Dow (DOW) Q2 2025 Earnings Call Transcript
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Dow (NYSE:DOW) announced a significant 50% dividend reduction, effective Q3 2025, attributing the move to prolonged earnings pressure and the absence of clear recovery signals in the chemical sector. Management reinforced its ongoing $1 billion cost-savings target, with $400 million expected in 2025, underscoring a disciplined near-term approach to mitigating market weakness. Key liquidity actions included receipt of $2.4 billion from the Diamond Infrastructure Solutions sale in Q2 2025, potential incremental proceeds as Macquarie may exercise their option, and expected cash injections from legal resolutions and divestitures, providing more than $6 billion in anticipated near-term cash support. Dow detailed the immediate commissioning of its Poly 7 polyethylene train in Q2 2025, confirmation of sold-out volumes to high-value markets, and pointed to European asset shutdowns as steps toward optimizing its portfolio and positioning for margin expansion when conditions recover. Management’s third-quarter outlook anticipates a $100 million EBITDA sequential improvement underpinned by margin recovery in key businesses, new project ramps, and a sustained capital spending pullback to approximately $2.5 billion in CapEx.
Source Fool.com
