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 results, reporting €4.1 billion in net income (up from €79 million in Q2 2025), a staggering 51-fold year-on-year increase, and raised its full-year earnings guidance. Both companies operate across North America and Europe and cover the full spectrum of petrochemicals—from polyolefins and advanced materials to coatings and specialty chemicals. Their simultaneous, substantial earnings recovery reflects broad industry improvement—but divergences are evident in profit drivers, cash flow structure, and asset management strategies. Concurrently, major Chinese private-sector refining-and-petrochemical players—including Orient Hengsheng, Rongsheng Petrochemical, and Hengyi Petrochemical—issued half-year profit forecasts showing explosive growth, confirming that Q2 2026 marked a broad-based earnings recovery across the global plastics industry. This article analyzes both firms’ complete financial reports, comparing commonalities and core differences to unpack the underlying drivers of this market upswing. Comprehensive Comparison of Key Q2 Performance Metrics for Both Giants (I) Dow Chemical: Polyolefins Cycle Windfall Realized; Core Operating Profits Fully Recovered 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, with overall volume declining only slightly by 1%. The profit reversal was 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 improvement. By business segment, Packaging & Specialty Plastics (Dow’s core polyethylene business) served as the primary 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 EBIT decline due to scheduled major plant maintenance. On the cash flow front, operating cash flow stood at $1.324 billion in Q2 2026—versus a $470 million net outflow in Q2 2025—demonstrating full conversion of pricing gains into operating cash. The company 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 Asset Sale Gains Deliver Dual Boost BASF’s Q2 2026 sales totaled €17.2 billion, up €2.4 billion (+16.4% YoY); price increases contributed +11.5%, volume growth added +7.3%, while foreign exchange exerted a minor negative impact per preliminary reporting. EBITDA excluding special items reached €2.4 billion—up €854 million YoY—with significant profitability improvements across its Materials, Chemicals, and Industrial Solutions divisions. 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 the quarter’s after-tax income to €4.2 billion and net income to €4.1 billion—versus just €79 million in Q2 2025.

Dow Q3 2025 Financial Report (October 27, 2025)

After a full year of depressed stock performance—having fallen two tiers—the share price surged 13% following the Q3 2025 earnings release. Has the fundamental picture truly changed? ・ First, revenue remains weak: the Q2 guidance for this quarter was $10.2 billion. ・ Second, GAAP EPS turned positive only due to two non-recurring items; operating profit failed to cover interest expenses. ・ On the positive side, the loss was narrower than expected, reflecting tangible progress in cost reduction and capital expenditure discipline. Has the chemical industry reached a cyclical downturn inflection point? ・ On supply: Dow believes capacity restraint is now underway across all regions—including China: 'We've got speculation on the closures of about 13 million metric tons—from additional capacity in Asia, Japan, and Korea totaling roughly 5 million tons, and from China's [anti-evolution] policies amounting to approximately 7 million tons.' ・ On demand: Dow views overall demand as still weak, unchanged from last quarter—and hopes interest rate cuts will stimulate construction starts.

Dow Inc. Sets Quarterly Dividend at $0.35 Per Share for December Payment

Oct 16, 2026

Dow Inc. declared a quarterly dividend of $0.35 per share, payable on December 11 to shareholders of record as of November 30. This marks the company's 461st consecutive dividend payment since 1912.

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