Overview

• US materials science firm's Q2 net sales rose 20% yr/yr, slightly beating analyst expectations

• Company cites higher polyethylene prices and self-help initiatives for improved results

Outlook

• Dow expects in-year benefits from 'Transform to Outperform' to exceed $1.3 bln in 2026

• Company sees impact from self-help initiatives ramping through remainder of 2026 and into 2027

Result Drivers

• HIGHER POLYETHYLENE PRICES - Company said higher polyethylene prices in all regions drove sales and margin expansion, especially in Packaging & Specialty Plastics

• SELF-HELP INITIATIVES - Company said its self-help actions, including the Transform to Outperform program, contributed to improved earnings and productivity

• PLANNED MAINTENANCE & CONFLICT IMPACTS - Volume declines in Packaging & Specialty Plastics and Industrial Intermediates & Infrastructure were attributed to planned maintenance activity and impacts from the Middle East conflict

Company press release: ID:nPn1H8NLYa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Net Sales	Slight Beat*	$12.09 bln	$12.03 bln (13 Analysts)
Q2 EPS		$0.99

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 8 "strong buy" or "buy", 10 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the commodity chemicals peer group is "buy."

• Wall Street's median 12-month price target for Dow Inc is $35.00, about 12% above its July 22 closing price of $31.25

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 75 three months ago

Reuters Recommended Reads

• July 22 - Akzo Nobel beats profit estimates as price rises offset higher raw-material costs

• July 22 - Packaging Corp Q2 adjusted EPS falls less than expected, helped by strong demand

• July 22 - Sonoco Q2 profit beats estimates driven by Industrial Paper Packaging

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