Dow returns to profit as prices rise 14%, operating EPS reaches 71 cents

Dow swung back to an operating profit in the third quarter as higher prices for polyethylene and other products lifted sales 13%.

Net sales reached $11.3 billion, with local prices up 14% from a year earlier and volume down 1%, according to the earnings release the chemical maker filed with an 8-K on Thursday. Operating EPS was 71 cents, compared with a loss of 19 cents a share a year earlier, and GAAP EPS was 62 cents on net income of $525 million.

Operating EBIT rose by $707 million to $887 million, which Dow attributed mainly to higher prices and its self-help actions, more than offsetting higher raw material and logistics costs.

"Dow delivered a solid third quarter, driven by targeted downstream growth and disciplined execution against an evolving macro backdrop," CEO Karen S. Carter said in the release.

Segments

Packaging & Specialty Plastics sales rose 18% to $5.8 billion, with local prices up 17%, and segment operating EBIT increased by $386 million to $585 million. Industrial Intermediates & Infrastructure sales rose 8% to $3.1 billion, with operating EBIT of $176 million versus a loss of $47 million.

Volumes rose in every region except Asia Pacific, where Dow said impacts from the Middle East conflict are most pronounced.

Cash and cost program

Cash from continuing operations was $1.8 billion, up $709 million, and free cash flow was $1.1 billion. Dow paid $253 million in dividends. Carter said the company is on track to achieve $700 million in growth and productivity benefits from its transformation program in 2026.

By the numbers

• Net sales: $11.3 billion, up 13%
• Local price: up 14%
• Operating EPS: $0.71, versus a loss of $0.19
• Operating EBIT: $887 million
• Free cash flow: $1.1 billion

Sources

1. Dow Inc., Form 8-K (Item 2.02) with Exhibit 99.1 earnings release dated Oct. 22, 2026, accession 0001751788-26-000155

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