Dow (DOW) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 2025 were $10.4 billion, down 3% year-over-year, marking the sixth consecutive quarter of volume growth despite margin pressures and declines across all segments.

• Operating EBITDA was $944 million, down year-over-year as volume gains were offset by margin compression and higher input costs.

• Management announced at least $1 billion in annualized cost reductions by 2026, including a workforce reduction of ~1,500 roles and a $1 billion CapEx cut for 2025, mainly by delaying the Path2Zero project.

• Strategic asset sales and legal settlements, including the sale of a minority stake in U.S. Gulf Coast infrastructure assets and the NOVA judgment, are expected to generate up to $6 billion in cash support in 2025.

• $494 million was returned to shareholders via dividends in the quarter.

Financial highlights

• Net sales: $10.4 billion, down 3% year-over-year; volume up 2%, local price down 3%.

• Operating EBITDA: $944 million (down from $1.39 billion); Operating EBIT: $230 million (down from $733 million); GAAP net loss: $290–$307 million.

• Operating EPS: $0.02 (down from $0.56); GAAP EPS: -$0.44.

• Free cash flow: -$581 million; cash from operations: $104 million.

• Gross debt: $16.6 billion; net debt: $14.8 billion; cash and cash equivalents: $1.5 billion at quarter-end.

Outlook and guidance

• 2025 capital expenditures reduced to $2.5 billion (from $3.5 billion) due to project delays.

• At least $1 billion in annualized cost reductions targeted across 2025 and 2026, with $300 million expected in 2025.

• Cash proceeds of ~$3 billion expected from infrastructure asset sales and >$1 billion from NOVA judgment in 2025.

• Management expects $6 billion in near-term cash support from asset sales, legal proceeds, CapEx reduction, and cost savings.

• Macroeconomic headwinds and high input costs expected to persist, tempering normal seasonality.