The companies on the Global 500 employ 70.2 million people, and their revenue represents more than one-third of the world’s GDP.

Fortune Global 500

With a combined revenue of $21 trillion and $2.1 trillion in profits, the 2026 Fortune 500 is the definitive list of America's largest companies.

Fortune 500

AI is a major force shaping this year’s list—but it’s far from the only story.

World's Most Admired Companies

This year's 100 Best Companies to Work For are rebuilding the social contract at work so people feel supported, trusted, and future-ready as they undergo that transition.

100 Best Places to Work 2026_Dow

Employees say:"Our 401K match is amazing alongside parental leave are unique. I also appreciate the flexibility in work location and work hours as needed. Leadership trusts me to do my job regardless of where I am located or when I am working, and I continue to deliver on this with mutual respect. I have almost always had a strong leader in my 10 years at the company. This includes someone who understands my interests, provides clear feedback, supports my growth, and challenges me appropriately."

Fortune 100 Best Companies to Work For

The region's best workplaces put integrity, inclusion, and respect at the center of their workplace culture.

Great-Places-To-Work-Asia-2025_Team Photo_Dow

Dow ranks No. 88 on the 2025 Best Companies to Work For Southeast Asia.

Fortune 100 Best Companies To Work For – Southeast Asia

Organizations are assessed on their efforts to create great workplaces—and positively impact people and communities across the world.

Worlds-Best-Workplaces-2025_Dow Photo 2

Dow ranks No. 18 on the 2025 World’s 25 Best Workplaces list.

World’s 25 Best Workplaces

See which workplaces made this year's list.

2025_GPTW_ManufacturingProduction_Large_Dow_US1__685d54bb4f22a2fc232770e0_2

Employees say:"Dow has people who care. I was diagnosed with breast cancer in 2023, and I was blown away by the number of people from my current and past roles and teams who reached out to me for support. The support from other Dow team members is really what makes this company special! I had good leadership support and benefits, but it is the people who made me eager to come back to work."

Best Large Workplaces in Manufacturing and Production

The corporations on our annual list of the world's 500 largest companies combined to generate $41.7 trillion in revenue over the past year.

Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

The top companies on our list have one thing in common: Staff largely trust leadership to see them as well-rounded people and reward them for a job well done.

Global Dow Center in Midland, Michigan

Employees say: "Dow is a great place to work because I can always be myself. I have the opportunity to make a big difference not only to Dow's bottom line, but also the community and environment around us. We have many great perks and benefits that are really not comparable to other companies. Dow is led by an outstanding CEO who I feel is really part of the reason that Dow is such a great place to work."

Leaders in all industries rely more than ever on Big Tech—and appreciate the giants that deliver, at scale, without drama.

Organizations are assessed on their efforts to create great workplaces and positively impact people and communities across multiple countries around the world.

GPTW_World'sBestWorkplaces_2024-Dow_Showcase

Dow ranks No. 20 on the 2024 World’s 25 Best Workplaces list.

GPTW Manufacturing & Production Large 2024-DOW

Employees say:"Dow is a big company but operates like a small, family-oriented company. All of my colleagues are great, and we work so well together for Team Dow!"

The corporations on our annual list posted aggregate revenues of $41 trillion for the second year in a row.

Industries included in the sector are diversified and specialty chemical manufacturers.

Fortune Sector Leaders: Chemicals

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

Creating a more empathetic workplace looks like staying loyal to workers, emphasizing D&I initiatives, and paying well.

100 Best Companies 2024-Dow

This is the fourth year Dow has made the list, and it climbed 10 spots this year. The plastics and industrial-supplies manufacturer operates sites in 31 countries, and 60% of its workforce have on-the-ground roles like plant operators, engineers, and maintenance workers. Off the ground, its workers include researchers, scientists, information systems professionals, and sales staff.&nbsp;&nbsp;Dow’s values, namely personal safety, inclusion and diversity, pay equity, and global humanitarian aid, are part of what makes it a great place to work. Dow offers opportunities to all employees to answer questions and voice concerns through 10 employee resource groups, which saw increased employee participation from 15% in 2017 to nearly 60% of employees this year.&nbsp;&nbsp;It also offers employees access to a well-being portal where they can access rewards for healthy habits—in the first half of last year, the company invested more than $5 million in rewards, and employees have redeemed almost $12 million since the portal launched.

The 26th edition of the list shows how much esteem Big Tech giants command among other business leaders.

The 25th Fortune World’s Most Admired Companies list suggests that tech giants’ peers respect them as much as ever.

Building a culture of trust and transparency is essential to help everyone thrive, especially in rocky economic times.

