DOW Q2 Earnings Beat Estimates on Higher Pricing and Self-Help Actions
Zacks Equity Research
Thu, July 23, 2026 at 8:15 PM GMT+5:30
4 min read
Dow Inc. DOW reported second-quarter 2026 adjusted earnings per share of $1.44 per share, reversing the year-ago loss of 42 cents per share. The figure beat the Zacks Consensus Estimate of $1.25 by 15%. The year-over-year improvement was mainly driven by higher prices and benefits from Dow’s self-help initiatives
Including one-time items, such as costs associated with the Transform to Outperform program, partially offset by an income tax adjustment,the company reported earnings per share of 99 cents in the quarter compared to the year-ago quarter’s loss of $1.18
Net sales rose 19.7% year over year to around $12.1 billion and beat the consensus estimate of $11.6 billion by 3.8%. Local prices increased 20%, while volume declined 1% as planned maintenance weighed on Packaging & Specialty Plastics
GAAP net income was $802 million in the reported quarter compared with a net loss of $801 million a year ago. Operating EBITDA increased to $2.3 billion from $703 million
Dow Inc. Price and Consensus
Dow Inc. price-consensus-chart | Dow Inc. Quote
DOW’s Segment Highlights
Packaging & Specialty Plastics sales rose 27% year over year to $6,385 million. The figure fell behind our estimate of $6.7 billion. Volume fell 4% due to declines in both businesses, including higher planned maintenance in Hydrocarbons & Energy, which reduced merchant sales. Lower polyethylene volumes in EMEAI and Asia Pacific also reflected the Middle East conflict. Higher polyethylene and olefins prices more than offset the volume pressure
Industrial Intermediates & Infrastructure sales increased 14% year over year to $3.2 billion. The figure surpassed our estimate of $3.04 billion. Volume declined 2% as lower demand in Polyurethanes & Construction Chemicals, including the effects of the Middle East conflict, outweighed growth in Industrial Solutions. Industrial Solutions volumes benefited from recent alkoxylation investments and increased demand for data center applications
Performance Materials & Coatings sales advanced 11% year over year to $2.4 billion. The figure beat our estimate of $2.2 billion. Volume grew 6%, supported by gains across both businesses and strength in downstream silicones. Consumer Solutions benefited from higher demand across consumer, electronics and home care applications, while Coatings & Performance Monomers recorded increased acrylic monomers and architectural coatings volumes
DOW’s Financials
Cash flow from operating activities for continuing operations was $1.3 billion, reversing the year-ago use of $470 million. The improvement was primarily driven by higher earnings across all businesses, which more than offset an expected working capital build associated with revenue growth
