Dow reports third quarter 2026 results
DOW INC. (DOW) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 October 22, 2026 Dow reports third quarter 2026 results FINANCIAL HIGHLIGHTS • Net sales were $11.3 billion, up 13% year-over-year, reflecting increases in all operating segments. • Local price increased 14% versus the year-ago period, led by gains in Packaging & Spe
How this was made
The 30-second read
Why it matters
The earnings beat and cash flow improvement are likely to drive short‑term buying interest, while the guidance on cost savings adds a longer‑term upside narrative.
Market read
Dow's earnings are a primary catalyst for the chemicals sector and may influence broader market sentiment on industrial stocks.
What to watch
Potential headwinds from Middle‑East conflict impacts on volume and the need for continued capital spending.
Dow reports third quarter 2026 results
Net sales increased 13% year-over-year, Operating EBIT increased $707 million year-over-year to $887 million, and cash provided by operating activities from continuing operations increased $709 million year-over-year to $1.8 billion. Results were supported by price gains and self-help actions, while total volume decreased 1% and the Middle East conflict affected Asia Pacific volumes.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, three months ended Sep 30, 2026GAAP | $11.27B | – | 13% |
| Net sales, nine months ended Sep 30, 2026GAAP | $33.15B | – | 9% |
| Cost of sales, three months ended Sep 30, 2026GAAP | $9.89B | – | – |
| Cost of sales, nine months ended Sep 30, 2026GAAP | $28.97B | – | – |
| Research and development expenses, three months ended Sep 30, 2026GAAP | $180M | – | – |
| Selling, general and administrative expenses, three months ended Sep 30, 2026GAAP | $408M | – | – |
| Restructuring and asset related charges - net, three months ended Sep 30, 2026GAAP | $9M | – | – |
| Income before income taxes, three months ended Sep 30, 2026GAAP | $642M | – | – |
| Net income, three months ended Sep 30, 2026GAAP | $525M | – | – |
| Net income available for Dow Inc. common stockholders, three months ended Sep 30, 2026GAAP | $458M | – | – |
| GAAP earnings per share - diluted, three months ended Sep 30, 2026GAAP | $0.62 | – | $0.54 |
| Operating EBIT, three months ended Sep 30, 2026non-GAAP | $887M | – | $707 million |
| Operating EBITDA, three months ended Sep 30, 2026non-GAAP | $1.55B | – | $685 million |
| Operating earnings per share, three months ended Sep 30, 2026non-GAAP | $0.71 | – | $0.90 |
| Cash provided by operating activities - continuing operations, three months ended Sep 30, 2026GAAP | $1.84B | $515 million | $709 million |
| Capital expenditures, three months ended Sep 30, 2026GAAP | −$706M | – | – |
| Free Cash Flow, three months ended Sep 30, 2026non-GAAP | $1.13B | – | – |
| Cash Flow Conversion - trailing twelve months, three months ended Sep 30, 2026non-GAAP | 83.7% | – | – |
| Net sales, Packaging & Specialty Plastics, three months ended Sep 30, 2026GAAP | $5.78B | – | 18% |
| Operating EBIT, Packaging & Specialty Plastics, three months ended Sep 30, 2026non-GAAP | $585M | – | $386 million |
| Net sales, Industrial Intermediates & Infrastructure, three months ended Sep 30, 2026GAAP | $3.06B | – | 8% |
| Operating EBIT, Industrial Intermediates & Infrastructure, three months ended Sep 30, 2026non-GAAP | $176M | – | $223 million |
| Net sales, Performance Materials & Coatings, three months ended Sep 30, 2026GAAP | $2.25B | – | 8% |
| Operating EBIT, Performance Materials & Coatings, three months ended Sep 30, 2026non-GAAP | $154M | – | $74 million |
| Net income, nine months ended Sep 30, 2026GAAP | $882M | – | – |
| GAAP earnings per share - diluted, nine months ended Sep 30, 2026GAAP | $0.88 | – | – |
| Operating EBIT, nine months ended Sep 30, 2026non-GAAP | $2.69B | – | – |
| Operating EBITDA, nine months ended Sep 30, 2026non-GAAP | $4.74B | – | – |
| Operating earnings per share, nine months ended Sep 30, 2026non-GAAP | $2.02 | – | – |
| Cash provided by operating activities - continuing operations, nine months ended Sep 30, 2026GAAP | $4.29B | – | – |
| Capital expenditures, nine months ended Sep 30, 2026GAAP | −$1.84B | – | – |
| Free Cash Flow, nine months ended Sep 30, 2026non-GAAP | $2.45B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Packaging & Specialty PlasticsLocal price increased 17% year-over-year, primarily driven by higher prices across both businesses in EMEAI and the U.S. & Canada; volume increased 1% year-over-year. | $5.78B | – | 18% |
| Industrial Intermediates & InfrastructureLocal price increased 16% year-over-year, while volume decreased 7% year-over-year; Industrial Solutions volume growth was driven by increased demand for AI infrastructure and energy applications, as well as higher ethylene oxide project-related catalyst sales. | $3.06B | – | 8% |
| Performance Materials & CoatingsLocal price increased 5% year-over-year and volume increased 3% year-over-year, driven by higher volumes in both businesses and led by growth in downstream silicones. | $2.25B | – | 8% |
| CorporateNo driver was provided. | $181M | – | – |
2026 and 2027 outlook
- NoteOn track to achieve the upsized $700 million in growth and productivity benefits in 2026.
