DOWHIGH SIGNALFINANCIAL10-K

Dow's stock price collapsed roughly 50% while the company substantially reduced dividend payments and experienced significantly lower operating cash flows.

The dramatic decline in market capitalization from $37.1 billion to $18.7 billion reflects severe investor confidence issues, while the company's decision to slash dividend payments by over 80% suggests significant cash preservation measures. The combination of substantially reduced operating cash flows and defensive financial positioning indicates Dow is navigating through a challenging operating environment that has materially impacted both profitability and shareholder returns.

Comparing 2026-02-03 vs 2025-02-04View on EDGAR →
FINANCIAL ANALYSIS

Dow's financial performance deteriorated meaningfully across key operational metrics, with gross profit declining 17.4% to $5.2 billion while operating cash flows fell substantially to $1.0 billion. The company responded defensively by dramatically cutting dividend payments to $535 million and reducing SG&A expenses by 12%, while building cash reserves to $3.8 billion. The overall picture signals a company in preservation mode, prioritizing balance sheet strength over shareholder distributions amid challenging market conditions.

FINANCIAL STATEMENT CHANGES
Dividends Paid
Cash Flow
-85.6%
$3.7B$535.0M

Dividends cut 85.6% — significant signal of cash flow stress or capital reallocation priorities.

Cash & Equivalents
Balance Sheet
+74.3%
$2.2B$3.8B

Cash position surged 74.3% — strong cash generation or capital raise providing significant financial cushion.

Operating Cash Flow
Cash Flow
-64.6%
$2.9B$1.0B

Operating cash flow fell 64.6% — earnings quality concerns; investigate working capital changes and non-cash items.

Gross Profit
P&L
-17.4%
$6.3B$5.2B

Gross margin compression — rising input costs, pricing pressure, or unfavorable product mix shift.

SG&A Expense
P&L
-12%
$1.6B$1.4B

SG&A reduced 12% — improved cost efficiency or headcount reduction improving operating margins.

Current Liabilities
Balance Sheet
-10.7%
$10.3B$9.2B

Current liabilities reduced — improved short-term financial position and working capital health.

LANGUAGE CHANGES
NEW — 2026-02-03
PRIOR — 2025-02-04
ADDED
was approximately $ 18.7 billion based on the last reported closing price of $26.48 per share as reported on the New York Stock Exchange.
had 717,534,072 shares of common stock, $ 0.01 par value, outstanding at January 15, 2026.
76 The Dow Chemical Company and Subsidiaries: Consolidated Statements of Income.
Except as otherwise indicated by the context, the term "Union Carbide" means Union Carbide Corporation, a wholly owned subsidiary of the Company.
Additionally, the term "Diamond Infrastructure Solutions" means Dow InfraCo, LLC, an entity that owns and operates infrastructure assets at certain Dow locations on the U.S.
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REMOVED
was approximately $ 37.1 billion based on the last reported closing price of $53.05 per share as reported on the New York Stock Exchange.
had 703,831,931 shares of common stock, $ 0.01 par value, outstanding at January 15, 2025.
70 The Dow Chemical Company and Subsidiaries: Consolidated Statements of Income.
Except as otherwise indicated by the context, the term "Union Carbide" means Union Carbide Corporation and the term "Dow Silicones" means Dow Silicones Corporation, both wholly owned subsidiaries of the Company.
The Company's global breadth, asset integration and scale, focused innovation, leading business positions and commitment to sustainability enables the Company to achieve profitable growth and help deliver a sustainable future.
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