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Dow Inc. (NYSE:DOW) Fourth-Quarter 2025 Earnings Preview

  • Analysts predict an EPS of -$0.46 and revenue of $9.47 billion for Dow's Q4 2025 earnings.
  • Dow faces a challenging economic environment, with an anticipated 8.8% decline in revenue year over year.
  • The company's shares have dropped by 32.8% over the past year, underperforming the Zacks Chemicals Diversified industry.

Dow Inc. (NYSE:DOW) is set to announce its fourth-quarter 2025 earnings on January 29, 2026. Analysts predict an earnings per share (EPS) of -$0.46, with revenue expected to be around $9.47 billion. Dow is a major player in the chemicals industry, facing competition from other diversified chemical companies. The company is currently navigating through a challenging economic environment.

Dow is grappling with weak global demand, especially in Europe and Asia, which has led to an anticipated 8.8% decline in revenue year over year. The company is also dealing with lower prices and increased feedstock costs. Despite these challenges, Dow is implementing cost-cutting measures, aiming for $1 billion in reductions, with a $400 million benefit expected in 2025.

Over the past year, Dow's shares have dropped by 32.8%, a more significant decline than the 21% fall in the Zacks Chemicals Diversified industry. The company has had mixed earnings results, surpassing the Zacks Consensus Estimate in two of the last four quarters but missing it twice, leading to an average negative earnings surprise of 35.8%. However, the most recent quarter saw a positive earnings surprise of 38.7%.

Dow's financial metrics reflect its current challenges. The company has a negative price-to-earnings (P/E) ratio of -17.47, indicating ongoing losses. Its price-to-sales ratio is 0.48, suggesting the stock is valued at less than half of its sales per share. The enterprise value to sales ratio is 0.85, showing the company's valuation in relation to its sales.

Despite a negative earnings yield of -5.72%, Dow's current ratio of 1.94 indicates good short-term financial health, with nearly twice as many current assets as current liabilities. The debt-to-equity ratio of 1.12 suggests the company has more debt than equity, highlighting the financial challenges it faces.