Dow Reports Q4 Revenue of $9.46B, Below Consensus
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 8h ago
0mins
Reports Q4 revenue $9.46B, consensus $9.47B. Volume decreased 2% year-over-year. "Dow's self-help measures continue to gain traction and were evident in our fourth quarter results," said Jim Fitterling, Dow chair and CEO. "In 2025, we achieved well over half of our more than $6.5 billion in near-term cash and cost support actions, including the accelerated delivery of more than $400 million in cost savings from our $1 billion program. As we move forward, Transform to Outperform represents a comprehensive and radical simplification of our operating model. It aims to deliver step-change productivity across every business and function and growth with our customers. We expect these efforts to provide at least $2 billion in additional near-term earnings while helping Dow set new competitive standards and improve shareholder returns."
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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.
Dow Inc Reports Q4 Earnings with Mixed Results
- Decline in Operating EBITDA: Dow's Q4 operating EBITDA fell to $741 million, reflecting a sequential decline primarily due to lower seasonal demand and margin compression, indicating signs of market weakness.
- Net Sales Decrease: The Packaging and Specialty Plastics segment reported net sales of $4.7 billion, down year-over-year, reflecting the negative impact of lower downstream polymer prices on revenue, which could affect future profitability.
- Cost Savings Program: Dow expects to achieve over $500 million in cost savings by the end of 2026 through a $1 billion program aimed at enhancing operational efficiency, thereby strengthening the company's financial stability.
- Strong Liquidity Position: As of the end of 2025, the company reported cash and cash equivalents exceeding $3.8 billion and approximately $14 billion in available liquidity, ensuring financial flexibility in uncertain market conditions.
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Dow Inc. Q4 2025 Earnings Call Insights
- Operating EBITDA Performance: Dow Inc. reported an operating EBITDA of $741 million for Q4 2025, reflecting a sequential decline primarily due to lower seasonal demand and margin compression across multiple markets, demonstrating the company's resilience amid macroeconomic challenges.
- Transformation Program Launch: The company initiated the 'Transform to Outperform' program, aiming for at least $2 billion in near-term EBITDA improvement, with two-thirds expected from productivity gains and one-third from business growth, enhancing its competitive position in the market.
- Sales and Cost Control: The Packaging & Specialty Plastics segment achieved $4.7 billion in net sales with an operating EBIT of $215 million in Q4, highlighting the positive impact of global demand growth, while significant cost-saving measures implemented in the second half of the year improved profitability across all businesses.
- Future Outlook and Challenges: The company anticipates over $500 million in cost savings for 2026, despite facing short-term pressures from $75 million in lower equity earnings due to a Kuwait JV turnaround and $125 million from planned maintenance in Louisiana, with management maintaining cautious optimism regarding future cash flow and EBITDA.
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