Dow Inc. Reports Q4 2025 Loss and Cost Savings Plan
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Source: Benzinga
- Weak Financial Performance: Dow Inc. reported an adjusted loss of $0.34 per share for Q4 2025, beating Wall Street's projected loss of $0.46, but revenue fell 9% year-over-year to $9.46 billion, slightly missing the $9.462 billion estimate, indicating weak market demand.
- Widening Net Loss: The company posted a GAAP net loss of $1.48 billion, significantly higher than the $35 million loss in the same quarter last year, reflecting challenges in overall business performance and a deteriorating market environment.
- Cost Savings Initiative: Dow launched its 'Transform to Outperform' initiative, aiming to boost operating EBITDA by $2 billion, with about two-thirds expected from productivity improvements and one-third from growth, including a workforce reduction of 4,500 roles and one-time costs estimated between $1.1 billion and $1.5 billion.
- Pessimistic Outlook: Dow anticipates first-quarter 2026 net revenue of $9.40 billion, significantly below the consensus estimate of $10.32 billion, highlighting ongoing challenges and uncertainties facing the company in the near term.
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Analyst Views on DOW
Wall Street analysts forecast DOW stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for DOW is 25.71 USD with a low forecast of 20.00 USD and a high forecast of 32.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
1 Buy
13 Hold
1 Sell
Hold
Current: 27.780
Low
20.00
Averages
25.71
High
32.00
Current: 27.780
Low
20.00
Averages
25.71
High
32.00
About DOW
Dow Inc. serves as a holding company for The Dow Chemical Company and its subsidiaries. The Company conducts its operations through six global businesses, which are organized into segments, such as Packaging & Specialty Plastics, Industrial Intermediates & Infrastructure and Performance Materials & Coatings. Packaging & Specialty Plastics segment consists of two integrated global businesses: Hydrocarbons & Energy and Packaging and Specialty Plastics. This segment employs a polyolefin product portfolio. Industrial Intermediates & Infrastructure segment consists of two customer-centric global businesses: Industrial Solutions and Polyurethanes & Construction Chemicals that develop intermediate chemicals that are essential to manufacturing processes, as well as downstream, customized materials and formulations that use advanced development technologies. Performance Materials & Coatings segment consists of two global businesses: Coatings & Performance Monomers and Consumer Solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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