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Get filing alertsDow reports Q2 2026 operating EPS of $1.44 vs. ($0.42) loss prior year on polyethylene pricing
Filed July 23, 2026 · Period ending July 23, 2026 · ~1 min read
Key Changes
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Net sales rose 20% YoY to $12.1B with operating EPS of $1.44 versus a $0.42 loss in Q2 2025; operating EBIT improved $1.7B YoY to $1.6B, driven by higher polyethylene prices across all regions and self-help initiatives.
Exhibit 99.1 view on EDGAR → -
high
Dow raised 2026 Transform to Outperform guidance by ~$200M, bringing total expected in-year self-help benefits to greater than $1.3B, with impacts expected to ramp through remainder of 2026 and into 2027.
Exhibit 99.1 view on EDGAR → -
high
Packaging & Specialty Plastics segment net sales increased 27% YoY to $6.4B with operating EBIT up $1.2B to $1.3B, driven by 30% higher local prices (primarily polyethylene) partially offset by 4% lower volumes from planned maintenance.
Exhibit 99.1 view on EDGAR → -
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Operating cash flow from continuing operations reached $1.3B in Q2, driven by higher earnings that more than offset working capital build from revenue growth; returned $253M to shareholders via dividends.
Exhibit 99.1 view on EDGAR → -
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Recorded $292M pretax charge ($227M after-tax, $0.31/share) in H1 2026 for change in fair value of estimated liability on Sadara project financing debt guarantee, excluded from operating results.
Exhibit 99.1 view on EDGAR →
Summary
Dow delivered a strong turnaround in Q2 2026, swinging from a $0.42 operating loss per share in the prior-year quarter to $1.44 operating EPS. The $1.7 billion year-over-year improvement in operating EBIT to $1.6 billion was driven primarily by higher polyethylene prices across all regions and the company's Transform to Outperform self-help program.
The Packaging & Specialty Plastics segment led the recovery with a $1.2 billion EBIT improvement on 30% higher local prices, though volumes declined 4% due to planned maintenance. Dow raised its 2026 Transform to Outperform guidance by approximately $200 million, bringing total expected in-year self-help benefits to greater than $1.3 billion.
Management indicated these benefits will ramp significantly through the remainder of 2026 and into 2027. The company generated $1.3 billion in operating cash flow despite working capital increases from revenue growth, and returned $253 million to shareholders through dividends. The Sadara guarantee liability adjustment of $292 million pretax reflects mark-to-market volatility on the project financing guarantee but was excluded from operating results.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jul 27, 2026 · How we verify