Dow Inc Reports Sharply Larger Q4 Loss and Announces Cost‑Cutting Initiative

Dow Inc. (NYSE: DOW) posted a fourth‑quarter GAAP loss that widened sharply from the modest loss reported in the same period a year earlier. The company disclosed a $1.5 billion loss versus a $35 million loss in Q4 2025, translating to a GAAP loss per share of $2.15 compared with $0.08 a year ago. Operating EBITDA fell to $741 million from $1.2 billion, underscoring the pressure on the chemical giant’s profitability.

Revenue contraction

Dow’s revenue in the fourth quarter slipped to $9.5 billion from $10.4 billion a year earlier. The decline was uniform across all business segments—ranging from liquid injection molding and architecture fabrication to leather, textiles, automotive and food‑industry chemicals—reflecting a broad-based slowdown in demand for the company’s diverse chemical portfolio.

Management’s response

In an effort to reverse the trend, Dow’s board approved a wider cost‑management program that will see approximately 4,500 roles eliminated over the coming months. The company described the plan as a “comprehensive simplification of operations” aimed at improving end‑to‑end efficiency and aligning the organization with its long‑term growth strategy. The announcement follows the launch of the “Transform to Outperform” initiative, which seeks to raise industry benchmarks for productivity and returns.

Market reaction

Dow’s share price, which closed at $27.78 on 27 January 2026, fell as investors absorbed the news of the enlarged loss and the announced workforce reduction. The company’s price‑earnings ratio stands at ‑17.44, a negative figure that reflects the current earnings deficit. The market cap of $20.29 billion remains under pressure as the company’s profitability deteriorates.

Outlook

Dow’s management has cautioned that the company is still in a challenging environment, but it expects the cost‑cutting plan to help stabilize earnings in the long run. Analysts note that the company’s diversified product base could provide resilience once the broader market recovers. Investors will be watching closely for next‑quarter earnings to gauge whether the restructuring yields the desired turnaround.

This article synthesizes Dow Inc.’s latest financial performance and strategic actions based on the most recent news releases.