Dow Inc.'s Stock Analysis

Dow Chemical Issues $1.4 Billion in New Notes

On September 3, 2025, Dow Chemical Company entered into an Underwriting Agreement to issue $1.4 billion in notes. This includes $750 million of 4.800% Notes due in 2031 and $650 million of 5.650% Notes due in 2036. The offering was conducted with BofA Securities, Citigroup Global Markets, and SMBC Nikko Securities as underwriters and was completed on September 8, 2025.

The notes were issued under an Indenture dated July 26, 2019, and are part of a registration statement filed with the SEC. A legal opinion regarding the validity of the notes was also filed as part of this report. The details of the Underwriting Agreement, Indenture, and notes are documented in the attached exhibits referenced in the report.

Sep 08, 2025 16:07:22

Dow Completes Sale of Additional Stake in Diamond Infrastructure

On September 2, 2025, Dow announced the completion of the sale of a 9% equity stake in Diamond Infrastructure Solutions to Macquarie Asset Management, raising their total stake from 40% to 49%. This transaction generated $540 million in proceeds for Dow, contributing to a total of approximately $3 billion from this partnership. Dow maintains operational control of Diamond while partnering with Macquarie to expand services across various sectors, including energy and infrastructure.

The partnership with Macquarie also includes recent initiatives such as a collaboration with a Danish climate tech startup to establish a CO2 transformation facility in Texas and an agreement with Third Pillar Solar for access to Diamond's reservoir system for potential solar deployment. Dow operates globally with a focus on materials science and reported sales of around $43 billion in 2024, indicating its significant presence in high-growth markets.

Sep 02, 2025 06:14:07

Dow Reports Second Quarter 2025 Financial Results and Losses

In the second quarter of 2025, Dow Inc. reported net sales of $10.1 billion, marking a 7% decline year-over-year. This decrease was attributed to lower sales across all operating segments, with a 1% drop in volume and a 7% reduction in local prices compared to the previous year. The company experienced a GAAP net loss of $801 million, with an operating EBIT loss of $21 million, significantly down from the prior year. Cash provided by operating activities was negative $470 million, indicating a decrease of $1.3 billion year-over-year, driven by margin compression and lower earnings. Shareholder returns amounted to $496 million in dividends during the quarter.

Segment-wise, the Packaging & Specialty Plastics segment saw net sales of $5 billion, down 9% year-over-year, while the Industrial Intermediates & Infrastructure segment reported a 6% decrease in net sales to $2.8 billion. The Performance Materials & Coatings segment's net sales were $2.1 billion, down 5% from the previous year. The company noted challenges from price declines and equity losses, particularly in joint ventures. CEO Jim Fitterling emphasized the need for strategic actions to navigate the current low earnings environment and maintain competitive dividends, while also indicating plans for future growth and cost optimization.

Jul 24, 2025 06:03:16

Dow Announces Restructuring and Asset Shutdowns in Europe

Dow Inc. has approved restructuring actions aimed at rationalizing its global asset footprint, particularly focusing on European assets. The company expects to incur costs between $630 million to $790 million for asset write-downs, severance, and exit-related expenses. Future cash payments related to these activities are anticipated to be approximately $300 million to $430 million over the next four years. Additionally, the company will implement costs estimated between $260 million to $350 million, with future cash payments ranging from $205 million to $260 million.

The restructuring includes the shutdown of three upstream assets in Europe, specifically an ethylene facility in Böhlen, Germany, chlor-alkali and vinyl assets in Schkopau, Germany, and a basics siloxanes plant in Barry, United Kingdom. These actions are expected to enhance the company's competitiveness and improve profitability, with an Operating EBITDA uplift anticipated beginning in 2026. The shutdowns will impact approximately 800 Dow roles, adding to previous workforce reductions. Dow plans to involve local stakeholders in compliance with relevant processes during this transition.

Jul 07, 2025 06:03:40

Dow Announces Major Restructuring and Asset Shutdowns in Europe

Dow Inc. has approved restructuring actions aimed at rationalizing its global asset footprint, particularly focusing on its European operations. The company plans to shut down three upstream assets in Europe, including an ethylene facility in Germany and a basics siloxanes plant in the UK. These actions are expected to incur charges ranging from $630 million to $790 million, covering asset write-downs, severance costs, and other exit-related expenses. Approximately 800 jobs will be impacted by these shutdowns, which are anticipated to begin in mid-2026 and conclude by the end of 2027.

