Dow : First Quarter 2026 Presentation
DOW
Published on 04/23/2026 at 06:33 am EDT
April 23, 2026
Quarterly Performance and Segment Details
Current Industry Dynamics and Outlook
Dow's Strategic Positioning and Competitive
Advantages
Focused Actions to Reset the Competitive Benchmark
Disciplined Financial Management
Performance Update
Solid 1Q Results Supported by Strong Self Help
Operating EBITDA was $873MM
Returned $252MM of dividends to shareholders
Delivered volume growth versus prior quarter
Positive 2Q Margin Backdrop Rapidly Unfolding
Price momentum expected to continue across Dow's entire portfolio
Entering high seasonal demand period, providing further tailwinds
Industry supply environment stressed on Middle East and Asian
supply limitations
Building Long-Term Agility and Resilience
Incremental growth investments position Dow for higher returns as market conditions tighten
European asset shutdown benefits begin by the middle of this year
Self-help actions continue to gain momentum, enabling a step change in growth and productivity
$9.8B
$873MM
$193MM
Non-GAAP measures are defined in the appendix
3
Revenue ($MM) Op. EBIT ($MM) & Op. EBIT Margin
5,310
Market Participation¹
4,919
Packaging & Specialty Plastics (70%)2
Mobility
Infrastructure
Health & Hygiene
Consumer
Packaging
342
208
6.4%
4.2%
1Q25 1Q26 1Q25 1Q26
Hydrocarbons & Energy (30%) 2
1Q26 average operating rate ~88%
~90% operating rates globally in March with anticipated increases in 2Q
Americas crackers maximizing production
Dynamic NGL costs and rising co-product prices providing feedslate optionality
Performance Overview
Net sales were $4.9 billion, down 7% YoY, primarily driven by lower polyethylene prices
Volume decreased 1% YoY as higher polyethylene volumes in all regions were offset by lower merchant olefins sales and lower licensing revenue
St. Charles, Louisiana cracker turnaround successfully completed in early April and has returned to producing on-prime product
Revenue ($MM) Op. EBIT ($MM) & Op. EBIT Margin
Market Participation¹
Industrial Solutions (35%)2
Mobility
Building & Construction
Industrial
Consumer
Energy
2,626
2,855
-4.5%
-4.5%
(128) (118)
1Q25 1Q26 1Q25 1Q26
Polyurethanes & Construction Chemicals (65%)2
Mobility
Industrial
Building &
Construction
Energy
Consumer
Performance Overview
Net sales were $2.6 billion, down 8% YoY, including impact from the Middle East conflict
Volume decreased 4% YoY, primarily due to the shutdown of our higher-cost upstream propylene oxide unit in the U.S. Gulf Coast in late 2025
Growth momentum continues as earnings from investments ramp and we capture opportunities with leading consumer brands
Revenue ($MM) Op. EBIT ($MM) & Op. EBIT Margin
Market Participation¹
2,071 2,080
1Q25 1Q26
117
49
2.4%
5.6%
Consumer Solutions
(60%)²
Mobility
Building &
Construction
Industrial
Consumer &
Electronics
Home &
Personal Care
1Q25 1Q26
Coatings & Performance Monomers (40%)²
Mobility
Consumer
Industrial Coatings³
Architectural
Coatings³
Performance Overview
Net sales were $2.1 billion, flat YoY, with higher volumes in both businesses
Volume increased 2% YoY, led by growth in downstream silicones, including electronics and home and personal care markets
Focused on downstream higher-value products through the right sizing of upstream capacity; basics siloxanes in Barry, U.K. on track for mid-2026 shut down
Non-GAAP measures are defined in the appendix
Polyethylene Supply Significantly Impacted
Polyolefin derivatives
Global Demand Largely Unchanged
+ Global PE packaging demand remains resilient
+ Industry PE inventory remains at low levels
+ Consumer spending rebounded modestly in February, signaling resilience
+ Anticipate energy industry dynamics will lead to
stronger EV demand
- Elevated inflation continues to pressure U.S. interest rates, contributing to
weaker-than-expected existing home sales
% of Dow Sales Exposed to
Tightening Market Dynamics
Non-Polyolefin derivatives
Americas Feedstock Advantage Remains
Geopolitical supply disruption has significantly tightened oil markets
Rapidly depleting oil cargoes straining physical market; expectations for higher U.S. supply
North American LNG markets remain well
supplied and regionally insulated
U.S. Gulf Coast NGL's, including ethane, remain
