Dow

DOW Q3 2025 Earnings

Reported Oct 23, 2025 at 7:01 AM ET · SEC Source

Q3 25 EPS

$-0.19

BEAT +36.84%

Est. $-0.30

Q3 25 Revenue

$9.97B

MISS 2.49%

Est. $10.23B

vs S&P Since Q3 25

+67.1%

BEATING MARKET

DOW +74.4% vs S&P +7.3%

Market Reaction

Did DOW Beat Earnings? Q3 2025 Results

Dow posted a bruising but better-than-feared third quarter, with the chemicals giant reporting an operating loss of $0.19 per share that cleared the Street's $0.30 consensus estimate by 36.84%, even as revenue of $9.97 billion slipped 2.49% below exp… Read more Dow posted a bruising but better-than-feared third quarter, with the chemicals giant reporting an operating loss of $0.19 per share that cleared the Street's $0.30 consensus estimate by 36.84%, even as revenue of $9.97 billion slipped 2.49% below expectations and fell 8.3% year-over-year on broad-based price weakness across every segment. The clearest explanation for the earnings resilience was a sharp sequential rebound in cash generation, operating cash flows surged to $1.13 billion and free cash flow turned positive at $566 million, aided by working capital improvements and advance payments tied to long-term supply agreements. Packaging & Specialty Plastics, Dow's largest segment at $4.89 billion in sales, remained under pressure from compressed integrated margins, though a newly online polyethylene unit in Freeport, Texas provided some sequential lift. With shares having slumped to multi-year lows and a class-action lawsuit alleging the company downplayed tariff exposure, management leaned heavily on its cost-reduction roadmap, targeting more than $6.50 billion in near-term cash support and $1 billion in savings by end of 2026.

Key Takeaways

  • Lower local prices across all operating segments down 8% year-over-year
  • Cost reduction actions providing tailwinds to offset price declines
  • Lower planned maintenance activity in Q3 vs Q2
  • Working capital improvements drove significant sequential cash flow improvement
  • New U.S. Gulf Coast assets contributing to sequential volume gains
  • Equity losses of $72 million from nonconsolidated affiliates including Sadara unplanned event
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DOW YoY Financials

Q3 2025 vs Q3 2024, source: SEC Filings

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DOW Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26
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DOW Revenue by Geography

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“In the third quarter, we delivered sequential earnings and cash flow improvement despite continued pressure across our industry. Our teams are engaging in productive conversations with governments around the world to keep product moving and to ensure a fair-trade environment. We remain confident that Dow is in a strong position to navigate this 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. We remain on track to deliver more than $6.5 billion in near-term cash support, with over half already achieved. This includes a reduction in CapEx spending of $1 billion this year, as well as the accelerated delivery of our previously announced $1 billion in targeted cost reductions by the end of 2026. Our performance demonstrates the strength of Dow's competitive advantages and our disciplined focus on key value drivers within our control.”

— Jim Fitterling, Q3 2025 Earnings Press Release