DOW Beats Q3 Earnings Estimates, Misses on Sales on Lower Prices

Dow Inc. DOW recorded a profit (on a reported basis) of $62 million or 8 cents per share for third-quarter 2025, down from a profit of $214 million or 30 cents per share a year ago. The bottom line was hurt by lower prices.

On an adjusted basis (barring one-time items), DOW logged a loss of 19 cents for the reported quarter against earnings of 47 cents a year ago. The figure was narrower than the Zacks Consensus Estimate of a loss of 31 cents.

Dow recorded net sales of $9,973 million for the quarter, down 8% year over year. It missed the Zacks Consensus Estimate of $10,175.4 million. Lower sales across all segments adversely impacted the top line.

Volume declined 1% year over year, with growth in the United States and Canada and Asia Pacific outweighed by reductions in Europe, the Middle East, Africa and India (EMEAI). Local prices fell 8% year over year and also declined 3% sequentially. 

DOW saw firm demand for its new polyethylene and alkoxylation assets in the U.S. Gulf Coast. It also benefited from cost-control actions in the quarter.

Dow Inc. Price, Consensus and EPS Surprise

Dow Inc. price-consensus-eps-surprise-chart | Dow Inc. Quote

Dow’s Segment Highlights

Packaging & Specialty Plastics: The division’s sales fell 11% year over year to $4,891 million in the reported quarter. The figure missed our estimate of $5,129.9 million. Volume fell 1% year over year as increased polyethylene volumes were more than offset by decreased licensing revenue and merchant olefins sales. Local prices fell 10% year over year, primarily due to lower downstream polymer pricing.

Industrial Intermediates & Infrastructure: Sales for the unit were down 4% year over year to $2,834 million. The figure beat our estimate of $2,812.4 million. Local prices fell 8% year over year, indicating reductions in both businesses. Volume rose 2% due to gains in the United States and Canada.

Performance Materials & Coatings: Revenues from the division fell 6% year over year to $2,082 million. The figure was ahead of our estimate of $2,080.1 million. Volume fell 2% year over year due to lower volumes in consumer solutions, especially upstream siloxanes. Local prices fell 5% year over year due to losses in both businesses.

DOW’s Financials

Cash flow from operating activities for continuing operations was $1.1 billion, representing an increase of $330 million from the same period last year. This increase was primarily due to working capital improvements. Shareholder returns for the quarter amounted to $249 million in dividends.

Dow’s Outlook

Dow noted that it remains focused on maintaining financial flexibility and driving competitiveness to boost earnings while taking actions to deliver greater long-term shareholder returns when macroeconomic conditions improve. It also remains committed to delivering greater cost savings and maintaining a disciplined approach to its balance sheet and cash flow. 

DOW continues to identify and implement additional targeted initiatives to boost earnings and further optimize the cost structure. It remains on course to generate more than $6.5 billion in near-term cash support, having already achieved more than half of this target.

DOW Stock’s Price Performance

DOW’s shares are down 57.4% in a year compared with the the Zacks Chemicals Diversified industry’s 30.9% decline.

DOW’s Zacks Rank & Key Picks

DOW currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks worth a look in the basic materials space are Avino Silver & Gold Mines Ltd. ASM, Royal Gold, Inc. RGLD and Agnico Eagle Mines Limited AEM.

Avino Silver is slated to report third-quarter results on Nov. 6. The Zacks Consensus Estimate for third-quarter earnings is pegged at 3 cents per share. ASM’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, with the average surprise being 141.7%. Avino Silver carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Royal Gold is scheduled to report third-quarter results on Nov. 5. The Zacks Consensus Estimate for RGLD’s third-quarter earnings is pegged at $2.30 per share. RGLD’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, with the average surprise being 8.9%. Royal Gold currently sports a Zacks Rank #1.

Agnico Eagle is slated to report third-quarter results on Oct. 29. The consensus estimate for AEM’s third-quarter earnings is pegged at $1.68 per share. Its earnings beat the consensus estimate in each of the last four quarters, with the average surprise being 10%. AEM carries a Zacks Rank #2 at present. 

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This article originally published on Zacks Investment Research (zacks.com).

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