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

...welcome to the Dow Fourth 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 during that time, please press Star followed by one on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the call 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 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 two is our agenda for today's call.

Jim will review our fourth quarter and full year results, Karen will provide an overview of our operating segment performance, and Jeff will share some details on the macroeconomic environment and our modeling guidance for the first quarter. We will also provide updates on several of our strategic priorities, including the transformational work that we announced earlier today, an update on our Alberta project, and several of our in-flight actions that aim to provide near-term cash support and ensure we maintain our financial flexibility. Following that, we will take your questions. Now, let me turn the call over to Jim.

Thank you, Andrew. Beginning on slide three, Team Dow continued to execute with discipline during a year marked by persistent macroeconomic challenges and trade and policy volatility, as well as anti-competitive behaviors by certain industry players. In the face of external pressures, we managed what was within our control. Our fourth quarter operating EBITDA was $741 million, reflecting an expected sequential decline from lower seasonal demand and typical margin compression across many end markets. Looking across 2025, we accomplished several impactful near and longer-term milestones, all while the market wasn't providing many tailwinds. We identified more than $6.5 billion in near-term cash support items and delivered well over half in 2025, including the accelerated delivery of our in-year cost savings from our $1 billion cost out program. And we further strengthened our global manufacturing footprint.

This includes our announced plans to shut down upstream high-cost assets, as well as the completion of our remaining incremental growth investments, which serve downstream higher-value markets that are growing above GDP. We're also once again recognized as one of the world's best workplaces. This reflects direct feedback from our employees about the culture and talent that continues to drive Dow forward. As we move into 2026, we recognize that many markets are fundamentally shifting. Geopolitical dynamics, rapid advances in AI and automation, and economic volatility require new breakthrough approaches, greater agility, and continued technological adoption. That's why we announced our Transform to Outperform program earlier today. This work builds on our track record of taking proactive measures to help Dow, and it represents a fundamental change in how we will operate and serve our customers.

We believe this will strengthen our long-term competitive position through every part of the economic cycle. And lastly, we have finalized a value-maximizing path forward for our Path2Zero project in Fort Saskatchewan. We'll share more details on all of this later in the call, but before that, Karen will cover our fourth quarter operating segment performance.

Thank you, Jim, and good morning to everyone joining today. Dow's cost savings measures gained significant traction across every business in the second half of 2025, which is reflected in our fourth quarter performance. Despite continued industry pressures, we are delivering on our commitments and self-help actions. Beginning with our Packaging and Specialty Plastics segment on slide four. Fourth quarter net sales were $4.7 billion, with year-over-year and sequential decreases that were largely driven by lower downstream polymer prices. Volume decreased 2% year-over-year. This was primarily due to lower merchant olefin sales in Europe, the Middle East, Africa, and India, following our previously announced decision to idle one of our crackers in the Netherlands. Polyethylene sales volume increased year-over-year and grew sequentially, driven by continued global demand growth.

Operating EBIT was $215 million, down from the year ago period, driven by lower integrated margins. Sequentially, operating EBIT increased by $16 million. This was driven by the company's cost savings efforts throughout the quarter, which more than offset margin compression. In addition to lower fixed costs, Packaging and Specialty Plastics benefited from higher licensing revenue, increased energy sales, and higher sequential volumes in polyethylene... Through a challenging environment, Team Dow set an annual ethylene production record for the third consecutive year. This highlights the strength of our cost-advantaged asset footprint, our focus on operational excellence, and the early impact from the startup of our new Poly 7 polyethylene train in the US Gulf Coast, which serves high-value downstream markets. Next, turning to our Industrial Intermediates and Infrastructure segment on Slide 5.

Overall demand for industrial applications remains challenged, which continues to pressure the industry and our businesses. Net sales for the segment were $2.7 billion, down 9% versus the same period last year. Sequentially, net sales decreased 5%, mainly due to lower local prices and seasonally lower building and construction volumes. Volume decreased 1% year-over-year, primarily driven by lower volumes in polyurethanes and construction chemicals. This was partly offset by higher than typical seasonal demand for de-icing fluids, which have continued into 2026. Operating EBIT decreased $285 million versus the same quarter last year, and $154 million sequentially, driven by lower integrated margins. Our cost savings in both businesses helped offset some of the decline.

