Dow Inc

Dow management said on its second quarter 2026 earnings call that it will prioritize debt reduction with excess cash and does not expect share buybacks during 2026, keeping the dividend as its primary channel for returning cash to shareholders. CFO Jeff Tate said the company intends to continue paying down the roughly $1 billion in debt accumulated over the past 12 months, with about $80 million repaid during the quarter alone, and that buybacks are not expected during the course of 2026. The quarterly dividend sits at $0.35 per share, down from $0.70 held steady across four straight quarters through mid-2025, while the dividend yield stands at 4.84%, well off its 12.05% high. Dow booked $2.3 billion in operating EBITDA for the quarter, driven by more than 40% local polyethylene price gains across regions, and its Transform to Outperform self-help program delivered over $300 million in the quarter and is now tracking to $700 million for the year, up from an original $500 million target, according to CEO Karen Carter. The company held approximately $14 billion in total available liquidity with no material debt maturities until 2029, and Tate said Dow expects a working capital release of more than $500 million in the second half of the year on top of roughly $1.3 billion already collected from NOVA litigation compensation. TIKR's mid-case model puts a $33.93 target price on Dow stock by 12/31/34, implying an 18.1% total return and a 4% annualized rate from the current $28.73 price.

Univar Solutions has expanded its agreement to distribute Dow's SupraCare polymers and specialty additives across the US and Canada, widening access to Dow's homecare and industrial cleaning ingredients portfolio. The news drew fresh attention to Dow, whose share price has been choppy, down 2.6% over the last day and roughly 9.5% over the past month, even as the year to date share price return stands at 18.4% and the 1 year total shareholder return is 28.3%. Dow closed at $28.73, while the most followed narrative pegs fair value at $34.69, a 17% undervaluation. Dow expects a $2.4 billion influx from the sale of its minority stake in select U.S. Gulf Coast infrastructure assets, and a final ruling on pending Nova litigation is anticipated with expected proceeds exceeding $1 billion. Elevated feedstock and energy costs, together with softer demand in key end markets, could still pressure Dow's margins and challenge the undervaluation case.

Dow Inc. shares rose 2.69% to $31.28 in the latest session, outpacing the S&P 500's 0.46% gain, while the Dow and Nasdaq advanced 0.56% and 0.45%, respectively. Over the past month, the stock has gained 0.43%, leading the Basic Materials sector's flat performance but lagging the S&P 500's 2% rise. For the upcoming earnings report, analysts expect Dow to post earnings of $0.78 per share, a 510.53% year-over-year increase, and revenue of $11.22 billion, up 12.52%. For the full year, the consensus estimates call for earnings of $2.42 per share and revenue of $43.31 billion, representing changes of +357.45% and +8.37%, respectively. The Zacks Consensus EPS estimate has moved 3.59% lower in the past month, and Dow currently holds a Zacks Rank #3 (Hold). The stock trades at a forward P/E of 12.6, a discount to the industry average of 17.2, and has a PEG ratio of 0.39 versus the industry's 1.22.

X-energy has joined the Prometheus project, a first-of-a-kind research initiative led by Idaho National Laboratory, NVIDIA, and AWS, as a Tier 1 partner to accelerate advanced nuclear deployment using artificial intelligence. The three-year project was awarded $60 million under the U.S. Department of Energy's Genesis Mission and aligns 32 leading laboratories, universities, and private technology developers. X-energy is providing $10 million in private capital and the use of its proprietary Xe-100 small modular reactor and TRISO-X fuel designs as a technical platform for the research campaign. The company expects to leverage advancements from the project to help accelerate commercial deployment across its 11 GW pipeline, which includes projects with Dow, Amazon, and Centrica.

The global hydrochloric acid market is projected to grow from USD 2.76 billion in 2025 to USD 5.21 billion by 2035, at a compound annual growth rate of 6.03 percent, according to a report by SNS Insider. North America held the largest revenue share in 2025 at approximately 35.1 percent, with the United States contributing 87.4 percent of that regional total. The steel pickling application segment accounted for over 36.5 percent of the market in 2025, while the oil well acidizing segment was the fastest growing. Asia Pacific is expected to be the fastest-growing regional market, registering a nearly 6.4 percent CAGR from 2026 to 2035, driven by industrialization in China and India. Key players include Olin Corporation, Occidental Petroleum Corporation, Westlake Corporation, Dow Inc., and BASF SE.

Dow stock screens as undervalued on both a discounted cash flow estimate and market multiples, with a current share price of US$29.30. A two-stage free cash flow to equity model projects an intrinsic value of about US$38.34 per share, implying a roughly 23.6% discount. The company also trades at a price-to-sales ratio of about 0.5x, below an industry average of around 1.1x and a peer group average of roughly 0.8x. The analysis notes that future cash generation and capital discipline could support the intrinsic value case, while margin pressure or heavier investment needs may weigh on shareholder returns.

