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Dow Inc. — 3Q 2026 Results (Q3 2026)
Dow Inc. (DOW) · 0 slides · Filed Oct 22, 2026
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Slide 1 — 3Q 2026 Results
3Q 2026 Results October 22, 2026
Slide 2 — Performance Update
Performance Update 1 Current Market Environment & Outlook 2 Self-Help 3 Clear Path to Long-Term Value Creation 4 2
Slide 3 — $11.3B
3 3Q Performance Update Non-GAAP measures are defined in the appendix Transform to Outperform continues to deliver benefits ahead of schedule; on track to achieve ~$700MM uplift in 2026 Completed significant planned maintenance in 3Q; spend expected to materially decline in 4Q Released >$400MM in working capital in 3Q, and reduced debt by ~$600MM YTD $11.3B Net Sales $1.55B Op. EBITDA ~$250MM Transformation Benefits P&SP: Maintaining higher polyethylene and functional polymers pricing in all regions II&I: Increased demand for AI infrastructure, driving improved pricing and margins, helping to offset building & construction weakness PM&C: Growth was driven by demand for higher-value consumer, electronics and home care applications Actions Within Our Control Delivering Results Our Differentiated Portfolio Supports Resilient Performance
Slide 4 — Packaging & Specialty Plastics
4 Packaging & Specialty Plastics Non-GAAP measures are defined in the appendix 1. Average end market representation (% of sales) for 2023-2025 2. Average sales by business (% of sales) for 2023-2025 Market Participation¹ Packaging and Specialty Plastics (70%)2 Hydrocarbons & Energy (30%)2 3Q26 average Hydrocarbons & Energy global operating rate ~83% Achieved new record high production level at one of our feedstock-advantaged crackers in the USGC Record LPG consumption in Europe, enabled by restart of Terneuzen cracker 3Q25 3Q26 Revenue ($MM) 4,891 5,778 Op. EBIT ($MM) & Op. EBIT Margin 4.1% 10.1% 3Q25 3Q26 199 585 Packaging Consumer Health & Hygiene Infrastructure Mobility
Slide 5 — Industrial Intermediates & Infrastructure
5 Industrial Intermediates & Infrastructure Non-GAAP measures are defined in the appendix 1. Average end market representation (% of sales) for 2023-2025 2. Average sales by business (% of sales) for 2023-2025 Industrial Solutions (35%)2 Polyurethanes & Construction Chemicals (65%)2 Market Participation¹ 3Q25 3Q26 Revenue ($MM) 2,834 3,058 -1.7% 5.8% 3Q25 3Q26 Op. EBIT ($MM) & Op. EBIT Margin (47) 176 Building & Construction Consumer Energy Industrial Mobility Building & Construction Consumer Energy Industrial Mobility
Slide 6 — Performance Materials & Coatings
6 Performance Materials & Coatings Non-GAAP measures are defined in the appendix 1. Average end market representation (% of sales) for 2023-2025 2. Average sales by business (% of sales) for 2023-2025 3. Building & Construction end market Coatings & Performance Monomers (40%)² Consumer Solutions (60%)² Market Participation¹ 3Q25 3Q26 Revenue ($MM) 2,082 2,250 3.8% 6.8% 3Q25 3Q26 Op. EBIT ($MM) & Op. EBIT Margin 80 154 Building & Construction Consumer & Electronics Home & Personal Care Industrial Mobility Architectural Coatings³ Industrial Coatings³ Consumer Mobility
Slide 7 — QoQ Op. EBITDA Progression
Productivity: YTD >$225MM Uplift ~70% of Dow role reductions implemented 7 QoQ Op. EBITDA Progression ~$2.3B ~$1.6B 2Q26 Self-Help Margins Equity Earnings Other Items 3Q26 Growth: YTD >$200MM Uplift Improving value capture with key customers Self-help actions are delivering o Transform to Outperform on track to achieve upsized ~$700MM in 2026 benefits o European Asset Actions progressing; Barry, U.K. siloxane shutdown delivered 3Q26 earnings uplift o Materially completed 2025 $1B cost savings program in 2Q26 Margin stabilization, primarily in P&SP >$0.2B ~$0.7B YTD 2027 Transform to Outperform Details >$0.2B >$1.2B YTD 2027 Non-GAAP measures are defined in the appendix Our Decisive Actions Help to Ensure Sustained Competitiveness for Dow
Slide 8 — Global Environment Remains Volatile
