Dow Inc. Reports Strong Q2 2026 Earnings on Higher Pricing
Dow Inc. (DOW) reported a strong second quarter of 2026, with adjusted earnings per share of $1.44, reversing a year-ago loss of 42 cents. The results exceeded the Zacks Consensus Estimate of $1.25 by 15%, driven by higher pricing and the company’s self-help initiatives. Including one-time items, the company posted earnings per share of 99 cents, compared to a loss of $1.18 in the same period last year.
Net sales increased by 19.7% year over year to approximately $12.1 billion, surpassing the consensus estimate of $11.6 billion. Local prices rose by 20%, while volume declined by 1% due to planned maintenance in the Packaging & Specialty Plastics segment. GAAP net income for the quarter was $802 million, a significant improvement from a net loss of $801 million a year ago. Operating EBITDA also increased to $2.3 billion from $703 million.
Dow’s Packaging & Specialty Plastics segment saw a 27% sales increase, though volume fell by 4% due to higher planned maintenance and the impact of the Middle East conflict. Industrial Intermediates & Infrastructure sales rose by 14%, while Performance Materials & Coatings sales advanced by 11%, both surpassing estimates. Cash flow from operating activities improved to $1.3 billion, reversing a year-ago use of $470 million.
Looking ahead, Dow expects approximately $200 million in additional benefits from its Transform to Outperform program during 2026, raising the total expected benefits to more than $1.3 billion. The company plans to focus on growth, innovation, and balanced capital allocation for the second half of 2026. Over the past year, DOW’s shares have gained 24.7%, contrasting with the industry’s decline of 0.8%. The stock currently carries a Zacks Rank #3 (Hold).