Dow Inc., a leading global materials science company, announced its first-quarter 2025 results, reporting $10.4 billion in net sales, representing a 3% decline year-over-year mainly due to pricing pressures across all segments. Despite the sales decline, volumes increased 2% compared to the previous year, reflecting positive demand in most regions except Latin America. Sequentially, net sales remained flat, indicating stable operational momentum amidst challenging market conditions.
The company reported a GAAP net loss of \(290 million compared to a net income of \)538 million in Q1 2024, driven by lower prices, elevated energy and feedstock costs, and restructuring charges. Operating EBIT dropped by \(444 million year-over-year to \)230 million, underscoring margin compression. The GAAP loss per share was \(0.44, while the adjusted operating EPS was a modest \)0.02, highlighting ongoing profitability pressures after excluding significant restructuring and efficiency costs totaling $0.46 per share.
Cash flow from operating activities declined sharply by \(356 million year-over-year to \)104 million, impacted by earnings pressure and a seasonal working capital buildup. Dow returned $494 million to shareholders in dividends during the quarter, reflecting a commitment to shareholder returns amid operating headwinds.
Strategic Actions and \(6 Billion Cash Support Plan: - Dow announced a comprehensive action plan aimed at cost reduction and capacity optimization, targeting \)6 billion in near-term cash support to navigate the extended industry downcycle. - Key initiatives include delaying the Fort Saskatchewan Path2Zero project, reducing 2025 capital expenditures by approximately \(1 billion to \)2.5 billion. - The company is expanding its European asset review to include three additional upstream assets for potential idling or shutdown due to high energy intensity and unfavorable market conditions. - Proceeds expected from the new infrastructure partnership with Macquarie Asset Management are forecasted at up to \(3 billion in 2025 from a minority stake sale in select U.S. Gulf Coast assets. - Over \)1 billion in proceeds anticipated from the NOVA judgment in 2025. - Targeted cost savings of at least \(1 billion by 2026, including approximately \)300 million in 2025.
Segment Performance: - Packaging & Specialty Plastics segment net sales decreased 2% year-over-year to \(5.3 billion, with volumes up 4% driven by licensing revenue growth but offset by a 4% price decline. - Industrial Intermediates & Infrastructure sales declined 5% year-over-year to \)2.9 billion, with a 4% price drop and currency headwinds partially offset by a 1% volume increase. - Performance Materials & Coatings segment net sales were $2.1 billion, down 4% year-over-year due to volume and price declines.
Financial Position: - Dow’s total assets stood at \(57.5 billion with \)17.3 billion in equity as of March 31, 2025. - Cash and cash equivalents decreased to \(1.47 billion from \)2.19 billion at the end of 2024. - Long-term debt was $15.9 billion, relatively stable compared to the prior quarter.
Looking Ahead: Dow’s CEO Jim Fitterling emphasized disciplined execution focused on profitability and cash flow. The company aims to maintain financial flexibility with balanced capital allocation amid ongoing macroeconomic uncertainties and geopolitical challenges. The announced actions, including asset portfolio rationalization and cost management, position Dow to strengthen its competitive stance in the materials science industry.
The Q1 2025 results align with the company’s previous earnings call themes, emphasizing resilience through operational discipline and strategic cost containment in light of slower global GDP growth and volatile market conditions.
For full details and financial tables, see the Dow Q1 2025 8-K report.
Tags: Dow Inc Q1 2025, Materials Science Earnings, Cost Reduction Strategy, Cash Flow Management, Path2Zero Project Delay