100 BEST COMPANIES 2023-Dow

Inclusivity is an ongoing priority for this manufacturer of plastics, silicones, and more, which has earned Dow a spot on the Best Companies to Work For list for a third year. 
<ul> 
 	<li>To ensure its efforts don’t falter, Dow built a scorecard for diversity and inclusion metrics, which provides transparency for how each segment of the company is progressing. A separate workforce dashboard for leaders gives them visibility into the diversity breakdown of their team.</li> 
 	<li>The company’s Peer Allies program randomly assigns participants a new peer/ally connection each month, encouraging them to meet for at least one 30-minute one-on-one conversation. So far, more than 1,400 people at all levels throughout the company (making up roughly 10% of the workforce) take part in it.</li> 
 	<li>“Dow is a wonderful company to work for,” said one employee. “The management does a wonderful job meeting you where you are in life and being flexible to allow employees to be productive all while managing their lives.”</li> 
</ul>

The corporations on our annual list of the world’s largest companies delivered a record $41 trillion in aggregate revenues.

At winning companies, 88% of employees would recommend their employer to friends and family.

GPTW World's Best 2023-Dow

GPTW Manufacturing Production Large 2023-Dow

Employees say: 
 
"The way the company is engaged in inclusion and diversity is going beyond words, straight into action. It is clear that Dow puts people first. One recent example is the new parental leave policy, offering the same time off to both parents, either birth or adopting parents, including same-sex parents."

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

F500-2023-075-Dow

The Michigan-based chemical producer boasts close to 38,000 employees across 104 manufacturing sites in 31 countries. 
<ul> 
 	<li>Dow fell 11 spots on this year’s Fortune 500, with $56.9 billion in revenue in 2022, a 3.5% increase from 2021.</li> 
 	<li>In 2023, the multinational’s chairman and CEO, Jim Fitterling, said Dow expects to deliver $1 billion in cost savings by enhancing productivity.</li> 
</ul>

Just as it dominates our economy, Big Tech now dominates Fortune’s annual ranking of corporate reputation.

When it comes to supporting employees, flexibility, diversity, and a few extra paid days off go a long way.

100-Best-2022-Dow

Since 2017, Dow has seen its employee resource groups grow exponentially, jumping from 15% to 52% participation rate, including 98% of its people leaders. Last year it launched an “All In” strategy elevating its focus on gender parity in leadership positions and established a global minimum standard of 16 weeks of paid time off for all new parents. Dow also expanded family and caregiver leave policies to provide employees up to three weeks of paid time off to care for sick or injured family members. Some 86% of employees say that “management is honest and ethical in its business practices.”

Aggregate sales hit $37.8 trillion last year—an increase of 19%, the highest annual growth rate in the list’s history.

Employees say: 
 
“The people in Dow are second-to-none. Our team is comprised of the brightest, most motivated professionals in the world, and I believe every day our team members wake up motivated to truly make this a safer, more inclusive and more sustainable world. I've been a Dow employee for nearly 20 years, and I've never been more proud...nor more motivated...to work for this company.”

This year’s Fortune 500 marks the 68th running of the list.

F500 2022-Dow Inc.

The multinational chemical manufacturer weathered supply-chain constraints and inflated raw-materials prices to deliver a very strong 2021. The company announced revenue of $55 billion in 2021, a 42.6% increase over 2020. Most of Dow’s growth came from its packaging and specialty plastics sales, as the company was able to take advantage of supply bottlenecks and maintain high prices for its products. In 2022, however, Dow is expected to face even higher raw-material and energy costs, as well as the ramifications of suspending its purchases of feedstocks and energy from Russia.

Our 2021 list of the 100 best companies to work for, as ranked by their employees. See which companies made the list.

100 Best Companies 2021-100-The-Dow-Chemical-Company

In the war on COVID-19, Dow supplied armaments to the front lines. The company’s plants—it has 109 manufacturing sites across 31 countries—churned out plastics and chemicals crucial in making personal protective equipment and virus-slaying sanitizers. After producing and donating 100,000 face shields to the state of Michigan, Dow made its designs publicly available for download. The company pumped out more than 880,000 eight-ounce bottles of hand sanitizer per week during the pandemic. Dow also designed, manufactured, and donated thousands of hospital gowns and air purifiers to hospitals, and, in recognition of its employees’ efforts, it awarded $1,000 bonuses to approximately 8,200 workers who kept the lights on at its U.S. factories. “Our leadership insured we helped the community with PPE,” one proud worker says.

Total revenue for the world’s biggest companies fell 4.8% to $31.7 trillion this year—the first decline in half a decade.

