January 29, 2026

Urethane Highlights from Dow’s Investors Call

Dow Inc. (DOW) Q4 2025 Earnings Call Transcript

Jan. 29, 2026 12:32 PM ETDow Inc. (DOW) Stock

Dow Inc. (DOW) Q4 2025 Earnings Call January 29, 2026 8:00 AM EST

Company Participants

Andrew Riker – Vice President of Investor Relations
James Fitterling – Chairman & CEO
Karen Carter – Chief Operating Officer
Jeffrey Tate – Chief Financial Officer

James Fitterling
Chairman & CEO

Thank you, Andrew. Beginning on Slide 3. Team Dow continued to execute with discipline during a year marked by persistent macroeconomic challenges and trade and policy volatility as well as anticompetitive behaviors by certain industry players. In the face of external pressures, we managed what was within our control.

Our fourth quarter operating EBITDA was $741 million, reflecting an expected sequential decline from lower seasonal demand and typical margin compression across many end markets.

Looking across 2025, we accomplished several impactful near and longer-term milestones, all while the market wasn’t providing many tailwinds.

We identified more than $6.5 billion in near-term cash support items and delivered well over half in 2025, including the accelerated delivery of our in-year cost savings from our $1 billion cost out program.

And we further strengthened our global manufacturing footprint. This includes our announced plans to shut down upstream high-cost assets as well as the completion of our remaining incremental growth investments, which serve downstream higher-value markets that are growing above GDP.

We were also once again recognized as one of the world’s best workplaces. This reflects direct feedback from our employees about the culture and talent that continues to drive Dow forward.

As we move into 2026, we recognize that many markets are fundamentally shifting. Geopolitical dynamics, rapid advances in AI and automation and economic volatility require new breakthrough approaches, greater agility and continued technological adoption. That’s why we announced our Transform to Outperform program earlier today. This work builds on our track record of taking proactive measures to help Dow, and it represents a fundamental change in how we will operate and serve our customers. We believe this will strengthen our long-term competitive position through every part of the economic cycle.

And lastly, we have finalized a value-maximizing path forward for our Path2Zero project in Fort Saskatchewan. We’ll share more details on all of this later in the call. But before that, Karen will cover our fourth quarter operating segment performance.

Karen Carter
Chief Operating Officer

Thank you, Jim, and good morning to everyone joining today. Dow cost savings measures gained significant traction across every business in the second half of 2025, which is reflected in our fourth quarter performance. Despite continued industry pressures, we are delivering on our commitments and self-help actions.

Next, turning to our Industrial Intermediates & Infrastructure segment on Slide 5. Overall demand for industrial applications remain challenged, which continues to pressure the industry and our businesses. Net sales for the segment were $2.7 billion, down 9% versus the same period last year.

Sequentially, net sales decreased 5%, mainly due to lower local prices and seasonally lower building and construction volumes. Volume decreased 1% year-over-year, primarily driven by lower volumes in polyurethanes and construction chemicals. This was partly offset by higher than typical seasonal demand for deicing fluids which have continued into 2026.

Operating EBIT decreased $285 million versus the same quarter last year and $154 million sequentially, driven by lower integrated margins. Our cost savings in both businesses helped offset some of the decline.

We also completed the shutdown of our higher-cost upstream propylene oxide unit in Freeport, Texas, rationalizing approximately 20% of North American PO industry capacity.

Jeffrey Tate
Chief Financial Officer

Thank you, Karen. Good morning to everyone participating on today’s call. Slide 7 shows that across the broader macroeconomic landscape, there are mixed signals in several of our end market verticals and key geographies. Recent developments are showing some encouraging signals in response to structural industry challenges as well as trade and tariff uncertainties.

This includes several announcements of further ethylene capacity rationalization as well as the elimination of VAT export rebates on select products in China.

