Dow Inc. (DOW) Reports Q2 Loss, Dividend Slashed
📉 Earnings Snapshot (Q2 2025)
Quarter Ended: July 1, 2025
- Revenue:
▸ $10.10B vs est. $10.38B (▼ –2.7%) - Adjusted EPS (Non-GAAP):
▸ –$0.42 vs est. –$0.11 (Miss by $0.31) - GAAP EPS:
▸ –$1.18 - Net Loss:
▸ $835 million
Dow posted a wider-than-expected loss as weak demand, lower pricing, and elevated costs pressured all major segments.
🧨 Major Corporate Actions
- Dividend Cut: Dow slashed its quarterly dividend from $0.70 to $0.35, citing a “lower-for-longer” earnings environment.
- Cost Actions: Plans to shut down 3 European plants and eliminate 800 jobs to reduce costs and improve cash flow.
- Strategic Goal: Management aims to unlock $6B+ in value through asset sales, cost savings, and litigation wins.
📊 Segment Results (YoY)
| Segment | Revenue Change |
|---|---|
| Packaging & Specialty Plastics | –9% |
| Industrial Intermediates & Infrastructure | –6% |
| Performance Materials & Coatings | –5% |
All core divisions showed sales declines, driven by soft demand in construction, packaging, and coatings, alongside persistent pricing pressure.
📉 Stock Reaction – July 24, 2025
- Stock at: $24.96
- Change: –$5.42 (–17.85%)
- Volume: ~45.8 million shares (highest since 2020)
This marked Dow’s steepest single-day loss since the COVID crash in March 2020.
📉 Technical Breakdown
| Indicator | Value | Signal |
|---|---|---|
| 50-day SMA | $28.70 | Price well below = Bearish |
| 200-day SMA | $37.08 | Long-term trend negative |
| Key Support Zone | ~$25.00 | Broken = downside risk |
A breakdown below the $25 support level with heavy volume confirms a bearish trend, with potential downside to $22–23 range.
🔎 Management Commentary & Outlook
CEO Jim Fitterling called the dividend cut a “balanced capital allocation decision” meant to preserve flexibility amid continued weakness. He highlighted cost reductions and long-term recovery plans, but acknowledged the macro headwinds.
Q3 revenue is also expected to come below Street expectations, reinforcing a cautious near-term outlook.
🧠 Final Take
Dow faces structural and cyclical pressure across its portfolio. The dividend cut underscores deeper earnings weakness. With no sign of near-term recovery and key support now broken, the stock could see further downside.