Dow Inc. Suffers Losses and Dividend Cut Amid Q2 Weakness

Dow Inc. shares fell 1% on Friday, extending a two-day decline to nearly 20% and nearing its 52-week low, following a sharp Q2 loss, deteriorating margins, and a surprise dividend cut. Evercore ISI analysts cut their rating, citing weaker-than-expected results. The stock is down 20% over the past two days and is just $0.05 away from its 52-week low.

Dow Inc. (DOW) shares fell 1% on Friday, extending a two-day decline to nearly 20% and nearing its 52-week low, following a sharp Q2 loss, deteriorating margins, and a surprise dividend cut. The stock's recent performance has raised concerns among investors and analysts, with Evercore ISI downgrading the company's stock rating to "In Line" [3].

The company reported an adjusted loss of 42 cents per share for the second quarter of 2025, exceeding the projected 12-cent loss and missing estimates by $148 million [2]. Net sales declined 7% year-over-year to $10.104 billion, with all business segments reporting sales decreases. The company attributed the challenges to a "lower-for-longer earnings environment," compounded by trade and tariff uncertainties [2].

In response to the dismal earnings report, Dow Inc. announced a 50% reduction in its quarterly dividend to 35 cents per share, effective immediately. The dividend cut aimed to preserve financial flexibility as the company navigated deteriorating cash flow and a debt-to-equity ratio of 103.62% [2].

The stock's sharp decline pushed shares to $26.89 at 11:58 a.m. ET, down $3.50, or 11.52%, from the previous close. The stock now trades near its 52-week low of $25.06, with a one-year total return of -45.77% compared to the S&P 500's +17.23% [2].

Evercore ISI analysts cited the dividend reduction and weaker-than-expected results as reasons for their downgrade. The stock still offers a significant 11.17% dividend yield, but concerns about the company's gross profit margins and P/E ratio have raised questions about its long-term sustainability [3].

The earnings miss and dividend reduction reverberated across broader markets, with the Dow Jones Industrial Average futures dipping 0.4% as investors reacted to underperforming industrial and tech stocks [2].

References:
[1] https://finance.yahoo.com/news/dow-lags-q2-earnings-sales-144800407.html
[2] https://www.ainvest.com/news/dow-stock-plunges-11-52-50-dividend-cut-dismal-q2-earnings-revenue-decline-2507/
[3] https://www.investing.com/news/analyst-ratings/evercore-isi-downgrades-dow-stock-to-in-line-amid-dividend-cut-concerns-93CH-4152653