Across the infrastructure sector, building and construction conditions are likely to gradually improve as interest rate cuts over the past 12 months gain traction. Housing starts and existing home sales remain well below historical averages, but there are some signs of positive momentum with existing home sales increasing for 4 months in a row. Consumer confidence has improved slightly but remains near historic lows, continuing to weigh on overall demand. At the same time, U.S. retail spending is holding steady in several categories with resilient sales of electronics as a bright spot.

Moving to Industrial Intermediates & Infrastructure. We expect normal seasonal improvements in building and construction end markets. Additionally, positive demand momentum for deicing fluids should continue into the first quarter, providing a tailwind for the segment. Our cost savings efforts will provide an additional $10 million tailwind, while approximately $15 million for planned maintenance activity throughout the quarter is expected to offset these gains. And in the Performance Materials & Coatings segment, we anticipate typical seasonal improvements for Architectural Coatings as well as higher siloxane pricing following the increased market prices that happened in China late last year. Collectively, this will provide roughly $80 million of sequential tailwinds this quarter.

James Fitterling
Chairman & CEO

Thank you, Jeff. Slide 9 outlines the key areas where we’re focused on strengthening Dow’s earnings power to ensure that we remain resilient through every cycle. First, we expect to deliver the remaining more than $500 million in cost savings by the end of this year from our previously announced $1 billion program. We’re also executing a series of strategic moves that will uniquely position Dow to win. This includes the start-up of our remaining incremental growth investments in cost-advantaged regions as well as our announced shutdowns of upstream higher-cost assets.

Additionally, Transform to Outperform is expected to deliver at least $2 billion in near-term EBITDA improvement. About 2/3 of that will come from productivity gains and the remaining 1/3 from growth. This work will radically simplify how we operate, streamline our end-to-end processes, reset our cost structure and modernize how we serve our customers. We anticipate the outcomes to deliver step change improvements in productivity, more growth with our customers and greater shareholder returns.

Kevin McCarthy
Vertical Research Partners, LLC

Your II&I segment trended a little bit weaker than I think you and I both expected 2 or 3 months ago. So maybe a 2-part question. Can you talk about the variances that manifested in that segment versus your prior expectations? And then the second part would be on polyurethanes. I think in the past, you had discussed the strategic review of that business. Is there any update on the efforts there? Is it active or dormant? I appreciate any color there.

James Fitterling
Chairman & CEO

Karen, do you want to touch on II&I and then I can come back on polyurethanes.

Karen Carter
Chief Operating Officer

Sure. In the fourth quarter, we did see normal seasonal demand declines, particularly in the building and the construction market. And the reality is that, that market just continues to be under pressure, not just domestically, but around the world. And of course, that is putting down more pressure on pricing. But also, if you think about housing, if you think about automotive, those markets are just weak around the world.

And so as we went into fourth quarter, we saw that we had some lower fixed costs as well as lower planned maintenance, but the building and construction end markets and durables just really offset that.

And we think about first quarter, we do expect to see some modest seasonal demand improvements and also tailwinds from cost actions. But we have a bit of planned maintenance that’s going to offset that and again, just continued downward pressure, particularly in the building and construction market.

James Fitterling
Chairman & CEO

On Polyurethanes, we continue to look for the best options, Kevin, on a go-forward basis for the Polyurethanes franchise. We’re obviously making a lot of changes. We noted that we took out 20% of North American PO capacity at the end of first quarter. So we’re having some rationalization in the industry on higher cost assets to kind of address the oversupply situation there. I would say, additionally, the team has been very busy on the trade front. I mentioned anticompetitive practices before, but Europe, especially has been hit very, very hard from dumping of material into the European continent. And this comes from regions that don’t have any particular cost advantage to bring it in.

And so we’ve seen some actions, I think, are going to have positive impact. In China, for example, the announcement that the 13% duty drawback for exports out of China is going away; at the end of first quarter in April, I believe, is when it goes away. So there were companies that don’t have the cost position to be able to export under free trade, fair trade rules that were getting 13% duty drawbacks for all their exports. That’s going to go away. And you’ve got a whole host of cases on antidumping that are starting to take hold. There’s been more traction in the Americas than there has been in Europe. Europe is a bit slower to respond, but it is on the radar screen and it is getting attention in Europe.

