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 4th Quarter 20 24 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 will now turn it over to Dow Investor Relations' Vice President, Andrew Reicher.

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

Carter. Please note our comments contain forward looking statements and are subject to the related cautionary statement 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 2 is our agenda for today's call. Jim will review our Q4 and full year results, Aaron will provide an overview of our operating segment performance, and Jeff will share an update on the macroeconomic environment and our modeling guidance for the Q1. Jim will then provide details on the intentional actions Dow is taking to navigate the prolonged economic downturn and close out the call. Following that, we will take your questions.

Thank you, Andrew. Beginning on Slide 3, there's a lot to unpack in our results this quarter. So let me first walk through the headlines. In the Q4, TeamDAO delivered our 5th consecutive quarter of year over year volume growth despite continued weak macroeconomic conditions. Net sales were $10,400,000,000 which is down 2% versus the year ago period and reflects pricing pressure seen across the industry in the quarter.

Local price was down 3% year over year and sequentially with declines across all our operating segments. Operating EBITDA was $1,200,000,000 which is approximately flat compared to the same period last year. Cash flow from continuing operations was $811,000,000 resulting in free cash flow of $44,000,000 Returns to shareholders totaled $492,000,000 of dividends in the quarter and our total CapEx spend was $767,000,000 As you saw in our numbers this quarter, we also had a non cash tax adjustment impacting net income and EPS. Jeff will provide more details on that later in this call. Throughout the quarter, we announced additional actions that continue to support the optimization of our global portfolio for growth, while maintaining a best owner mindset.

For example, we continue to ramp up operating rates at our Texas Ape, Cracker and Glycol II unit. We completed the sale of our flexible packaging laminating adhesives business to Arkema for an enterprise value of approximately $150,000,000 and we've signed a definitive agreement with Macquarie Asset Management for the sale of a minority stake in select U. S. Gulf Coast infrastructure assets for which we expect to receive cash proceeds of up to $3,000,000,000 And driven by persistently weak global macroeconomic conditions, we announced a strategic review of select European assets, primarily in our polyurethanes business, where demand has been structurally challenged over the past 5 years, making it the highest cost region for several of our key businesses. We are also postponing a maintenance turnaround at one of our ethylene crackers in Europe.

This decision will result in us idling this asset starting in the Q2 until market dynamics improve. And today, we announced targeted actions to reduce our costs by $1,000,000,000 and our CapEx by $300,000,000 to $500,000,000 Collectively, the additional actions are focused on reinforcing our long term competitiveness as we continue to navigate this prolonged economic downturn. Turning to Slide 4, in 2024, TeamDAO continued to advance both our near term priorities and our long term strategy to become a stronger, more innovative company. We delivered net sales of $43,000,000,000 operating EBIT of $2,600,000,000 and year over year volume growth of 3% excluding merchant hydrocarbon sales. Earlier in 2024, we began construction at our path to 0 investment in Fort Saskatchewan, Alberta.

When complete, the project is expected to generate approximately $1,000,000,000 in incremental EBITDA annually by 2,030. Dow was also recognized externally through industry leading awards and certifications. Last year, we earned 12 Edison Awards for Innovation and Great Place to Work and Fortune named Dow as one of the top 25 world's best workplaces. TeamDAU navigated several challenges over the past year, including weather related and supply chain disruptions and continued uncertainty in many regions and markets that we serve. And in response to evolving market dynamics and sluggish demand recovery in Europe, we demonstrated our best owner mindset with more than 20 proactive actions to address higher cost assets.

I remain confident in our company's ability to foster a sustainable future, achieve long term profitable growth and enhance shareholder returns. Now, I'm pleased to turn it over to Karen S. Carter, Dow's Chief Operating Officer, who will provide an overview of our operating segment performance on Slide 5.

Thank you, Jim. I'm pleased to join you all today. And before I begin, I'd like to mention what an honor it is to be named Dow's Chief Operating Officer. I look forward to engaging with many of you, our owners, in the near future. In my more than 30 years at Dow, I have progressed through the organization to most recently leading PNSP, the company's largest operating segment.