largely unimpacted
Oil to Gas Spread ($/BOE)1
90
60
30
Jan-24
Jan-25
Jan-26
Global PE Capacity1
100%
Limited Impact
50%
Constrained
0%
Shut Down
~20%1 of global oil capacity offline
~50%1 of global ethylene & PE supply is offline, constrained or impacted
Infrastructure damage increasing across the Middle East
Transit through the Strait of Hormuz remains significantly impaired
Global Supply Experiencing Significant Turmoil
~20%1 of global oil capacity is offline
~50%1 of global ethylene & PE supply is offline, constrained or impacted
Infrastructure damage increasing across the Middle East
Transit through the Strait of Hormuz remains significantly impaired
Middle East - 15%
× Significant impact
× Lowest cost global producer
× Capacity largely offline
× Extensive damage expected
Global Industry Ethylene Production (%)
Europe - 15%
× Moderate impact
× Energy and cost pressure
Potential to increase operating rates
× Structural challenges remain
Americas - 25%
Minimal impact
Advantaged feedstocks
Ample supply
Increasing exports
Prolonged Industry Impact Expected
Duration
Impact expected to last well beyond eventual conflict end
Risk of lasting infrastructure damage
Impact to Future Investments
Potential for reduced capacity adds, particularly for ethylene:
~75%1 of announced adds impacted by conflict
~15%1 of announced adds are behind the Strait of Hormuz
Asia Pacific - 45%
× Substantive impact
× Raw material constraints
unfolding
× Significant feedstock cost pressure
Structural Reset
Structural risk premium in both oil and petrochemicals and a steeper global cost curve
Dow's advantaged portfolio, European feedstock flexibility and agile global supply chains position us well to win in the markets we serve
Potential for permanent capacity rationalization to accelerate, particularly in Asia, with intensifying feedstock supply and cost pressures
Near-Term Dynamics Constructive to Earnings Upside for Dow
Entered conflict at
Advantaged Global Asset Footprint
March +10cpp2
April +30cpp2
May +20cpp2
Polyethylene Price1
2021 2022 2023 2024 2025 1Q26
unsustainably and historically low pricing and margin levels
Unprecedented supply situation and duration beginning to be matched by pricing actions
Announced price increases reflective of market reality
~80%
~2X
Dow light cracking capacity in the cost-advantaged Americas, unimpacted by Middle East conflict
European feedstock flexibility (increasing Pro-Nap spreads) provides cost advantage for Dow relative to peers with impaired supply
P&SP Sales by Market
Automotive & Infrastructure
~80% of P&SP product sales into higher-value, resilient applications with lower risk of demand impairment
~40%
Higher North American PE capacity vs. closest peer, supported by 2025 start-up of our world-scale PE train in Freeport, Texas
Packaging, Consumer, Health & Hygiene
Self-Help Actions Enable Improved Earnings and Shareholder Returns
Complete our $1B 2025 cost savings program
Growth investments are delivering returns in high-value markets
Benefits from European asset shutdowns begin this year
Deliver >$2B Op. EBITDA improvements through Transform to Outperform
$1.0B
~$3.0B of Near-Term Op. EBITDA Uplift
~$3.0B
>$2.0B
Total Uplift
~$0.3B
Expect >$400MM in total productivity benefits at our large sites
Modernized commercial capabilities accelerating targeted volume
2025 Cost Savings
Program
Growth Investments & Asset Actions
Transform to
Outperform
Total Uplift
growth for high-value product lines
Enterprise end-to-end process evaluations are complete; new end-state defined
2025 Cost Savings Announced (~1,500 Dow Roles)
Europe Asset Actions
Transform to Outperform Announced (~4,500 Dow Roles)
Announced senior leadership changes resulting in ~20% reduction in roles and cost
Announced (~800 Dow Roles)
Dow Headcount
37,000
Improved Productivity
Low-cost operator at scale
Reduce management layers
Expand margins through operational efficiencies
>$2B
Op. EBITDA
Improvement
Higher Growth
Leading customer
innovation
Faster speed to market
Leverage AI capabilities
YE24 YE25 YE27
29,000
Rapid Sales and Earnings Inflection in a Dynamic Period
Revenue of ~$12B and EBITDA of ~$2B
Depreciation & Amortization
~$720MM
Average Share Count
~725MM
Net Income Attrib. to Non-Controlling Int.
