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.