We also completed the shutdown of our higher-cost upstream propylene oxide unit in Freeport, Texas, rationalizing approximately 20% of North American PO industry capacity. Moving to the Performance Materials and Coatings segment on Slide 6. Net sales were $1.9 billion, representing a 6% decrease compared to the same period last year. This decline was primarily driven by a 4% reduction in local prices across both businesses. Sequentially, net sales declined, reflecting typical seasonal slowdowns, particularly in building and construction end markets. Volumes decreased 2% year-over-year, driven by lower supply availability from planned maintenance and Coatings and Performance Monomers, while volumes and Consumer Solutions were flat. Even with the impacts from tariff uncertainties, we delivered increased volumes in 2025, marking the second consecutive year of growth for our downstream silicones franchise.

The business remains focused on shifting our mix towards higher-value products while reducing upstream capacity. This strategy advances our previously announced European asset actions, including plans to shut down our basic siloxanes plant in Barry, U.K., by mid-2026. Operating EBIT for the segment increased by $34 million compared to the year-ago period, driven by strong demand for our electronics and mobility applications, as well as our ongoing efforts to reduce costs. On a sequential basis, operating EBIT was down $55 million, largely driven by lower monomer supply availability from our planned turnaround in Deer Park, Texas, as well as typical low seasonal demand. To summarize our fourth quarter performance, even with continued industry challenges and normal seasonality throughout our portfolio, our self-help actions enabled us to deliver results ahead of expectations.

In 2026, we will continue to operate with discipline while taking decisive measures to adapt to market realities and transform our business for long-term resilience. I will touch on all of that shortly, but first, I'll turn the call over to Jeff, who will share some macroeconomic insights and our outlook for the first quarter.

Thank you, Karen. Good morning to everyone participating on today's call. Slide 7 shows that across the broader macroeconomic landscape, there are mixed signals. In several of our end-market verticals and key geographies, recent developments are showing some encouraging signals in response to structural industry challenges, as well as trade and tariff uncertainties. This includes several announcements of further ethylene capacity rationalizations, as well as the elimination of VAT export rebates on select products in China. Across our packaging market vertical, global polyethylene fundamentals are expected to remain stable heading into 2026. From a price standpoint, ACC inventory shows a net draw in 2025, which should provide support for the price increases we've announced for January and February. Across the infrastructure sector, building and construction conditions are likely to gradually improve as interest rate cuts over the past 12 months gain traction.

Housing starts and existing home sales remain well below historical averages, but there are some signs of positive momentum, with existing home sales increasing for four months in a row. Consumer confidence has improved slightly, but remains near historic lows, continuing to weigh on overall demand. At the same time, U.S. retail spending is holding steady in several categories, with resilient sales of electronics as a bright spot. Mobility remains mixed. In China, EV sales are anticipated to moderate as subsidies expire and government support narrows, but growth rates are still expected to remain strong. In the U.S., auto manufacturers anticipate a softer market in 2026 due to increasing costs. Overall, our teams are continuing to navigate a variety of dynamics across the key markets that Dow serves, reinforcing the importance of our disciplined cost actions, diversified market exposure, and strategically advantaged manufacturing footprint.

As we've demonstrated in the past, we will continue to maximize value while making appropriate trade-offs. Throughout 2026 and beyond, we will build on this momentum to enable even further improvements in our top and bottom line performance. Next, I'll cover our outlook on slide 8. Our expectations for first quarter EBITDA is approximately $750 million. This sequential improvement accounts for anticipated margin expansion, as well as the normal seasonal uplift following typically low fourth quarter market demand conditions. We also expect continued tailwinds from our efforts to reduce costs across every business, function, and region. With that, some of these gains should be offset by higher planned spending on turnaround activities, as well as lower equity earnings. Turning to our operating segments. In Packaging and Specialty Plastics, we anticipate that price increases and lower feedstock costs will provide higher sequential integrated margins.

Lower equity earnings from a cracker turnaround at our Kuwait joint ventures, as well as lower licensing activity, will represent a collective headwind of approximately $75 million in the quarter. Finally, planned maintenance at one of our crackers in Louisiana represents another headwind of approximately $125 million. Moving to Industrial Intermediates and Infrastructure, we expect normal seasonal improvements in building and construction end markets. Additionally, positive demand momentum for de-icing fluids should continue into the first quarter, providing a tailwind for the segment. Our cost savings efforts will provide an additional $10 million tailwind, while approximately $15 million for planned maintenance activity throughout the quarter is expected to offset these gains.

