Dow Stock Is Up After Earnings. How Oil Prices Are Helping. -- Barrons.com

Dow Jones04-23

Al Root

Dow is still losing money, but the outlook is improving.

Thursday morning, Dow reported a first-quarter per-share loss of 14 cents from sales of $9.8 billion. Wall Street was looking for a 29-cent loss from sales of $9.7 billion, according to FactSet.

A year ago, Dow reported adjusted earnings per share of 2 cents.

Shares were up 2.1% at $39.64 in premarket trading, while S&P 500 and Dow Jones Industrial Average futures were down 0.4% and 0.7%, respectively.

Coming into Thursday trading, Dow stock was up 66% this year, rising 26% since the start of fighting in Iran. Recent gains still leave Dow stock down about 38% over the past five years.

The commodity chemical business has been mired in a long downturn, characterized by chronic oversupply and weakening demand. Dow earned about $9.5 billion in operating profit in 2021. It earned less than $500 million in 2025.

The Iran war has boosted oil prices, raising prices for oil-derived chemicals and giving Dow an advantage since it makes many of its products from relatively low-cost natural gas.

International benchmark oil prices are expected to stay elevated in the near term, helping Dow again in the second and third quarters of 2026.

"We are already seeing rapid positive momentum from our announced pricing actions in every business and every region, as well as constructive impacts to our operating rates," said CEO Jim Fitterling in a news release. "We are leveraging Dow's purpose-built asset footprint, well-established supply chain routes, and leading asset reliability to prioritize our customers and navigate the conflict in the Middle East."

It's still early in the improvement cycle. Volumes were down 2% year over year. Profits fell year over year in Dow's packaging segment. Total operating profit was $154 million, down from $230 million a year ago.

But things are looking up. Profits improved in Dow's industrial and coatings businesses.

Write to Al Root at allen.root@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

 

(END) Dow Jones Newswires

April 23, 2026 07:56 ET (11:56 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.

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