<span data-sheets-value="{&quot;1&quot;:2,&quot;2&quot;:&quot;The chemicals giant, which debuted as a stand-alone entity on the Fortune 500 last year, had a rocky 2020, sliding four spots on our list and sustaining a more than 10% hit to revenues as the pandemic initially slammed oil prices and demand for some of Dow’s products. The company cut capital spending by over $700 million from the year prior, but posted year-over-year revenue growth in the fourth quarter as demand recovered. Deadly winter storm Uri knocked Texas offline and temporarily halted Dow’s Gulf Coast operations in early 2021, but the firm still managed to report strong earnings to kick off the year. Now, the chemicals titan is facing a new dynamic: keeping up with rising demand for its products amid tight supply and low inventory. That all bodes well for Dow’s business, at least for now, as CEO Jim Fitterling recently predicted prices for the company’s products should remain elevated. &quot;}" data-sheets-userformat="{&quot;2&quot;:12673,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:2,&quot;11&quot;:4,&quot;15&quot;:&quot;Calibri, Arial&quot;,&quot;16&quot;:11}" data-sheets-textstyleruns="{&quot;1&quot;:0}{&quot;1&quot;:66,&quot;2&quot;:{&quot;6&quot;:1}}{&quot;1&quot;:73}">The chemicals giant had a rocky 2020, sustaining a more than 10% hit to revenues as the pandemic initially slammed oil prices and demand for some of Dow’s products. The company cut capital spending by over $700 million from the year prior, but posted year-over-year revenue growth in the fourth quarter as demand recovered. Deadly winter storm Uri knocked Texas offline and temporarily halted Dow’s Gulf Coast operations in early 2021, but the firm still managed to report strong earnings to kick off the year. Now, the chemicals titan is facing a new dynamic: keeping up with rising demand for its products amid tight supply and low inventory. That all bodes well for Dow’s business, at least for now, as CEO Jim Fitterling recently predicted prices for the company’s products should remain elevated.

Companies on this year's list—which span the electrical, automotive, and medical device industries—invest in and trust their employees.

Best-Workplaces-Large-Manufacturing-Production-2021-DOW

Employees say: 
 
“Regardless of degree, Dow provides an opportunity for a diverse career. If you are a hard worker, embrace challenges, and perform, you can have the ability to work in various roles throughout the company."

This year’s Fortune 500 marks the 67th running of the list.

F500-2021-82-Dow-Inc

<span data-sheets-value="{&quot;1&quot;:2,&quot;2&quot;:&quot;The chemicals giant, which debuted as a stand-alone entity on the Fortune 500 last year, had a rocky 2020, sliding four spots on our list and sustaining a more than 10% hit to revenues as the pandemic initially slammed oil prices and demand for some of Dow’s products. The company cut capital spending by over $700 million from the year prior, but posted year-over-year revenue growth in the fourth quarter as demand recovered. Deadly winter storm Uri knocked Texas offline and temporarily halted Dow’s Gulf Coast operations in early 2021, but the firm still managed to report strong earnings to kick off the year. Now, the chemicals titan is facing a new dynamic: keeping up with rising demand for its products amid tight supply and low inventory. That all bodes well for Dow’s business, at least for now, as CEO Jim Fitterling recently predicted prices for the company’s products should remain elevated. &quot;}" data-sheets-userformat="{&quot;2&quot;:12673,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:2,&quot;11&quot;:4,&quot;15&quot;:&quot;Calibri, Arial&quot;,&quot;16&quot;:11}" data-sheets-textstyleruns="{&quot;1&quot;:0}{&quot;1&quot;:66,&quot;2&quot;:{&quot;6&quot;:1}}{&quot;1&quot;:73}">The chemicals giant, which debuted as a stand-alone entity on the Fortune 500 last year, had a rocky 2020, sliding four spots on our list and sustaining a more than 10% hit to revenues as the pandemic initially slammed oil prices and demand for some of Dow’s products. The company cut capital spending by over $700 million from the year prior, but posted year-over-year revenue growth in the fourth quarter as demand recovered. Deadly winter storm Uri knocked Texas offline and temporarily halted Dow’s Gulf Coast operations in early 2021, but the firm still managed to report strong earnings to kick off the year. Now, the chemicals titan is facing a new dynamic: keeping up with rising demand for its products amid tight supply and low inventory. That all bodes well for Dow’s business, at least for now, as CEO Jim Fitterling recently predicted prices for the company’s products should remain elevated.

This year's Fortune Global 500 generated $33.3 trillion in revenues and $2.1 trillion in profits.

