Dow Q3 Net Sales Rise 13% to $11.3 Billion; Operating EPS $0.71 Swings from Year-Ago Loss as Operating Cash Flow Reaches $1.8 Billion
MIDLAND, Mich. — Dow (NYSE: DOW) on October 22 reported third-quarter 2026 results: net sales were $11.3 billion ($11,267 million), up 13% year over year from $9,973 million, with increases in all operating segments. Local price increased 14% versus the year-ago period, led by gains in Packaging & Specialty Plastics, with higher polyethylene prices in all regions; currency was flat; and volume decreased 1%, reflecting higher volumes in all regions except Asia Pacific, where impacts from the Middle East conflict are most pronounced, the company said.
GAAP net income was $525 million, compared with $124 million a year earlier. Operating EBIT was $887 million, up $707 million year over year, driven primarily by higher prices and benefits from the company's collective self-help actions, which more than offset higher raw materials and logistics costs. GAAP earnings per share were $0.62, versus $0.08 a year earlier; operating EPS was $0.71, compared with a loss of $0.19 in the year-ago period, excluding significant items totaling $0.09 per share, primarily costs associated with the self-help actions.
Cash provided by operating activities from continuing operations was $1.8 billion ($1,839 million), up $709 million year over year and up $515 million sequentially; free cash flow was $1.1 billion, with a trailing twelve-month cash flow conversion of 84%. Returns to shareholders totaled $253 million of dividends in the quarter.
By segment, Packaging & Specialty Plastics net sales were $5,778 million, up 18%, with local price up 17% and volume up 1%; operating EBIT was $585 million, up $386 million. Industrial Intermediates & Infrastructure net sales were $3,058 million, up 8%, with local price up 16% and volume down 7%; operating EBIT was $176 million, up $223 million from a loss of $47 million a year earlier. Performance Materials & Coatings net sales were $2,250 million, up 8%, with local price up 5% and volume up 3%; operating EBIT was $154 million, up $74 million.
"Dow delivered a solid third quarter, driven by targeted downstream growth and disciplined execution against an evolving macro backdrop," said Karen S. Carter, Dow's chief executive officer. She said the company is on track to achieve the upsized $700 million in growth and productivity benefits in 2026 and approximately $2 billion in total uplift by the end of next year, released more than $400 million of working capital during the quarter, and reduced debt by approximately $600 million year-to-date. In its outlook, the company said its self-help actions are on track to deliver more than $1 billion of EBITDA uplift in both 2026 and 2027.
Dow, based in Midland, Michigan, operates manufacturing sites in 29 countries and employed approximately 34,600 people as of year-end 2025; it delivered sales of approximately $40 billion in 2025. The earnings call was scheduled for 8:00 a.m. Eastern Time on October 22. (GSM, from Dow's official press release via PR Newswire, October 22)
Published by GSM · USA (original Chinese edition)
Photo: 图：密歇根州米德兰的陶氏工厂与总部航拍（资料图）。照片：Doc Searls，CC BY 2.0，经Wikimedia Commons。Aerial view of the Dow Chemical plant and headquarters in Midland, Michigan (file photo). Photo: Doc Searls, CC BY 2.0, via Wikimedia Commons.
