Dow forecasts profit above estimates on pricing gains and cost cuts (updated)

Dow

22/10/2026 11:10

Company forecasts upbeat Q4 core profit
Dow sees polyethylene price gains outpacing costs in Q4
Sadara partially restarted; liquids production remains constrained
Dow beats Q3 profit estimates
Adds comments from conference call and detail in paragraphs 3, 12 and 13
By Pooja  Menon
Oct 22 (Reuters) - Dow DOW.N forecast fourth-quarter adjusted core profit above market expectations, betting that higher polyethylene prices and its cost-cutting measures would offset the impact from the rise in raw material and logistics costs due to the Iran conflict.
The closure of the Strait of Hormuz following the escalation of the conflict in late February has disrupted oil and petrochemical flows, tightening global chemical supplies and driving up plastics and polymer prices.
Global integrated polyethylene margins are expected to improve by about 2 cents per pound in the fourth quarter, Dow executives said on a post-earnings call.
Dow forecast fourth-quarter adjusted core earnings of about $1.54 billion, above analysts' average estimate of $1.38 billion, according to data compiled by LSEG.
The outlook builds on a strong third quarter. Dow reported adjusted earnings of 71 cents per share, beating analysts' estimate of 64 cents.
Sales at its packaging and specialty plastics unit rose more than 18% to $5.8 billion, driven by higher polyethylene prices. 
Dow has been trying to reduce costs and improve profitability. It has been reviewing assets across its global portfolio, including plans to close higher-cost upstream facilities, and earlier this year, it announced plans to cut about 4,500 jobs, or 13% of its workforce. 
The Michigan-based company has implemented nearly 70% of its planned workforce reduction and expects its restructuring program to deliver more than $200 million in benefits in the second half of this year.
CEO Karen S. Carter said Dow remained on track to generate more than $1 billion in annual core profit gains in both 2026 and 2027.
Executives said Sadara Chemical, Dow's joint venture with Saudi Aramco 2222.SE, had partially restarted, although logistics constraints continued to weigh on liquids production.
Sadara temporarily shut down production at its Jubail complex in March due to Iran war-related supply disruptions, and Dow stopped recognizing losses from the venture in the first quarter after reaching its maximum accounting liability.

 (Reporting by Pooja Menon in Bengaluru; Editing by Shinjini Ganguli)
 ((Pooja.Menon@thomsonreuters.com;))