G500-2020-283-Dow

The new Dow came into being, at least officially, when behemoth DowDuPont split itself into three publicly traded entities last year. The now-independent chemicals giant posted $42.9 billion in annual revenue. Since striking out on its own, the company, headquartered in Midland, Mich., has taken steps to deleverage, paying down some $3 billion in debt last year. Still, it lost nearly $1.4 billion in 2019, a figure that includes one-time charges related to its spin off. In 2020 the chemicals space has been hit hard by factors related to plunging oil prices, prompting Dow to announce it would cut spending.

This year's Fortune 500 marks the 66th running of the list.

F500-2020-078-Dow Inc

The new Dow came into being, at least officially, when behemoth DowDuPont split itself into three publicly-traded entities last year. And the now-independent chemicals giant has emerged at a relatively lofty spot on the Fortune 500 ranking, posting $42.9 billion in annual revenue. Since striking out on its own, the company, headquartered in Midland, Mich., has taken steps to deleverage, paying down some $3 billion in debt last year. Still, it lost nearly $1.4 billion in 2019, a figure that includes one-time charges related to its spin off. In 2020 the chemicals space has been hit hard by factors related to plunging oil prices, prompting Dow to announce it would cut spending.

Best Companies

Rank last year

Years on list

U.S. employees

U.S. job openings

Year founded

Benefits

Subsidized childcare

Compressed work weeks

Option to work remotely

Minimum requirement in-office attendance (days per week)

Mental health coverage

Free mental health sessions (per year)

Free backup childcare time off (days)

Maximum $ amount covered for fertility services

Fully paid maternal leave (days)

Fully paid paternal leave (days)

Fully paid adoptive leave (days)

Maternal leave in addition to regular time off (days)

Paid days off for volunteering

Best Workplaces In Manufacturing And Production

Founded

Industry Vertical

Sites

World's Best Workplaces

World's Best list history

Countries where the company was recognized on a GPTW national list

Best Companies To Work For Southeast Asia

Sector

Type of organization

CEO/Top executive

Group headquarters

HQ location

GPTW national list

Woman CEO

Industry

Current All-Star Rank

Previous All-Star Rank

Industry Rank

Previous Industry Rank

Overall Score

Innovation

People Management

Use of Corporate Assets

Social Responsibility

Quality of Management

Financial Soundness

Long-Term Investment Value

Quality of Products/Services

Global Competitiveness

Key Financials (last Fiscal Year)

Revenues ($M)

Profits ($M)

Assets ($M)

Total Stockholder Equity ($M)

Profit Ratios

Profit as % of Revenues

Profits as % of Assets

Profits as % of Stockholder Equity

Earnings Per Share (last Fiscal Year)

Earnings Per Share ($)

EPS % Change (from prior fiscal year)

EPS % Change (5 year annual rate)

EPS % Change (10 year annual rate)

Total Return

Total Return to Investors (last year)

Total Return to Investors (5 year, annualized)

Total Return to Investors (10 year, annualized)

Dow makes and sells materials science solutions for packaging, infrastructure, mobility, and consumer applications. It is among the world’s largest chemical and plastics producers. Dow’s roots go back to the 1890s. The company was created in its current form after chemical companies Dow and DuPont merged in the 2010s to form DowDuPont; in 2019, the materials science division of the company was spun off from that entity to create Dow Inc.

Q2 2026

Q1 2026

Q4 2025

Q3 2025

Q2 2025

Q1 2025

Q4 2024

Dow (DOW): Company Profile, Stock Price, News, Rankings

legacy

Greetings, and welcome to the Dow Second Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. I'll now turn it over to Dow Investor Relations' Vice President, Andrew Reicher. Mr. Reicher, you may begin.

Good morning. Thank you for joining today. The accompanying slides are provided through this webcast and posted on our website. I'm Andrew Reicher, Dow's Investor Relations Vice President. Leading today's call are Jim Fitterling, Chair and Chief Executive Officer Jeff Tate, Chief Financial Officer and Karen S.

Carter, Chief Operating Officer. Please note our comments contain forward looking statements and are subject to the related cautionary statements contained in the earnings news release and slides. Please refer to our public filings for further information about principal risks and uncertainties. Unless otherwise specified, all financials, where applicable, exclude significant items. We will also refer to non GAAP measures.

A reconciliation of the most directly comparable GAAP financial measure and other associated disclosures are contained in the earnings news release that is posted on our website. On Slide two is our agenda for today's call. Jim will review our second quarter results and provide an update on how we are navigating the challenging market conditions and restoring core earnings. Karen will then provide an overview of our operating segment performance. Jeff will share an update on the macroeconomic environment we are facing and our modeling guidance for third quarter.

