Dow : 1Q 2026 Earnings 2025 Annual Benchmarking Presentation

Published: 2026-04-23 09:20:11 ET DOW

Published on 04/23/2026 at 09:20 am EDT

April 23, 2026

1 2 3

Total Dow

P&SP

II&I

PM&C

Olefins & Polyolefins

Intermediates & Derivatives

Silicones

Chemical Products

Acetyl Chain

Polyolefins

Corporate

Functional

Materials

Benchmarking conducted against segment level peers if sufficient

information disclosed, otherwise corporate level

Divested its Coatings business in 2025; company provided pro forma adjusted data back to 2024

Ceased operations at its refinery in 2025; company provided pro forma adjusted data back to 2024

Adjusted the treatment of JV investments in 2025; company provided pro forma adjusted data back to 2023

Benchmarking: Strengths & Gaps

Total Dow

FY25 YoY Adj. Op. EBITDA growth trailed the peer median, driven primarily by pressure in Industrial Intermediates &

Infrastructure from lower prices across various product chains amid continued oversupply

FY25 Adj. Op. EBITDA margin below the peer median, driven by margin compression in Industrial Intermediates & Infrastructure and Performance Materials & Coatings

P&SP outperformed the benchmark across most metrics, supported by its differentiated portfolio, first-quartile cost position and feedstock flexibility

SG&A + R&D as a % of Sales remains best in the peer group from continued cost discipline through our 2025 cost savings program

Cash Flow Conversion trailed the peer median, driven by a use of working capital as new assets startup and sell out, as well as lower margins

Implemented proactive measures to generate >$6.5B in near-term margin & cash support; well over half delivered in 2025

Operating Return on Invested Capital 3-year average at the peer median

Source: Dow data, FactSet, Company disclosures

Hallmark safety performance and operational excellence

Global asset footprint with integrated value chains providing a low-cost-to-serve model with in-region presence

Differentiated portfolio delivers a broad suite of offerings to attractive end markets growing faster than GDP

FY25 UPDATE & FY24

Adj. Op. EBITDA Adj. Op. EBITDA Cash Flow Conversion SG&A + R&D Growth Margin (as a % of Sales)

FY25 vs. FY24

Median

Excl. Dow

FY24 vs. FY23

Median Excl. Dow

FY25

FY24

FY25

FY24

FY25

FY24

20%

21%

145%

20%

10%

19%

125%

Median

17%

105%

15%

Excl. Dow

Median Excl. Dow

15%

-10%

-20%

-30%

-40%

13%

11%

Median Excl. Dow

85%

65%

45%

Median

Excl. Dow

Median Excl. Dow

10%

-50%

25%

Deliver on our commitments and self-help actions including the 2025 cost savings program and Transform to Outperform

Maintain and grow leadership positions in key markets and advantaged regions with a top-quartile cost structure

Drive operational excellence and preserve a solid financial foundation

Innovative product and technology pipeline to provide sustainable solutions to address world challenges

Source: Dow data, FactSet, Company disclosures

Optimize our portfolio for growth by advancing our Path2Zero project and maximizing returns from our organic growth investments

Segment

Benchmarking: Strengths & Gaps

P&SP

II&I

YoY Adj. Op. EBITDA growth was below the peer median, driven by weakness in building & construction and durables end markets.

Business continues to optimize global footprint, including the shutdown of higher-cost, lower-value USGC PO capacity in 4Q25

Adj. Op. EBITDA margin trailed the peer median, driven by spending associated with the startup of alkoxylation growth projects in

Industrial Solutions and continued challenging market conditions in Europe, particularly in Polyurethanes & Construction Chemicals

Free Cash Conversion performance below the peer median driven by low earnings and growth investments further shifting mix towards higher-value downstream product portfolio aligned to attractive end markets

PM&C

YoY Adj. Op. EBITDA growth outperformed the peer median, driven by downstream silicones growth across all end markets

Adj. Op. EBITDA margin trailed the peer median, driven by margin pressure in upstream siloxanes. Merchant exposure will be reduced following the Barry, UK asset shutdown in mid-2026

