Dow posts lower Q3 sales but improves cash flow amid ongoing market pressure

Midland, MI – Dow Inc. reported third-quarter 2025 net sales of approximately $10.0 billion, representing an 8 percent year-over-year decline, with all operating segments showing decreases.

GAAP net income stood at $124 million, compared to $240 million a year ago. Operating EBIT (non-GAAP) fell to $180 million from $641 million the prior year period. The company pointed to pressure from lower prices and weaker equity earnings, partly offset by cost reduction efforts.

Despite the headwinds, Dow delivered sequential improvement in cash flow: cash provided by operating activities stood at $1.13 billion, up $1.6 billion from the previous quarter. Free cash flow on a non-GAAP basis came in at $566 million.

“In the third quarter, we delivered sequential earnings and cash flow improvement despite continued pressure across our industry,” said Jim Fitterling, Dow’s Chairman and CEO. “Our teams are engaging in productive conversations with governments around the world to keep product moving and to ensure a fair-trade environment. … We remain on track to deliver more than $6.5 billion in near-term cash support, with over half already achieved.”

Looking ahead, the company emphasized its focus on resilient areas of its portfolio and disciplined cost control even as the broader macroeconomic and end-market environment remains unchanged.