Following that, we will share more on the strategic in flight actions our teams are taking to navigate this prolonged downturn, specifically around cash support, operational execution and structurally improving our global asset footprint in the near term to position Dow well for when our industry recovers. Following that, we will take your questions. Now let me turn the call over to Jim.

Thank you, Andrew. Beginning on Slide three, the prolonged down cycle our industry has been experiencing was further amplified this quarter by heightened trade and geopolitical uncertainties, which have strained profitability across our industry. In this environment, it is critical that we successfully navigate the near term, protect Dow's financial flexibility and advance our near term growth initiatives to support higher earnings as the industry recovers. Additionally, growing signs of oversupply from newer market entrants being exported to other regions and anti competitive economics requires an aggressive industry response and regulatory action to restore competitive dynamics. Given these challenges, we remain focused on driving operational discipline in everything we do.

In the second quarter, net sales were $10,100,000,000 down 7% versus the year ago period, reflecting declines in all operating segments. Sequentially, net sales decreased 3% as seasonally higher demand in Performance Materials and Coatings was more than offset by declines in our other operating segments. EBITDA was $7.00 $3,000,000 which is also lower than the same period last year. Following a significant analysis and consideration, we announced this morning that Dow would implement a 50% dividend reduction effective in the third quarter of this year. This decision was not taken lightly as we understand the importance our shareholders place on the dividend and we carefully considered this on top of the financial impacts that we modeled.

The dividend is a key element of our investment thesis, and that is not changing. We remain committed to targeting a competitive dividend across the economic cycle. However, given the current lower for longer earnings environment and the lack of a clear line of sight to a recovery for our industry, This is the most prudent way to maintain financial flexibility and maximize long term value for our shareholders. Also in the second quarter, we progressed several near term cash support levers. The close of our strategic infrastructure asset partnership named Diamond Infrastructure Solutions delivered $2,400,000,000 of cash for Dow in the second quarter and has already captured growth opportunities with new customers.

We also expect to receive cash proceeds from the Nova judgment this year and consistent with our best owner mindset, we recently announced two non core product line divestitures totaling approximately $250,000,000 at attractive EBITDA multiples of around 10x. These divestitures are additive to our announcement that we will shut down three upstream assets in Europe to address structural challenges in that region. We are confident that these actions paired with the completion of our near term incremental growth projects will support long term value creation. Additionally, we are accelerating progress on our $1,000,000,000 in cost savings actions where we now expect to deliver approximately $400,000,000 this year. We are committed to continuing Dow's track record of operational and financial discipline, executing near term actions to maximize shareholder value and navigating the current environment, all to better position the company for profitable growth and higher shareholder returns as the industry recovers.

Next, I'll turn the call over to Karen, who will provide an overview of our second quarter performance across Val's operating segments.

Thank you, Jim. In the second quarter, our teams continue to focus on price management to restore margins as we prioritize volume in attractive end markets. As we have done for the past several quarters, we are closely monitoring the macros across the markets we serve, pulling all levers to help mitigate the current lower for longer earnings environment as well as the impact brought on by recent trade and tariff uncertainties. Starting with the results for our Packaging and Specialty Plastics segment on Slide four. During our first quarter earnings call, we shared our expectations for flat polyethylene prices in second quarter.

In April, however, prices in North America settled down $03 per pound, weighed down by the tariff uncertainty that halted several export channels. We believe that absent these uncertainties, prices would have remained at least flat and may have increased given healthy demand and higher feedstock costs. In June, with export markets normalizing, the industry recovered the $03 per pound that was lost in April. Although industry margins remained below historical averages, demand remained steady. And following three consecutive months of industry inventory decreases, we see a favorable backdrop supporting further price increases.

Net sales were down compared to the year ago period. Higher volumes in polyethylene and increased energy sales were more than offset by lower downstream polymer pricing and lower volumes for infrastructure applications. Since projects in that industry are long dated, they are impacted more by tariff uncertainty. Sequentially, net sales declined driven by lower merchant ethylene sales. This is due to the startup of PolySeven, our new polyethylene train in The US Gulf Coast.

The asset will help Dow realize the full benefit of integration by absorbing our remaining ethylene length in the region. Polyethylene volumes were up, led by The US and Canada, confirming resilient demand in the region, but down in Asia Pacific as tariff uncertainty limited exports early in the quarter. Operating EBIT was $71,000,000 reflecting a decrease compared to the year ago period. This was primarily driven by lower integrated margin. Sequentially, operating EBIT decreased mainly due again to lower integrated margin, primarily reflecting pressure from the unfavorable industry price settlement in April as well as lower operating rates.

