Dow Reports $445 Million Net Loss in Q1 2026, Cash Flow Surges Tenfold on Litigation Payment

On April 23, 2026, Dow Inc. released its first-quarter financial results, with cash flow becoming the standout highlight. Net sales were $9.794billion\ast \ast ,down6$10.43 billion a year ago, but above Wall Street analyst expectations of $9.49\text{–}9.66billion\mathrm{.}Onthebottomline,thecompanyreportedaGAAPnetlossof\ast \ast$445 million, widening from a $290millionlossintheprioryearquarter\mathrm{.}Adjustedlosspersharewas$0.14, better than the expected $0.39 loss per share.

The most remarkable metric was cash flow from operations. Driven by a litigation payment from NOVA Chemicals and improved working capital, cash provided by operating activities – continuing operations reached **$1.124billion\ast \ast ,anincreaseofover$1 billion year-over-year. This strong cash position provides a solid foundation for navigating market volatility, optimizing capital structure, and returning value to shareholders.

Segment Performance: Mixed Results Amid Cyclical Headwinds

Dow’s three core business segments showed divergent results due to weak end-market demand and lower prices.

• Price and Volume Pressure: Local prices declined 7% year-over-year, while volume decreased 2%, reflecting continued disruption in the Industrial Intermediates & Infrastructure segment due to the Middle East conflict.

• Packaging & Specialty Plastics: Net sales of $4.919billion,down7$208 million, with margins of 4.2% versus 6.4% a year ago.

• Industrial Intermediates & Infrastructure: Net sales of $2.626 billion, down 8% YoY, primarily due to lower local prices and decreased volumes following the shutdown of higher-cost upstream propylene oxide assets in the US Gulf Coast at the end of 2025.

• Performance Materials & Coatings: Net sales of $2.080billion,roughlyflatYoY\mathrm{.}OperatingEBITrose$68 million to $117 million. Consumer solutions benefited from favorable currency and higher silicone volumes, especially in global electronics and US/Canada home & personal care applications.

CEO Commentary and Outlook

Jim Fitterling, Dow’s Chairman and CEO, stated: “Our first-quarter results demonstrate the growing impact of Dow’s self-help measures. As the effects of the Middle East conflict have spread rapidly, global supply has tightened, and we have seen a positive inflection point in industry margins since March. With our unique portfolio advantage, leading manufacturing footprint in the Americas, flexible feedstock integration in Europe, and agile global supply chain, Dow is navigating through the cycle and serving our customers reliably. The price actions we announced earlier have quickly yielded positive results across all segments and regions. We remain committed to advancing our ‘Transform to Outperform’ program.”

Jeffrey L. Tate, Chief Financial Officer, noted that the company successfully resolved a multi-year legal dispute with NOVA Chemicals, receiving approximately **$1.3billion\ast \ast inproceeds,whichsignificantlystrengthenedthebalancesheet\mathrm{.}Forthesecondquarter,managementexpectsnetsalesofapproximately$12 billion and EBITDA of around $2billion,withintegratedpolyethylenemarginsexpectedtoimproveby$0.26 per pound – including April price increases, but not yet reflecting an additional $0.20 per pound increase planned for May.