Dow’s Q2 Turnaround: From Loss to Profit

Dow Inc. flipped its fortunes in the second quarter, posting a net income of $802 million or 99 cents per share after suffering a loss the previous year. The company’s sales climbed 20% to $12. 1 billion, driven by a 20% rise in local prices and gains in packaging and specialty plastics. Although volume dipped 1%, currency movements helped offset the drop. Operating earnings before interest and taxes— a non‑GAAP figure— surged to $1. 65 billion from a $21 million loss the year before, translating into earnings per share of $1. 44 versus a prior loss of 42 cents. The CEO highlighted disciplined execution and timely actions as key to this rebound, noting that market conditions were favorable and internal initiatives outpaced expectations.

Dow now projects an additional $200 million in benefits from its “Transform to Outperform” program, pushing total self‑help gains over $1. 3 billion for the year. Cash flow from operations turned positive, generating $1. 3 billion and allowing a dividend payout of $253 million to shareholders. The packaging and specialty plastics segment led the charge, with sales up 27% to $6. 4 billion and operating EBIT rising to $1. 3 billion from a modest $71 million. Industrial intermediates and infrastructure sales grew 14% to $3. 2 billion, while performance materials and coatings saw an 11% sales increase but a slight EBIT decline due to higher fixed costs and a UK plant shutdown. Looking ahead, Dow plans to concentrate on growth, innovation, and portfolio strengthening in the second half of 2026. The company expects its self‑help efforts to continue delivering benefits into 2027, reinforcing resilience and agility across its operations.

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