Dow Inc. reported a net loss of $307 million for the first quarter of 2025, translating to a loss of 44 cents per share, despite adjusted earnings of 2 cents per share beating analyst expectations of a 1 cent loss. Net sales for the quarter were $10.4 billion, a 3.1% decrease from the first quarter of 2024, missing consensus estimates. CEO Jim Fitterling noted the industry is in one of the most protracted downcycles in decades, with tariff uncertainty impacting demand.
In response to the challenging market and a 'lower for longer' earnings outlook, Dow announced an expanded review of its European assets. This review has identified three initial assets—two in Germany and one in the UK—that will require further action, including potential idling or complete shutdowns. The company expects to finalize this expanded review by mid-year, aiming to right-size regional capacity and remove higher-cost, energy-intensive assets.
Furthermore, Dow is delaying the construction of its Path2Zero project in Fort Saskatchewan, Alberta, until market conditions improve. This strategic decision will reduce total enterprise capital expenditure for 2025 by $1 billion, bringing the revised plan to $2.5 billion from an original $3.5 billion. Management anticipates a sequential improvement in Q3 2025 EBITDA to approximately $800 million, driven by expected polyethylene margin recovery and contributions from new growth investments.
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