Dow (DOW) investor relations material

Executive summary

• Net sales reached $12.1B in Q2 2026, up 20% year-over-year, with growth across all segments and regions, driven by higher prices, disciplined execution, and self-help actions.

• Operating EBITDA was $2.3B, with operating EBIT rising to $1.66B, reflecting strong margin recovery and cost initiatives.

• Net income attributable to common stockholders was $721M ($0.99/share), reversing a prior year loss, with improved earnings driven by higher prices and cost actions.

• Completed $1B 2025 cost savings program and advanced the Transform to Outperform initiative, targeting $2B in benefits by end of 2027.

• Returned $253M in dividends to shareholders during the quarter.

Financial highlights

• Net sales: $12.1B, up 20% YoY; operating EBITDA: $2.3B; operating EBIT: $1.66B.

• Packaging & Specialty Plastics net sales: $6.4B, up 27% YoY; operating EBIT: ~$1.3B.

• Industrial Intermediates & Infrastructure net sales: $3.2B, up 14% YoY; operating EBIT: $246M.

• Performance Materials & Coatings net sales: $2.4B, up 11% YoY; operating EBIT: $133M (down YoY due to higher costs and plant shutdowns).

• Achieved $300M+ in quarterly benefits from self-help actions; free cash flow for H1 2026 was $1.31B.

Outlook and guidance

• Q3 EBITDA expected at ~$1.7B, with margin compression from polyethylene price settlement and seasonal demand patterns.

• Self-help actions expected to deliver over $1.3B in 2026, with Transform to Outperform targeting $2B in benefits by end of 2027.

• Full-year capital spending expected to be ~$2.5B, including major projects.

• No further price movement assumed in Q3 guide; upside possible if market conditions improve.

• Operating rates expected above 90% post-maintenance; JVs in Asia running without feedstock constraints.