Free Cash Conversion performance slightly above the peer median

YoY Adj. Op. EBITDA declined less than the peer median, driven by our differentiated portfolio

Adj. Op. EBITDA margin delivered best-in-class performance, with 1st quartile cost positions and leading feedstock flexibility

Op. EBITDA per pound of polyolefin capacity ahead of peers, driven by higher-margin functional polymers applications

Free Cash Conversion performance in-line with peer median while advancing our Fort Saskatchewan Path2Zero project

SG&A + R&D as a % of Sales continues to be top quartile

SG&A + R&D as a % of Sales remained top quartile, highlighting a continuous focus on cost discipline

SG&A + R&D as a % of Sales remained best-in-class, driven by scale, cost discipline and digital capabilities

‌

World-class packaging franchise with leading market positions in ethylene & PE, ethylene copolymers, elastomers & plastomers and licensing

Leading purpose-built feedstock flexibility and geographically advantaged assets delivering low costs at scale

Flexible derivative assets with differentiated co-monomer capability

Proprietary catalyst and process technology

Capitalize on Path2Zero first mover advantage with our low-cost integrated ethylene and derivatives complex

Positioned with a diversified portfolio mix anchored in the Americas, benefiting from structural feedstock advantages and a low-cost asset base

Leveraging and growing cost-advantaged, integrated assets while assessing and optimizing higher-cost capacity, including planned asset shutdowns in Europe

Adj. Op. EBITDA Adj. Op. EBITDA Free Cash Conversion SG&A + R&D

Growth Margin (as a % of Sales)

FY25 vs. FY24

Median Excl. Dow

FY24 vs. FY23

Median Excl. Dow

FY25

FY24

FY25

FY24

FY25

FY24

80%

25%

80%

15%

60%

40%

20%

15%

60%

40%

Median Excl. Dow

10%

20%

Median Excl. Dow

Median

Excl. Dow

Median

-20%

10%

Median Excl. Dow

Median

Excl. Dow

-40%

-60%

-20%

-80%

-40%

Source: Dow data, FactSet, Company disclosures

Delivering Superior Returns vs. Peers

FY25

Dow P&SP

FY25

Lyondell O&P

FY25

Borealis Polyolefins

Source: Peer company reported capacities, CMA

1. Segment Op. EBITDA based on reported figures including equity income from affiliates/JVs. Dow Capacity based on latest company reported nameplate for PE and functional polymers (1Q26 update including proportionate share of JVs); Lyondell and Borealis based on CMA reported capacity including proportionate share of JVs

>4x

>2x

Generating Higher Margins vs. Peers Across the Cycle

30%

25%

20%

15%

10%

Avg.

~20%.

Avg.

~14%.

2017 2018 2019 2020 2021 2022 2023 2024 2025

Dow P&SP Peer Median² (Excl. Dow)

Dow P&SP maintains leading position in Op. EBITDA per pound:

1st quartile cost positions and purpose-built feedstock flexibility

Flexible downstream assets and superior mix vs. peers, focus on higher-value grades of polyethylene and specialty resins such as elastomers and wire & cable

Dow P&SP has delivered higher annual Op. EBITDA margins:

~+600bps Op. EBITDA margin advantage through the economic cycle

Consistently outperforming the peer median and growing our advantaged functional polymers business through 2025

2. Peers are P&SP peers as defined earlier in this presentation

See appendix for definition of Non-GAAP Measures

Leading producer of purified ethylene oxide, amines, solvents, glycol ethers, propylene oxide, propylene glycol and polyols

Broad portfolio of solutions for key end markets and applications such as energy, consumer health, automotive, appliances, furniture, bedding, agriculture, cleaning, fluids for heat transfer & aircraft deicing

Industrial Solutions contains products with some of the highest returns to ethylene

Adj. Op. EBITDA Adj. Op. EBITDA Free Cash Conversion SG&A + R&D

Growth Margin (as a % of Sales)