And I have worked across a broad range of businesses and functions, including global leadership positions within the building and construction and consumer electronics end markets as well as Dow's polyethylene franchise. This has given me a deep appreciation for our company's competitive advantages, the strength of our innovation engine and our commitment to delivering profitable growth. As COO, my priorities are to further strengthen our customer engagement, accelerate the commercialization of Dow's innovation pipeline and enhance reliability and productivity. I am committed to driving business and operational results, while progressing our strategic priorities to deliver long term value for our shareholders. Now let's move to our operating segment results.

In the Packaging and Specialty Plastics segment, we entered the 4th quarter with a challenging backdrop of ample industry supply, high feedstock costs and a typical seasonal slowdown in demand. Segment results reflected a decrease in local price both year over year and sequentially. This was primarily driven by lower functional polymers and polyethylene prices as a result of the October price decline reflected in the market indices and other competitive price pressures throughout the quarter. Despite higher demand for flexible food and specialty packaging in all regions except Latin America, volume for this segment was down 1% year over year. This was primarily driven by lower third party hydrocarbon sales and non recurring licensing revenue.

Operating EBIT was $447,000,000 a decrease of $217,000,000 compared to the year ago period. This was primarily driven by lower integrated margins and licensing revenue. Moving to the Industrial Intermediates and Infrastructure segment. We benefited from strong global energy demand as well as stable consumer and pharma demand. We also experienced typical seasonal improvements for deicing, while agricultural and coatings applications saw normal seasonal declines.

Looking at Q4 results, local price declined 1% year over year, while volume was up 1% year over year. This was driven by improved supply availability in our Industrial Solutions business as we finished ramping up our Glycol II unit ahead of schedule. Those gains were partly offset by continued softness in the polyurethanes and construction chemicals business. Operating EBIT for this segment increased $69,000,000 versus the year ago period. Results were primarily driven by higher operating rates and improved supply availability in the Industrial Solutions business.

And in the Performance Materials and Coatings segment, volume was up 5% with strong gains across both architectural coatings and downstream silicones. We achieved this despite global weakness in building and construction end markets as high interest rates continue to pressure spending in residential markets. Operating EBIT increased $52,000,000 compared to the year ago period, driven by volume gains and lower fixed costs. Now, I'll turn the call over to Jeff, who will provide an overview of the macros and our outlook.

Thank you, Karen, and good morning to everyone joining our call today. Moving to Slide 6. While global GDP is expected to grow at similar levels to 2024, recent economic activity is primarily being led by the strength in service related sectors. In contrast, global manufacturing PMI is at contractionary levels with output and new orders declining in December. Ongoing affordability challenges also continue to pressure spending in housing and durable goods sectors.

These dynamics have created a 2 speed economy and we continue to monitor key indicators for signs of positive inflection in more challenged end markets. Notably, this includes the pace of interest rate cuts in the U. S. And Europe and recent stimulus actions in China for any impact on inflation as well as end market demand. In addition, we are watching for any impacts from ongoing geopolitical volatility, including potential tariffs.

Now looking across our 4 market verticals, in packaging, we continue to see demand growth, especially in North America, with resilient domestic and export polyethylene dominant throughout the year. In China, manufacturing activity remains tepid and overall demand in Europe continues to be soft. Infrastructure demand remains weak globally, particularly in residential construction. In the U. S, mortgage rates are now back up above 7%, representing the highest level since May despite lower Fed interest rates.

This is driving ongoing affordability issues with U. S. Building permits remaining below their 3 year average. China new home prices also declined year over year for the 18th consecutive month. Consumer spending continues to be constrained by persistent inflation in the U.

S. And Europe with consumer confidence levels declining in December. In China, overall retail sales were up in December, although year over year growth in furniture sales decelerated from the prior month. And in mobility, higher auto sales in the U. S.

