A 50% dividend cut as the industry conditions remain tough.
This is a tricky time for investors. Most people agree that valuations have reached alarmingly high levels.
Dow Inc. faces significant headwinds, including tariffs and weak global demand, leading to a 53% stock decline YoY and disappointing Q2 earnings. Management cut the dividend by 50% to preserve capital, signaling expectations of prolonged challenges and deteriorating financials. Sales and earnings have declined across most segments, with only minor improvements in Performance Materials & Coatings due to lower input costs.
Dow's 17% plunge and 50% dividend cut reflect deep cyclical challenges, weak margins, and heavy debt, making the stock risky at current levels. Management is taking tough actions—cost cuts, plant closures, and dividend reductions—to stabilize the balance sheet, but near-term earnings outlook remains weak. Despite a 6% yield and some positives, I see little upside and significant risks, especially if a recession or further tariff issues emerge.
The S&P 500 is set to score a record finish every day of this past week while the Dow has yet to return to record territory in 2025.
The US indices all look a bit tired at the moment, as the markets may be suffering the lack of interest that some times of year, like this one, can often be the case. The overall market continues to look strong, but it is also struggling to find momentum.
While the top- and bottom-line numbers for Dow Inc. (DOW) give a sense of how the business performed in the quarter ended June 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
DOW posts a wider-than-expected Q2 loss and misses sales targets as pricing pressure and volume declines weigh on results.
Dow Inc. (NYSE:DOW ) Q2 2025 Earnings Conference Call July 24, 2025 8:00 AM ET Company Participants Andrew Riker - Vice President of Investor Relations James R. Fitterling - Chairman & CEO Jeffrey L.
Dow Inc. (DOW) came out with a quarterly loss of $0.42 per share versus the Zacks Consensus Estimate of a loss of $0.11. This compares to earnings of $0.68 per share a year ago.
DOW braces for Q2 results as cost cuts battle soft global demand, weak pricing and sluggish construction trends.
Besides Wall Street's top-and-bottom-line estimates for Dow Inc. (DOW), review projections for some of its key metrics to gain a deeper understanding of how the company might have fared during the quarter ended June 2025.