Underlying Demand Steady While Macro Indicators Remain Mixed Americas Europe Asia Pacific Middle East 8 Global Environment Remains Volatile Dow's footprint and portfolio are positioned to outperform in any environment Packaging demand resilient; EV growth continues in Asia and Europe Lower HDPE exposure1 relative to peers helps mitigate USGC supply additions Industry rationalization accelerating across Asia and Europe Treasury yields at multi-decade highs with inflation above target Mortgage rates remain persistently high at >7% Global logistics disruptions continue, reinforcing the value of Dow's flexible, integrated footprint + Feedstock advantage intact + Gulf Coast operating rates remain high - Increasing monetary policy caution poses risk to durables demand + LNG import vessel arrived at Stade site, tailwind for European gas supply - Structural challenges and high energy costs persist - Building and construction remains challenged + Export growth remains supportive of manufacturing activity - China property market demand is weak + Demand for electronics remains strong + Oil supply disruptions have eased in the near term - Conflict remains volatile with resolution uncertainty high - Asset damage remains uneven 1. Based on 3rd party data
Slide 9 — 4Q26 Modeling Guidance
9 4Q26 Modeling Guidance Non-GAAP measures are defined in the appendix Depreciation & Amortization ~$670MM Average Share Count ~735MM Net Income Attrib. to Non-Controlling Int. ~$70MM Net Interest Expense (Net of Int. Income) ~$160MM Corporate Op. EBITDA ~(-$40MM) Full-Year Operational Tax Rate ~20% to 30% Op. EBITDA Base Case Op. EBITDA Key Drivers (4Q26 vs. 3Q26) Packaging & Specialty Plastics ~$1,110MM September PE price increase benefit offset by normal seasonality Lower planned maintenance following completion of cracker turnarounds [~$115MM tailwind] Transform to Outperform self-help initiatives [~$55MM tailwind] Industrial Intermediates & Infrastructure ~$200MM Typical seasonality in building & construction end markets Lower equity earnings and licensing activity [~$30MM headwind] Transform to Outperform self-help initiatives [~$30MM tailwind] Performance Materials & Coatings ~$230MM Typical seasonality for architectural coatings applications Completion of PDH turnaround offset by annual Deer Park maintenance Self-help, including Transform to Outperform and Barry shutdown [~$15MM tailwind] Self-help actions and lower planned maintenance expected to largely offset seasonality
Slide 10 — Building a more competitive company …
10 Building a more competitive company … … that generates improved long-term value Focused Growth & Innovation Prioritizing attractive end market growth and winning with our customers Enhanced Portfolio Competitiveness Investing in and strengthening our world-scale, low-cost global positions Balanced Capital Allocation Ensuring continued financial strength and flexibility Our continued delivery of our self-help commitments underpins each of these priorities 1 2 3
Slide 11 — Transform to Outperform Delivering
11 Transform to Outperform Delivering ~$200MM in 1H26 ~$250MM in 3Q26 ~$700MM Full-year 2026, upsized ~$2B total benefits by YE27 Simpler Operating Model ~70% of 4,500 Dow role reductions implemented; >$200MM benefit expected in 2H26 On track to substantially complete role reductions by YE26 Growth Acceleration Productivity Improvements Implementing site transformation playbook at our largest sites; ~$50MM benefit expected in 2H26 Optimizing freight and logistics costs; ~$30MM benefit expected in 2H26 Strategic sourcing actions reducing procurement costs; ~$70MM benefit expected in 2H26 29,000 37,000 YE24 YE25 YE26 YE27 Dow Headcount Non-GAAP measures are defined in the appendix Strengthening our one-Dow approach to deliver cross-business capabilities and unlock high-value opportunities; ~$100MM benefit expected in 2H26 Improving lead and opportunity conversion through better data and pipeline discipline; ~$50MM benefit expected in 2H26
Slide 12 — Focused Growth & Innovation
