AI Takeaway
DOW's FY2025 10-K reveals a significant deterioration in financial performance, with revenue declining 7.0% to $39.97B and EPS swinging sharply to -$3.70 from +$1.57, reflecting severe margin compression and a dramatic drop in operating cash flow.
Revenue
$39.97B
-6.97% YoY
EPS (Basic)
$-3.70
-335.67% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Total revenue fell 7.0% year-over-year to $39.97B in FY2025 from $42.96B in FY2024, suggesting broad-based volume and/or pricing headwinds across DOW's chemical segments in a challenging macro environment.
Source: Source: 10-K Income Statement (XBRL Financial Data)
Cost of revenue decreased 2.4% to $37.44B, but this reduction was far smaller than the 7.0% revenue decline, implying significant gross margin compression and indicating that input cost savings or efficiency gains could not keep pace with falling top-line performance.
Source: Source: 10-K Income Statement (XBRL Financial Data)
SG&A expenses were reduced by 12.0% to $1.39B from $1.58B, demonstrating management's effort to control overhead costs amid a difficult revenue environment, though these savings were insufficient to prevent a net loss.
Source: Source: 10-K Income Statement (XBRL Financial Data)
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Upgrade to unlockDOW reported a basic and diluted EPS of -$3.70 in FY2025, a dramatic reversal from +$1.57 in FY2024, representing a 335.7% decline. This swing to a net loss raises questions about the sustainability of the dividend and the company's ability to generate adequate returns for shareholders in the near term.
Source: Source: 10-K Income Statement (XBRL Financial Data)
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Upgrade to unlockReported EPS of $-0.34 versus the $-0.47 analyst consensus — a +27.5% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $39.97B | $42.96B | -6.97% |
Cost of Revenue | $37.44B | $38.36B | -2.41% |
EPS (Basic) | $-3.70 | $1.57 | -335.67% |
EPS (Diluted) | $-3.70 | $1.57 | -335.67% |
SG&A Expense | $1.39B | $1.58B | -11.95% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $58.54B | $57.31B | +2.14% |
Current Assets | $18.06B | $16.59B | +8.87% |
Current Liabilities | $9.18B | $10.29B | -10.74% |
Stockholders' Equity | $16.01B | $17.36B | -7.76% |
Cash & Equivalents | $3.82B | $2.19B | +74.33% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $1.03B | $2.91B | -64.58% |
Investing Cash Flow | $-2.13B | $-2.37B | +10.22% |
Financing Cash Flow | $2.51B | $-1.17B | +314.73% |
Share Buybacks | $0 | $494M | -100.00% |
D&A | $2.83B | $2.89B | -2.07% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Current Ratio | $1.967 | — | — |
DOW had a difficult FY2025, with revenue declining 7.0% to $39.97B and EPS swinging to a loss of -$3.70 from a profit of +$1.57 in FY2024. Operating cash flow also collapsed 64.6% to $1.03B, reflecting broad-based weakness in the business.
DOW's net loss in FY2025 was driven by a sharp contraction in gross profit, as revenue fell 7.0% while cost of revenue declined only 2.4%, severely compressing margins. The resulting thin gross profit of approximately $2.53B was insufficient to cover SG&A ($1.39B) and D&A ($2.83B) expenses.
DOW's short-term liquidity appears adequate, with a current ratio of approximately 1.97 and cash of $3.82B (up 74.3% year-over-year), but stockholders' equity declined 7.8% to $16.01B due to the net loss. The company also appears to have taken on additional debt, as financing cash flow surged to +$2.51B from -$1.17B in FY2024.
No, DOW did not repurchase any shares in FY2025, compared to $494M in buybacks in FY2024. This suspension of buybacks reflects management's decision to conserve cash amid significantly weaker operating cash flow.
The most significant risks include continued margin compression (gross margin fell to ~6.3% from ~10.7%), reliance on debt financing to sustain liquidity (financing cash flow of +$2.51B), and the sustainability of shareholder returns given the net loss and zero buybacks. If demand and pricing do not recover, further erosion of the equity base and potential pressure on the dividend are key concerns.