents
$2.99B
Previous year: $3.89B
-23.1%
Free Cash Flow
$870M
Previous year: $1.48B
-41.2%
Total Assets
$58B
Previous year: $60.6B
-4.3%

Dow

Dow

Dow Revenue by Segment

Forward Guidance

In 2024, Dow expects softness in industrial and durable goods demand to continue in the first quarter, but is encouraged by early positive signals in areas including construction, automotive and consumer electronics.

Positive Outlook

  • Commitment to financial and operational discipline
  • Early positive signals in construction
  • Early positive signals in automotive
  • Early positive signals in consumer electronics
  • Strong balance sheet and cash generation

Challenges Ahead

  • Softness in industrial demand expected to continue in Q1
  • Softness in durable goods demand expected to continue in Q1
  • Navigating dynamic market conditions
  • Projects are expected to deliver more than $3 billion in underlying earnings annually by 2030
  • Advance our Decarbonize & Grow and Transform the Waste strategies.

Revenue & Expenses

Visualization of income flow from segment revenue to net income