Next, turning to our Industrial Intermediates and Infrastructure segment on Slide five. Net sales declined both year over year and sequentially as market conditions across the segment remained challenging, particularly in our Polyurethanes and Construction Chemicals business, which has high exposure to durables and building and construction end markets. Volume declined 2% compared to the year ago period. Lower polyurethanes and construction chemicals volumes and EMEAI, where we continue to see increasing import activity from competitors in China, were partially offset by higher industrial solutions volumes across data center cooling and gas treating applications. Sequentially, a decline in demand for deicing fluids following the winter months was only partially offset by a modest seasonal uplift in building and construction applications, which was lower than expected in a typical year.

Operating EBIT for the segment decreased versus the year ago period as well as sequentially, primarily driven by lower prices and higher planned maintenance activity. This included activities related to the startup of our new alkoxylation unit in Seadrift, Texas. The new capacity, representing the completion of one of our near term growth investments, will support earnings growth beginning in the third quarter and beyond. We also recently finalized a long term agreement with a major consumer brand owner to supply millions of pounds of low carbon solution, demonstrating our ability to capitalize on innovation that are meeting the needs of our customers and their sustainability commitments to consumers. Moving to the Performance Materials and Coatings segment on Slide six.

The team delivered a seventh consecutive quarter of downstream silicones growth, supported by strong demand for consumer and electronics applications. However, lower volumes for coatings applications and upstream siloxane more than offset these gains. Net sales in the quarter decreased versus last year and local price decreased year over year driven by declines in both businesses. Sequentially, net sales for the segment increased 3% driven by higher demand for downstream silicones and mobility and personal care applications as well as seasonally higher demand for architectural coatings. Operating EBIT was up compared to the year ago period, primarily driven by margin expansion from lower input costs as well as better mix in Consumer Solutions, including more downstream silicones volumes and less upstream siloxane.

Sequentially, operating EBIT increased driven by volume gains in both businesses as a result of seasonal improvement and continued downstream silicones growth as well as lower fixed costs. In summary, team Dow is focused on taking action to help navigate the challenging industry conditions. We are protecting and advancing our position in high growth markets, optimizing our global asset footprint and staying close with our customers. I will now turn the call over to Jeff, who will share more on the macroeconomic landscape, our outlook and the related actions we are taking to ensure Dow's financial flexibility.

Thank you, Karen, and good morning to everyone on the call today. Moving to Slide seven. As we head into the back half of the year, Dow and some of our industry peers are noting expectations that the global macroeconomic backdrop will remain challenged. Ongoing tariff and geopolitical uncertainty have impacted demand patterns, especially in the industrial, infrastructure and durable goods sectors. This has contributed to downward revisions in global GDP forecasts, leading to expectations of a protracted down cycle across many of the end markets Dow serves.

Looking across our four market verticals, in packaging, domestic demand in North America is stable. However, export markets saw slower growth as volatile tariff policies weighed on trade flows, resulting in lower operating rates and additional margin pressure across the industry. Manufacturing activity in China remains relatively flat and continues to contract in Europe. In the infrastructure sector, U. S.

Building permits remained near five year lows in June, and market conditions in Europe and China have shown no signs of improvement. Consumer spending remains steady even as U. S. And European confidence stays below historical norms. June retail sales were up in China, largely attributed to government stimulus.

However, consumer prices in China have deflated in four out of the last five months through June. And in mobility, we continue to closely watch the impact on demand from both global tariffs and government incentives. We have seen signs of softening in The U. S. As auto sales declined for a third consecutive month in June.

In The EU and China, while internal combustion vehicle demand continues to soften, electrical vehicles remain a bright spot. In China specifically, vehicle production is forecasted to grow 3% this year. Chinese auto sales and production are highly dependent on government incentives and could be affected by tariff and trade uncertainties. If the current momentum continues, it should be beneficial for our elastomers and our silicones businesses that have exposure to this market. Now turning to our outlook on Slide eight.

With the considerable uncertainty that so many markets are facing, making any projections right now is especially challenging. Should we become aware of significant changes during the quarter, we will share timely updates as appropriate. Although the macros remain largely unchanged, based on current indicators, we anticipate our third quarter EBITDA to be approximately $800,000,000 a 100,000,000 improvement from the second quarter. This reflects our expectations for a sequential improvement in polyethylene integrated margins as well as higher volumes from our growth investments that were commissioned in the second quarter. It also takes into consideration our cost reduction program, where we have increased our expectations for in year savings to approximately $400,000,000 versus our original target of $300,000,000 Part of our sequential tailwinds are expected to be offset by higher planned maintenance spending.

