Consumer Solutions also benefited from downstream silicones volume growth. During the earnings call, Dow highlighted double-digit sales and operating EBITDA growth for that business in the Americas. 

Segment Earnings Nearly Double

Performance Materials & Coatings operating earnings before interest and taxes, a non-GAAP measure, increased to $154 million from $80 million. Dow attributed the improvement to pricing, volume growth and cost actions, including the shutdown of its Barry, United Kingdom, siloxanes plant. 

Companywide sales increased 13% to $11.267 billion. Dow reported GAAP net income of $525 million, GAAP earnings per share of 62 cents and operating earnings per share of 71 cents. Cash from continuing operations totaled $1.8 billion, while free cash flow reached $1.1 billion. 

The other operating segments also reported sales growth. Packaging & Specialty Plastics sales increased 18% to approximately $5.8 billion. Industrial Intermediates & Infrastructure sales rose 8% to approximately $3.1 billion, supported by higher prices. Dow said demand for artificial intelligence infrastructure and energy applications contributed to Industrial Solutions’ performance. 

Restructuring and Productivity Actions Continue

Dow’s earnings presentation showed approximately 70% of the previously announced 4,500 role reductions had been implemented. The company expects to substantially complete those reductions by year-end. These figures describe progress on an existing program, not an additional round of cuts.

Dow expects its Transform to Outperform initiative to deliver approximately $700 million in growth and productivity benefits in 2026 and approximately $2 billion in total benefits by the end of 2027. The company also reported releasing more than $400 million in working capital during the quarter and reducing debt by approximately $600 million year to date. 

Management cautioned that housing-related demand remained under pressure and European energy costs remained elevated. For the fourth quarter, Dow expects lower maintenance spending and further benefits from its cost and productivity actions to help offset seasonal weakness. 

For manufacturers of architectural coatings, the acrylic monomer and coatings results offer a more specific view of supplier pricing and demand than Dow’s companywide sales figure. The broader segment’s improvement also reflects silicones and restructuring benefits, rather than coatings demand alone.