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.

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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

Welcome to the Dow third quarter 2025 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. If you would like to ask a question at that time, please press star followed by one on your telephone keypad. As a reminder, this conference is being recorded. I will now turn it over to Dow Investor Relations Vice President Andrew Riker. Mr. Riker, 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 Riker, Dow's Investor Relations Vice President. Leading today's call are Jim Fitterling, Chair and Chief Executive Officer, Karen S. Carter, Chief Operating Officer, and Jeff Tate, Chief Financial 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 risk 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 and Karen will review our results and discuss how we are navigating current market conditions to restore our core earnings. Karen will also provide an overview of our operating segment performance. Jeff will share an update on our in-flight actions to provide near-term cash support, as well as some details on the macro-economic environment and our modeling guidance for the fourth quarter. Jim and Karen will close the prepared remarks with Dow's view on current industry actions while demonstrating how Dow is well-positioned to win in a recovery. Following that, we will take your questions. Now, let me turn the call over to Jim.

Thank you, Andrew. Beginning on slide three, in the third quarter, we executed against Dow's strategic priorities to deliver sequential earnings and cash flow improvement despite continued pressure across the industry. These results reflect our focus on navigating the near term while positioning the company for profitable growth when our industry recovers. In the third quarter, we delivered net sales of $10 billion. Sequentially, gains in our industrial intermediates and infrastructure segment were more than offset by declines in packaging and specialty plastics and performance materials and coatings. EBITDA was $868 million, and while this is lower than the same period last year, our earnings reflect an improvement over the second quarter. This was driven by volume gains stemming from our new growth investments in the U.S. Gulf Coast, lower planned maintenance activity, and the progress we're making on our cost reduction actions.

Cash provided by operating activities was up $1.6 billion sequentially, primarily driven by working capital improvements and advanced payments for low-carbon solutions and other long-term supply agreements. We also delivered $249 million in dividends, reflecting our commitment to competitive shareholder returns over the cycle. Next, Karen will provide some additional context around the more than $6.5 billion in actions that we have completed or currently have in flight.

Thank you, Jim. We advanced several strategic actions in the third quarter. We announced an expansion of our strategic agreement with MEGlobal to formalize the contractual offtake of an additional 100 KTA of ethylene supply at attractive economics for both parties. We closed the second and final phase of our strategic infrastructure asset partnership in the U.S. Gulf Coast, delivering $3 billion in total proceeds for Dow this year. We completed the second of two previously announced non-core divestitures, delivering a total of approximately $250 million at attractive EBITDA multiples of around 10x. We issued an additional $1.4 billion bond to take advantage of tight credit spreads, providing added financial flexibility. We are progressing the delivery of at least $1 billion in targeted cost savings by the end of 2026.

We are on track to deliver approximately $400 million of the cost savings this year, which was clearly visible in our third quarter performance. We have also lowered our CapEx spending in alignment with our $1 billion reduction target this year, compared to our original plan of $3.5 billion. This reduction is largely due to our decision to delay the Alberta project until market conditions improve. As we announced in April, this decision supports our near-term cash flow and adjusts our timing to align with the market recovery. We remain committed to the long-term strategic rationale of the Alberta project, which further improves our industry-leading cost position and the growth upside that it will enable in targeted applications like pressure pipe, wire and cable, and food packaging. However, our expectations for when this capacity will be needed have changed, given the prolonged down cycle our industry is facing.

As we committed, we will provide an update on this during our fourth-quarter earnings call in January. Any decisions related to the project timeline will remain centered on maximizing value. Taken all together, these near-term strategic actions demonstrate Team Dow's continued efforts to adjust our cost structure in response to the current operating environment. These actions also support our overarching goal to build a more simplified, modern Dow that consistently delivers strong performance, profitable growth, and lasting competitiveness. Next, I'll turn to our operating segment performance on slide four. In the third quarter, we continued to focus on margin improvement while prioritizing volume growth in attractive end markets such as food packaging, electronics, home care, and pharma. We also took decisive actions to lower our cost base and progress our cost savings action.