12 Focused Growth & Innovation Downstream silicones delivering growth with low capital intensity projects that pay back in 2-3 years Silicone Demand Growing 1.5-2.0x GDP; Expect 20%+ Returns for Downstream Projects 1. Based on 3rd party data Electronics and AI Infrastructure Mobility >2x AI infrastructure electricity demand, 2024-20301 ~3x more silicone content in an EV than an ICE vehicle Dow’s expanded Cooling Science Labs in China and the U.S. accelerate customer scale-up Dow applications include closed-loop liquid cooling solutions, advanced thermal fluids and acoustic materials Thermal interface materials and engineered silicones from Dow for AI chips, power electronics and semiconductor packaging Dow announced Liquid Silicone Rubber expansions in the U.S. and China, each coming online in 2027 Dow applications include protection for materials, including cameras, radar and sensors For battery pack assembly, Dow provides fire protection foam, cell components and thermal management
Slide 13 — Enhanced Portfolio Competitiveness
13 Enhanced Portfolio Competitiveness Shifting investments toward differentiated applications while exiting higher-cost upstream capacity × Closure or exit + Expansion Completed higher-cost asset closures while shifting investments and capacity to advantaged, differentiated production Completed the Barry, U.K. siloxanes unit shutdown in 2Q26 Higher-cost, energy-intensive Böhlen cracker and Schkopau CAV asset closures on track for 4Q27 Restarted lowest-cost and most flexible European cracker in 2Q26 Alberta will add top-quartile capacity serving fast-growing packaging applications New USGC polyethylene unit supports specialty packaging, health and hygiene applications Alkoxylation units support growth in home & personal care and pharma markets Downstream silicones expansions across the U.S., China and Japan for electronics and mobility markets P&SP Freeport, Texas Polyethylene unit started up 2025 PM&C China & Japan Engineered silicone materials started up 3Q26 Optimizing Our Advantaged Global Footprint Strengthening Our Positions in Higher-Value Markets II&I Seadrift, Texas Wholly-owned MEG capacity exited 2025 II&I Freeport, Texas Propylene oxide shutdown 4Q25 PM&C Barry, U.K. Basics siloxanes shutdown 2Q26 P&SP Böhlen, Germany Ethylene cracker shutdown 4Q27 II&I U.S. & Europe Alkoxylation completed 1Q26 PM&C U.S. & China Liquid silicone rubber 2027 P&SP Ft. Saskatchewan Integrated ethylene complex 2029 × × × × + + + + + × × × ×
Slide 14 — Balanced Capital Allocation
14 Balanced Capital Allocation Ensuring continued financial strength and flexibility Progressing Cash and Financial Priorities Taking Action to Deleverage with Excess Cash Capital allocation framework remains consistent; CapEx remains at ~$2.5B annually through 2028 No substantive debt maturities due until 2029 Actively prioritizing deleveraging with excess cash, including ~$300MM in 3Q26 for a total of ~$600MM gross debt reduction YTD Targeting ~$200MM of 4Q26 debt reduction Implementing prudent tradeoffs to improve working capital with >$400MM released in 3Q; on track for expected >$500MM release of cash in 2H26 Committed Bilateral Lines Revolving Credit Facility Cash and Cash Equivalents Committed A/R Securitization ~$14B Maintaining Ample Liquidity ~$1.4B YTD 2026 4Q26 1Q27 Near Term Target Non-GAAP measures are defined in the appendix ~$0.6B
Slide 15 — Building a more competitive company …
15 Building a more competitive company … … that generates improved long-term value Focused Growth & Innovation Prioritizing attractive end market growth and winning with our customers Enhanced Portfolio Competitiveness Investing in and strengthening our world-scale, low-cost global positions Balanced Capital Allocation Ensuring continued financial strength and flexibility Our continued delivery of our self-help commitments underpins each of these priorities 1 2 3
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Slide 17 — Principal Joint Venture Detail