In addition, we expect lower seasonal demand, lower spreads in certain end markets and lower equity earnings. In Packaging and Specialty Plastics, we expect sequential EBITDA to be approximately $95,000,000 higher. This is largely driven by higher integrated margins following the June price settlement and an expectation that we will secure a price increase in July. Doing so will help us recoup some of the margin loss by elevated feedstock costs this year. In addition to margin expansion, we have the initial ramp of our new polyethylene train in The U.

S. Gulf Coast. Higher plant maintenance activities will provide a headwind in the quarter. And we expect lower equity earnings primarily from Sadara as a result of an unplanned event. In the Industrial, Intermediates and Infrastructure segment, we expect third quarter EBITDA to be approximately $85,000,000 higher than the second quarter.

This expected earnings uplift reflects our expectations for higher volumes from the start up of our new alkoxylation facility. In polyurethanes, we anticipate higher volumes in both MDI and polyols, although margins remain under pressure sequentially, driven by fierce price competition with Chinese exports into both Europe and Latin America. Following the heavy turnaround schedule in second quarter, II and I would have a sizable tailwind in the third quarter in addition to the ramp in cost reductions. This segment will also experience headwinds from lower equity earnings at Sadara. And in the Performance Materials and Coatings segment, we expect lower sequential EBITDA of approximately $65,000,000 Reduced turnaround spending will provide some tailwinds in the third quarter.

We also anticipate normal seasonally driven decreases in demand in the building and construction end market as well as margin compression in upstream siloxanes. The trade and tariff uncertainty from the prior quarter led to demand disruption in China, which drove local siloxane prices to new record lows, with prices declining throughout the second quarter. In summary, with expanded margins in polyethylene, earnings tailwinds from our recent organic investments and our accelerated cost reduction ramp, we expect to deliver sequential earnings improvement despite the slow growth environment we are navigating. Now turning to Slide nine. We remain committed to financial discipline and flexibility, as evidenced by the near term cash and operational improvements we already have underway to provide significant support.

For example, we announced last quarter that we expect our total enterprise twenty twenty five CapEx to be approximately $2,500,000,000 reflecting a $1,000,000,000 reduction compared to our original plan of $3,500,000,000 This is largely attributed to our decision to delay our path to general projects in Canada until market conditions improve. And consistent with our best owner mindset, we also announced two noncore product line divestitures totaling approximately $250,000,000 at attractive EBITDA multiples of approximately 10x. This includes completing the sale of our Talon soil fumigation product line to a strategic buyer. And we announced that Dow will sell our 50% ownership in the Dow AXA joint venture, which is expected to close in the third quarter of this year following customary regulatory approvals. Turning to our cost reduction efforts.

We are on track to deliver at least $1,000,000,000 in targeted cost savings on an annual run rate basis by 2026. We delivered an approximately $50,000,000 sequential tailwind in the second quarter and are on a faster pace than we initially anticipated. In fact, we now expect to deliver approximately $400,000,000 of the reductions this year. We also executed a debt neutral $1,000,000,000 bond this year to take advantage of tight spreads and extend our material debt maturities past 2027. In addition, we continue to make solid progress on our unique TDAO items that support our near term cash generation.

In May, we finalized our strategic partnership with Macquarie Asset Management for the sale of a minority equity stake in select U. S. Gulf Coast infrastructure assets, receiving approximately $2,400,000,000 in initial cash proceeds from the transaction. The new entity, Diamond Infrastructure Solutions, recently announced a deal with a climate tech company named AGEN to build a first of its kind plant to recycle waste c o two emissions from an on-site tenant in our Texas City industrial park. This agreement is one of many growth opportunities the Diamond Infrastructure Solutions business model is set up to enable with both new and existing customers.

And as a reminder, Macquarie has the option to increase their stake to 49% within six months of closing, which would occur no later than November. This would increase total cash proceeds from this new partnership to approximately $3,000,000,000 per Dow this year. Looking into the second half of the year, we also expect to receive cash proceeds of approximately $1,200,000,000 from the resolution for damages related to the jointly owned ethylene asset with Nova Chemicals. So in total, we expect these actions to provide more than $6,000,000,000 in near term cash support. And building on this, Karen will now cover the work we're doing to drive execution, ensure strong operational performance, and enable higher near term returns.

Turning to slide 10. We are executing several strategic moves that will uniquely position Dow to win as the industry recovers. This includes moving aggressively on all fronts to protect and expand our industry leading position. For example, in packaging and specialty plastics, we completed the startup of our PolySeven world scale polyethylene train in Freeport, Texas. Using Dow's proprietary solution technology, PolySeven is designed for lower cost and increased production capacity as well as improved efficiency and flexibility.

