Dow reports 11% revenue drop in Packaging Plastics as resin prices slide

USA – Dow has reported an 11% year-on-year decline in revenue from its packaging and specialty plastics segment for the third quarter of 2025, citing lower global resin prices and weaker polymer licensing income.

The segment’s performance contributed to an 8.3% fall in the company’s overall sales, with net revenue reaching approximately US$4.89 billion for the quarter.

Despite the revenue drop, Dow’s adjusted quarterly loss per share narrowed to US$0.19 from US$0.42 a year earlier, outperforming analyst expectations of a US$0.30 loss, and shares climbed up to 7.6% in New York premarket trading.

The company guided fourth-quarter net sales at around US$9.4 billion, below market forecasts of US$10.2 billion, reflecting a cautious outlook amid persistent pricing pressures.

The packaging and specialty plastics business, centred on polyethylene (PE) resins used in films, flexible packaging, and consumer goods, continues to face headwinds from a global oversupply of polymers and subdued demand recovery.

Polyethylene prices in North America averaged US$1.23/kg in September 2025, down 3.1% month-on-month, while Northeast Asia prices fell 2.3% to US$1.30/kg. European prices held steady, but margin compression remained widespread.

Dow management attributed the segment’s weakness to lower finished product prices and licensing revenue, partially offset by a modest recovery in PE volumes compared with the previous quarter.

“We are seeing improved utilisation in select regions, but the market remains competitive,” executives noted during the earnings call.

To counter market softness, Dow has implemented cost-control initiatives and prioritized cash flow generation.

The company expects continued pricing pressure into the fourth quarter, even as its new Gulf Coast facilities enhance capacity and product mix.

Earlier this month, Dow also announced plans to close its long-running polyols manufacturing plant in Antwerp, Belgium, by the end of 2025.

The facility, operational since 1965 and employing about 60 people, produces polyols used in flexible foams for furniture and automotive applications.

The closure forms part of Dow’s broader strategy to streamline operations and shift investment toward lower-carbon and bio-based materials.

Chief Executive Officer Jim Fitterling said, “We must adapt to meet evolving market demands while prioritizing sustainability. This transition allows us to focus resources on innovative, higher-value solutions such as bio-based polyols.”

Analysts suggest that stable-to-soft PE pricing and improved availability will keep procurement leverage on the buyer side through late 2025, underscoring the importance of disciplined capacity management across the packaging value chain.

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