Patrick Fischer
Goldman Sachs Group, Inc., Research Division

Maybe I can sneak in 2. First one, I believe Sadar is up for its debt refi midyear this year. So can you just give us some details about operationally, how Sadara is looking? And what does that debt refi mean for Dow? And then just the second one is, you gave us $1 billion on the Canada project at mid-cycle. What would that project be making in today’s environment?

James Fitterling
Chairman & CEO

Yes, on Sadara, we continue to keep a close eye on Sadara it’s running safely and reliably. I’d say we had one small incident at the cracker this year. But the assets are in a good position on the global cash cost curve. Most of it has been around the financial structure. And Dow and Aramco are conducting an ongoing strategic review of Sadara, which is targeted to be completed during the first half of 2026.

The JV obviously operates very safely and very reliably. And we’ll look at the — and evaluate the opportunities to enhance the long-term resilience of the joint venture. I don’t anticipate any cash payments to Sadara lenders in 2026. Sadara has got ample liquidity through their facilities and including some that they utilized in the fourth quarter. And of course, Dow and Aramco have support behind that, bearing guarantees behind that.

Yes. Frank, it’s a good question. And I just want to make sure that we’re clear that it’s not all AI. So there are also going to be some fundamental changes. We’re going to look at all of our integrated work processes from end to end and simplify those. So for example, in previous changes, we’ve looked at trimming third-party costs. We’ve looked at — obviously, always look at procurement and what we can do to do better procurement and bring costs down for what we pay out to third parties.

But in this case, we’re looking at how things are built into our system and how we do our work end-to-end and how can we take steps out, how can we automate things that are done either manually or handoffs within the system to date. And AI is going to give us a lot of possibilities there. Over the last couple of years and in the first — we had not in 2025, but we had $1 billion cost-out program before that. And some of the money from that program actually went into digital capabilities and IT.

So one of the things that we have is we have a lot of high-quality data. We’ve got an intelligent data hub that we’ve built inside the company that AI on top of that will allow us to take a look at these work processes and really take steps out and streamline the whole thing. So we call it a reengineering or a rewiring of the way we do business globally. And then that can be baked into the system and automated. And that’s one of the ways we’ll keep cost out as we go forward.

We’re seeing progress in many functions right now. Many different functions are using AI in ways that are speeding things up or reducing the cost to do things. We see it in legal, for example, patent research work. I’m doing discovery on cases on legal; there is a big cost savings there. We’re seeing it in a lot of other applications. So I think it’s going to be there. And we haven’t really started to get into yet robots and AI and robotics together. I think at some point, we will.

On traditional AI, we’ve seen great progress, obviously, from using technology to make things safer and eliminate certain costs from turnarounds and things like cost of scaffolding is a big cost in a turnaround by using drones and crawlers with cameras and other kinds of technologies, we can eliminate big costs out of having to scaffold parts of plants to go in and do those turnarounds. So they’re real numbers, and we’re pretty confident that we can bring it to all of that to the bottom line.

On the growth side, also be some refocus on where we have our people position. I would say the focus will be on still boots on the ground on the sales side, sales, tech service application development. Our model is you’ve got to be at the design table with your customers, and you got to be on the ground to do that. So we’ll look at how those are deployed. Are they in the right geographies and the geographies that are growing and then how we support that from behind the scenes inside the shop, see what we can do to automate to help them and bring better data to their fingertips.

https://seekingalpha.com/article/4863886-dow-inc-dow-q4-2025-earnings-call-transcript?mailingid=43821623&messageid=2800&position=rta_analysis_popular_main_3_textlink&serial=43821623.382&source=email_2800

January 26, 2026

Henkel Acquires ATP

Henkel to Acquire ATP Adhesive Systems

PUdaily | Updated: January 23, 2026

Henkel to Acquire ATP Adhesive Systems – a leading expert in high-performance water-based specialty tapes

