How Does Dow Make its Money?
Dow Inc. is one of the world’s largest chemical companies, producing a vast portfolio of plastics, industrial intermediates, coatings, and silicone materials used across virtually every major industry. The company was formed from the 2019 separation of DowDuPont into three independent companies. Dow focuses on materials science — its products include polyethylene (the world’s most widely used plastic), performance silicones, industrial coatings, and specialty chemicals. The company operates manufacturing facilities in 31 countries, with particular strength in the US Gulf Coast where it benefits from low-cost ethane feedstock. Dow is one of the most cyclical companies in the S&P 500, with earnings highly sensitive to global economic conditions and commodity spreads.
Dow (DOW) Business Model
Dow operates in the chemicals sector. Below is a summary of Dow’s revenue streams, how the company generates income, and the key financial metrics from its most recent annual report. This breakdown uses data from Dow’s 2024 fiscal year filings with the SEC.
Dow Competitors
Dow’s key competitors and comparable public companies in the chemicals sector include Linde, Air Products, 3M, and Sherwin-Williams. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Dow stacks up by comparing their revenue breakdown, margins, and growth metrics.
Dow Competitors
Dow’s key competitors and comparable public companies in the chemicals sector include Linde, Air Products, 3M, and Sherwin-Williams. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Dow stacks up by comparing their revenue breakdown, margins, and growth metrics.
Dow Competitors
Dow’s key competitors and comparable public companies in the chemicals sector include Linde, Air Products, 3M, and Sherwin-Williams. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Dow stacks up by comparing their revenue breakdown, margins, and growth metrics.
Revenue Breakdown
| Segment | 2024 | 2023 | YoY Growth |
|---|---|---|---|
| Packaging & Specialty Plastics (Polyethylene, Elastomers) | $21,500 | $20,000 | +7.5% |
| Industrial Intermediates & Infrastructure (Isocyanates, Coatings) | $13,200 | $12,500 | +5.6% |
| Performance Materials & Coatings (Silicones, Acrylics) | $9,300 | $8,800 | +5.7% |
| Total Revenue | $43,000 | $44,600 | -3.6% |
Packaging & Specialty Plastics (Polyethylene, Elastomers) — 50% of Revenue
Industrial Intermediates & Infrastructure (Isocyanates, Coatings) — 31% of Revenue
Performance Materials & Coatings (Silicones, Acrylics) — 22% of Revenue
Income Statement Overview
| Metric | 2024 | 2023 |
|---|---|---|
| Total Revenue | $43,000 | $44,600 |
| Cost of Revenue | $38,500 | $40,000 |
| Gross Profit | $4,500 | $4,600 |
| Operating Expenses | $2,000 | $2,000 |
| Operating Income | $2,500 | $2,600 |
| Net Income | $1,200 | $600 |
All values in millions USD unless otherwise stated.
Key Financial Metrics
- Gross Margin: 10.5%
- Operating Margin: 5.8%
- Revenue Growth: -3.6%
Is Dow Profitable?
Yes, Dow is profitable. The company reported net income of $1,200 on total revenue of $43,000. With an operating margin of 5.8%, Dow demonstrates solid profitability for the chemicals sector. The gross margin of 10.5% reflects Dow’s pricing power and cost structure.
What to Watch
- Global polyethylene supply-demand balance and integrated margin recovery
- Path to Zero carbon emissions project with Alberta cracker retrofit
- Silicones demand recovery in construction, electronics, and automotive
- Feedstock cost advantage from US ethane versus global naphtha crackers
Dow (DOW) Financial Summary
Dow (DOW) is a chemicals company that generated $43,000 in total revenue in fiscal year 2024. Revenue grew -3.6% year-over-year. The company earned $1,200 in net income, making it profitable. For a deeper look at Dow’s revenue breakdown, business segments, and financial performance, review the detailed analysis above.