Starting with the results for our packaging and specialty plastics segment, net sales were down compared to the year-ago period. Higher demand for flexible packaging applications was more than offset by lower downstream polymer prices, lower merchant olefin sales, and lower licensing revenue. Sequentially, net sales declined, driven by lower prices for downstream polymers and olefins. Volume decreased 1% year-over-year and 2% sequentially. Notably, polyethylene volumes increased in both comparison periods, particularly in flexible packaging applications and as a result of our new polyethylene unit in the U.S. Gulf Coast. These items were more than offset by lower olefins volumes in Europe, following our earlier decision to idle one of our crackers in Terneuzen. Operating EBIT was $199 million, reflecting a decrease compared to the year-ago period. This was primarily driven by lower integrated margins.

Operating EBIT increased sequentially due to higher integrated margins and operating rates, lower fixed costs from our cost reduction actions, and the benefit of the startup of our new polyethylene unit in the U.S. Gulf Coast, which is helping Dow to realize the full benefit of our integration. Next, turning to our industrial intermediates and infrastructure segment on slide five. Net sales were down 4% year-over-year, driven by continued pricing pressures globally, resulting in an 8% impact on revenue. Sequentially, net sales increased, reflecting volume gains in both businesses and all regions. This was supported by lower planned maintenance activity and the startup of one of our near-term growth projects, which partly offset lower prices. Volume increased 2% compared to the year-ago period, driven by gains in the U.S. and Canada in both businesses, as well as in energy applications.

Sequentially, volume increased 5% with improved supply availability following planned maintenance activities in both businesses, as well as additional volumes from our new Alcoxolation unit in Sea Drift, Texas. Operating EBIT for the segment increased versus the year-ago period, driven by higher volumes and operating rates, as well as lower fixed costs, which were partly offset by lower prices. Sequentially, operating EBIT increased by $138 million. This was driven by lower planned maintenance activity and higher volumes in both businesses. This volume growth was enabled by the startup of our new Alcoxolation unit in the U.S. Gulf Coast, which serves more resilient home and personal care end markets. Moving to the performance materials and coating segment on slide six, net sales in the quarter were $2.1 billion, down 6% versus the year-ago period and 2% sequentially, driven by pricing pressures on the upstream areas of the segment.

In the third quarter, architectural coatings experienced normal seasonal patterns, but downstream silicones remained a bright spot, both compared to the year-ago period and prior quarter, particularly in high-value applications such as home care and electronics. Operating EBIT decreased both year-over-year and sequentially, driven by upstream margin compression, partly offset by lower fixed costs from our cost reduction actions. To conclude, Team Dow is focused on continuing to take actions to help navigate the challenges our industry is facing while driving a streamlined, more modern, and more simplified enterprise. We are protecting and growing our positions in high-value markets while also realizing the benefits from our targeted and accelerated actions to deliver at least $1 billion in cost savings by 2026.

We also continue to optimize our global manufacturing footprint, as evidenced last quarter when we announced the outcome of our strategic review in Europe, resulting in the shutdown of three upstream assets in the region. I will now turn the call over to Jeff, who will share more on the actions we are taking to ensure Dow's financial flexibility, as well as some macroeconomic insights and our outlook for the fourth quarter.

Thank you, Karen. Good morning to everyone participating in today's call. Turning to slide seven, we continue to advance several strategic priorities to support Dow's near-term cash flow, further enhance our balance sheet, and deliver structural improvements. This positions the company for growth and better profitability in the recovery. For example, this quarter we completed the second phase of our strategic partnership with Macquarie for the sale of a 49% equity stake in select U.S. Gulf Coast infrastructure assets, receiving approximately $3 billion in total cash proceeds this year. We're making solid progress on several additional actions that support our near-term cash generation. This includes optimizing working capital, which we expect to be an approximately $200 million-$300 million release of cash in the second half of the year compared to the first half.