FY25 vs. FY24

Median Excl. Dow

FY24 vs. FY23

Median Excl. Dow

FY25

FY24

FY25

FY24

FY25

FY24

20%

80%

15%

10%

70%

-10%

-20%

15%

Median Excl. Dow

60%

50%

40%

Median Excl. Dow

10%

Median Excl. Dow

10%

-30%

30%

-40%

-50%

-60%

20%

10%

-70%

-10%

Source: Dow data, FactSet, Company disclosures

Investing in purified EO and downstream derivatives supporting growth in consumer, pharma, and energy applications

Reducing our footprint in PO & derivatives through notable self-help actions across 2024 and 2025

Navigating weak construction and durable goods end markets with disciplined cost actions and emerging support from improved trade conditions

Leading producer of silicones and acrylic binders

Low cost global siloxanes producer with backward integration capabilities

World-scale acrylic monomers and leading coatings solution provider

Industry leadership

FY25 UPDATE & FY24

Adj. Op. EBITDA

Growth

Adj. Op. EBITDA

Margin

Free Cash Conversion

SG&A + R&D

(as a % of Sales)

FY25 vs.

FY24

FY24 vs.

FY23

FY25

FY24

FY25

FY24

FY25

FY24

50%

35%

160%

20%

30%

140%

120%

10%

25%

15%

Median

Excl. Dow

Median

Excl. Dow

100%

-10% 20% 80%

Median

Excl. Dow

Median

Excl. Dow

Median

Excl. Dow

Median

Excl. Dow

-30%

60%

15%

Median

Excl. Dow

10%

40%

-50%

Median

Excl. Dow

10%

20%

-70%

Continue to expand downstream capacity in silicones with higher-return, faster-payback projects tailored to faster growing end markets

Improving portfolio margin mix across silicones offerings through a downstream, end market focus, supported by cost competitiveness

enabled by in-depth application expertise and innovative digital platforms

Source: Dow data, FactSet, Company disclosures

Targeted investments in

coatings aligned to architectural demand

Optimizing our upstream siloxanes footprint to improve margins with planned mid-2026 Barry, UK asset shutdown

Operating Return on Capital (%)

2023-2025 Annual Average

Median

Excl. Dow

~4%

Peer 3

Peer 2

Peer 4

Peer 6

Peer 5

Peer 1

SG&A + R&D

(as a % of Sales)

2023-2025 Annual Average

Median

Excl. Dow

~12%

Peer 6

Peer 5

Peer 4

Peer 1

Peer 3

Peer 2

Shareholder Yield (%)

2023-2025 Annual Average

Median

Excl. Dow

~8%

Peer 2

Peer 5

Peer 3

Peer 6

Peer 1

Peer 4

Adj. Operating EBITDA Margin

2023-2025 Annual Average

13%

Median

Excl. Dow

~12%

Peer 3

Peer 4

Peer 1

Peer 2

Peer 6

Peer 5

DOW

Dow

DOW

Source: Dow data, FactSet, Company disclosures

General Comments

Unless otherwise specified, all financial measures in this presentation, where applicable, exclude significant items.

Trademarks

The Dow Diamond, logo and all products, unless otherwise noted, denoted with , ℠ or ® are trademarks, service marks or registered trademarks of The Dow Chemical Company or its respective subsidiaries or affiliates. Solely for convenience, the trademarks, service marks and trade names referred to in this communication may appear without the , ℠ or ® symbols, but such references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights or the right of the applicable licensor to these trademarks, service marks and trade names. This presentation may also contain trademarks, service marks and trade names of certain third parties, which are the property of their respective owners. Our use or display of third parties' trademarks, service marks, trade names or products in this communication is not intended to, and should not be read to, imply a relationship with or endorsement or sponsorship of us.

Cautionary Statement about Forward-Looking Statements

Certain statements in this presentation are "forward-looking statements" within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements often address expected future business and financial performance, financial condition, and other matters, and often contain words or phrases such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "opportunity," "outlook," "plan," "project," "seek," "should," "strategy," "target," "will," "will be," "will continue," "will likely result," "would," and similar expressions, and variations or negatives of these words or phrases.

