third quarter 2026
Filed Oct 22, 2026Dow 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.