In addition to these items, we've completed two bond issuances at attractive spreads for a total of $2.4 billion this year. Doing so provides added flexibility and support while maintaining our commitment to investment-grade credit profile. It extends our material debt maturities out to 2029. As of the end of the third quarter, our cash and cash equivalents balance is above $4.5 billion. We have an additional approximately $10 billion of available liquidity, including a revolving credit facility that we recently renewed through 2030. With all these actions, we're building on our long history of navigating the cycles our industry faces. As we've demonstrated in the past, we will continue to take additional actions when and where warranted. With that, I'll share some of the key indicators we're continuing to track on slide eight. The broader macroeconomic landscape remains largely unchanged since our last update.

As it relates to Dow's key market verticals, while we are seeing some pockets of stability, a broader recovery has yet to take hold. Based on the visibility we have through current customer orders, we continue to see a cautious operating environment. Business investment and consumer spending are subdued due to ongoing economic uncertainty and affordability challenges. These dynamics are impacting demand across several key end markets Dow serves. At the same time, recent monetary policy shifts and the beginning of a rate-cutting cycle could begin to more positively influence demand. In our packaging market vertical, global demand remains steady. Industry growth in North America was supported by record September domestic and export volumes. Manufacturing activity in China continues to be modest, while Europe contracted in September. In the infrastructure sector, market conditions remain soft across the United States, Europe, and China.

In the U.S., 30-year mortgage rates have eased modestly but remain above 6% this month. Demand is unlikely to increase in the near term due to limited affordability, but lower mortgage rates could spur a recovery in 2026 as conditions improve. Consumer spending has remained resilient, but with that, confidence is low, which has been driving value-seeking behaviors. In September, U.S. consumer confidence declined to its lowest level since April, and sentiment in the EU remains below historical averages. In China, retail sales grew year-over-year in August, but at its slowest pace since last November. In mobility, we continue to see mixed demand signals across the industry and regions. In the U.S., auto sales rose in August as consumers moved ahead of the EV tax credit expiration. In China, government incentives for EVs also continue to support higher auto sales and production.

This strength has helped offset weakness in internal combustion vehicles, including in Europe, where new car registrations are down year to date. Given this backdrop, we will continue to focus on the actions within our control. Doing so helps Dow to navigate the complexities of this down cycle while strategically positioning the company to capitalize when the market conditions do improve. Next, I'll turn to our outlook for the fourth quarter on slide nine. The macroeconomic dynamics that I described continue to limit visibility into customer buying patterns, making projections challenging. As always, we're committed to maintaining transparency and will provide timely updates if they become available. Based on current indicators and normal seasonality, we anticipate our fourth quarter EBITDA to be approximately $725 million. Our discipline and targeted cost actions and lower planned maintenance activities are expected to provide sequential tailwinds.

Normal seasonality, especially in building and construction end markets, should be a headwind for our performance materials and coatings and industrial intermediates and infrastructure segments. Additionally, we anticipate some margin compression from our feedstock costs in the fourth quarter. In packaging and specialty plastics, lower planned maintenance in the U.S. Gulf Coast and Europe will provide a $25 million sequential tailwind, along with another approximately $25 million in support from our cost reduction actions. Higher feedstock and energy costs are expected to be a headwind for the fourth quarter, despite anticipating higher downstream volumes. Globally, we expect approximately $0.01 per pound of margin contraction in the quarter. This will be partly offset by higher equity earnings following an unplanned outage at Cedara in July, as the impacted asset is now back up and running.

