In the first quarter of 2025, Dow reported net sales of $10.4 billion, down 3% year-over-year, reflecting declines in all operating segments. Sequentially, net sales were flat, as seasonally higher demand in Performance Materials & Coatings was offset by lower prices in Industrial Intermediates & Infrastructure. The company reported that volume increased 2% compared to the year-ago period, with gains in all regions except Latin America. Sequentially, volume increased 2%, with gains in all operating segments.

"We remain focused on disciplined execution and increased actions to improve profitability and support cash flow," said Jim Fitterling, Dow chair and CEO. "Despite ongoing macroeconomic challenges, Team Dow delivered a sixth consecutive quarter of year-over-year volume growth while taking actions to reduce costs and right-size capacity. The significant impact of slower GDP growth and volatile market conditions on our industry underscores the importance of our proactive management and best-owner mindset. Today's announcements build on Dow's cost actions that are already underway, aiming to further strengthen our financial flexibility and support a balanced capital allocation approach."

Following a comprehensive review, Dow announced that the company has decided to delay construction of its Path2Zero project in Fort Saskatchewan, Alberta, Canada, until market conditions improve. The company reports that it now expects its total enterprise 2025 CapEx to be $2.5 billion compared to its original plan of $3.5 billion. Dow stated that the company remains committed to its Path2Zero project and the growth upside it will enable in targeted applications like pressure pipe, wire and cable, and food packaging. The project is being built at an existing Dow site in a significantly cost-advantaged region. It is expected to be a first quartile asset with attractive returns and the added benefit of being the world's first net-zero Scope 1 and 2 emissions integrated ethylene cracker and derivatives facility.

European Asset Review

In addition, the company is expanding its previously announced European asset review, which is focused on addressing the challenging demand dynamics and regulatory environment in the region. The company is committed to completing the full review by mid-2025, including all value-creating options for its Polyurethanes business in the region. Dow has identified three initial assets across all of its operating segments that it believes will require further action. The assets listed below represent higher-cost, energy intensive upstream portions of the company's portfolio, including potential outcomes:

• Packaging & Specialty Plastics: Ethylene cracker in Böhlen, Germany, resulting in idle or shut down
• Industrial Intermediates & Infrastructure: Chlor-alkali & vinyl (CAV) assets in Schkopau, Germany, resulting in idle or shut down
• Performance Materials & Coatings: Basics siloxanes plant in Barry, U.K., resulting in shut down

Segment Highlights

Dow reported that its Packaging & Specialty Plastics segment reported net sales in the quarter of $5.3 billion, down 2% versus the year-ago period. Local price decreased 4% year-over-year, primarily driven by lower functional polymers and polyethylene prices. Currency decreased net sales by 1%. Volume was up 4% year-over-year, primarily driven by higher licensing revenue and merchant hydrocarbon sales. On a sequential basis, net sales were flat. The decrease in sales was driven by lower functional polymers and polyethylene prices, partly offset by higher licensing revenue. 

The Hydrocarbons & Energy business reported a net sales increase compared to the year-ago period, driven by higher energy sales as well as higher merchant olefins sales after the completion of a planned turnaround at Dow’s PDH unit last year. Sequentially, net sales increased, primarily from improved supply availability following the restart and ramp-up of a cracker in Texas last quarter and higher olefins prices.

The company’s Industrial Intermediates & Infrastructure segment net sales were $2.9 billion, down 5% versus the year-ago period. Local price declined 4% year-over-year, reflecting declines in both businesses. Currency decreased net sales by 2%. Volume increased 1% year-over-year, driven by higher volumes in Industrial Solutions, partly offset by lower volumes in Polyurethanes & Construction Chemicals. On a sequential basis, net sales decreased 3% as volume gains from seasonally higher building and construction and deicing fluids demand in the United States and Canada were more than offset by lower prices. Equity losses for the segment were $58 million, compared to equity losses of $15 million in the year-ago period, primarily driven by lower integrated margins at Sadara. Equity losses in the prior quarter were $39 million. Sequentially, the earnings decline was primarily driven by a planned turnaround at the Kuwait joint ventures.

The Polyurethanes & Construction Chemicals business reported a decrease in net sales compared to the year-ago period, driven by lower volumes and prices, primarily in Europe, the Middle East, Africa and India (EMEAI). Sequentially, net sales declined, driven by lower prices, which were partly offset by higher volumes in building & construction applications.

Industrial Solutions business reported an increase in net sales compared to the year-ago period, primarily driven by higher volumes from improved supply availability following the outage at Louisiana Operations in the prior year, partly offset by lower prices. Sequentially, net sales declined, driven by lower ethylene oxide project-related catalyst sales and lower prices, partly offset by seasonally higher demand for deicing fluids.

Net sales in the Performance Materials & Coatings segment were $2.1 billion for the quarter, down 4% versus the year-ago period. Local price decreased 2% year-over-year, driven by declines in both businesses. Currency decreased net sales by 1%. Volume was down 1% year-over-year, as volume gains in downstream silicones were more than offset by lower volumes in acrylic monomers and upstream siloxanes. On a sequential basis, net sales were up 5%, primarily from seasonally higher demand in building and construction end markets.

Consumer Solutions business reported a decrease in net sales versus the year-ago period, as downstream volume gains in all geographic regions except Latin America were more than offset by lower prices and upstream siloxanes volumes. Sequentially, net sales increased, driven by higher demand for electronics and personal care applications as well as seasonal demand improvements.

The Coatings & Performance Monomers business reported a decrease in net sales compared to the year-ago period, driven by lower demand in acrylic monomers, primarily in EMEAI. Sequentially, seasonally higher demand for architectural coatings led to an increase in net sales.

Outlook

"We continue to implement decisive actions to address persistently slow GDP growth and increased macroeconomic and geopolitical uncertainty," said Fitterling. "We expect to deliver approximately $6 billion in near-term cash support. First, we are on track to close Dow's sale of a minority stake in select U.S. Gulf Coast infrastructure assets by May 1. This strategic move to create a new infrastructure-focused entity has been several years in the making and is expected to generate proceeds of up to $3 billion in 2025. Second, we expect to receive greater than $1 billion in proceeds from the NOVA judgment this year. Additionally, our decision to delay our Path2Zero project in Alberta, Canada will result in a total reduction of $1 billion in enterprise CapEx spending this year. And lastly, we remain committed to delivering at least $1 billion in targeted cost savings by 2026. Markets worldwide are awaiting additional clarity into how the tariff and global trade negotiations will land. In the meantime, we remain focused on managing a disciplined and balanced capital allocation approach over the cycle. These collective actions help to ensure Dow's financial flexibility and our long-term competitiveness."

Learn more about Dow at www.dow.com.