Dow Inc (2OY.DE) Q3 2025 Earnings Report

Dow Inc reported Q3 2025 results with a revenue of $9.973 billion and a gross profit of $689 million, translating to a gross margin of roughly 6.9%. Despite a 8.3% YoY decline in revenue and a material drop in gross profit YoY, operating income rose to $159 million for the quarter, yielding an 1.6% operating margin. Net income was $62 million, an improvement from the prior quarter but a -71% YoY comparison driven by lower top-line and higher financing costs, with EPS of $0.087 (diluted $0.08). The quarter also featured a meaningful swing in quarterly profitability from Q2 to Q3, as operating income expanded from roughly $9 million in Q2 to $159 million in Q3, suggesting a constructive seasonality or one-off offsetting factors that improved operating performance. However, the company continues to contend with a high capital structure (interest expense of $221 million vs. EBITDA of $979 million) and a negative tax line, yielding a negative reported tax benefit of $54 million.

From a cash flow and liquidity perspective, Dow generated operating cash flow per share of $1.605 and free cash flow per share of $0.802, supported by a cash balance per share of $6.56. The balance sheet remains solid on liquidity metrics (current ratio ~1.94; quick ratio ~1.28) but exhibits leverage characteristics (debt ratio ~0.322; debt to capitalization ~0.528; interest coverage ~0.72). Free cash flow generation and modest dividend yield (~1.55%) provide a reasonable balance sheet cushion, but the market’s elevated P/E (~65x) versus sector peers highlights investor skepticism about margin recovery and ongoing cyclicality.

Looking ahead, management did not publish formal forward guidance in the provided dataset. Investors should monitor commodity feedstock costs (ethylene/propylene), energy prices, end-market demand (coatings, packaging, and durable goods), and the company’s cost optimization programs and price/mix dynamics as key drivers of margin trajectory and cash generation.