Dow Inc. Reports Wider-Than-Expected Loss and Halves Dividend Amid Industry Downturn
Dow Inc., a leading U.S.-based chemical company, has reported a significant wider-than-expected loss for its second quarter of 2025, ending June 30. The company announced an adjusted loss of 42 cents per share, which substantially missed analysts’ average estimates of a 17-cent loss. This financial setback is attributed to a prolonged industry downturn, impacting Dow’s performance across all operating segments.
In response to these challenging market conditions, Dow has made a strategic decision to halve its quarterly dividend to 35 cents per share, a 50% reduction from its previous payout. This adjustment aims to ensure capital allocation flexibility and maintain a balanced framework that enables higher returns for shareholders in the long term. The dividend cut has led to a significant drop in Dow’s stock price, with shares falling over 7% following the announcement.
Financial highlights for the second quarter reveal that Dow’s net sales were $10.1 billion, marking a 7% year-over-year decline and a 3% sequential decrease. This downturn reflects declines in all operating segments, despite seasonally higher demand in some areas. Earnings for the quarter were reported at a loss of $835 million, compared to a profit of $439 million in the same period last year. On a per-share basis, Dow reported an earnings loss of $1.18, down from $0.62 in the previous year. Excluding certain items, the company reported adjusted earnings of -$1.18 per share.
The financial challenges faced by Dow Inc. are reflective of broader industry trends, with the company’s performance aligning with market expectations in terms of revenue but falling short in profitability. Analysts had anticipated a loss per share of -17 cents, indicating that the actual loss was significantly higher than expected.
As Dow navigates through these turbulent times, the company’s strategic adjustments, including the dividend cut, are aimed at positioning it for future growth and stability. Despite the current downturn, Dow continues to serve a global customer base across various industries, including liquid injection molding, architecture fabrication, leather, textiles, automobiles, rubber consumer goods, and the food industry.
Investors and stakeholders are closely monitoring Dow’s strategies to mitigate the impacts of the industry downturn and to capitalize on potential opportunities for recovery and growth. The company’s commitment to maintaining a competitive dividend and ensuring capital allocation flexibility underscores its focus on long-term shareholder value.
For more detailed financial information and updates on Dow Inc.’s performance, stakeholders are encouraged to visit the company’s official website at www.dow.com . Dow remains listed on the New York Stock Exchange, with a market capitalization of $20,932,974,369 as of July 22, 2025.