17 Principal Joint Venture Detail 3Q 2026 3Q 2025 $ millions (unaudited) Kuwait JVs Thai JVs Kuwait JVs Thai JVs EBITDA $99 $2 $128 $(13) EBIT $57 $(2) $85 $(18) Net Income Equity Earnings to Dow $25 $(11) $60 $(20) EBITDA in Excess of Eq. Earnings $74 $13 $68 $7 Net Debt $1,691 $388 $1,607 $356 Kuwait JVs: lower volumes related to Middle East conflict and higher costs Thai JVs: higher prices and supply- driven market tightness Under GAAP, the Company suspended Sadara equity loss recognition in 1Q26. The carrying value of all liabilities on the balance sheet reached total existing relevant obligations and commitments. As a result of this suspension, we will no longer be reflecting our proportional share of Sadara JV financial results. Dow’s Proportional Share of Principal JV Financial Results YoY Drivers of JV Performance
Slide 18 — Share Issuance and Repurchase Activity
18 Share Issuance and Repurchase Activity 1. ESPP is funded by employees across 1Q – 3Q with share issuance in 4Q Shares in millions 3Q26 3Q25 YTD26 YTD25 Stock Incentive Plans (LTI) - 0.1 1.6 1.5 Contributions to U.S. Defined Contribution Plans (401(k)) 1.5 1.9 5.0 5.7 Employee Stock Purchase Plan (ESPP)1 - - - - Total Shares Issued 1.5 2.0 6.6 7.2 Total Shares Repurchased - - - - Cash inflows and outflows related to shares issued and repurchased are presented in the Consolidated Statements of Cash Flows. Refer to Dow’s 10-Q and 10-K for additional details on Stock Incentive, Defined Contribution, and Employee Stock Purchase Plans. Stock Incentive Plans (LTI): Includes stock options, restricted stock units, performance stock units, stock appreciation rights and stock units 401(k) Contributions: Beginning in 2024, all eligible U.S. employees receive an automatic non-elective contribution percent with the freezing of legacy defined benefit plans in addition to a company match up to preset contribution levels Stock Incentive Plans and Defined Contributions Plans are benchmarked against our proxy compensation peer set and 401(k) contributions are secondarily benchmarked against the chemical industry ESPP: All eligible employees can participate at a capped and defined level of eligible compensation Share Issuances and Repurchases Comments
Slide 19 — General Comments and Safe Harbor
19 General Comments and Safe Harbor General Comments Unless otherwise specified, all financial measures in this presentation, where applicable, exclude significant items. Trademarks The Dow Diamond, logo and all products, unless otherwise noted, denoted with , ℠ or ® are trademarks, service marks or registered trademarks of The Dow Chemical Company or its respective subsidiaries or affiliates. Solely for convenience, the trademarks, service marks and trade names referred to in this communication may appear without the , ℠ or ® symbols, but such references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights or the right of the applicable licensor to these trademarks, service marks and trade names. This presentation may also contain trademarks, service marks and trade names of certain third parties, which are the property of their respective owners. Our use or display of third parties’ trademarks, service marks, trade names or products in this communication is not intended to, and should not be read to, imply a relationship with or endorsement or sponsorship of us. Cautionary Statement about Forward-Looking Statements Certain statements in this presentation are “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements often address expected future business and financial performance, financial condition, and other matters, and often contain words or phrases such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “opportunity,” “outlook,” “plan,” “project,” “seek,” “should,” “strategy,” “target,” “will,” “will be,” “will continue,” “will likely result,” “would,” and similar expressions, and variations or negatives of these words or phrases. Forward-looking statements are based on current assumptions and expectations of future events that are subject to risks, uncertainties and other factors that are beyond Dow’s control, which may cause actual results to differ materially from those projected, anticipated or implied in the forward-looking statements and speak only as of the date the statements were made. These factors include, but are not limited to: sales of Dow’s products; Dow’s expenses, future