And China were driven by discounts to clear elevated inventories and government stimulus actions respectively. We also saw new car registrations in the EU decline 13% in the second half of twenty twenty four compared to the first half of the year. Now turning to our outlook on Slide 7. We expect 1st quarter earnings to be approximately $1,000,000,000 down $200,000,000 quarter over quarter. This is largely due to higher anticipated feedstock costs, which have increased due to the severe cold snap.

We expect this to pressure margins as we start the quarter. We will also have higher plant maintenance activity in the Q1 across our 3 operating segments, but expect full year plant maintenance activity to be roughly in line with the prior year. In addition, we anticipate our operational tax rate to be in the range of 25% to 29%, in line with our historical rate. This reflects an improvement versus the 4th quarter, which was elevated largely due to higher than expected non cash tax adjustments. These tax items were primarily related to Argentina, which was amplified by inflation.

Audit remeasurements and currency were also drivers for the 4th quarter tax rate. Next, I'll turn to our outlook and Q1 guidance by segment. In Packaging and Specialty Plastics, we expect higher feedstocks and energy costs to outpace price increases from a timing perspective in the quarter. As a result, global integrated margins are expected to be lower sequentially. In addition, we anticipate headwinds of approximately $50,000,000 from higher planned maintenance activity, primarily along the U.

S. Gulf Coast. In the Industrial, Intermediates and Infrastructure segment, we anticipate lower margins in our polyurethanes business from higher energy costs, as well as lower catalyst sales in our Industrial Solutions business. In the quarter, we have planned maintenance activity scheduled at our ethylene oxide asset in Seadrift, Texas, which will enable the startup of additional alkoxylation capacity in the U. S.

Gulf Coast. This new capacity is one of the near term growth investments we outlined at our last Investor Day and should support higher sales beginning in the Q2. And in the Performance Materials and Coatings segment, building and construction end markets remain soft with high mortgage rates in the U. S. And sector weakness in China continuing to weigh on demand.

However, we expect the seasonal demand uptick in 1st quarter to provide a tailwind of approximately $75,000,000 In addition, our regular yearly maintenance at our monomers assets in the U. S. Gulf Coast is expected to be a sequential headwind of approximately $25,000,000 On a final note, last week the U. S. Gulf Coast was impacted by a powerful winter storm.

Our manufacturing sites have managed well, but we continue to monitor any further developments both at our sites as well as across the industry. The current guidance does not include any impact favorable or unfavorable stemming from the storm. Now I'll turn the call back over to Jim.

Thank you, Jeff. On Slide 8, in the midst of the prolonged downturn and slower than expected economic recovery that our industry is experiencing, Dow is taking several key actions to further reduce our costs and reinforce our long term competitiveness through the economic cycle. First and foremost, we're taking additional targeted actions aimed at improving our margins. We announced today that we will implement cost reductions of $1,000,000,000 on an annual run rate basis by 2026. These actions will be primarily focused on 3rd party contract labor and purchased services.

In addition, we are targeting the elimination of approximately 1500 DAO roles. Last quarter, we announced that we would kick off a strategic evaluation of our European asset footprint and we're on track to provide an update on this work by mid-twenty 25. Lastly, as we complete our in flight higher return growth projects this year, we're also taking actions to preserve our strong financial foundation. We intend to recalibrate our CapEx deployment to match the current demand and macroeconomic conditions and we'll do so by reducing our 2025 spending by $300,000,000 to $500,000,000 compared to our previously disclosed target of $3,500,000,000 We will keep CapEx spending roughly at these levels until we see a clear recovery materialize across broad portions of the end markets that we serve. Turning to Slide 9, we continue our ongoing practice of reviewing our global portfolio.

Last month, Dow entered into a definitive agreement to sell 40% equity stake in select infrastructure assets to Macquarie Asset Management, a leading global infrastructure investor. We anticipate the transaction will close by mid-twenty 25. This newly formed infrastructure focused company named Diamond Infrastructure Solutions is comprised of assets that support a wide range of services at 5 of Dow's manufacturing sites along the U. S. Gulf Coast.