In the Performance Materials and Coatings segment, we anticipate typical seasonal improvements for architectural coatings, as well as higher siloxane pricing following the increased market prices that happened in China late last year. Selectively, this will provide roughly $80 million of sequential tailwinds this quarter. We'll also see a small uplift from lower maintenance activity following the completion of a planned turnaround at our Deer Park, Texas, site, as well as continued contributions from our cost reduction actions. Across the portfolio, this combination of factors result in improved operational results for the quarter. Our continued efforts to structurally reduce costs in every area of the company, paired with seasonal demand improvements and expectations for margin-related tailwinds, are meaningful. However, higher planned turnaround spending will weigh on first quarter results.

Looking ahead, as our transformational work and continued cost reduction actions progress, our teams will remain focused on managing what's within our control to preserve our financial flexibility. Now, I'll hand the call back to Jim.

Thank you, Jeff. Slide 9 outlines the key areas where we're focused on strengthening Dow's earnings power to ensure that we remain resilient through every cycle. First, we expect to deliver the remaining more than $500 million in cost savings by the end of this year from our previously announced $1 billion program. We're also executing a series of strategic moves that will uniquely position Dow to win. This includes the startup of our remaining incremental growth investments in cost-advantaged regions, as well as our announced shutdowns of upstream, higher-cost assets. Additionally, Transform to Outperform is expected to deliver at least $2 billion in near-term EBITDA improvement. About two-thirds of that will come from productivity gains and the remaining one-third from growth. This work will radically simplify how we operate, streamline our end-to-end processes, reset our cost structure, and modernize how we serve our customers.

We anticipate the outcomes to deliver step change improvements in productivity, more growth with our customers, and greater shareholder returns. And lastly, a refined timeline for our cost advantage Path2Zero project in Alberta will enable us to align capital deployment with market conditions and maximize project returns when demand improves. The underlying enabler to all of this work is our focus on maintaining financial flexibility while preserving our investment-grade credit rating. Together, these actions form a cohesive roadmap that aims to strengthen our near and long-term competitiveness. Next, Karen has more details about several of these key strategic priorities.

Thank you. Turning to slide 10. As Jim mentioned, we are well on our way to delivering more than $500 million in cost savings, representing the remainder of our 2025 $1 billion cost savings program. This builds on our demonstrated ability to deliver higher-than-expected savings last year, when we realized more than $400 million versus our original target of $300 million. In addition to that, we are executing several strategic moves that will uniquely position Dow to win, many of which will begin to materialize in 2026. For example, in packaging and specialty plastics, we completed the startup of our Poly 7 world-scale polyethylene train last year. Using Dow's proprietary solution technology, Poly 7 is designed for lower cost and increased production capacity, as well as improved efficiency and flexibility.

The new asset is supporting customer-driven demand in specialty packaging, health and hygiene, and industrial and consumer packaging applications. Additionally, the completion of our new alkoxylation capacity will support growth in Industrial Solutions, which serves attractive end markets such as home care, pharma, and energy. We're also progressing our plans to shut down higher cost upstream assets, including three in Europe, largely due to the ongoing structural challenges in the region. Each of these assets represents a meaningful portion of our regional capacity and are high on our cost curve. These shutdowns are cash accretive and expected to result in an annual EBITDA uplift of $200 million by 2029, with benefits beginning in 2026, with the shutdown of our basic siloxanes capacity in Barry, U.K., by mid this year.

Next, on slide eleven, I'll walk through additional details about some of the work that is already underway, as well as what's next. Transform to Outperform builds upon the self-help actions that we have implemented over the past few years, but importantly, it goes a lot further, representing a structural reengineering of our operating model and cost base. The goal of this transformation is to achieve significant growth and productivity gains that elevate Dow's competitive position. While this transformation aims to simplify the way we work, it will not impact our long-standing commitment to our core values of safe and reliable operations. In addition to simplification, we will focus on streamlining all of our end-to-end work processes and resetting our cost structure. We'll continue to utilize the power of leading-edge practices and technologies to modernize how our teams serve customers in key fast-growing markets.

We are bringing a full 360-degree view to this work, inclusive of external viewpoints, lessons from other industries, and robust benchmarking, in addition to our own expertise. We have established a dedicated Dow team to drive our transformation efforts across every part of the company. We anticipate at least $2 billion of near-term EBITDA uplift from this work, and we've outlined a clear timeline and understanding of the costs to achieve it, which we will hold ourselves accountable to. A third of this will come from new growth, and the remaining two-thirds of the benefits will be in the form of productivity improvements.

