Dow reports third-quarter net sales of $11.3 billion, up 13% from a year earlier

Dow Inc. (DOW) said Thursday in a filing that third-quarter 2026 net sales rose 13% from a year earlier to $11.3 billion, with gains in all operating segments.

GAAP net income was $525 million, against $124 million a year earlier. Operating EBIT, which the company defines as income before income taxes and interest, adjusted for certain items, rose to $887 million from $180 million.

Here's how the company did:

• Net sales: $11.27 billion vs. $9.97 billion a year earlier
• GAAP earnings per share, diluted: $0.62 vs. $0.08 a year earlier
• Operating earnings per share: $0.71 vs. a loss of $0.19 a year earlier
• Operating EBIT: $887 million vs. $180 million a year earlier
• Free cash flow: $1.13 billion vs. $566 million a year earlier

Price drove most of the gain. Local price rose 14% from a year earlier, led by Packaging & Specialty Plastics, while currency was flat. Volume fell 1%.

The company said volume was higher in all regions except Asia Pacific, where impacts from the Middle East conflict are most pronounced. Asia Pacific net sales fell 2% from a year earlier.

Higher raw materials and logistics costs were more than offset by higher prices and benefits from the company's self-help actions, the filing said.

For the first nine months of 2026, net sales were $33.15 billion, up from $30.51 billion a year earlier. Net income was $882 million, against a loss of $967 million in the same period of 2025.

Here's how Dow's segments did during the quarter:

• Packaging & Specialty Plastics: net sales $5.78 billion, up 18%; Operating EBIT $585 million vs. $199 million a year earlier
• Industrial Intermediates & Infrastructure: net sales $3.06 billion, up 8%; Operating EBIT $176 million vs. a loss of $47 million a year earlier
• Performance Materials & Coatings: net sales $2.25 billion, up 8%; Operating EBIT $154 million vs. $80 million a year earlier

Packaging & Specialty Plastics saw local price rise 17%, primarily from higher prices across both businesses in EMEAI and the U.S. & Canada. Volume rose 1%.

The segment's Operating EBIT increase was driven by higher integrated margins from higher polyethylene prices and self-help initiatives. Higher planned maintenance activity partly offset those gains.

Industrial Intermediates & Infrastructure net sales rose 8%. Local price increased 16%, while volume fell 7%. Lower volumes in Polyurethanes & Construction Chemicals, including Middle East conflict impacts, more than offset higher volumes in Industrial Solutions.

Segment Operating EBIT was helped by higher margins, self-help tailwinds and the suspension of recognition of equity losses from Sadara. Higher energy costs in EMEAI partly offset those gains.

Performance Materials & Coatings net sales rose 8%. Local price increased 5% and volume rose 3%, led by growth in downstream silicones.

Operating EBIT for that segment rose $74 million, driven by self-help initiatives, including the closure of the Barry, U.K. siloxanes plant, and by price and volume gains.

Items the company excluded from operating results reduced third-quarter pretax income by $84 million, or $0.09 per share. Those items included $69 million of Transform to Outperform costs, $31 million of 2025 Restructuring Program implementation costs and a $53 million loss on early extinguishment of debt. A $69 million gain tied to a legal matter with Nova Chemicals Corporation partly offset those charges.

Cash provided by operating activities from continuing operations was $1.8 billion, up $709 million from a year earlier and up $515 million from the second quarter. The company said the sequential gain primarily reflected working capital improvements.

Free cash flow was $1.1 billion, and trailing twelve-month cash flow conversion was 84%. Dow paid $253 million in dividends during the quarter.

The release did not include a new full-year earnings forecast. It did update the cost program: the company said it is on track to achieve the upsized $700 million in growth and productivity benefits in 2026, and approximately $2 billion in total uplift by the end of next year.

“Dow delivered a solid third quarter, driven by targeted downstream growth and disciplined execution against an evolving macro backdrop,” said Dow chief executive officer Karen S. Carter.

Carter also cited more than $400 million of working capital released during the quarter and debt reduced by approximately $600 million year to date.

Dow employed approximately 34,600 people as of year-end 2025 and operates manufacturing sites in 29 countries, according to the release. The company scheduled a webcast of its earnings call for 8:00 a.m. ET on Thursday.