The new company will operate within Dow and has a dedicated management team with priorities in support of Diamond Infrastructure Solutions strategy. Importantly, Dow will maintain operational control to ensure our standards for safe and reliable operations are upheld. This transaction is expected to generate approximately $2,400,000,000 of initial cash proceeds for Dow. Macquarie Asset Management has the option to increase their minority equity stake to 49% within 6 months of closing, which would increase cash proceeds to approximately $3,000,000,000 for Dow if exercised. The long term partnership leverages Dow's operational excellence and Macquarie Asset Management's world leading infrastructure positions to generate incremental operational efficiencies as well as future growth opportunities with existing and new customers.

With enhanced financial flexibility from this partnership, Dow is in a strong position to continue to invest in growth and deliver enhanced returns to our shareholders, particularly as market conditions improve. Closing on Slide 10, as we navigate a challenging near term environment, we are committed to a disciplined and balanced approach to delivering our cash and capital allocation priorities. Our ability to proactively manage in an extended economic downturn will position Dow well for long term success. As I mentioned earlier, last week we postponed a maintenance turnaround at 1 of our ethylene crackers in Europe. This decision will result in us idling this asset starting in Q2 until market dynamics improve.

This reduction in planned turnaround spending will keep 2025 turnaround spending levels in line with the prior year. We will continue to match supply with profitable demand until margins improve. We continue to take proactive strategic actions to optimize our global footprint, drive operational performance and reduce our costs and capital expenditures. In 2025, our additional cost actions and reduced CapEx spending will help us to enhance near term cash flow, margins and earnings growth, while remaining committed to our long term strategic priorities. In addition, our signed agreement with Macquarie Asset Management further strengthens Dow's financial flexibility and the potential to generate up to $3,000,000,000 in cash proceeds in 2025.

This transaction is consistent with Dow's best owner mindset and track record of delivering unique to Dow cash flow levers to mitigate cyclical volatility. We're optimistic that we will continue to see demand growth in attractive end markets such as packaging, energy and electronics. And once completed, our near term growth investments representing higher return and quicker payback projects will enable improved underlying earnings and margins across the cycle. With a differentiated portfolio and proactive actions to support our solid financial foundation, we are confident in our ability to deliver on all of our capital allocation priorities, including our industry leading dividend. At the same time, we will continue to maintain our focus on operating and financial discipline to drive long term shareholder value to ensure that we remain well positioned for the cycle recovery.

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. Ladies and gentlemen, we will now begin our question and answer session.

Just before we get to the first question, I wanted to make a few brief comments about the tragic incident that occurred near Washington DC last night. We were saddened by the news of yesterday evening's passenger plane crash. As a company with values centered on people, our hearts are heavy for all those who have been affected by this tragic event. Our thoughts and deepest sympathies are with the passengers, crew members and their families during this incredibly difficult time. Operator, do we have the first question?

Yes. Mr. Fitterling, your first question comes from the line of Vincent Andrews with Morgan Stanley. Please go ahead.

Thank you and good morning. Jim, if I could just ask you to revisit the 3 bridge items we talked about on the last call, one of which was sort of operating rate or macro improvement. The second was the year over year delta planned maintenance, which sounds like it's going to be neutral now. And then third was just sort of the startup of Dow projects that we're going to contribute. So if you could just update us on where you see those for 2025 at this point?

Sure. Good morning, Vince. Thank you. Both on operating rate, I would say in Q4, we saw some improvements in overall company operating rate, but on industry operating rate, we're still not in an expansionary level yet.

Europe has been a big weight on that. Europe continues to be for the industry about 20% below pre COVID levels across the board. And if you get into other sectors like housing related polyurethanes, it can even be lower than that. I'd say the operating rates in the Americas continue to be relatively strong. So you're talking about high 80s, low 90s percent types of operating rates.

Ethylene chain stronger than the propylene chain. Housing and automotive drive a lot in the propylene chain and downstream silicones obviously doing better than siloxanes. So siloxanes rates

Dow (DOW) Q4 2024 Earnings Call Transcript

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