Dow Inc. expects to release more than $500 million of net working capital during the second half of 2026, a forecast laid out in slides prepared for Chief Financial Officer Jeff Tate's presentation at the Morgan Stanley Laguna Conference. The company also said it expects third-quarter operating earnings before interest, taxes, depreciation and amortization of $1.5 billion to $1.6 billion, modestly below its prior expectations, citing weaker polyethylene pricing in the Americas and continued softness in construction and automotive markets. Dow said it is prioritizing deleveraging with excess cash and has repurchased about $300 million of debt so far this quarter, with no substantive debt maturities until 2029, and it received the remaining approximately $300 million in compensation from litigation involving NOVA Chemicals. Combined with the projected working-capital release, those items could provide Dow with more than $800 million of incremental cash during the second half. Dow also raised the expected in-year contribution from its Transform to Outperform program, which is intended to generate about $2 billion of benefits by the end of 2027, and now expects approximately $700 million of benefits in 2026, including about $500 million during the second half, with roughly 70% of 4,500 planned job reductions already implemented.
Dow IncDow trimmed Q3 EBITDA outlook to $1.5-1.6B on weaker polyethylene pricing and soft construction/automotive demand
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