Dow (DOW) Q1 2026 earnings summary

Executive summary

• Achieved Q1 2026 net sales of $9.8 billion, down 6% year-over-year, with declines in most segments except for flat sales in Performance Materials & Coatings.

• Operating EBITDA was $873 million, supported by $193 million in cost savings and volume growth, but offset by lower prices and Sadara guarantee losses.

• Net loss attributable to common stockholders was $533 million ($0.74/share), impacted by restructuring charges, Sadara guarantee liability, and lower prices.

• Cash from operating activities rose to $1.1 billion, driven by a $1.0 billion legal settlement and working capital improvements.

• Leadership transition announced, with new CEO effective July 1, 2026, and senior leadership roles reduced by ~20%.

Financial highlights

• Polyethylene volumes increased sequentially, but overall volume declined 2% year-over-year; net sales were $9.8 billion.

• Operating EBITDA was $873 million, down from $944 million year-over-year; operating EBIT was $154 million.

• Free cash flow improved to $621 million from negative $581 million a year ago.

• Dividends paid totaled $252 million; no share repurchases in Q1.

• Ended Q1 with over $4 billion in cash on hand and ample liquidity of $13.7 billion including facilities.

Outlook and guidance

• Management expects sequential improvement in Q2 2026, with revenue projected at $12 billion and EBITDA at ~$2 billion, driven by pricing gains, margin expansion, and seasonal demand.

• Transform to Outperform program targets $1.2 billion in additional cash expenditures over two years for cost structure improvements.

• Project $400 million in cost savings from Transform to Outperform in the second half of the year.

• Full-year capital spending expected at ~$2.5 billion.

• Anticipate continued tight supply and strong demand, supporting pricing momentum for at least 6–18 months.