- NoteApproximately $2 billion in total uplift by the end of next year.
- NoteSelf-help actions are on track to deliver more than $1 billion of EBITDA uplift in both 2026 and 2027.
- NoteTotal benefits from three European asset shutdowns are expected to build through 2027.
Capital returns
- Returns to shareholders totaled $253 million of dividends in the quarter.
- Dividends paid to stockholders were $(758) million for the nine months ended Sep 30, 2026, compared with $(1,239) million for the nine months ended Sep 30, 2025.
What drove it
- Local price increased 14% versus the year-ago period, led by gains in Packaging & Specialty Plastics, with higher polyethylene prices in all regions.
- Operating EBIT was primarily driven by higher prices and benefits from collective self-help actions, which more than offset higher raw materials and logistics costs.
- Packaging & Specialty Plastics benefited from higher integrated margins resulting from higher polyethylene prices and self-help initiatives.
- Industrial Intermediates & Infrastructure benefited from higher margins, self-help initiatives and the suspension of recognition of equity losses from Sadara.
- Performance Materials & Coatings benefited from self-help initiatives, including the closure of the Barry, U.K. siloxanes plant, as well as price and volume gains across both businesses.
- The Company released more than $400 million of working capital during the quarter.
Concerns
- Volume decreased 1% year-over-year, reflecting lower volumes in Asia Pacific where impacts from the Middle East conflict are most pronounced.
- Industrial Intermediates & Infrastructure volume decreased 7% year-over-year, as higher Industrial Solutions volumes were more than offset by lower Polyurethanes & Construction Chemicals volumes.
- Packaging & Specialty Plastics operating EBIT was partly offset by higher planned maintenance activity.
- Industrial Intermediates & Infrastructure operating EBIT was partially offset by higher energy costs in EMEAI.
- Higher raw materials and logistics costs affected consolidated profitability.
What to watch
- Achievement of the upsized $700 million in growth and productivity benefits in 2026.
- Delivery of more than $1 billion of EBITDA uplift in both 2026 and 2027 from self-help actions.
- The build of benefits from the three European asset shutdowns through 2027.
- Volume conditions in Asia Pacific and continuing impacts from the Middle East conflict.
- Demand in AI infrastructure, energy applications, consumer, electronics, home care, flexible packaging and mobility.
Balance sheet and cash flow
- Cash and cash equivalents were $4,142 million at Sep 30, 2026, compared with $3,816 million at Dec 31, 2025.
- Long-Term Debt was $16,778 million at Sep 30, 2026, compared with $17,849 million at Dec 31, 2025.
- Long-term debt due within one year was $745 million at Sep 30, 2026, compared with $222 million at Dec 31, 2025.
- Total assets were $60,953 million at Sep 30, 2026, compared with $58,538 million at Dec 31, 2025.
- Cash provided by operating activities was $4,293 million for the nine months ended Sep 30, 2026, compared with $748 million for the nine months ended Sep 30, 2025.
- Cash used for investing activities was $(2,292) million for the nine months ended Sep 30, 2026, compared with $(1,457) million for the nine months ended Sep 30, 2025.