This year, we expect to deliver approximately $500 million in value, and as a reminder, this is on top of the more than $500 million we will deliver in 2026 to round out our 2025 cost savings program. We anticipate one-time costs of approximately $1.1 billion-$1.5 billion, including $600 million-$800 million of severance and $500 million-$700 million of other one-time costs. Next, I'll share a few examples of the early opportunities that we have already identified and are taking action on. First, as part of our commitment to operational excellence, we will simplify Dow's operating model. We do anticipate this will include a global Dow workforce reduction of 4,500 roles. It will also result in a reduction of third-party roles and resources.

As the way we work evolves, so will our expectations for where and how work gets done. This will allow us to speed up decision-making and put the right roles in the right areas of the company to better align with the changing market landscape and with where our customers are investing. We will also adopt new ways of working. This includes streamlining all of our end-to-end work processes by leveraging the power of automation and AI, which we expect will result in lower costs and improved efficiency across the entire organization. We will modernize the way in which we grow with our customers through our industry-leading innovation capabilities and deeper insights into customer and end market needs. Finally, we will fundamentally reset our cost structure. This work will result in a renewed focus on improved raw material sourcing and logistics to drive further efficiency.

These are just a few examples of how Transform to Outperform will deliver step change improvements in both growth and productivity. We're committed to providing you with updates every quarter as the work and value delivery progresses. And we are confident that these efforts will create a Dow that raises the competitive benchmark, is more resilient across the cycle, and consistently delivers growth, customer success, and shareholder value. Next, Jim will provide an update on our Path2Zero project.

Turning to slide 12. In April last year, we announced that we would be delaying construction of our Path2Zero project in Fort Saskatchewan. This decision supported our near-term cash flow while also assuring the project timing would better align with a market recovery. After careful analysis and collaboration with all of our project partners, we have determined that completing the project with a 2-year delay is the most value-creating option. This moves phase one startup to late 2029 and remains the best option in support of our long-term value creation goals. We remain committed to the strategic rationale of the project and the upside that it will enable in targeted applications like pressure pipe, wiring, cable, and food packaging. We're confident that Dow can capture outsized growth in these markets for years to come, which will create value for shareholders.

We are taking deliberate steps to ensure the new asset will be first quartile globally, further enhancing our low-cost footprint. Importantly, we do not expect any material impact to the cash and tax incentives associated with this timeline. On the execution front, several milestones have been achieved. This includes heavy equipment procurement and detailed engineering design. As we begin to ramp up workforce labor for the project, our robust risk mitigation strategies will help us ensure that it remains on track with current cost projections. With the project delay and resulting incremental CapEx increase associated with it, we now expect returns of at least 8%-10%. We anticipate that our efforts to reduce and mitigate costs will provide further upside, and we continue to advance several additional levers within our control that could further improve our returns.

For example, the value from low carbon product premiums is not included in our base model, representing potential further upside of 100-200 basis points. The low carbon supply agreement that we signed last year is a testament to the value that brand owners and consumers place on decarbonized products, and we have more in the queue. Approximately 30% of the total project CapEx spend is complete, and we anticipate that Dow's CapEx spending will remain at or below D&A until we see mid-cycle earnings. While our intention is to continue this project on a standalone basis, we remain open to all options that could enhance value, provided they benefit Dow's strategy and support shareholder returns. Market conditions remain challenging, but the industry has made significant progress in 2025, including accelerating capacity rationalizations.

We anticipate that the startup of the Alberta project will align well with these industry operating rate improvements ahead of the next cycle peak. With that, I'll hand it off to Jeff to share more about how we're preserving near-term financial flexibility.

Thank you, Jim. On slide 13, looking ahead, the strong financial actions we initiated in 2025 will help us continue to navigate a still challenging macro environment while executing with discipline and consistency. Taken together, these actions give us line of sight to more than $3 billion in near-term earnings uplift potential before the phase one startup of our Path2Zero project. In addition to this, our cash and cash equivalent balance was above $3.8 billion at the end of 2025, and Dow has approximately $14 billion of available liquidity, including a revolving credit facility that was recently renewed through 2030. In 2025, we completed multiple actions to strengthen Dow's near-term cash flow, further reinforce our balance sheet, and achieve lasting operational improvements.

For example, we received approximately $3 billion in total cash proceeds for our strategic partnership with Macquarie Group for the sale of a 49% equity stake in select U.S. Gulf Coast infrastructure assets. We lowered our cost by more than $400 million in the year, and we lowered our CapEx plans by $1 billion. In addition to that, we completed two bond issuances at attractive spreads for a total of $2.4 billion, pushing our next material maturity to 2029. We made the prudent decision to implement a 50% dividend reduction. Collectively, the actions we took provide near-term financial flexibility and support while maintaining our commitment to an investment-grade credit profile. Our teams will continue this momentum into 2026. This starts with delivering approximately $1 billion of benefits this year.

