Dow delivered a sturdy revival in the second quarter, reporting higher sales and a return to profitability as price rises throughout all business units and areas, along with aggressive cost-cutting projects, increased earnings.
Net sales surged 20% year over year to $12.1 billion, led by a 20% surge in local prices, driven by Packaging & Specialty Plastics, where polyethylene prices increased across every region. Favorable currency added 1% to sales, while volumes declined slightly 1%, as gains in Performance Materials & Coatings were more than offset by planned maintenance-associated declines in Packaging & Specialty Plastics.
The company mentioned GAAP net income of $802 million, at the same time as operating EBIT surged to $1.6 billion, an improvement of $1.7 billion from a year earlier, showing higher pricing and the effect of Dow’s continuing self-help projects.
GAAP earning per share were $0.99, while operating EPS hit $1.44, compared with a loss of $0.42 in the same quarter last year. Operating EPS excluded considerable items totaling $0.45 per share, mainly related to Transform to Outperform costs, in part offset by an income tax linked to a payment from NOVA Chemicals.
Cash generated from persisting operations totaled $1.3 billion, assisted by robust earnings across all businesses in spite of an anticipated working capital formed driven by revenue growth. The corporation also returned $253 million to shareholders through dividends during the quarter.
“Team Dow introduced sturdy second quarter outcomes via disciplined and timely execution, reliably serving our clients, and increasing our self-support actions,” stated Karen S. Carter, Dow CEO.
“Market conditions had been favorable this quarter , and our self-support projects delivered ahead of plan, further strengthening the improvement in our earnings as we persist to reinforce Dow’s resilience and agility.
“We now anticipate to generate about $200 million more in advantages from Transform to Outperform this year, permitting us to growth the total in-year advantages from self-support to more than $1.3 billion. Our actions to become a leaner, more aggressive company position Dow well to persist winning with our customers even as delivering enhanced long-term shareholder value.”
Packaging & Specialty Plastics stayed Dow’s strongest business, with second-quarter sales surging 27% to $6.4 billion.
The surge as boosted by a 30% rise in local prices, showing higher polyethylene costs across all regions. Currency contributed a further 1%, at the same time as volumes fell 4% due to planned maintenance activity in Hydrocarbons & Energy that decreased merchant sales.
Operating EBIT scaled to $1.3 billion, up $1.2 billion from a year ago, as more robust polyethylene pricing elevated margins and self-support measures offset the effect of maintenance activity.
Infrastructure segment sales accelerated 14% year over year to $3.2 billion.
Local costs increased 15% across both businesses and all regions, while currency include 1%. Volumes fell 2%, showing lower demand in Polyurethanes & Construction Chemicals, inclusive of effects from the Middle East warfare, in part offset by development in Industrial Solutions.
Operating EBIT advanced by $431 million year over year to $246 million, driven by stronger margins, lower planned maintenance, self-support initiatives and the suspension of equity loss reputation from Sadara.
Polyurethanes & Construction Chemicals recorded higher sales via charge gains in spite of weaker volumes, as industrial requirement growth was offset by disruptions connected to the Middle East warfare.
Industrial Solutions supplied higher sales, assisted by price rises across all regions, volume growth from current alkoxylation investments and stronger demand linked to data center applications.
Performance Materials & Coatings created $2.4 billion in second-quarter sales, an rise of 11% from a year earlier.
Local prices scale up 4%, driven by Coatings & Performance Monomers, even as currency contributed 1%. Volumes climbed 6%, driven via stronger demand across both businesses, in mainly downstream silicones.
Operating EBIT, moreover, fell $19 million to $133 million, as higher fixed costs—along with turnaround activity and the shutdown of the Barry, U.K., upstream siloxanes plant—more than offset advantages from self-support projects.
Consumer Solutions pronounced stronger sales on higher downstream silicones volumes, assisted by demand in consumer, electronics and home care markets.
Coatings & Performance Monomers also posted higher sales throughout all regions, led by stronger pricing and volumes in acrylic monomers and architectural coatings.
Looking ahead, Dow anticipated its restructuring and productivity program to supply even extra advantages for the duration of the second half of 2026 and into next year as it targets on growth, portfolio investment and disciplined capital allocation.
“As we look into second half of 2026, we will persist to build a more agile and resilient company that sets a new competitive standard,” stated Carter.
“We will do so by advancing 3 priorities: growth and development in attractive end markets, investing in and in reinforcing our portfolio, and ensuring balanced capital allocation.
“Aligned to this, Transform to Outperform is delivering improvements in both growth and productivity, and we anticipate the effects of these efforts to ramp extensively throughout the remainder of this year and into 2027. Taken together, our collective actions are targeted on enhancing the long-term value Dow supplies across the cycle.”
