The Dow logo is seen on a building in downtown Midland, Michigan
The company stated that it has achieved more than half of its $6.5 billion near-term cash support plan, which includes $1 billion in reduced capital spending and the accelerated implementation of cost-reduction initiatives scheduled for completion by the end of 2026. Dow began a strategic review of certain European assets in 2024 as part of its broader efforts to improve efficiency and profitability.
CEO Jim Fitterling said the company’s cost discipline and the contribution of new polyethylene and alkoxylation assets on the U.S. Gulf Coast strengthened both margins and volumes in several core markets. He noted that these assets have provided operational flexibility and supported performance amid persistent pricing challenges in the global chemicals sector.
Dow added that overall macroeconomic conditions remain relatively stable, with limited changes in customer demand patterns. “Recent monetary policy shifts and the beginning of a rate-cutting cycle could start to more positively influence demand,” said CFO Jeff Tate during the earnings call. The company continues to adopt a cautious approach to operations based on current order visibility.
Dow expects continued pricing pressure in Europe, the Middle East, Africa, and India, as Asian exporters redirect more product volumes to these regions to avoid U.S. destinations where anti-dumping duties are applied. To address regional issues, including plant shutdowns in Europe, Dow projects an adjusted core profit increase of approximately $200 million beginning in mid-2026.
Despite progress in cost control and operational efficiency, the company anticipates that market challenges will persist in the near term. Dow forecasts fourth-quarter net sales of $9.4 billion, below the average analyst expectation of $10.14 billion.
In September, Fitterling said that Dow experienced stable product volumes, strong export capabilities, and a competitive low-cost position in the United States during the third quarter. This performance was partly driven by its access to cost-advantaged feedstocks and steady export demand.
For the quarter ended September 30, the Midland, Michigan-based company reported an adjusted loss of 19 cents per share, compared with analysts’ average estimate of a 29-cent loss, based on data from LSEG. While the adjusted loss was narrower than expected, Dow’s quarterly net sales reached $9.97 billion, slightly below analysts’ consensus forecast of $10.23 billion.
Overall, Dow emphasized that disciplined financial management and the ramp-up of new assets remain central to its strategy amid subdued global demand and price pressures.
