# Dow Inc. (DOW) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-13  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/DOW/thesis · /stocks/DOW/memo

## Financial Snapshot

---
ticker: DOW
step: 04
generated: 2026-05-12
source: quick-research
---

### Dow Inc. (DOW) — Financial Snapshot

#### Income Statement Summary

| Metric | FY2022 | FY2023 | FY2024 | YoY |
|--------|--------|--------|--------|-----|
| Revenue | ~$56.9B | $44.6B | $43.0B | -3.7% |
| Gross Margin | ~18% | ~11% | ~12% | |
| Operating Margin | ~12% | ~3% | ~5% | |
| Net Income | ~$4.5B | $0.58B | $1.10B | +91% |
| EPS (diluted) | ~$6.30 | $0.82 | $1.57 | +91% |

*Note: FY2022 was a peak commodity cycle year — record polyethylene prices following COVID-driven demand surge. FY2023 saw severe margin compression as Chinese polyethylene capacity additions flooded global markets and polymer prices collapsed. FY2024 showed modest recovery. FY2025 was a significant step backward: revenue ~$40B (-7%), GAAP net loss of ~$2.4B (likely includes goodwill/asset impairments). Commodity cycle and Chinese overcapacity remain central headwinds.*

#### Cash Flow & Balance Sheet (FY2024)

| Metric | Value |
|--------|-------|
| Operating Cash Flow | ~$2.8B |
| Free Cash Flow | ~$1.5B (est.) |
| Cash & Equivalents | ~$2.5B |
| Total Debt | ~$16B |
| Annual Dividend | ~$2.80/share (~6–7% yield at depressed price) |

#### Key Ratios (approximate)
- P/E: Not meaningful (loss year 2025) | EV/EBITDA: ~6–8x (trough)
- Dividend Yield: ~6–7% (high yield reflects distressed pricing, not growth)
- Debt/EBITDA: ~4–5x (elevated at trough margins)

#### Growth Profile
Dow's earnings are highly cyclical and correlated with polyethylene price spreads and global industrial activity. The 2022 peak-to-2023 trough collapse (EPS $6.30 → $0.82) illustrates the severity of commodity cycles. The 2024 partial recovery was followed by a renewed downturn in 2025 (GAAP loss of $2.4B), suggesting the trough has not yet been definitively reached. The Path2Zero Fort Saskatchewan project (proposed net-zero ethylene cracker) was deferred due to economics, removing the primary long-term growth catalyst.

#### Forward Estimates
- FY2026E: Dependent on polyethylene price recovery and Chinese capacity utilization
- Consensus: ~$1–2 adj. EPS for 2026 if poly prices stabilize; potential upside if Chinese capacity rationalization occurs
- Dividend sustainability depends on FCF: $1.5B FCF must cover ~$2.0B annual dividend

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/DOW/fundamental

## Navigation

- Overview: /stocks/DOW
- Financials (this page): /stocks/DOW/financials
- Thesis: /stocks/DOW/thesis
- Investment Memo: /stocks/DOW/memo
- Coverage universe: /stocks