The global polyurethane dispersions market is projected to grow from USD 3.00 billion in 2025 to USD 4.34 billion by 2030, at a compound annual growth rate of 7.7%. Solvent-free polyurethane dispersions are expected to be the fastest-growing product type, driven by demand for zero-solvent, low-emission technologies in leather, textiles, packaging, wood coatings, and automotive interiors. Paints and coatings are forecast to lead application growth, supported by low-VOC and environmentally compliant coatings in construction, automotive, and wood applications. Asia Pacific is projected to be the fastest-growing regional market, with China, India, South Korea, and Indonesia seeing expansion across automotive, textile, construction, and packaging sectors. The report covers companies including Covestro AG, BASF, Dow, Wanhua, Lubrizol, Mitsui Chemicals, Alberdingk Boley, Perstorp, Stahl Holdings, and UBE Corporation.

Artificial intelligence is fundamentally reshaping the foam insulation industry as manufacturers deploy advanced AI and machine learning systems to optimize production, reduce emissions, and accelerate innovation in customized materials. AI and ML systems are enabling unprecedented accuracy in developing customized grades of rigid foam insulation, reducing trial periods and minimizing costly R&D processes. The European Green Deal and Circular Economy Action Plan are driving significant AI investments in recycling technologies, with companies like BASF collaborating with Endress+Hauser and University of Bayreuth to develop AI-enhanced recycling solutions. Major players including Dow and Google have formed alliances to enhance circularity of hard-to-recycle plastics and foam insulation, while Covestro AG implements AI systems across polycarbonate and polyurethane production lines. Rising demand from electric vehicle manufacturers and high-performance battery producers is driving customized foam insulation requirements, with LG Chem deploying AI systems for advanced materials in battery thermal management applications.

Jefferies upgraded Xylem to Buy from Hold and raised its price target to $140 from $130, citing the stock's underperformance relative to the broader industrial sector despite stable demand and improving margins. The firm noted that Xylem has yet to fully reflect improving cyclical conditions, unlike industrial peers with direct data center exposure that have seen significant valuation expansion. Jefferies also highlighted Xylem's broad exposure across the entire water value chain and its recurring revenue base supported by long-term utility spending. Separately, Xylem announced a landmark agreement with Dow to design, build, and operate advanced water systems at Dow's large-scale industrial complex in Fort Saskatchewan, Alberta, supporting the Path2Zero project, with the system expected to be operational by August 2028.

Dow Inc. shares have gained 15.5% so far this year, performing in line with the Zacks Chemicals Diversified industry's 15.4% rise and outpacing the S&P 500's 9.7% increase. The company is benefiting from cost-reduction and productivity improvement efforts, strategic expansion in high-growth markets, and feedstock advantages in the Americas, even as it navigates a challenging macroeconomic environment. Dow recently entered a landmark agreement with Xylem to develop advanced water systems at its Fort Saskatchewan complex and announced approximately $100 million in targeted investments through 2027 to strengthen global specialty silicones manufacturing. The company is targeting $1 billion in cost cuts, with more than $400 million realized in 2025, and has launched a 'Transform to Outperform' initiative aiming for at least $2 billion in near-term operating EBITDA improvement. However, Dow faces headwinds from soft demand in Europe and China, higher feedstock costs in Asia and Europe due to the Middle East conflict, and $145 million in combined turnaround costs and operational issues in the second quarter. The Zacks Consensus Estimate for 2026 earnings has been revised upward over the past 60 days and is currently pegged at $3 per share, suggesting a year-over-year rise of 419.2%. With a forward price-to-sales ratio of 0.44, Dow trades at a discount to the industry and peers LyondellBasell, BASF, and Eastman Chemical. The stock carries a Zacks Rank #3 (Hold), and investors who already own shares may be best served by maintaining their positions.

Dow Inc. has returned about 17% since the start of the calendar year, outperforming the Basic Materials sector's average gain of 8.1%. The company currently holds a Zacks Rank of 1, or Strong Buy, and its full-year earnings consensus estimate has risen 37652.7% over the past three months. Another Basic Materials stock, Green Plains Renewable Energy, has returned 56.9% year-to-date and also carries a Zacks Rank of 1. Dow belongs to the Chemical - Diversified industry, which has gained 15.4% on average this year, while Green Plains is part of the Chemical - Specialty industry, which has moved up 15%.

Dow and Univar Solutions have entered a long-term agreement to distribute Dow's Decarbia low-carbon product portfolio. The partnership will leverage Univar Solutions' global distribution network to supply products, including high-integrity Product Carbon Footprint certificates, to industries such as beauty, personal care, food, and pharmaceuticals. The initiative aims to meet rising demand for sustainable supply chain alternatives and help customers achieve Scope 3 emissions reduction targets. Dow's low-carbon footprint calculations are based on its Carbon Footprint Ledger methodology, assured under international standards like ISO14067 and the GHG Protocol Product Standard. Both companies view the deal as a strategic expansion of their collaboration to accelerate value chain decarbonization.