• Adhesive Technologies to expand product offering with complementary bonding solutions in fast-evolving dynamic markets
• Innovative player in high performance water-based technology with sustainable competitive advantage and strong value creation potential
• In addition to water-based tapes, access to advanced technological capabilities and expertise in hotmelt and solvent-based polymer tapes
• Adhesive Technologies to become a bonding solution provider beyond liquid adhesives offering additional value to its customers

Henkel signed an agreement to acquire Swiss-based ATP Adhesive Systems from Arsenal Capital Partners. ATP Adhesive Systems is a leading expert in high-performance water-based specialty tapes for a wide variety of end-markets, including automotive, electronics, medical, building & construction, and graphics applications. ATP Adhesive Systems has its presence in Europe and North America, employs around 700 employees and generated sales of around 270 million euros (expected) in fiscal year 2025.

“Expanding our portfolio through compelling, value-adding M&A transactions is an integral part of our purposeful growth agenda. This acquisition will enable further growth in our Adhesive Technologies business unit by increasing our offering and capabilities in the tapes market with a broader range of innovative bonding solutions. The portfolio of ATP Adhesive Systems represents a strong complementary and strategic fit for us. It also aligns with our sustainability targets, as more than 90 percent of the portfolio utilize water-based technologies with a low carbon footprint,” said Henkel CEO Carsten Knobel.

“With this acquisition, we will further strengthen our Adhesive Technologies business unit. The ATP Adhesive Systems business delivers a compelling portfolio of water-based specialty tapes with increasing use cases as a more sustainable alternative with low VOC (volatile organic compounds) levels and consequently driving growth well above the broader tapes industry. It also offers state-of-the-art production facilities and technological capabilities to further enhance our portfolio and to establish the foundation of a platform that extends beyond liquid technologies while accelerating innovation in sustainability”, said Mark Dorn, Executive Vice President and responsible for Henkel’s Adhesive Technologies business unit.

The acquisition is subject to customary closing conditions, including the receipt of regulatory approvals. At this point, the parties agreed to not disclose the financial terms of the transaction.
Source: Henkel

https://www.pudaily.com/Home/NewsDetails/62189

January 20, 2026

Somnigroup Update

Somnigroup to Engage in Discussions with Leggett & Platt

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DALLAS, Jan. 20, 2026 /PRNewswire/ — Somnigroup International Inc. (NYSE: SGI, “Somnigroup”) today issued the following statement in response to the announcement by Leggett & Platt Inc. (NYSE: LEG) that its Board of Directors has authorized discussions and entered into a customary non-disclosure agreement to facilitate due diligence and discussions with Somnigroup:

“We welcome the Board’s willingness to engage in discussions with us and we look forward to conducting customary due diligence.  Somnigroup remains committed to pursuing a transaction that will deliver substantial value to shareholders of both companies.  However, as we advised Leggett & Platt in declining to revise our proposal in advance of customary due diligence, we believe that our proposed all-stock transaction for value of $12 per share, as previously announced on December 1, 2025, represents fair value for Leggett & Platt.  Our proposal offers Leggett & Platt shareholders a 30% premium to the unaffected 30-day average price of Leggett & Platt’s shares as of that date, and an opportunity to participate in the future growth of the combined company.”

No assurance can be given that any transaction will be agreed or consummated, or the timing, price, terms or conditions of any such transaction. 

Somnigroup does not intend to comment further on market speculation or to disclose any developments unless and until it otherwise deems further disclosure is appropriate or required.

Goldman Sachs & Co. LLC is serving as financial advisor to Somnigroup and Cleary Gottlieb Steen & Hamilton LLP is serving as its legal advisor.

Customary Approvals 
Completion of the contemplated transaction is contingent upon reaching a definitive agreement and would be subject to the satisfaction of customary closing conditions, including receipt of Leggett & Platt shareholder approval and required regulatory approvals. The proposed transaction would not be subject to any financing contingencies or approval by Somnigroup’s shareholders.