The restructuring is designed to enhance Dow's competitiveness and profitability amidst challenging market dynamics in Europe. The company expects that these asset shutdowns will lead to an Operating EBITDA uplift starting in 2026, with a target of achieving 50% of the projected $200 million uplift by the end of 2027. Dow has committed to involving local stakeholders in the process and will continue operating other assets at the affected sites.

Jul 07, 2025 06:03:40

NOVA Chemicals Ordered to Pay Dow CAD$1.6 Billion Judgment

The Court of King’s Bench of Alberta has ruled that NOVA Chemicals Corporation must pay Dow an additional CAD$1.620 billion (approximately USD$1.2 billion) in damages related to their jointly owned ethylene asset in Joffre, Alberta. This judgment, issued on June 10, 2025, includes interest calculated up to April 7, 2025, but does not cover further interest or legal costs. Payment is expected in the fourth quarter of 2025.

This ruling adds to a previous payment of CAD$1.43 billion made by NOVA to Dow in 2019, stemming from a 2018 decision that found NOVA had not operated the joint asset at full capacity and breached its contractual obligations since 2001. The court has mandated a recalculation of Dow’s damages for the periods from 2001 to 2012 and from 2013 to June 2018, with the judgment still subject to appeal.

Jun 11, 2025 06:05:20

Dow Sells 40% Stake in Infrastructure Company for $2.4 Billion

Dow has completed the sale of a 40% equity stake in Diamond Infrastructure Solutions to a fund managed by Macquarie Asset Management, generating initial cash proceeds of approximately $2.4 billion. This strategic partnership aims to enhance operational efficiencies and customer growth for the infrastructure company, which focuses on assets in the U.S. Gulf Coast.

Macquarie Asset Management has the option to increase its stake to 49% within six months, which could bring total cash proceeds for Dow to approximately $3 billion. The funds from this transaction will support Dow’s capital allocation strategy, as the company seeks to unlock value from its non-product producing assets while maintaining control over Diamond Infrastructure Solutions.

May 01, 2025 16:30:16

Dow Reports Q1 2025 Loss and Announces Cost Reduction Plan

Dow reported a net loss of $290 million for the first quarter of 2025, with net sales of $10.4 billion, down 3% year-over-year. Operating earnings per share were $0.02, a decrease from $0.56 in the same period last year. The company experienced a 2% increase in volume compared to the previous year, but local prices declined by 3%, impacting overall earnings. Cash provided by operating activities also decreased significantly, down to $104 million from $460 million a year ago.

In response to ongoing economic challenges, Dow has launched an action plan targeting $6 billion in cash support, which includes delaying the construction of its Fort Saskatchewan Path2Zero project and expanding its review of European assets. The company anticipates generating up to $3 billion from a strategic partnership with Macquarie Asset Management and aims for at least $1 billion in cost savings by 2026. These measures are intended to improve financial flexibility and adapt to current market conditions.

Apr 24, 2025 07:02:55

Dow Declares 70-Cent Dividend Amid Board Re-elections

Dow announced the results of its 2025 Annual Meeting of Stockholders, where stockholders re-elected various members to the Board of Directors and approved an advisory resolution on executive compensation. The Board declared a quarterly dividend of 70 cents per share, marking the 455th consecutive dividend payment since 1912. Richard K. Davis was re-elected as independent lead director for another year, and the Board includes a mix of new and experienced directors with an average tenure of seven years.

On the negative side, the press release did not provide specific details regarding any financial challenges or declines faced by the company. Additionally, it mentioned various risks and uncertainties that could impact Dow's business, including potential disruptions from geopolitical conflicts, supply chain issues, and market fluctuations. However, no specific financial metrics indicating a decline were highlighted in the release.

Apr 15, 2025 16:13:47

Dow Announces $1 Billion Cash Tender Offer for Debt Securities

Dow Chemical Company has initiated a cash tender offer to purchase up to $1 billion of its debt securities, along with those of its subsidiaries, Rohm and Haas and Union Carbide. The offer includes specific acceptance sublimits for certain securities and will allow holders who participate by the early deadline to receive additional consideration. The tender offer is subject to various conditions, including financing requirements and the absence of adverse market developments.

On the negative side, the tender offer is conditional upon Dow successfully issuing new debt securities to fund the purchase. Additionally, the company reserves the right to modify the terms of the offer, including the total amount and acceptance sublimits, which introduces uncertainty for potential participants. Holders have limited time to withdraw their tenders, and if the offer is oversubscribed, there may be prorated payments based on priority levels.

Feb 25, 2025 08:27:56