Dow Swings to $721M Profit in Q2 on 20% Sales Jump; Restructuring Charges Continue
DOW sits 51% above its 52-week low of $20.402.
Summary
Dow Inc. reported Q2 2026 net income of $721 million ($0.99 EPS) on sales of $12.1 billion, a sharp reversal from a year-ago loss, as higher prices and self-help measures offset restructuring costs and Middle East disruptions.
Key Events · Earnings and Guidance · DOW
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Earnings Swing to Profit
Q2 2026 net income of $721M ($0.99 EPS) vs. a loss of $835M ($1.18 EPS) in Q2 2025, driven by a 20% sales increase to $12.1B.
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Restructuring Charges Mount
$503M in restructuring charges in Q2, including $445M for severance under Transform to Outperform; total program charges now $472M with $18M paid.
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Sadara Guarantee Liability Surge
Fair value of Sadara project financing guarantee increased by $298M in Q1 2026 due to adverse business conditions and Middle East conflict, hitting equity earnings.
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Cash Flow Rebound
Cash from continuing operations swung to $2.45B in H1 2026 from a $379M use last year, aided by a $1B Nova Chemicals legal settlement.
Analysis · DOW · Industrial Applications And Services
A sharp earnings turnaround defined Dow's Q2 2026, with net income reaching $721 million compared to a loss of $835 million a year ago, propelled by a 20% surge in sales to $12.1 billion. Higher prices across all segments—most notably a 30% jump in Packaging & Specialty Plastics—more than offset a 1% volume decline. The quarter also carried $503 million in restructuring charges, primarily from the Transform to Outperform program, which targets 4,500 role reductions and at least $2 billion in additional EBITDA. While the earnings beat consensus estimates, the heavy restructuring spend and a $298 million fair-value hit on the Sadara guarantee highlight ongoing operational and geopolitical headwinds. Cash generation improved dramatically, with operating cash flow swinging to $2.45 billion in the first half from a $379 million burn last year, supported by a $1 billion legal settlement from Nova Chemicals.
At the time of this filing, DOW was trading at $30.90 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $22.3B. The 52-week trading range was $20.40 to $42.74. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.