revenues and profitability; any supply chain, operational or other disruptions, sanctions, export restrictions, or increased economic uncertainty related to the ongoing conflicts between Russia and Ukraine and in the Middle East; capital requirements and need for and availability of financing; unexpected barriers in the development of technology, including with respect to Dow's contemplated capital and operating projects; Dow's ability to realize its commitment to carbon neutrality on the contemplated timeframe, including the completion and success of its integrated ethylene cracker and derivatives facility in Alberta, Canada; size of the markets for Dow’s products and services and ability to compete in such markets; Dow’s ability to develop and market new products and optimally manage product life cycles; the rate and degree of market acceptance of Dow’s products; significant litigation and environmental matters and related contingencies and unexpected expenses; the success of competing technologies that are or may become available; the ability to protect Dow’s intellectual property in the United States and abroad; Dow’s ability to realize expected benefits from Transform to Outperform on the contemplated timeframe; developments related to contemplated restructuring activities and proposed divestitures or acquisitions such as workforce reduction, manufacturing facility and/or asset closure and related exit and disposal activities, and the benefits and costs associated with each of the foregoing; fluctuations in energy and raw material prices; management of process safety and product stewardship; changes in relationships with Dow’s significant customers and suppliers; changes in public sentiment and political leadership; increased concerns about plastics in the environment and lack of a circular economy for plastics at scale; changes in consumer preferences and demand; changes in laws and regulations, political conditions, tariffs and trade policies, or industry development; global economic and capital markets conditions, such as inflation, market uncertainty, interest and currency exchange rates, and equity and commodity prices; business, logistics, and supply disruptions; security threats, such as acts of sabotage, terrorism or war, including the ongoing conflicts between Russia and Ukraine and in the Middle East; weather events and natural disasters; disruptions in Dow’s information technology networks and systems, including the impact of cyberattacks; risks related to Dow’s separation from DowDuPont Inc. such as Dow’s obligation to indemnify DuPont de Nemours, Inc. and/or Corteva, Inc. for certain liabilities; and any global and regional economic impacts of a pandemic or other public health-related risks and events on Dow’s business. Where, in any forward-looking statement, an expectation or belief as to future results or events is expressed, such expectation or belief is based on the current plans and expectations of management and expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the expectation or belief will result or be achieved or accomplished. A detailed discussion of principal risks and uncertainties which may cause actual results and events to differ materially from such forward-looking statements is included in the section titled “Risk Factors” contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, and the Company's subsequent reports filed with the U.S. Securities and Exchange Commission. These are not the only risks and uncertainties that Dow faces. There may be other risks and uncertainties that Dow is unable to identify at this time or that Dow does not currently expect to have a material impact on its business. If any of those risks or uncertainties develops into an actual event, it could have a material adverse effect on Dow’s business. Dow Inc. and The Dow Chemical Company and its consolidated subsidiaries assume no obligation to update or revise publicly any forward-looking statements whether because of new information, future events, or otherwise, except as required by securities and other applicable laws.
