Dow Inc. Q1 Revenue Falls 6% as Hormuz Logjam Looms
Dow Inc. reported Q1 2026 revenue of $9.79B, down 6% YoY, while adjusted EPS beat expectations but shares fell 3.8% after management warned supply chain disruptions to persist through 2026. CEO Jim Fitterling said clearing the Strait of Hormuz logjam will take nearly a year, projecting Q2 revenue of $12B.
1. Q1 Earnings Performance
Dow Inc. reported Q1 2026 revenue of $9.79B, down 6% YoY, while adjusted EPS beat estimates despite a 3.8% share decline following the earnings release. The company attributed the revenue shortfall to Middle East supply chain disruptions but highlighted strong margin performance in cost-advantaged Americas operations.
2. Supply Chain Disruption Outlook
CEO Jim Fitterling estimated that resolving the Strait of Hormuz logjam will take nearly a year, signaling persistent feedstock and shipping constraints. Management expects supply chain challenges to endure through 2026, potentially affecting global capacity additions and naphtha availability in Europe.
3. Strategic Initiatives and Q2 Guidance
The 'Transform to Outperform' efficiency initiative has identified $80M in run-rate EBITDA improvements at its first site, exceeding initial targets. Dow Inc. projects Q2 2026 revenue of $12B and aims for $2B in incremental EBITDA uplift through operational optimizations and feedstock flexibility.