Poly seven will support customer driven demand and specialty packaging, health and hygiene and industrial and consumer packaging application. This new asset will also absorb Dow's ethylene length in The US Gulf Coast, maximizing integrated margins and enabling production of higher value functional polymers at other assets. Additionally, the completion of our new alkoxylation capacity in Seadrill, Texas will support growth in industrial solutions, which serves attractive end markets such as home care, pharma, and energy. After completing this project, Dow will have no wholly owned capacity producing MEG. We're also transforming our performance materials and coating segment through downstream silicones capacity expansion, which support high value applications in attractive end markets growing above GDP, such as infrastructure, electronics, mobility, and consumer.

In addition, our industry continues to face difficult market dynamics in Europe, including an ongoing challenging cost and demand landscape. That's why earlier this month, we announced the shutdown of three upstream assets in Europe across each of our operating segments in response to the structural challenges the region continues to face. Each of these assets represent a meaningful portion of our regional capacity, which is either not fully integrated resulting in excess merchant sale exposure or is high on our cost curve where we have better options to supply derivative demand and optimize margin. These shutdowns are cash accretive and expected to result in an annual EBITDA uplift of $200,000,000 by 2029 with benefits beginning in 2026 and half of that achieved by 2027. In summary, our teams are driving execution, helping Dow to navigate the realities of the current macroeconomic environment while also enabling higher returns in the near term.

We are closely monitoring industry dynamics and remain committed to taking all necessary actions to drive shareholder value creation. Now let me turn the call back to Jim to share more on our consistent, disciplined and balanced capital allocation approach.

Thank you, Karen. Now turning to Slide 11. In response to one of the longest downturns our industry has experienced, it is critical that we maintain financial flexibility and a balanced approach to capital allocation. With the earnings pressure the industry downturn has created, the fixed dollar amount of our dividend was outsized. This limited our flexibility to navigate this cycle and optimize total shareholder returns.

Therefore, after significant and detailed analysis, Dow's Board of Directors determined that a 50% reduction in the dividend is the right move for our company and shareholders at this time. Importantly, our approach to capital allocation over the cycle remains unchanged. Our number one priority remains safely and reliably running our assets while we prepare for the market rebound. In addition, we will continue to target a strong investment grade credit profile with a two to 2.5 times net debt to EBITDA ratio across the cycle. And we will continue to invest in organic growth while targeting shareholder returns of at least 65% of operating net income over the cycle via a combination of dividends and share repurchases.

The actions we are taking today help to ensure that we are well positioned for the industry recovery. Closing on Slide 12. Our near term strategic priorities are clear, and we are working hard to mitigate the current environment and improve our competitive position. This includes a strict focus on operational and financial discipline and driving execution not only to restore our core earnings but grow them. This is evidenced by the multiple near term cash support items we're already delivering and the reduction in our dividend.

In addition, the completion and startup of our near term growth projects will further unlock both the value of integration and capitalize on our low cost asset footprint in The Americas. We're also taking necessary steps to right size our footprint where we see structural challenges. Increasingly, we are seeing anticompetitive oversupply activities, particularly when it comes to imports into Europe and Latin America. Our teams are actively engaged in these regions to aggressively defend our local asset footprint and to ensure that a fair trade environment remains. We are engaging in positive and productive conversations with the governments around the world as it relates to trade and tariff uncertainties, and we're confident that we're in a strong position to mitigate the impact.

Our diverse product portfolio, strategically advantaged asset footprint and global scale position Dow to capture demand in attractive end markets growing above GDP. This is also evidenced in our annual benchmarking results where we're generating higher polyolefin margins than our peers over the cycle. We are taking the right actions and delivering several near term improvements while staying focused on our long term strategic priorities. We're well positioned to deliver profitable growth as we unlock the full benefit of our growth investments, improve margins, implement cost reductions and further strengthen our competitive advantages. With that, I'll turn it back to Andrew to get us started with the Q and A.

Thank you, Jim. Now let's move on to your questions. I would like to remind you that our forward looking statements apply to both our prepared remarks and the following Q and A. Operator, please provide the Q and A instructions.

Thank you. The floor is now open for questions. Your first question comes from the line of Vincent Andrews of Morgan Stanley. Your line is open.

Thank you and good morning everyone. Jim, I'm wondering if you can contextualize the dividend your operating net income on a go forward basis. Just thinking back in 2019 when you spun, you obviously had the same percentage target for the dividend of 45% of operating net income. But of course, operating net income was a lot higher back then than it is today. So I'm just wondering how you're thinking about that particularly over the next three to five years in terms of what you think mid cycle operating net income could get back to?

Dow (DOW) Q2 2025 Earnings Call Transcript

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