Forward Looking Statements
This communication contains statements that may be characterized as “forward-looking,” within the meaning of the federal securities laws. Such statements might include information concerning one or more of Somnigroup’s plans, guidance, objectives, goals, strategies and other information that is not historical information. When used in this release, the words “assumes,” “estimates,” “expects,” “guidance,” “anticipates,” “might,” “projects,” “plans,” “proposed,” “targets,” “intends,” “believes,” “will,” “contemplates” and variations of such words or similar expressions are intended to identify forward-looking statements. These forward-looking statements include, without limitation, statements regarding Somnigroup’s proposal to acquire Leggett & Platt (including the benefits, results, effects and timing of a transaction) and any statements regarding Somnigroup’s (and Somnigroup’s and Leggett & Platt’s combined) expected future financial position, results of operations, cash flows, dividends, financing plans, business strategy, budgets, capital expenditures, competitive positions, growth opportunities and plans and objectives of management. Any forward-looking statements contained herein are based upon current expectations and beliefs and various assumptions. There can be no assurance that Somnigroup (or the combined company) will realize these expectations, meet its guidance or that these beliefs will prove correct.

Numerous factors, many of which are beyond Somnigroup’s control, could cause actual results to differ materially from any that may be expressed herein as forward-looking statements. These potential risks include general economic, financial and industry conditions, particularly conditions relating to the financial performance and related credit issues present in the retail sector, as well as consumer confidence and the availability of consumer financing; the impact of the macroeconomic environment in both the U.S. and internationally on Somnigroup; uncertainties arising from national and global events; industry competition; the effects of consolidation of retailers on revenues and costs; and consumer acceptance and changes in demand for Somnigroup’s products and the other factors discussed in Somnigroup’s Annual Report on Form 10-K for the year ended December 31, 2024. There may be other factors that may cause Somnigroup ‘s actual results to differ materially from the forward-looking statements. Somnigroup undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made.

Additional Information
This communication relates to a proposal which Somnigroup has made for a business combination transaction with Leggett & Platt. In furtherance of this proposal and subject to future developments, Somnigroup (and, if a negotiated transaction is agreed, Leggett & Platt) may file one or more registration statements, proxy statements, tender offer statements, prospectuses or other documents with the Securities and Exchange Commission (the “SEC”). This communication is not a substitute for any proxy statement, registration statement, tender offer statement, prospectus or other document Somnigroup and/or Leggett & Platt may file with the SEC in connection with the proposed transaction. INVESTORS AND SECURITY HOLDERS OF SOMNIGROUP AND LEGGETT & PLATT ARE URGED TO READ THE PROXY STATEMENT(S), REGISTRATION STATEMENT(S), TENDER OFFER STATEMENT(S), PROSPECTUS(ES) AND OTHER DOCUMENTS FILED WITH THE SEC CAREFULLY IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE AS THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Any definitive proxy statement(s) or prospectus(es) (if and when available) will be mailed to stockholders of Somnigroup and Leggett & Platt, as applicable. Investors and security holders will be able to obtain copies of these documents (if and when available) as well as other filings containing information about Somnigroup and Leggett & Platt, free of charge on the SEC’s website at www.sec.gov. Those documents, when filed, as well as Somnigroup’s other public filings with the SEC, may be obtained free of charge on Somnigroup’s website at www.somnigroup.com.

Somnigroup and its directors, executive officers and certain other members of management and employees may be deemed to be participants in any solicitation with respect to the proposed transaction under the rules of the SEC. You can find information about Somnigroup’s executive officers and directors in Somnigroup’s definitive proxy statement filed with the SEC on March 31, 2025. Additional information regarding the interests of such potential participants will be included in one or more registration statements, proxy statements, tender offer statements, prospectuses or other documents filed with the SEC if and when they become available. You may obtain free copies of these documents using the sources indicated above.

