NYSE:DOW
DOW INC.
A leading global manufacturer of science-based materials providing essential solutions for agriculture, construction, and industrial sectors facing recent profitability headwinds.
Key Metrics
Investment Thesis
Bull Case
Despite recent losses, Dow maintains a strong balance sheet with $3.82B in cash and equivalents to weather economic downturns and fund potential acquisitions. Investors may view the current valuation as an opportunity to buy a market leader at a discount before anticipated cost-cutting measures or cyclical recovery restores profitability.
Bear Case
The company reported a -$2.44B net loss in 2025, a stark reversal from $1.20B profit the previous year, indicating severe operational distress. With revenue under pressure at roughly $40B and a massive retained earnings deficit of $16.78B, the stock faces significant downside risk until clear signs of margin stabilization emerge.
About DOW INC.
Dow Inc. is a global science and technology company that transforms raw materials into essential products across industries like agriculture, construction, electronics, and healthcare. Serving markets worldwide, the company leverages its scale to deliver high-performance materials including polymers, coatings, and performance chemicals for critical applications.
Analysis
Management Discussion
While revenue declined sequentially to $39.97B in 2025, the most critical development is the sharp contraction in net income to a -$2.44B loss, contrasting sharply with prior years of profitability. This negative operating profit suggests significant cost pressures or volume declines that have overwhelmed operations despite the company's substantial cash reserves and asset base.
Industry Overview
The chemical manufacturing industry is characterized by high capital intensity, cyclicality tied to global economic health, and long-term growth driven by industrialization in emerging markets. Companies must continuously innovate to meet sustainability goals while managing volatile commodity prices to maintain competitive positioning.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $56.90B | $44.62B | $42.96B | $39.97B |
| Cost of Revenue | $48.34B | $39.74B | $38.36B | $37.44B |
| Gross Profit | $8.56B | $4.88B | $4.61B | $2.53B |
| Operating Expenses | $2.47B | $4.22B | $3.01B | $5.04B |
| Operating Income | $6.09B | $656.0M | $1.60B | $-2.51B |
| G&A | $1.68B | $1.63B | $1.58B | $1.39B |
| Stock-Based Comp | $211.0M | $212.0M | $159.0M | $154.0M |
| D&A | $2.76B | $2.61B | $2.89B | $2.83B |
| Depreciation | $1.96B | $1.93B | $1.99B | $2.12B |
| Amortization | $336.0M | $324.0M | $310.0M | $231.0M |
| Other OpEx | $799.0M | $2.60B | $1.43B | $3.65B |
| Non-Operating Income | $0 | $0 | $0 | $0 |
| Interest Income | $173.0M | $229.0M | $200.0M | $152.0M |
| Pre-Tax Income | $6.09B | $656.0M | $1.60B | $-2.51B |
| Income Tax | $1.45B | $-4.0M | $399.0M | $-67.0M |
| Continuing Ops | $4.64B | $660.0M | $1.20B | $-2.44B |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $4.64B | $660.0M | $1.20B | $-2.44B |
| Minority Interest | $58.0M | $71.0M | $85.0M | $179.0M |
| Net to Common | $4.58B | $589.0M | $1.12B | $-2.62B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $20.48B | $17.61B | $16.59B | $18.06B |
| Cash & Equivalents | $3.89B | $2.99B | $2.19B | $3.82B |
| Accounts Receivable | $5.61B | $4.72B | $4.76B | $4.76B |
| Inventory | $6.99B | $6.08B | $6.54B | $6.59B |
| Other Current Assets | $3.99B | $3.83B | $3.10B | $2.89B |
| Long-Term Assets | $40.13B | $40.35B | $40.72B | $40.48B |
| PP&E (Net) | $20.44B | $21.07B | $22.00B | $22.25B |
| Intangibles | $2.44B | $2.07B | $1.72B | $1.49B |
| Goodwill | $8.64B | $8.64B | $8.56B | $7.98B |
| Operating Leases | $1.23B | $1.32B | $1.27B | $1.36B |
| Other LT Assets | $5.78B | $5.99B | $5.90B | $6.14B |
| Total Assets | $60.60B | $57.97B | $57.31B | $58.54B |
| Current Liabilities | $11.33B | $9.96B | $10.29B | $9.18B |
| Current Leases | $287.0M | $329.0M | $318.0M | $340.0M |
| Deferred Revenue | $275.0M | $195.0M | $244.0M | $221.0M |
| Taxes Payable | $334.0M | $419.0M | $276.0M | $337.0M |
| Other Current Liab | $7.67B | $6.31B | $6.93B | $5.64B |
| Long-Term Liabilities | $28.02B | $28.90B | $29.17B | $31.83B |
| LT Operating Leases | $997.0M | $1.03B | $984.0M | $1.10B |
| Other LT Liab | $25.30B | $26.23B | $26.71B | $29.01B |
| Total Liabilities | $39.36B | $38.86B | $39.46B | $41.02B |
| Shareholders' Equity | $21.25B | $19.11B | $17.85B | $17.52B |
| Retained Earnings | $23.18B | $21.77B | $20.91B | $16.78B |
| AOCI | $-7.14B | $-7.68B | $-8.11B | $-7.66B |
| Treasury Stock | $3.87B | $4.37B | $4.66B | $4.23B |
| Total L&E | $60.60B | $57.97B | $57.31B | $58.54B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $4.64B | $660.0M | $1.20B | $-2.44B |
| Non-Cash Adjustments | $4.56B | $7.07B | $-464.0M | $4.28B |
| Working Capital Changes | $-1.72B | $-2.54B | $2.18B | $-800.0M |
| Cash from Operations | $7.47B | $5.20B | $2.91B | $1.03B |
| Cash from Investing | $-2.97B | $-2.93B | $-2.37B | $-2.13B |
| Debt Repayments | $121.0M | $250.0M | $83.0M | $334.0M |
| Share Buybacks | $2.33B | $625.0M | $494.0M | $0 |
| Dividends Paid | $2.01B | $1.97B | $1.97B | $1.49B |
| Cash from Financing | $-3.36B | $-3.12B | $-1.17B | $2.51B |
| FX Effect | $-237.0M | $-45.0M | $-163.0M | $275.0M |
| Net Change in Cash | $907.0M | $-892.0M | $-785.0M | $1.69B |
| Beginning Cash | $3.03B | $3.94B | $3.05B | $2.26B |
| Ending Cash | $3.94B | $3.05B | $2.26B | $3.95B |
Frequently Asked Questions
How does DOW INC. make money?
The company operates through diversified segments including Performance Materials & Technologies, Industrial Intermediates, Coatings & Adhesives, Packaging, and Agriculture Solutions, generating revenue from the sale of specialty polymers, engineering plastics, construction chemicals, and agricultural inputs.
What are the main risks for DOW?
Fluctuating raw material costs impacting gross margins, intense global competition eroding pricing power, exposure to currency exchange rate volatility affecting international earnings, and the regulatory complexities associated with chemical manufacturing and environmental compliance.
What is DOW's competitive advantage?
Dow benefits from significant economies of scale in chemical production, a robust global distribution network ensuring market reach, and proprietary intellectual property that protects its high-value product portfolios from commoditization.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.