Dow Q3 2026 results
- Net sales were $11.3 billion, up 13% year‑over‑year.
- Operating EBIT was $887 million, up $707 million versus the year‑ago period.
- Operating EPS was $0.71, compared with a loss of $0.19 in the prior‑year period.
- Free cash flow was $1.1 billion with trailing twelve‑month cash flow conversion of 84%.
Financial results
Net sales were $11.3 billion, up 13% year‑over‑year, with local price up 14% and volume down 1%. GAAP net income was $525 million; operating EBIT was $887 million, an increase of $707 million versus the prior year. GAAP EPS was $0.62 and operating EPS was $0.71, excluding $0.09 of significant items. Cash provided by operating activities was $1.8 billion, up $709 million year‑over‑year, and free cash flow was $1.1 billion; trailing twelve‑month cash flow conversion was 84%.
Segment performance
Packaging & Specialty Plastics reported net sales of $5.8 billion, up 18%, and operating EBIT of $585 million, driven by higher polyethylene prices and self‑help benefits. Industrial Intermediates & Infrastructure posted $3.1 billion in net sales, up 8%, and operating EBIT of $176 million, aided by higher margins and suspension of Sadara equity losses. Performance Materials & Coatings posted $2.3 billion in net sales, up 8%, and operating EBIT of $154 million, supported by price/volume gains and siloxanes plant closure benefits.
Actions and outlook
Management cites ongoing self‑help initiatives, including a 2025 $1 billion cost program and Transform to Outperform, and says it is on track for $700 million of upsized growth and productivity benefits in 2026 and approximately $2 billion of total uplift by the end of next year. The company reported sequential gains from the first of three European asset shutdowns, expects benefits to build through 2027, released more than $400 million of working capital in the quarter, reduced debt by about $600 million year‑to‑date, and returned $253 million in dividends.
Source: Dow Chemical