Dow reported a significant net loss in the fourth quarter of 2025 and announced a major restructuring plan involving approximately 4,500 job cuts, or about 13% of its workforce, as it shifts towards using artificial intelligence (AI) and automation to boost profitability.

The company reported a challenging 2025 with net sales dropping to $40 billion from $43 billion in 2024, resulting in a $2.4 billion net loss compared to the previous year's $1.2 billion income. Operating EBIT fell sharply to $400 million from $2.6 billion, driven by a prolonged industry downturn and reduced demand.

Despite a net loss of $1.5 billion in the fourth quarter of 2025, Dow still returned $251 million to shareholders in dividends for that quarter, contributing to a total of $1.5 billion in dividends for the full year.

“Dow’s self-help measures continue to gain traction and were evident in our fourth quarter results,” said Jim Fitterling, Dow chair and CEO.

“In 2025, we achieved well over half of our more than $6.5 billion in near-term cash and cost support actions, including the accelerated delivery of more than $400 million in cost savings from our $1 billion program. As we move forward, Transform to Outperform represents a comprehensive and radical simplification of our operating model. It aims to deliver step-change productivity across every business and function and growth with our customers. We expect these efforts to provide at least $2 billion in additional nearterm earnings while helping Dow set new competitive standards and improve shareholder returns.”

OUTLOOK

“Team Dow remains focused on delivering near-term cost savings, navigating an unprecedented industry downturn and our long-standing cultural values of safety and reliability,” said Fitterling. “At the same time – by reducing complexity, adopting the best available technologies and streamlining our end-to-end processes – Transform to Outperform is expected to provide step-change productivity gains while enabling consistent growth. We will make breakthrough improvements across our company to fundamentally simplify Dow’s operating model. Doing so will position us well to work more efficiently, better serve our customers and deliver improved shareholder returns."