How did Dow's revenue and expenses shift in Q4 2024 compared to previous quarters?

Dow Chemical's revenue and expenses exhibited distinct shifts in the fourth quarter of 2024, reflecting both challenges and strategic adjustments:

1. **Revenue Shift**:
- **Growth in U.S. and Canadian Demand**: Dow Chemical experienced a modest year-over-year growth in net sales for Q3 2024, with a 1% increase to $10.9 billion. This indicates a positive trend in revenue generation, particularly in the company's core markets.
- **Potential Impact of Economic Headwinds**: Despite the growth in net sales, the company's stock hit a 52-week low, suggesting that macroeconomic headwinds, such as supply chain disruptions and fluctuating demand, may have had an impact on the company's financial performance.
2. **Expense Shift**:
- **Decrease in Cash Flow from Operations**: A significant concern for Dow Chemical was the decrease in cash flow from operations, which dropped to $800 million primarily due to an increase in inventories. This could indicate challenges in managing cash flow and inventory levels.
- **EBITDA Guidance**: The company's adjusted EBITDA guidance for Q4 2024 was set at approximately $1.31 billion, slightly below market expectations of $1.35 billion to $1.38 billion. This suggests a potential gap between planned earnings and actual financial outcomes.
3. **Strategic Adjustments**:
- **Strategic Review of Polyurethanes Assets**: Dow Chemical is undergoing a strategic review of its Polyurethanes assets in Europe, which could signal significant changes in its operations and portfolio in the region. This strategic move may aim to optimize performance and profitability in the face of industry challenges.
- **Long-Term Hydrogen Supply Agreement**: The company's entry into a long-term hydrogen supply agreement and the acquisition of Circulus to boost recycled capacity suggest proactive measures to enhance sustainability and operational efficiency.

In conclusion, Dow Chemical demonstrated resilience in revenue growth, particularly in key markets, but faced challenges in cash flow management and operational efficiency. The company's strategic initiatives, such as asset reviews and portfolio adjustments, aim to navigate the volatile chemical sector and ensure long-term financial health.