As a reminder, this includes the more than $500 million of cost savings that remains in our 2025 program, as well as an additional $500 million in operating EBITDA benefits from Transform to Outperform. And we remain focused on completing the remainder of our more than $6.5 billion in near-term cash support actions. Our disciplined operating model, commitment to capital efficiency, and the decisive actions we've taken over the last few years ensure Dow is well positioned to continue navigating near-term volatility. At the same time, Transform to Outperform will enable us to build towards sustained earnings power and a recovery. Next, Jim will provide closing remarks on slide 14.

Thank you, Jeff. In summary, 2026 represents an inflection point, where our long-term vision and the steps we've taken to navigate a challenging down cycle come together to position Dow for stronger, more resilient growth. First, and foundational to everything we do, is our commitment to safe and reliable operations and financial flexibility. Transform to Outperform will become a central driver of new value creation. It builds on our core strengths and positions us to operate with greater speed and efficiency. While also enhancing our focus on innovation and value creation with our customers. And with a revised timeline, our Path2Zero project will enable growth in high-value packaging, infrastructure, and wiring cable applications. The project represents a growth opportunity that is unique to Dow.

It adds a first quartile cost asset in a globally competitive NGL basin and gives us the best portfolio of low carbon product offerings. We also expect to fully realize the benefits of our near-term incremental growth projects, which expand our ability to serve high-value markets from cost advantage positions. And lastly, as Jeff just outlined, we're progressing several cash and cost support actions to give us even further financial flexibility in the near term. In summary, we're revamping our operating model, resetting our cost structure, and enabling new growth. Our strategic priorities are clear. We are delivering on near-term cash and cost savings levers. We're investing where we have lasting structural advantages. We are simplifying, streamlining, and modernizing to enable greater agility, and we are building a more competitive Dow that is positioned to innovate faster and grow more effectively with customers. These are not new priorities.

They are part of Dow's D&A. But it is a step change in how we operate that is especially critical in today's environment. 2026 will be about execution, discipline, and accelerating the work we've already begun. And 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 Hassan Ahmed with Alembic Global.

Morning, Jim. You know, Jim, a question around... Well, a two-part question around capacity curtailments. You know, in the last call, you guys obviously talked at length about, you know, seeing roughly 20 million tons of capacity rationalization. So would love to sort of get an update with regards to where we stand on that figure. And then part and parcel with that, you know, about your decision to carry forward with the Alberta project. I mean, how do you—I mean, obviously, the returns seem favorable to Dow, but in the broader landscape, you know, what compels you to sort of go through with that decision?

You know, the fear obviously being that any sort of future upcycle, you know, if there's sort of quote-unquote, "this phantom capacity that lingers on," that may impede the sustainability of any sort of future upcycle. So would love to hear your thoughts about that as well.

Good morning, Hassan. Thanks for the question. I don't think there's dramatically new data on the number of ethylene capacity rationalizations that have come out. We've seen more firm announcements out there. I think the total amount now is in the 15%-20% of the European capacity that's coming out. I haven't seen anything substantive on anti-dumping in China, so nothing has changed there. On Path2Zero, I think several things in our view, the changes that are happening are going to lead to the next upcycle. We're at a point right now, and you've made this comment before in some of your writing, that demand has been relatively lackluster, and we know what the supply situation is and where supply is going. And demand in some of the higher volume markets has been where things are soft.

So as we see housing, construction, infrastructure, other things pick up, that's typically where you see things start to take off on operating rates. As we mentioned, the low-cost assets, we ran them hard. We set an ethylene production record, even with a cracker idled, a good cracker idled in Europe. So I think it speaks to, you know, running the low-cost assets hard. Path2Zero will put another cracker in the first quartile for us, while we exit positions that are in the fourth quartile. I think that's something that we have to do in every cycle. We gave a guidance on the return on Path2Zero, which is at the low end, and there are some upsides in there.

And those will be driven by things that we can do to mitigate the costs, and obviously, continued success on bringing in the premiums for the low-carbon product that's coming out of there. And we're able, so far, to see a good outlook on the cost picture. We've got the detailed engineering design essentially done. We've got the long lead time items procured, so we got a pretty good handle on how the costs are coming in. The remainder is gonna be the labor when we start to ramp that up.

Dow (DOW) Q4 2025 Earnings Call Transcript

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