Dow Inc.

Liquidity is solid but leverage metrics have weakened through the trough.

As of early 2025, Dow had ~$8.4 billion of committed/available credit and net debt around the mid‑teens billions; by mid‑2025 and year‑end, rating agencies had the credit profile at BBB/Baa2 with a negative outlook. 2025 operating cash flow was ~$1.1 billion against ~$2.5 billion capex, producing roughly -$1.4 billion FCF.

The dividend was cut to 35 cents per quarter to preserve cash. Offsetting supports include ~$3 billion of proceeds from the Diamond Infrastructure Solutions transaction and a favorable CAD 1.62 billion Nova Chemicals judgment, plus ongoing European footprint reductions to lift run‑rate profitability.

Environmental and remediation accruals are meaningful (just over $1.0 billion at March 31, 2025) but manageable for a company of this scale. We view liquidity as adequate through the downcycle, though interest‑coverage and leverage are pro‑cyclical and depend on a recovery in spreads.