Additionally, following a fire at our Poly6 polyethylene unit in Texas this month, we anticipate a $25 million unfavorable impact for the fourth quarter. Initially, the event required us to bring down three polyethylene units at the site. Two of those units have already resumed operations. However, we expect that Poly6 will remain offline for the remainder of the year. We are leveraging our global flexible asset footprint to mitigate impacts and meet our customers' needs. In industrial intermediates and infrastructure, we expect fourth quarter EBITDA to be approximately $20 million lower than the third quarter. This is largely driven by seasonally lower demand in building and construction. Additionally, we anticipate margin compression from higher energy costs and pricing pressures. We will see this primarily in Europe, the Middle East, Africa, and India, as Asian exporters redirect volumes into the region from prior U.S.

locations, where those volumes would now be subject to anti-dumping duties. Sequential tailwinds are expected to be provided by higher demand for deicing fluids, lower turnaround spending, and our cost reduction actions. In performance materials and coatings, we expect lower sequential EBITDA of approximately $100 million. Normal seasonally driven decreases in demand for building and construction and infrastructure end markets reflect an approximately $100 million headwind in the quarter. We expect this to be partly offset by continued strength for downstream silicones applications in electronics and home care. The incremental tailwinds from our cost reduction actions will be partly offset by planned maintenance at our Deer Park, Texas site. In summary, as we look ahead, Dow remains committed to delivering accelerated cost savings actions across the enterprise, as we've demonstrated throughout the year. Doing so will help offset the impact of higher feedstock costs and normal seasonality.

Thank you, Jeff. Turning to slide 10, the prolonged down cycle continues to weigh on our entire industry, but we're starting to see some encouraging actions in response, most notably around addressing industry oversupply. Specifically, announcements to date include significant rationalization of global ethylene, propylene oxide, and cyloxane capacities, each of which will benefit Dow's diversified portfolio. The vast majority are occurring in Asia and Europe, targeting assets that sit high on the global cost curve. This includes Dow's decision to shut down three European assets across each of our operating segments in order to right-size upstream regional capacity, reduce merchant sale exposure, and remove higher-cost, energy-intensive parts of our portfolio. Dow's rationalization announcements and those from industry peers have exceeded the majority of consultant projections, paving the way for improved operating rates, which will also be supported by anticipated polyethylene demand growth remaining above GDP for the foreseeable future.

As we have experienced through prior down cycles, we expect to see additional announcements and actions until more visible signs of recovery begin to materialize. As it relates to anti-competitive oversupply activities, our teams continue to be actively engaged in conversations with governments around the world to mitigate impact, aggressively defend local production, and to ensure a fair trade environment remains. These discussions have led to various actions and duties to protect local industries, including MDI in the United States, polyols in Brazil, and more. Dow's global asset footprint and product portfolio position us well to win in the key markets that we serve, particularly as purchasing patterns trend toward buying local products and materials to mitigate any potential tariff headwinds. Next, Karen is going to unpack some of these advantages in more detail.

Thank you, Jim. We are pleased to see several of the industry actions that you described beginning to unfold. We continue to monitor both supply and demand signals, and we're staying close to our customers and key external stakeholders to understand their unique challenges while identifying opportunities to drive profitable growth. At the same time, our teams are working to lower Dow's cost structure, enhance our cash position, and strengthen our manufacturing footprint through the shutdown of higher-cost assets and the startup of our advantaged growth investments serving high-value end markets. As the macro-economic environment improves, our actions will ensure Dow is best positioned to beat our competition, capitalizing on our key advantages. First and foremost, we are committed to being a low-cost producer. Currently, more than 75% of our global cracking capacity is in a top-quartile cost position.

This number will increase to approximately 80% once we complete the announced shutdown of our Böhlen cracker. In addition, we continue to upgrade our world-class asset footprint by right-sizing higher-cost capacity across a variety of value chains, including the shutdowns of 500 KTA of PO capacity in North America, 150 KTA of upstream siloxanes production in the UK, and one of our CAV units in Germany. Our downstream specialties capacity helps to differentiate and improve Dow's performance across the economic cycle, which will become more evident when our previously announced shutdowns are completed. Our innovation capabilities also enable strong earnings compared to our peers over the cycle, as evidenced in this year's annual benchmarking report. To summarize, with the addition of our U.S.

