Dow Q1 Net Sales Drop 6% to $9.8B, Posts $445M Loss
Dow’s first-quarter net sales dropped 6% to $9.8 billion, driving a GAAP loss of $445 million and operating EBIT of $154 million, down $76 million year-over-year. Operating EPS was a $0.14 loss versus a $0.02 gain and cash flow jumped to $1.1 billion on a $1.0 billion NOVA Chemicals payment.
1. First-Quarter Financial Results
Dow reported net sales of $9.8 billion in Q1, down 6% year-over-year, reflecting flat Performance Materials sales and declines driven by the idling of an EMEAI cracker and U.S. Gulf Coast maintenance. Volume fell 2% and local pricing dropped 7%, resulting in a GAAP net loss of $445 million and operating EPS loss of $0.14.
2. Packaging & Specialty Plastics Performance
Packaging & Specialty Plastics net sales were $4.9 billion, down 7% as a 9% decline in polyethylene prices outpaced a 3% currency boost. Volume slipped 1% as higher volumes from the new Freeport polyethylene unit were offset by lower merchant olefins sales and planned maintenance, driving operating EBIT down $134 million to $208 million.
3. Industrial Intermediates & Infrastructure Performance
Industrial Intermediates & Infrastructure net sales totaled $2.6 billion, an 8% decline as local prices fell 8% and volumes dropped 4% due to Middle East conflict impacts and a late-2025 shutdown of a propylene oxide unit. Operating EBIT improved by $10 million to a $118 million loss, aided by reduced maintenance and suspended Sadara equity loss recognition.
4. Cash Flow and Capital Allocation
Operating cash flow surged to $1.1 billion, up $1.0 billion year-over-year following the NOVA Chemicals payment, while the company returned $252 million in dividends. Ongoing cost reduction initiatives and complete liability coverage underscore efforts to strengthen the balance sheet.