Dow Inc. and Albemarle both hold a Zacks Rank of 1, or Strong Buy, reflecting positive earnings estimate revisions. Based on valuation metrics, Dow appears to be the superior value option, with a forward P/E of 9.69, a PEG ratio of 0.17, and a P/B of 1.25, earning a Value grade of B. Albemarle has a forward P/E of 10.30, a PEG ratio of 0.64, and a P/B of 2, resulting in a Value grade of C.

Dow Inc. has announced a series of targeted investments totaling approximately $100 million through 2027 to strengthen its global specialty silicones manufacturing and innovation. The plan includes expanding liquid silicone rubber production facilities in Carrollton, Kentucky, and Zhangjiagang, China, with operations expected to begin in 2027, as well as increasing capacity for engineered silicone materials used in advanced electronics applications such as semiconductor packaging, thermal and electrical protection. New expansions in Songjiang, China, and Fukui, Japan, are scheduled to come online this year, while additional projects in Auburn, Michigan, and Zhangjiagang are planned for 2027. Dow has also expanded its Cooling Science Labs in Shanghai and Midland, Michigan, to support the development of next-generation thermal management technologies. This initiative will complete the silicones investment series first disclosed during Dow's 2024 Investor Day.

Dow Inc. rallied in the first quarter as rising oil prices are expected to tighten global polyethylene markets, benefiting the company due to its cost-advantaged North American footprint, according to Pzena Focused Value Strategy. The commodity chemicals producer saw its shares gain 11.84% over the past 52 weeks, closing at $30.79 on June 22, 2026, with a market capitalization of $22.19 billion. The number of hedge funds holding Dow increased to 59 from 49 in the previous quarter. Pzena's Focused Value Strategy returned -4.7% net in the quarter, underperforming the Russell 1000 Value Index's 2.1% gain, amid market challenges from the Iran conflict and AI-related uncertainty.

Veralto Corporation’s operating company ChemTreat has joined Dow’s newly launched Coolant Care Network as a strategic national service provider for AI data center cooling and as Dow’s only preferred service provider in Virginia. The collaboration positions Veralto inside the liquid-cooling shift for high-density AI data centers, with ChemTreat providing sampling, mitigation, fluid health optimization, specialized chemistries, and remote monitoring. ChemTreat also added Dow’s DOWFROST LC and DOWFROST HD heat transfer fluids to its portfolio for direct-to-chip cooling loops and facility loops. The move gives Veralto exposure to the operating reliability layer of AI data center cooling, where water chemistry, corrosion control, and uptime become critical as workloads densify.

Xylem expanded its long-term partnership with Dow to design, build, and operate advanced water systems at Dow's large-scale industrial complex in Fort Saskatchewan, Alberta. The project, announced on June 8, 2026, will support Dow's Path2Zero operations and is expected to be operational by August 2028. Xylem will deliver engineering, system design, and long-term operation for a full water-cycle system that treats raw water, converts cooling and industrial process water into high-quality reusable supply, and optimizes system performance over time. The agreement highlights the growing importance of integrated water management as industrial and digital infrastructure strain local water supplies, aligning with the broader AI infrastructure theme where water reuse and real-time management help avoid competition between industrial growth and community needs.

Dow Inc. shares have rallied 39% year to date, outperforming the Zacks Chemicals Diversified industry's 23.6% gain and the S&P 500's roughly 10% increase. The company is benefiting from cost-reduction and productivity improvement efforts, strategic expansion in high-growth markets, and feedstock advantages. Dow is targeting $1 billion in cost cuts, with more than $400 million in benefits realized in 2025 and the remainder expected by 2026. Its 'Transform to Outperform' initiative aims for at least $2 billion in near-term operating EBITDA improvement, with roughly $500 million in EBITDA benefits expected in 2026 and about $1.1 billion in total self-help benefits this year. The company also noted strong positive momentum from recent pricing actions and supportive improvements in operating rates.

The global rigid foam market is projected to grow from USD 85.43 billion in 2025 to USD 200.43 billion by 2035, at a compound annual growth rate of 8.9 percent, according to a report by SNS Insider. Polyurethane rigid foam held the largest share of the market in 2025 at around 48 percent, while the building and construction insulation application accounted for an estimated 52 percent of the market. Asia Pacific dominated the global market in 2025, with China contributing around 44.8 percent of regional revenues, and Europe is expected to be the fastest-growing regional market, with its rigid foam market estimated at USD 22.21 billion in 2025 and projected to reach USD 50.82 billion by 2035. The U.S. rigid foam market was valued at approximately USD 17.92 billion in 2025 and is expected to reach approximately USD 42.10 billion by 2035, growing at a CAGR of approximately 8.93 percent. Key players include BASF SE, Dow Inc., Covestro AG, Huntsman Corporation, and Owens Corning.