Dow (DOW) Q3 2024 earnings summary

Executive summary

• Achieved fourth consecutive quarter of year-over-year volume growth despite macroeconomic softness in Europe and China and an unplanned cracker outage in Texas, which has been resolved.

• Net sales for Q3 2024 were $10.9 billion, up 1% year-over-year, with growth led by U.S. & Canada and flat sales sequentially.

• Advanced long-term growth strategy with a clean hydrogen supply agreement and acquisition of Circulus Holdings, adding 50,000 metric tons of recycled capacity.

• Announced a strategic review of select European assets, mainly in polyurethanes, covering about 20% of EMEAI sales, to optimize the global footprint.

• Continued asset optimization and over 20 asset actions since 2023, including rationalization, shutdowns, and planned asset sales.

Financial highlights

• Operating EBIT was $641 million, up $15 million year-over-year, with operating EBITDA at $1.4 billion, up 8% year-over-year.

• Net income for Q3 2024 was $214 million, down from $302 million in Q3 2023; GAAP EPS was $0.30, operating EPS $0.47.

• Cash flow from continuing operations was $800 million, down year-over-year due to higher inventories and supply chain disruptions.

• Shareholder remuneration totaled $584 million, including $490 million in dividends and $94 million in share repurchases.

• Free cash flow for the quarter was $64 million, down from $1.06 billion year-over-year.

Outlook and guidance

• Q4 earnings expected to be approximately $1.3 billion, with net sales guidance of ~$10.7 billion and operational tax rate 22–26%.

• Management targets over $3 billion in underlying earnings by 2030 from growth investments, focusing on high-value businesses and resilient regions.

• Packaging and specialty plastics to face headwinds from lower integrated margins and higher feedstock costs, but benefits expected from reduced maintenance and ramp-up of Texas-8 cracker.

• Industrial intermediates and infrastructure to see mixed conditions, with seasonal declines offset by plant ramp-ups and lower maintenance.

• Performance materials and coatings to experience growth in silicones but offset by China property sector weakness and seasonal demand drop.