Slide 1: 1Q 2025 Results
1Q 2025 Results April 24, 2025
Slide 2: Agenda
▪ 1Q25 Highlights Agenda ▪ Further Actions to Navigate the Prolonged Downturn ▪ Operating Segment Performance ▪ Asset and Portfolio Advantages ▪ Outlook ▪ Near-Term Cash Support to Preserve Financial Flexibility
Slide 3: 1Q 2025 Highlights
1Q 2025 Highlights Delivering Volume Growth Despite Challenging Industry Conditions ▪ Net sales of $10.4B; 6th consecutive quarter of YoY volume growth $10.4B ▪ Operating EBITDA was $944MM, down YoY Net Sales ▪ Total CapEx for the quarter was $685MM, below D&A levels – will remain below for FY25 ▪ E
Slide 4: Further Actions to Reduce Spending and Right-Size Capacity
Further Actions to Reduce Spending and Right-Size Capacity Delaying Path2Zero Growth Project Expanding Scope of European Asset Review ▪ The long-term strategic rationale of Path2Zero remains intact, and we ▪ Continuing to advance our previously announced European asset are committed to completing th
Slide 5: Packaging & Specialty Plastics
Packaging & Specialty Plastics REVENUE OP. EBIT & OP. EBIT MARGIN Op. EBIT Drivers YoY QoQ YoY QoQ YoY Lower integrated margins Sales 2% Sales Flat Op. EBIT $263MM Op. EBIT $105MM QoQ Volume 4% Volume 1% Margins 470 bps Margins 200 bps Lower integrated margins from higher input costs; partly offset
Slide 6: Industrial Intermediates & Infrastructure
Industrial Intermediates & Infrastructure REVENUE OP. EBIT & OP. EBIT MARGIN Op. EBIT Drivers YoY QoQ YoY YoY QoQ Lower prices, higher energy costs Sales 5% Sales 3% Op. EBIT $215MM Op. EBIT $212MM and lower equity earnings, partly offset by higher volumes in Dow Volume 1% Volume 1% Margins 740 bps
Slide 7: Performance Materials & Coatings
Performance Materials & Coatings REVENUE OP. EBIT & OP. EBIT MARGIN 1Q25 Op. EBIT Highlights Drivers YoY QoQ YoY QoQ YoY Lower fixed costs, partly offset by Sales 4% Sales 5% Op. EBIT $8MM Op. EBIT $58MM lower prices Volume 1% Volume 8% Margins 50 bps Margins 290 bps QoQ Seasonally higher demand and
Slide 8: Strategic and Purpose-Built Asset Footprint
Strategic and Purpose-Built Asset Footprint Global Portfolio Breadth Provides Industry-Leading Feedstock Competitive Advantage Flexibility Polyethylene USGC Feedstock Optimization ME/APAC Dow has Significant Optionality to Mitigate Against Direct 100% US Dow Tariff and Volatile Feedstock Environment
Slide 9: Portfolio Benefits Provide Industry Leading Performance
Portfolio Benefits Provide Industry Leading Performance Benchmarking: Strengths & Opportunities ✓ FY24 YoY Adj. Op. EBITDA growth in-line with the peer median driven by Outperforming the Competition resilient demand in key end markets such as packaging, energy, electronics and home & personal care D
Slide 10: Slower Global Growth with Increasing Macro Uncertainty
Slower Global Growth with Increasing Macro Uncertainty Packaging U.S. & Canada industry PE domestic sales increased QoQ, but export volumes moderated following record high November and December Market Vertical China Rest of NAA LAA EMEAI World China manufacturing PMI has remained consistent across F
Slide 11: 2Q25 Modeling Guidance
2Q25 Modeling Guidance Uncertain Macroeconomic Environment Expected to Temper Normal Seasonality Net Sales ~$10.4B Depreciation & Amortization ~$725MM Full-Year Operational Tax Rate ~25 – 29% Net Interest Expense (Net of Int. Income) ~$175MM Net Income Attrib. to Non-Controlling Int. ~$45MM Average
Slide 12: Near-Term Support to Preserve Financial Flexibility
Near-Term Support to Preserve Financial Flexibility Complete Infrastructure Asset Sale Receive NOVA Damages Award Deliver Cost & CapEx Reductions ▪ Expect to receive initial cash proceeds of ▪ The Court of King’s Bench in Alberta, ▪ Expect 2025 enterprise CapEx to be ~$2.4B for a 40% equity stake; a
Slide 13: 2025 Strategic Priorities
2025 Strategic Priorities Right-size ▪ Maintain financial flexibility and ensure a balanced capital allocation approach amidst market challenges and uncertainty Capacity and ▪ Delay construction of Fort Saskatchewan Path2Zero project to match market demand conditions Reduce CapEx to Match ▪ Continue
Slide 14: Seek Together
<r Seek Together’
Slide 15: FY 2025 Modeling Considerations
FY 2025 Modeling Considerations [BETTER / WORSE SINCE LAST UPDATE] Operating EBIT Drivers Equity Earnings ~$25 to ~$50MM lower YoY Pension and Defined ~$90MM higher YoY Contribution Impact Cash Flow Considerations Corporate Op. EBIT of ~$(320)MM and Op. EBITDA of ~$(280)MM Dividends from Equity Turn
Slide 16: Principal Joint Venture Detail
Principal Joint Venture Detail Dow’s Proportional Share of Principal JV Financial Results Drivers of JV Performance 1Q 2025 4Q 2024 1Q 2024 Kuwait Thai Kuwait Thai Kuwait Thai ▪ Sadara: YoY primarily driven by lower volumes; $ millions (unaudited) Sadara JVs JVs Sadara JVs JVs Sadara JVs JVs QoQ pri
Slide 17: Share Issuance and Repurchase Activity
Share Issuance and Repurchase Activity Share Issuances & Repurchases Comments ▪ Stock Incentive Plans (LTI): Includes Shares in millions 1Q25 4Q24 1Q24 YTD25 YTD24 stock options, restricted stock units, performance stock units, stock Stock Incentive Plans (LTI) 1.4 - 3.2 1.4 3.2 appreciation rights
Slide 18: Dow Capacities
Dow Capacities Dow Supplemental Information — Key Capacities (as of ™ Quarter 2024) Capacities - United States (does not include JV facilities) {In millons of pounds (Unaudited) Ethylene (fenceline contracts; producer economics) (On-Purpose Propylene? Polyethylene & Functional Polymers* Performance
Slide 19: Appendix
Appendix
Slide 20: General Comments and Safe Harbor
General Comments and Safe Harbor General Comments Unless otherwise specified, all financial measures in this presentation, where applicable, exclude significant items. Trademarks The Dow Diamond, logo and all products, unless otherwise noted, denoted with , ℠ or ® are trademarks, service marks or re
Slide 21: Non-GAAP Financial Measures & Definitions
Non-GAAP Financial Measures & Definitions Non-GAAP Financial Measures This presentation includes information that does not conform to GAAP and are considered non-GAAP measures. Management uses these measures internally for planning, forecasting and evaluating the performance of the Company's segment