Forward-looking statements are based on current assumptions and expectations of future events that are subject to risks, uncertainties and other factors that are beyond Dow's control, which may cause actual results to differ materially from those projected, anticipated or implied in the forward-looking statements and speak only as of the date the statements were made. These factors include, but are not limited to: sales of Dow's products; Dow's expenses, future revenues and profitability; any supply chain, operational or other disruptions, sanctions, export restrictions, or increased economic uncertainty related to the ongoing conflicts between Russia and Ukraine and in the Middle East; capital requirements and need for and availability of financing; unexpected barriers in the development of technology, including with respect to Dow's contemplated capital and operating projects; Dow's ability to realize its commitment to carbon neutrality on the contemplated timeframe, including the completion and success of its integrated ethylene cracker and derivatives facility in Alberta, Canada; size of the markets for Dow's products and services and ability to compete in such markets; Dow's ability to develop and market new products and optimally manage product life cycles; the rate and degree of market acceptance of Dow's products; significant litigation and environmental matters and related contingencies and unexpected expenses; the success of competing technologies that are or may become available; the ability to protect Dow's intellectual property in the United States and abroad; Dow's ability to realize expected benefits from Transform to Outperform on the contemplated timeline; developments related to contemplated restructuring activities and proposed divestitures or acquisitions such as workforce reduction, manufacturing facility and/or asset closure and related exit and disposal activities, and the benefits and costs associated with each of the foregoing; fluctuations in energy and raw material prices; management of process safety and product stewardship; changes in relationships with Dow's significant customers and suppliers; changes in public sentiment and political leadership; increased concerns about plastics in the environment and lack of a circular economy for plastics at scale; changes in consumer preferences and demand; changes in laws and regulations, political conditions, tariffs and trade policies, or industry development; global economic and capital markets conditions, such as inflation, market uncertainty, interest and currency exchange rates, and equity and commodity prices; business, logistics and supply disruptions; security threats, such as acts of sabotage, terrorism or war, including the ongoing conflicts between Russia and Ukraine and in the Middle East; weather events and natural disasters; disruptions in Dow's information technology networks and systems, including the impact of cyberattacks; risks related to Dow's separation from DowDuPont Inc. such as Dow's obligation to indemnify DuPont de Nemours, Inc. and/or Corteva, Inc. for certain liabilities; and any global and regional economic impacts of a pandemic or other public health-related risks and events on Dow's business.

Where, in any forward-looking statement, an expectation or belief as to future results or events is expressed, such expectation or belief is based on the current plans and expectations of management and expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the expectation or belief will result or be achieved or accomplished. A detailed discussion of principal risks and uncertainties which may cause actual results and events to differ materially from such forward-looking statements is included in the section titled "Risk Factors" contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, and the Company's subsequent reports filed with the U.S. Securities and Exchange Commission. These are not the only risks and uncertainties that Dow faces. There may be other risks and uncertainties that Dow is unable to identify at this time or that Dow does not currently expect to have a material impact on its business. If any of those risks or uncertainties develops into an actual event, it could have a material adverse effect on Dow's business. Dow Inc. and The Dow Chemical Company and its consolidated subsidiaries assume no obligation to update or revise publicly any forward-looking statements whether because of new information, future events, or otherwise, except as required by securities and other applicable laws.

Non-GAAP Financial Measures

This presentation includes information that does not conform to GAAP and are considered non-GAAP measures. Management uses these measures internally for planning, forecasting and evaluating the performance of the Company's segments, including allocating resources. Dow's management believes that these non-GAAP measures best reflect the ongoing performance of the Company during the periods presented and provide more relevant and meaningful information to investors as they provide insight with respect to ongoing operating results of the Company and a more useful comparison of year-over-year results. These non-GAAP measures supplement the Company's GAAP disclosures and should not be viewed as alternatives to GAAP measures of performance. Furthermore, such non-GAAP measures may not be consistent with similar measures provided or used by other companies. Dow does not provide forward-looking GAAP financial measures or a reconciliation of forward-looking non-GAAP financial measures to the most comparable GAAP financial measures on a forward-looking basis because the Company is unable to predict with reasonable certainty the ultimate outcome of pending litigation, unusual gains and losses, foreign currency exchange gains or losses and potential future asset impairments, as well as discrete taxable events, without unreasonable effort. These items are uncertain, depend on various factors, and could have a material impact on GAAP results for the guidance period.

