Dow Inc. (DOW) reported a strong second quarter for 2026, with adjusted earnings per share of $1.44, reversing a year-ago loss of 42 cents per share. This result surpassed the Zacks Consensus Estimate of $1.25 by 15%, driven by higher pricing and the company's self-help initiatives. Net sales rose 19.7% year over year to approximately $12.1 billion, exceeding the consensus estimate of $11.6 billion. GAAP net income was $802 million, compared to a net loss of $801 million in the same period last year.
Segment highlights showed mixed results. Packaging & Specialty Plastics sales increased 27% to $6.385 billion, but volume declined 4% due to planned maintenance and the impact of the Middle East conflict. Industrial Intermediates & Infrastructure sales rose 14% to $3.2 billion, while Performance Materials & Coatings sales advanced 11% to $2.4 billion. Operating EBITDA increased significantly to $2.3 billion from $703 million.
Financially, Dow reported $1.3 billion in cash flow from operating activities, a reversal from the year-ago use of $470 million. The company expects approximately $200 million in additional benefits from its Transform to Outperform program during 2026, raising the total expected benefits to over $1.3 billion. Management plans to focus on growth, innovation, and balanced capital allocation for the remainder of 2026.
Dow's shares have gained 24.7% in the past year, contrasting with the industry's decline of 0.8%. The company currently carries a Zacks Rank #3 (Hold). Other well-ranked stocks in the basic materials space include Carpenter Technology Corporation (CRS), Kronos Worldwide, Inc. (KRO), and Avient Corporation (AVNT).