Dow Reports $11.3 Billion in Sales and Cuts Net Debt in Third Quarter
Key Facts
Dow reported sales of $11.3 billion in the third quarter of 2026, up 13% year over year, as net income available to common shareholders rose to $458 million from $62 million in the same period of 2025. Earnings per share were $0.62, compared with $0.08 a year earlier, according to the quarterly report the company filed with the U.S. Securities and Exchange Commission. The results come as the company continues to reduce its debt, while keeping its cash dividend at $0.35 per share during 2026. On October 15, Dow announced a dividend of that amount, payable on December 11. The October announcement therefore does not represent a new dividend cut; the reduction from $0.70 to $0.35 per share began in the third quarter of 2025, according to a correction to information in the previous draft.
The year-over-year comparison reflects improved reported sales and earnings, while Dow said higher operating cash flow in the quarter stemmed mainly from improved earnings and increased working capital release. Working capital release was not only part of the company’s explanation for cash flow: Chief Executive Karen Carter said the company released more than $400 million from working capital during the quarter. Carter added that Dow reduced debt by about $600 million from the start of 2026 through the end of the third quarter. The company links improved financial performance and working capital management with its efforts to reduce debt. These figures put debt reduction alongside sales and earnings growth as prominent features of the quarter’s results.
Gross debt totaled $17.539 billion on September 30, 2026, compared with $18.161 billion on December 31, 2025, according to the quarterly report. Net debt fell to $12.839 billion from $13.960 billion over the same period. The comparison shows declines in both debt measures since the end of last year, alongside the company’s announcement that it had reduced debt by about $600 million since the start of 2026. Dow also disclosed $13.7 billion in cash and committed and available liquidity at the end of September. The company said there are no significant long-term debt maturities before 2029, setting the time frame for its announced liability management plan.
On the earnings call, Chief Financial Officer Jeff Tate said Dow repurchased about $300 million of debt in the third quarter and plans to repurchase about $200 million more in the fourth quarter. He added that a euro bond maturity in March 2027 is among the actions expected, collectively, to retire about $1.4 billion of debt. Tate said: "We repurchased about $300 million of debt in the third quarter, with plans to add about $200 million in the fourth quarter." The plan, he said, includes the euro bond maturity in March 2027 alongside the repurchases. He estimated that these actions collectively will retire about $1.4 billion of debt.
On dividends, the filing showed Dow declared four dividends during 2026, each worth $0.35 per share, in February, April, August and October. The October dividend is payable on December 11, following a record date of November 30. The company said this is the 461st consecutive dividend it or its subsidiaries have paid since 1912. That puts the continuation of the dividend at its current level in the context of a long track record, alongside debt reduction and disclosed liquidity. The cut from $0.70 to $0.35 per share began in the third quarter of 2025, according to a correction to the previous draft, and was not a new decision in October 2026.
The company is also counting on growth and productivity benefits to support its financial performance. It said it is targeting $700 million in such benefits in 2026 and about $2 billion in total benefits by the end of 2027. It said benefits tied to the closure of three European assets will accrue through 2027, and that it has already recorded successive gains following the first closure. On credit ratings, Standard & Poor’s on July 30, 2026, affirmed TDCC’s ratings at BBB- and A-3 and revised the outlook to stable from negative. The agency attributed its decision to expectations for improved earnings and credit metrics and continued progress on cost-cutting measures. The benefits targets and debt-reduction measures are announced milestones to track through the end of 2027, while the filing shows no significant long-term debt maturities before 2029.