Slide 20 — Non-GAAP Financial Measures & Definitions
20 Non-GAAP Financial Measures & Definitions Non-GAAP Financial Measures This presentation includes information that does not conform to GAAP and are considered non-GAAP measures. Management uses these measures internally for planning, forecasting and evaluating the performance of the Company's segments, including allocating resources. Dow's management believes that these non-GAAP measures best reflect the ongoing performance of the Company during the periods presented and provide more relevant and meaningful information to investors as they provide insight with respect to ongoing operating results of the Company and a more useful comparison of year-over-year results. These non-GAAP measures supplement the Company's GAAP disclosures and should not be viewed as alternatives to GAAP measures of performance. Furthermore, such non-GAAP measures may not be consistent with similar measures provided or used by other companies. Dow does not provide forward-looking GAAP financial measures or a reconciliation of forward-looking non-GAAP financial measures to the most comparable GAAP financial measures on a forward-looking basis because the Company is unable to predict with reasonable certainty the ultimate outcome of pending litigation, unusual gains and losses, foreign currency exchange gains or losses and potential future asset impairments, as well as discrete taxable events, without unreasonable effort. These items are uncertain, depend on various factors, and could have a material impact on GAAP results for the guidance period. See investors.dow.com for a reconciliation of the most directly comparable GAAP financial measure. Definitions Operating EBIT is defined as earnings (i.e. “Income (loss) before income taxes”) before interest, excluding the impact of significant items. Operating EBITDA is defined as earnings (i.e. “Income (loss) before income taxes”) before interest, depreciation and amortization, excluding the impact of significant items. Operating EBIT Margin is defined as Operating EBIT as a percentage of net sales. Operating EBITDA Margin is defined as Operating EBITDA as a percentage of net sales. Adjusted Operating EBIT is defined as Operating EBIT less equity earnings (losses). Adjusted Operating EBIT Margin is defined as Operating EBIT less equity earnings (losses), divided by net sales. Adjusted Operating EBITDA is defined as Operating EBITDA less equity earnings (losses). Adjusted Operating EBITDA Margin is defined as Adjusted Operating EBITDA divided by net sales, excluding certain transactions with nonconsolidated affiliates. Operating Earnings Per Share is defined as "Earnings (loss) per common share – diluted”, excluding the after-tax impact of significant items. Operational Tax Rate is defined as the effective tax rate (i.e., GAAP “Provision (credit) for income taxes” divided by “Income (loss) before income taxes”), excluding the impact of significant items. Free Cash Flow is defined as "Cash provided by (used for) from operating activities - continuing operations," less capital expenditures. Under this definition, Free Cash Flow represents the cash generated by Dow from operations after investing in its asset base. Free Cash Flow, combined with cash balances and other sources of liquidity, represent the cash available to fund obligations and provide returns to shareholders. Free Cash Flow is an integral financial measure used in Dow's financial planning process. Free Cash Flow Yield is defined as Free Cash Flow divided by market capitalization. Shareholder Remuneration is defined as dividends paid to stockholders plus purchases of treasury stock. Shareholder Yield is defined as Shareholder Remuneration divided by market capitalization. Cash Flow Conversion is defined as “Cash provided by (used for) operating activities – continuing operations” divided by Operating EBITDA. Management believes Cash Flow Conversion is an important financial metric as it helps the Company determine how efficiently it is converting its earnings to cash flow. Free Cash Conversion at an operating segment level is defined as Adjusted Operating EBITDA less capital expenditures divided by Adjusted Operating EBITDA. Operating Net Income is defined as net income (loss), excluding the after-tax impact of significant items. Net operating profit after tax (excluding significant items) is defined as “Net income (loss) attributable to Dow Inc. common stockholders,” excluding the impact of significant items, “Net income attributable to noncontrolling interests,” gross interest expense, and the tax impact of interest expense. Operating Return on Capital (ROC) is defined as net operating profit after tax, excluding the impact of significant items, divided by total average capital, also referred to as ROIC. Net Debt is defined as “Notes payable” plus “Long-term debt due within one year” plus “Long-term debt” less “Cash and cash equivalents” and “Marketable securities.” Kuwait Joint Ventures (JVs) refers to EQUATE Petrochemical Company K.S.C.C., The Kuwait Olefins Company K.S.C.C., and The Kuwait Styrene Company K.S.C.C. Thai Joint Ventures (JVs) refers to Map Ta Phut Olefins Company Limited and The SCGC-Dow Group (Siam Polyethylene Company Limited, Siam Polystyrene Company Limited, Siam Styrene Monomer Co., Ltd., Siam Synthetic Latex Company Limited).