~$70MM
Net Interest Expense (Net of Int. Income)
~$175MM
Corporate Op. EBITDA
~(-$50MM)
Full-Year Operational Tax Rate
~20% to 30%
Op. EBITDA
Base Case Op. EBITDA Key Drivers (2Q26 vs. 1Q26)
Packaging & Specialty Plastics
~$1,750MM
Industrial Intermediates & Infrastructure
~$25MM
Performance Materials & Coatings
~$275MM
Higher polyethylene integrated margins - significant price increases globally
Higher planned maintenance activity, driven by our LA-3 USGC cracker [~$60MM headwind]
Lower licensing activity and equity earnings [~$75MM headwind]
Cost savings contributions [~$35MM tailwind]
Higher demand from typical building & construction seasonal improvement [~$100MM tailwind]
Higher planned maintenance activity across the USGC and EMEAI [~$50MM headwind]
Lower licensing activity and equity earnings [~$70MM headwind]
Cost savings contributions [~$15MM tailwind]
Modest seasonal coatings demand improvement, offset by rising input costs
Higher planned maintenance activity at one of our Monomers facilities in the USGC [~$35MM headwind]
Cost savings contributions [~$10MM tailwind]
Non-GAAP measures are defined in the appendix
11
Capital Allocation Framework Remains Consistent Safely and reliably run our operations
Strong investment-grade credit profile of 2.0x-2.5x rating agency adj. net debt-to-EBITDA
Organic investments with CapEx ≤D&A and operating ROIC >13% across the economic cycle
Dividend policy targeting ~45% of operating net income
Share repurchases with dividend to meet 65% of operating net income; covering dilution
2026 Strategic Cash and Financial Priorities
No substantive debt maturities due until 2029
Receive cash compensation from NOVA litigation
~$1B received in 1Q
o Expect remaining ~$300MM this year
Deliver ~$1.1B in benefits from self-help actions
>$500MM from 2025 cost savings program
~$500MM from Transform to Outperform
~$100MM from prior growth investments and asset actions
Implement prudent tradeoffs to improve working capital and maximize cash as earnings improve
Maintaining Ample Liquidity
Cash and Cash
Equivalents
~$14B
Revolver Credit
Facility
Committed A/R
Securitization
Committed Bilateral Lines
Non-GAAP measures are defined in the appendix
Well-Positioned to Navigate Industry Disruptions
Global demand dynamics largely unchanged, Middle East conflict resetting supply backdrop
Seeing positive momentum from announced pricing actions in every business and every region
Dow's European feedstock flexibility, Americas asset footprint, and agile regional supply chains
expected to provide upside in the near-term
Building Long-Term
Agility and Resilience
Delivering step-change improvements in growth and productivity through self-help measures
Realizing benefits from prior near-term growth investments and European asset actions
Increasing light cracking America's footprint to ~85% with top-quartile Path2Zero asset
Maintaining Financial Flexibility
Continuing to deliver against a consistent capital allocation framework over the cycle
Advancing unique-to-Dow cost savings and cash support throughout 2026
Maintaining ample liquidity over the cycle
Operating EBITDA Drivers
Other Income Statement Considerations
Cash Flow Considerations
Equity Earnings
~$150MM to $250MM higher YoY
Pension and Defined Contribution Impact
~$65MM higher YoY
Corporate
Op. EBIT of ~(-$220MM) and Op. EBITDA of ~(-$180MM)
Turnaround Expenses
~$200MM higher YoY
Dividends from Equity Companies
~$0 to ~$25MM
Pension contributions
~$180MM
CapEx
~$2.5B
2025 Cost Optimization Program Costs
~$100MM cash outflow
Transform to Outperform Costs to Achieve
~$800MM to ~1,000MM cash outflow
Net Interest Expense
~$700MM
D&A
~$2.9B
Net Income Attrib.
to Non-Controlling Int.
~$300MM (reduction to reported Net Income)
Year-End Average Share Count
~735MM
Operational Tax Rate
~20 to ~30%
Non-GAAP measures are defined in the appendix
Dow's Proportional Share of Principal JV Financial Results
1Q 2026
1Q 2025
$ millions (unaudited)
Kuwait
JVs
Thai JVs
Kuwait
JVs
Thai JVs
EBITDA
$48
$(10)
$119
$(3)
EBIT
$7
$(15)
$80
$(8)
Net Income
Equity Earnings to Dow
$(12)
$(18)
$57
$(11)
EBITDA in Excess of Eq. Earnings
$60
$8
$62
$8
Net Debt
$1,509
$372
$1,624
$320
Under GAAP, the Company suspended Sadara equity loss recognition in 1Q26. The carrying value of all liabilities on the balance sheet reached total existing relevant obligations and commitments.
As a result of this suspension, we will no longer be reflecting our proportional share of
Sadara JV financial results.
Drivers of JV Performance
Kuwait JVs: YoY driven by higher input costs and lower volumes
Thai JVs: YoY driven by lower integrated margins
Comments
Stock Incentive Plans (LTI): Includes stock options, restricted stock units, performance stock units, stock appreciation rights and stock units
401(k) Contributions: Beginning in 2024, all eligible U.S. employees receive an automatic non-elective contribution percent with the freezing of legacy defined benefit plans in addition to a company match up to preset contribution levels
Stock Incentive Plans and Defined Contributions Plans are benchmarked against our proxy compensation peer set and 401(k) contributions are secondarily benchmarked against the chemical industry
ESPP: All eligible employees can participate at a capped and defined level of eligible compensation
Share Issuances & Repurchases
Shares in millions
1Q26
1Q25
YTD26
YTD25
Stock Incentive Plans (LTI)
1.6
1.4
1.6
1.4
Contributions to U.S. Defined Contribution Plans (401(k))
1.9
1.8
1.9
1.8
Employee Stock Purchase Plan (ESPP)1
-
-
-
-
Total Shares Issued
3.5
3.2
3.5
3.2
Total Shares Repurchased
-
-
-
-
Cash inflows and outflows related to shares issued and repurchased are presented in the Consolidated Statements of Cash Flows.
Refer to Dow's 10-Q and 10-K for additional details on Stock Incentive, Defined
Contribution, and Employee Stock Purchase Plans.
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 timeframe; 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) from 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 10:32 UTC.