- Dow (DOW, Financial) reports a GAAP net loss of $290 million for Q1 2025, compared to a profit of $538 million in Q1 2024.
- Net sales decline by 3% year-over-year to $10.4 billion.
- Dow announces a $6 billion cash support plan, including significant cost-saving measures and asset sales.
Dow Inc. (DOW) has announced its financial results for the first quarter of 2025, revealing a GAAP net loss of $290 million and net sales amounting to $10.4 billion, a 3% decrease compared to the same period in 2024. Operating earnings per share fell sharply to $0.02 from $0.56 year-over-year, reflecting challenging market conditions and increased costs.
The company reported a notable 66% drop in operating EBIT to $230 million, driven largely by reduced pricing power and heightened energy and feedstock expenses. Furthermore, cash flow from operations showed a significant decline, down $356 million to $104 million.
In response to the financial pressures, Dow has introduced a comprehensive $6 billion cash support plan. Key components of this initiative include a strategic partnership with Macquarie to establish Diamond Infrastructure Solutions, expected to generate up to $3 billion from infrastructure asset sales. Dow also anticipates receiving over $1 billion from the NOVA judgment in 2025 and targets at least $1 billion in cost savings by 2026, with $300 million planned for 2025.
The action plan also involves delaying the construction of the Path2Zero project in Fort Saskatchewan due to unfavorable market conditions. This decision will result in a reduction of Dow's 2025 capital expenditures by $1 billion, from $3.5 billion to $2.5 billion.
CEO Jim Fitterling emphasized the company's dedication to enhancing cash flow and profitability amid persistent economic challenges, highlighting the successful achievement of year-over-year volume growth for the sixth consecutive quarter despite adverse conditions.
