Surging 51-fold! BASF and Dow deliver Q2 financial turnarounds—among global chemical firms pursuing ‘slimming down and upgrading quality,’ who’s the top performer?

In late July 2026, two global chemical and plastics industry leaders—BASF and Dow—released their full second-quarter financial results. On July 23, Dow reported a dramatic turnaround: from a $801 million net loss in Q2 2025 to an $802 million net profit in Q2 2026. On July 29, BASF disclosed its Q2 figures: net income of €4.1 billion (up from €79 million year-on-year)—a staggering 51-fold increase—and raised its full-year earnings guidance. Both companies operate across North America and Europe and cover the full spectrum—from polyolefins and advanced materials to coatings and fine chemicals. Their simultaneous, substantial earnings recovery reflects broad-based industry improvement—but divergences are evident in profit drivers, cash flow structures, and asset management strategies. Concurrently, major Chinese private-sector refining-and-chemicals players—including Orient Hengsheng, Rongsheng Petrochemical, and Hengyi Petrochemical—also issued half-year profit forecasts showing explosive growth. Thus, the Q2 2026 global plastics and chemicals sector earnings rebound has become a consensus view. This article analyzes both firms’ complete financial reports, comparing commonalities and core differences to unpack the underlying logic driving this rally. Comparative Overview of Key Q2 Performance Metrics for Both Giants (I) Dow Chemical: Capturing the Polyolefins Cycle Upswing—Comprehensive Recovery in Core Operating Profits Dow’s Q2 2026 net sales totaled $12.092 billion, up 20% year-on-year; average product prices rose 20%, while favorable exchange rates added another 1% to revenue—volume declined only slightly by 1%. The profit contrast is striking: a $801 million net loss in Q2 2025 versus an $802 million net profit in Q2 2026; operating EBIT reached $1.648 billion, compared to a $21 million loss in Q2 2025—an approximate 230% year-on-year increase. By segment, Packaging & Specialty Plastics (Dow’s core polyethylene business) served as the profit engine, contributing a $1.229 billion year-on-year EBIT increase; Industrial Intermediates also saw gross margin recovery; only the Performance Materials segment posted a modest profit decline due to major plant maintenance. On the cash flow front, operating cash flow hit $1.324 billion in Q2—versus a $470 million net outflow a year earlier—demonstrating that pricing gains fully translated into operating cash. Dow also recorded $503 million in restructuring expenses during the quarter, supporting implementation of its “Transform to Outperform” cost-reduction strategy. (II) BASF Group: Steady Core Growth + One-Time Gains from Asset Divestitures BASF’s Q2 2026 sales totaled €17.2 billion—up €2.4 billion (+16.4% year-on-year). Price increases contributed +11.5%, volume growth added +7.3%, while foreign exchange exerted a minor negative drag per preliminary reporting. EBITDA excluding special items stood at €2.4 billion—up €854 million year-on-year—with significant profitability improvements across its Materials, Chemicals, and Industrial Solutions segments. The extraordinary profit surge stemmed primarily from a one-time asset disposal: the sale of its Coatings business to Carlyle Group generated €3.5 billion in after-tax proceeds, propelling Q2 after-tax income to €4.2 billion and net income to €4.1 billion—versus just €79 million in Q2 2025.

U.S. equity Q3 earnings season: so far, so good

Latest developments indicate the positive momentum of the U.S. earnings season continues. Intel became the most recent tech giant to post better-than-expected results on Thursday—following upbeat reports from Coca-Cola, 3M, and General Motors. According to LSEG data, among the 130 S&P 500 constituents that have reported earnings so far, a remarkable 86% exceeded analysts’ earnings expectations. Sonu Varghese, Global Macro Strategist at Carson Group, stated: “I think the importance of earnings data has increased,” and based on what’s been reported thus far, the overall verdict is “everything looks good.” Indeed, the performance of the U.S. Q3 earnings season can be summed up as: so far, so good. Buoyed by these strong results, the S&P 500 rose 0.6% on Thursday and gained 1.1% for the week—now just shy of its all-time high. With the partial U.S. government shutdown now stretching into its third week, key economic reports—including those on labor markets, consumer spending, and inflation—have been suspended. As a result, corporate earnings have drawn unusually intense scrutiny and become the market’s most critical window into the broader economic outlook. Although robust earnings have temporarily eased investor sentiment, underlying risks remain unresolved. Ongoing trade tensions continue to weigh on markets. Meanwhile, several recent corporate bankruptcies and fraud cases have raised investor concerns about the health of credit markets. A strong opening to the earnings season: multiple blue-chip firms beat expectations This earnings season has delivered numerous highlights, with leading companies across sectors lifting market confidence through exceptional results and upgraded guidance. After reporting surging demand for full-size SUVs and raising its full-year outlook, General Motors’ stock surged 15% on Tuesday—the largest single-day gain since 2020—and closed at an all-time high. On the same day, 3M’s share price jumped 7.7% to a four-year high after it also raised its earnings forecast. Performance in other sectors has likewise been encouraging. Dow Chemical’s stock soared 13% on Thursday—the best performer in the S&P 500 that day—after reporting a smaller-than-expected decline in Q3 profits. Las Vegas Sands, the casino and resort operator, also posted better-than-expected profits driven by international investments, sending its shares up roughly 12% on Thursday.

Dow Inc Scheduled to Release Q3 Results on October 22, 2026; Stock at $29.93

Oct 17, 2026

Dow Inc is scheduled to release its third-quarter results on October 22, 2026, following Q2 revenue of $12.09 billion. Analysts expect an EPS of $0.65, while shares closed at $29.93 on October 16.

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