- Cash used for financing activities was $(1,605) million for the nine months ended Sep 30, 2026, compared with cash provided by financing activities of $2,941 million for the nine months ended Sep 30, 2025.
Analysis
Dow reported a materially stronger third quarter, with net sales of $11,267 million versus $9,973 million in the year-ago period. Local price increased 14%, currency was flat and volume decreased 1%. Every operating segment posted higher sales, with Packaging & Specialty Plastics up 18% and both Industrial Intermediates & Infrastructure and Performance Materials & Coatings up 8%.
Profitability improved sharply. GAAP net income was $525 million, compared with $124 million, while Operating EBIT increased to $887 million from $180 million and Operating EBITDA increased to $1,553 million from $868 million. The company attributed the Operating EBIT improvement primarily to higher prices and collective self-help actions, which more than offset higher raw-material and logistics costs. GAAP diluted EPS was $0.62 and operating EPS was $0.71, compared with a loss of $0.19 for operating EPS in the year-ago period.
The sales mix remained price-led and regionally uneven. Packaging & Specialty Plastics recorded 17% local-price growth and 1% volume growth. Industrial Intermediates & Infrastructure had 16% local-price growth but a 7% volume decline, including impacts from the Middle East conflict. Performance Materials & Coatings combined 5% local-price growth with 3% volume growth. Asia Pacific was the only region with lower volume, and total volume declined 1%.
Cash generation improved alongside earnings and working capital. Cash provided by operating activities from continuing operations was $1,839 million, up $709 million year-over-year and up $515 million sequentially. Free Cash Flow was $1,133 million, and trailing-twelve-month Cash Flow Conversion was 83.7%. The company returned $253 million of dividends in the quarter, reported releasing more than $400 million of working capital during the quarter, and said debt was reduced by approximately $600 million year-to-date.
The outlook supplied no conventional revenue, margin, expense or tax-rate guidance. Management stated that it is on track for $700 million of growth and productivity benefits in 2026, approximately $2 billion of total uplift by the end of next year, and more than $1 billion of EBITDA uplift in both 2026 and 2027 from self-help actions. Execution on these initiatives and the pace of benefits from European asset shutdowns are central to the stated outlook, while Middle East conflict-related volume pressure and higher energy, raw-material and logistics costs remain important factors.
Management, verbatim
Dow delivered a solid third quarter, driven by targeted downstream growth and disciplined execution against an evolving macro backdrop.
Karen S. Carter, Dow chief executive officer
Our near-term actions are building a Dow that delivers stronger, more consistent results and long-term value for our shareholders.
Karen S. Carter, Dow chief executive officer
These priorities are underpinned by our self-help actions, which are on track to deliver more than $1 billion of EBITDA uplift in both 2026 and 2027.
Karen S. Carter, Dow chief executive officer
Not in the filing
stated, not guessed- Gross profit and gross margin were not reported.
- Operating EBIT margin was defined but not reported for the periods presented.
- No conventional forward revenue guidance was provided.
- No forward gross-margin guidance was provided.
- No forward operating-expense guidance was provided.
- No forward tax-rate guidance was provided.
- No prior outlook section was provided, so comparison of actual results with prior guidance is unavailable.
- No share repurchases were reported for the quarter.
- No quarterly debt balance comparison was reported. Balance-sheet debt comparison is to Dec 31, 2025.
- No prior-quarter consolidated revenue, income, EPS, Operating EBIT, Operating EBITDA, segment revenue or segment Operating EBIT figures were reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The filing is Dow's first public disclosure of its Q3 2026 performance, providing fresh numbers to the market.
Ticker impact
Dow released its Q3 2026 results via an 8‑K filing, showing $11.3 bn sales (+13%) and GAAP EPS $0.62, a material earnings update.
likely upward pressure as the market prices in the earnings beat and higher cash flow.
The company posted a sizable profit swing from a loss year‑over‑year, raised guidance on growth initiatives, and reduced debt, all of which are fresh, material data.
Market effects
Chemicals and materials sector may see a rally on Dow's strong pricing and cash generation.
European markets could benefit from Dow's European asset shutdown benefits and cost program progress.
Dow's results influence global commodity pricing trends, especially polyethylene and olefins.
Counterpoint
If the price rally is already priced in, a pull‑back could occur on concerns about higher raw material costs.
Key entities
- CompanyDow Inc.
Global chemicals and materials producer reporting Q3 2026 results.