See investors.dow.com for a reconciliation of the most directly comparable GAAP financial measure.

Definitions

Operating EBIT is defined as earnings (i.e. "Income (loss) before income taxes") before interest, excluding the impact of significant items.

Operating EBITDA is defined as earnings (i.e. "Income (loss) before income taxes") before interest, depreciation and amortization, excluding the impact of significant items. Operating EBIT Margin is defined as Operating EBIT as a percentage of net sales.

Operating EBITDA Margin is defined as Operating EBITDA as a percentage of net sales. Adjusted Operating EBIT is defined as Operating EBIT less equity earnings (losses).

Adjusted Operating EBIT Margin is defined as Operating EBIT less equity earnings (losses), divided by net sales.

Adjusted Operating EBITDA is defined as Operating EBITDA less equity earnings (losses).

Adjusted Operating EBITDA Margin is defined as Adjusted Operating EBITDA divided by net sales., excluding certain transactions with nonconsolidated affiliates. Operating Earnings Per Share is defined as "Earnings (loss) per common share - diluted", excluding the after-tax impact of significant items.

Operational Tax Rate is defined as the effective tax rate (i.e., GAAP "Provision (credit) for income taxes" divided by "Income (loss) before income taxes"), excluding the impact of significant items.

Free Cash Flow is defined as "Cash provided by (used for) operating activities - continuing operations," less capital expenditures. Under this definition, Free Cash Flow represents the cash generated by Dow from operations after investing in its asset base. Free Cash Flow, combined with cash balances and other sources of liquidity, represent the cash available to fund obligations and provide returns to shareholders. Free Cash Flow is an integral financial measure used in Dow's financial planning process.

Free Cash Flow Yield is defined as Free Cash Flow divided by market capitalization.

Shareholder Remuneration is defined as dividends paid to stockholders plus purchases of treasury stock. Shareholder Yield is defined as Shareholder Remuneration divided by market capitalization.

Cash Flow Conversion is defined as "Cash provided by (used for) operating activities - continuing operations" divided by Operating EBITDA. Management believes Cash Flow Conversion is an important financial metric as it helps the Company determine how efficiently it is converting its earnings to cash flow.

Free Cash Conversion at an operating segment level is defined as Adjusted Operating EBITDA less capital expenditures divided by Adjusted Operating EBITDA.

Operating Net Income is defined as net income (loss), excluding the after-tax impact of significant items.

Net operating profit after tax (excluding significant items) is defined as "Net income (loss) attributable to Dow Inc. common stockholders," excluding the impact of significant items, "Net income attributable to noncontrolling interests," gross interest expense, and the tax impact of interest expense.

Operating Return on Capital (ROC) is defined as net operating profit after tax, excluding the impact of significant items, divided by total average capital, also referred to as ROIC.

Net Debt is defined as "Notes payable" plus "Long-term debt due within one year" plus "Long-term debt" less "Cash and cash equivalents" and "Marketable securities."

Kuwait Joint Ventures (JVs) refers to EQUATE Petrochemical Company K.S.C.C., The Kuwait Olefins Company K.S.C.C., and The Kuwait Styrene Company K.S.C.C.

Thai Joint Ventures (JVs) refers to Map Ta Phut Olefins Company Limited and The SCGC-Dow Group (Siam Polyethylene Company Limited, Siam Polystyrene Company Limited, Siam Styrene Monomer Co., Ltd., Siam Synthetic Latex Company Limited).

Disclaimer

Dow Inc. published this content on April 23, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 23, 2026 at 13:19 UTC.