Gulf Coast investments, broad product range, leading cost efficiency, and global scale, Dow is set to gain share in premiums in markets that traditionally grow above GDP, like packaging, electronics, mobility, and consumer goods. We are confident that Dow's differentiated portfolio, paired with our team's strong execution, will position us to outperform as the industry recovers.

In closing, on slide 11, our priorities are clear, and our teams remain focused on restoring core earnings, enhancing our long-term competitiveness, and delivering more than $6.5 billion in strategic actions and cash support items to position Dow well for profitable growth and value creation in the recovery. As a reminder, this includes the $3 billion we received for our strategic partnership with Macquarie, as well as accelerating our in-year savings from the $1 billion in cost actions that we announced in January. In addition, our diverse product portfolio, strategically advantaged asset footprint, and global scale will help Dow to capture demand in attractive end markets growing above GDP. Our new Alcoxolation and polyethylene units in the U.S. Gulf Coast are already delivering returns, providing further evidence of the value of our integration and low-cost asset footprint in the Americas.

Importantly, we continue to engage in positive and productive conversations with several governments around the world as it relates to anti-competitive behaviors, as well as changing trade and tariff policies. We remain confident that we're in a strong position to mitigate the impact of tariff costs. In summary, we're focused, and we're taking strong actions to navigate the current environment while advancing our long-term strategic priorities. We remain committed to delivering strong performance, profitable growth, and lasting competitiveness in key value chains. As we have demonstrated in the past, we will continue to identify and implement the right actions that help us stay closer to our customers while outperforming the competition. With that, I'll turn it back to Andrew to get us started with the Q&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&A. Operator, please provide the Q&A instructions.

Thank you. Ladies and gentlemen, we will now begin our Q&A session. If you have dialed in and would like to ask a question, please press star followed by one on your telephone keypad. If you would like to withdraw your question, please press star one again. We kindly ask that everyone limit themselves to one question. Your first question comes from Vincent Andrews with Morgan Stanley. Please go ahead.

Thank you, and good morning, everyone. Wondering if we could just get a bit of a reconciliation about the third quarter. You know, ultimately, the results came in nicely ahead of what you expected when you gave the original guidance to in 2Q. Obviously, about a month ago, you were anticipating things were going to fall short of that, particularly in packaging and specialty plastics, but you wound up being able to exceed your original estimate there, likewise in II&I. Just wondering what happened. You know, was it just that September came in better than expected? Were you better on costs? Or just what allowed this outcome to take shape? Thank you.

Morning, Vincent. Let me ask Karen to walk through the business results, and then maybe Jeff to comment on how things came in on cost and cash.

Thank you for the question. There were really two areas that I would like to highlight in terms of the sequential improvement. Higher integrated margins in both P&SP and II&I, and that was in part driven by our new growth assets. Volume did come in better than we expected. The second thing is really around our cost efforts. Of course, we committed to those earlier in the year, the $1 billion. Originally, we thought that $300 million would be the number in 2025. We've since accelerated that to $400 million and have a clear line of sight to that. That actually showed up in the bottom line in the third quarter in a visible way. I would say that those two things were really the difference in terms of how we not only exceeded expectations from the last guide, but also sequential improvements quarter over quarter.

Vincent, good morning. This is Jeff. I'll just make a couple of additional comments here related to cash flow and even on the cost reductions that Karen was just mentioning. Initially in our guide for In 3Q, we expected it to be approximately $50 million tailwind for us, and it was actually better than that as September came in a little bit stronger on the cost reduction side at about $75 million. That is about a $25 million improvement there. I do want to spend a second on the cash flow as well, because you'll notice that our cash from operations came in at $1.1 billion in the third quarter, which is an improvement sequentially of $1.6 billion. That was really driven by three different areas here. There was sizable improvement in our working capital.

