Dow Reports $10.4 Billion Q4 Revenue as CEO Highlights Strategic Moves Amid Economic Challenges

Dow Inc. released its financial results for the fourth quarter of 2024, reporting $10.4 billion in net sales, a 2% decline year-over-year, primarily due to decreased performance in the packaging and specialty plastics segment. Sequentially, net sales fell by 4%, driven by seasonal declines in the functional materials and coatings segment.

Despite these setbacks, the company saw a 1% increase in sales volume year-over-year, with most regions experiencing growth. However, sales volume dipped by 1% sequentially, as improvements in supply capabilities within packaging and specialty plastics, as well as industrial intermediates and infrastructure, partially offset the seasonal demand decline in functional materials and coatings. Local prices decreased by 3% year-over-year and sequentially across all operating segments.

Equity losses reached $51 million, a decline of $44 million year-over-year, mainly due to lower profitability in a joint venture in Thailand. GAAP net loss was $35 million, or $0.08 per share, including significant items totaling $0.08 related to restructuring and efficiency costs. Operating EPS was effectively $0.00. Adjusted EPS was impacted by an unexpected non-cash tax adjustment of $0.27, primarily linked to Argentina.

Operating EBITDA was $454 million, down $105 million year-over-year, influenced by price declines, though this was partially mitigated by higher operational rates and reduced expenditures. Cash generated from continuing operations totaled $811 million, reflecting an 8% decline year-over-year due to inventory destocking.

For the full year of 2024, Dow reported net sales of $43 billion, down from $44.6 billion in 2023. GAAP net income rose to $1.2 billion, compared to $660 million in 2023. Operating EBITDA for the year was $2.6 billion, down from $2.8 billion in 2023. Cash generated from operations was $2.9 billion, significantly lower than $5.2 billion in the previous year.

CEO Jim Fitterling commented, “Despite a challenging macroeconomic environment, our team has leveraged our cost-advantaged positioning to capture resilient demand in high-value applications, achieving sales growth for the fifth consecutive quarter. We signed an agreement in December to sell a minority stake in certain infrastructure assets along the U.S. Gulf Coast, expecting cash proceeds of approximately $3 billion. This partnership represents a new business model aimed at enhancing operational efficiency while fostering growth with new customers.”

Fitterling noted optimism regarding demand growth in attractive end markets such as packaging, energy, and electronics. The company aims to save $1 billion in costs and plans to lower capital expenditures by $300 million to $500 million in 2025. These proactive measures are designed to maintain Dow's strong financial foundation while navigating through economic downturns.