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Investing.com -- Dow Inc. reported a wider-than-expected loss for the second quarter of 2025, as the chemical giant continues to face margin pressure and industry oversupply. Shares tumbled 5.9% following the announcement.
The company posted an adjusted loss of -$0.42 per share, significantly worse than analysts’ expectations of -$0.16 per share. Revenue fell to $10.1 billion, down 7% YoY and below the consensus estimate of $10.24 billion. The revenue decline reflected lower prices and volumes across all operating segments, with local prices down 7% and volume decreasing 1% compared to the year-ago period.
"This quarter the Dow team advanced several aggressive actions in response to the lower-for-longer earnings environment that our industry is facing, amplified by recent trade and tariff uncertainties," said Jim Fitterling, Dow chair and CEO. "We are delivering near-term cash support and earnings growth levers, which we anticipate will total more than $6 billion by 2026."
Cash flow from operations turned negative at -$470 million, a sharp decline from $832 million in the same quarter last year. The company maintained its dividend payments, returning $496 million to shareholders during the quarter, but indicated it would adjust its dividend policy to maintain financial flexibility.
The Packaging (NYSE:PKG) & Specialty Plastics segment, Dow’s largest business unit, saw a 9% decline in sales to $5 billion and a steep drop in operating EBIT to $71 million from $703 million a year earlier. The Industrial Intermediates & Infrastructure segment reported an operating EBIT loss of $185 million compared to a $7 million profit in Q2 2024.
Dow cited industry oversupply as a continuing challenge, with Fitterling noting that "signs of oversupply from newer market entrants who are exporting to various regions at anti-competitive economics require broader industry engagement and additional regulatory action to restore competitive dynamics."
The company is focusing on structural cost improvements and optimizing its global asset footprint to strengthen its competitive position as it navigates the challenging industry environment