Dow (NYSE:DOW) reported a challenging start to the 2026 fiscal year, navigating a landscape of depressed pricing and softened global demand.
The Midland, Michigan-based materials science giant posted net sales of $9.8 billion for the first quarter, representing a 6% decline compared to the same period last year.
The drop was primarily attributed to a 7% decrease in local pricing and a 2% decline in overall volumes, reflecting persistent headwinds in the global chemical industry.
The company reported a GAAP net loss of $445 million, while operating earnings before interest and taxes (EBIT) stood at $154 million.
On a per-share basis, Dow recorded an operating loss of $0.14.
A significant factor in the quarter's financial profile was the company's decision to suspend equity loss recognition for its Sadara joint venture, a move that aims to streamline reporting as the entity continues its restructuring process.
Despite the bottom-line loss, Dow’s cash position saw a dramatic year-over-year improvement.
Cash flow from continuing operations reached $1.1 billion, a $1 billion increase over the first quarter of 2025.
This surge was driven by a substantial payment received from NOVA Chemicals following a long-standing legal dispute, as well as disciplined improvements in working capital management.
During the quarter, Dow returned $252 million to its investors through dividends, maintaining its focus on capital allocation despite the volatile market conditions.