This communication shall not constitute an offer to sell, buy or exchange or the solicitation of an offer to sell, buy or exchange any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

About Somnigroup 
Somnigroup (NYSE: SGI) is the world’s largest bedding company, dedicated to improving people’s lives through better sleep. With superior capabilities in design, manufacturing, distribution and retail, we deliver breakthrough sleep solutions and serve the evolving needs of consumers in more than 100 countries worldwide through our fully-owned businesses, Tempur Sealy, Mattress Firm and Dreams. Our portfolio includes the most highly recognized brands in the industry, including Tempur-Pedic®, Sealy®, Stearns & Foster®, and Sleepy’s®, and our global omni-channel platform enables us to meet consumers wherever they shop, offering a personal connection and innovation to provide a unique retail experience and tailored solutions.

We seek to deliver long-term value for our shareholders through prudent capital allocation, including managing investments in our businesses. We are guided by our core value of Doing the Right Thing and committed to our global responsibility to protect the environment and the communities in which we operate. For more information, please visit www.Somnigroup.com.

https://www.prnewswire.com/news-releases/somnigroup-to-engage-in-discussions-with-leggett–platt-302664812.html

January 19, 2026

Dimer Acid Available Now from Everchem

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January 14, 2026

Pearl Group Extends CEO Contract

Pearl Group extends new five-year contract to CEO Martin Kruczinna

United Arab Emirates, 13 January 2026: Pearl Group, a global provider of polyurethane (PU) insulation solutions and other PU-based applications, announced today it has extended the contract of its global chief executive officer, Martin Kruczinna, for a further five years. Martin’s leadership will continue to drive the company’s progress in its ambition to become the global market leader in polyurethane-based solutions by 2034.

Martin was the architect of Pearl’s ambitious growth strategy to double the size of its business within a five-year period. The company will achieve this target in 2026 through its programme of international expansion, product diversification, and technical innovation and excellence. Under Martin’s stewardship, Pearl has opened or expanded its operations in South-east Asia, the Middle East, North Africa, Australia and Europe and broadened the company’s product portfolio into applications beyond its core offering. In addition to its leading insulation solutions, Pearl now produces PU-based formulations for coatings, adhesives and elastomers, and has entered new markets such as the polyurea, automotive, packaging and footwear industries, amongst others.

A champion of sustainability and diversity, Martin has led several initiatives to increase environmentally-friendly practices and diversity in the chemicals industry. Under his leadership, Pearl has introduced more sustainable product ingredients, advocated for stronger building code standards, and actively influenced climate policy – including through Pearl’s participation at COP28. Its inclusive hiring practices have substantially increased female representation in the company, which also employs colleagues from more than 20 nationalities.

Martin Kruczinna, CEO of Pearl Group, commented: “I am thrilled to remain at Pearl to lead a company that is going from strength to strength. Although the team has successfully achieved the ambitious targets set out as “Pearl x2” five years ago, we are far from finished: as we continue to enter new markets, extend our product lines and be an agent of change against global warming, I am proud of the progress we have collectively made in the last five years.  There is so much unleveraged potential, and I can’t wait to build on these opportunities with our team.”

Martin joined Pearl as CEO in 2021, and his focus on building a strong internal culture has created the foundation for a company that values high performance and empowerment, while celebrating successes and enjoying the journey. As a result, Pearl achieved the Great Place to Work certification in 2024.

About Pearl

Pearl Group is a global award-winning provider of innovative polyurethane-based systems. With deep foundations in the research and development of polyurethane solutions, Pearl Group offers clients tailor-made systems to meet their exact requirements across a broad range of sectors and applications. Its state-of-the-art plants and warehouses in the UAE, Saudi Arabia, Vietnam and Egypt, an Indian distribution hub in Maharashtra, and sales offices in Australia and Germany, Pearl Group offers a comprehensive range of polyurethane systems, prepolymers, and polyesters for the production of high-performance polyurethane foams, coatings, binders, and elastomers.

Formerly known as Bayer Pearl and Pearl Covestro, Pearl Group has a proven track record of more than 35 years in the Middle East region. The company’s roots date back to Otto Bayer – the German inventor of industrial polyurethane production in 1937.

Website: https://pearlpolyurethane.com/

LinkedIn: https://www.linkedin.com/company/pearl-polyurethane-systems