The team has done a phenomenal job of continuing to really double down on the working capital improvement going into the second half of the year. In fact, as you heard in my prepared remarks, we're expecting in the second half of the year our working capital to deliver a release of cash of $200 million-$300 million. We saw $80 million of that working capital improvement in terms of a source of cash during the third quarter. We also had the two long-term strategic supply agreements that Karen mentioned in her prepared remarks, as well as the improved earnings that we had sequentially from second quarter to third quarter.

Your next question comes from the line of Hassan Ahmed with Alembic Global Advisors. Please go ahead.

Morning, Jim. Really appreciate the industry sort of outlook you guys provided in slide 10. Just a broader question around rationalization and new project cancellations. On the rationalization side of things, obviously the South Korean side, the Japanese side, and the European side, you can assign projects. You can see which capacity is being shut down. What's less clear is the anti-involution side. China in particular, what cancellations may transpire over there. I'd really appreciate if you could sort of provide your thoughts around that. Part and parcel with that, I keep hearing that, look, once China announces new facilities, they never cancel those projects. They have a long track record of that. Is that also changing?

Good morning, Hassan. Thanks for the question. I would say a couple of things on the ethylene supply outlook, and I think most of your questions were geared toward that. We've got right now a line of sight to about 9,300 kilotons of global capacity, which is being rationalized. You've got about 4,400 kilotons in Europe, Middle East, and Africa, and those have been announced and I think are well documented. That includes our Böhlen asset. You've got 4,900 kilotons in Asia Pacific. That includes China, obviously, Japan, China, Singapore, and about 1,000 kilotons across the rest of Asia. We've got speculation on closures of about 13 million metric tons from a combination of additional capacity in Asia, Japan, and Korea to the tune of about 5 million tons, and China from the anti-involution policies to the tune of about 7 million tons. That's what's out there.

Obviously, the 9,300 kilotons that I mentioned, I would say much more confirmed than the 13 million metric tons. All of that together starts to bring you toward 10% of the global capacity. When you get into Europe, it's probably bringing you more into the 20% of European capacity range. I think that's right in line with what the industry is seeing. Your comment on China in terms of, once announced, completed, I don't have any data to counter that. I would say I think you might see some delays in some announced capacity in China just from a standpoint that the market in China is slow. For certain grades of product, we're not as big in something like high-density polyethylene, for example. For certain grades, they've reached self-sufficiency, and they really don't have the cost position to export them.

As the world pushes back with anti-dumping duties and other measures to keep trade fair, that's going to put pressure on them. I think they'll look at the timing on those.

Your next question comes from the line of Michael Sison with Wells Fargo. Please go ahead.

Hey, good morning. Nice quarter. In terms of PSP, I think you noted global integrated margins would be down $0.01 in the fourth quarter. Can you bifurcate that, you know, from whether pricing or cost in the U.S., Europe, and export? Just a quick follow-up. You know, slide eight, the pretty colors really haven't changed. They're not that pretty. If the global demand backdrop stays similar in the first half of 2026, you know, does EBITDA improve? I know you have more cost savings next year. Can you maybe just talk about what happens in the event that we have these same colors heading into next year?

Thanks, Michael. Karen, you want to hit P&SP, and I'll try to cover slide eight?

Yeah, so it's important to note that, first of all, in the third quarter, you know, take a look at how we ended the quarter from an industry perspective. When we came into the third quarter, we expected that prices would move up. Of course, as you know, they settled flat, even though we thought the market fundamentals were there. If you look at the ACC data in September, both domestic and export demand set records for the month. Industry inventories also drew down. It was the second-largest draw of the year. That is why we expect and we anticipate that prices should go up in October. We have $0.05 on the table, and that should continue to occur, even though it's a challenging market environment.

Dow (DOW) Q3 2025 Earnings Call Transcript

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