Dow (NYSE:DOW) reported a challenging end to 2025, posting a $1.5 billion GAAP net loss for the fourth quarter as high energy costs and stagnant demand in Europe forced the company to idle key production units.
Net sales fell 9% year-over-year to $9.46 billion, reflecting a broader downturn in the global chemical industry that has seen prices and volumes slide across its major segments.
On an operating basis, the company reported an earnings-per-share loss of $0.34, while cash flow from operations remained thin at $298 million.
The results cap a bruising fiscal 2025 for the Midland, Michigan-based company, which recorded a full-year net loss of $2.4 billion on $40 billion in sales.
To counter the persistent headwinds, CEO Jim Fitterling is accelerating the "Transform to Outperform" program—a sweeping restructuring initiative designed to unlock $2 billion in annual operating EBITDA.
The plan includes the permanent shutdown of several upstream European assets, including an ethylene cracker in Germany and a siloxanes plant in the U.K., as the company pivots away from energy-intensive merchant sales toward more profitable downstream derivatives.
Central to the 2026 recovery plan is an aggressive push into AI and automation to streamline customer service and manufacturing processes.
The restructuring will involve cutting approximately 4,500 jobs globally, a move management says is necessary to right-size the cost structure for a "lower-for-longer" demand environment.