Dow Inc.

Dow reported second-quarter net sales of $12.1 billion, up 20% versus the year-ago period, and operating EBITDA of $2.3 billion. In Packaging & Specialty Plastics, net sales were $6.4 billion, up 27%, and operating EBIT was approximately $1.3 billion; Industrial Intermediates & Infrastructure net sales rose 14% and operating EBIT improved to $246 million; Performance Materials & Coatings net sales rose 11% and operating EBIT was $133 million. Management said more than $300 million of benefits were delivered in the quarter from self-help actions, including completion of the $1 billion 2025 cost-savings program, and it expected third-quarter EBITDA of approximately $1.7 billion. The Q3 guide assumes a $0.10 per pound decline in global integrated polyethylene margins versus Q2, includes $130 million of sequential self-help tailwinds, and reflects headwinds from maintenance and the nonrepeating land sale benefit. Full-year self-help benefits are expected to exceed $1.3 billion, with Transform to Outperform upsized to about $700 million this year.

Karen Carter’s message was that Dow is leaning into a few controllable priorities: focused growth in high-value markets, portfolio reshaping, and disciplined capital allocation. She emphasized that the company is acting decisively in an uncertain environment rather than waiting for macro conditions to improve, and she framed the quarter as proof that self-help is starting to deliver. Her tone was confident and constructive, with repeated references to stronger earnings durability, cash flow, and long-term competitiveness.

Jeff Tate highlighted that Q2 reflected pricing leadership, better integrated margins, improved cash flow, and self-help benefits. He said Dow has about $14 billion of total available liquidity, no substantive debt maturities until 2029, and a revolver extended to 2031, while excess cash will be prioritized toward deleveraging. He also said Dow expects a minimum release of more than $500 million of working capital in the second half, received approximately $1 billion from Nova litigation in Q1 and another approximately $300 million early in Q3, and paid off about $80 million of debt in Q2.

Analysts focused on polyethylene, asking about Q3 pricing assumptions, inventory destocking, and whether recent oil and supply disruptions could support a better price backdrop. Management said the $1.7 billion EBITDA guide assumes a $0.10 per pound decline in global integrated margins, but noted that recent oil strength, declining inventories in China, and improving order books could create upside if pricing moves up from here. Questions also centered on Alberta, SG&A/SAR levels, II&I strength, data center growth, and capital allocation; management said Alberta is about 60% through CapEx with incentives intact, SAR will improve as transformation actions flow through, II&I should normalize as supply disruptions fade, and share buybacks are not expected in 2026.