Financial Analysis

"COMMITMENTS AND CONTINGENCIES A summary of the Company's commitments and contingencies can be found in Note 15 to the Consolidated Financial Statements included in the 2025 10-K, which is incorporated by reference herein. Environmental Matters Accruals for environmental matters are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated, based on current law and existing technologies. At June 30, 2026, the Company had accrued obligations of $1,005 million for probable environmental remediation and restoration costs ($1,011 million at December 31, 2025), including $231 million for the remediation of Superfund sites ($221 million at December 31, 2025). This is managements best estimate of the costs for remediation and restoration with respect to environmental matters for which the Company has accrued liabilities, although it is reasonably possible that the ultimate cost with respect to these particular matters could range up to approximately two and a half times that amount. Consequently, it is reasonably possible that environmental remediation and restoration costs in excess of amounts accrued could have a material impact on the Company's results of operations, financial condition and cash flows. It is the opinion of the Companys management, however, that the possibility is remote that costs in excess of the range disclosed will have a material impact on the Companys results of operations, financial condition …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES Notes Payable Jun 30, 2026 Dec 31, 2025 In millions Notes payable to banks and other lenders $ 86 $ 90 Period-end average interest rates 19.57 % 32.18 % Long-Term Debt 2026 Average Rate Jun 30, 2026 2025 Average Rate Dec 31, 2025 In millions Promissory notes and debentures: Final maturity 2028 4.80 % $ 600 4.80 % $ 600 Final maturity 2029 1 7.53 % 952 7.53 % 952 Final maturity 2030 2.10 % 818 2.10 % 818 Final maturity 2031 4.80 % 750 4.80 % 750 Final maturity 2032 and thereafter 1 5.40 % 10,725 5.40 % 10,803 Other facilities: Foreign currency notes and loans, various rates and maturities 1 1.55 % 2,132 1.98 % 2,237 InterNotes , varying maturities through 2056 4.95 % 1,064 4.81 % 1,011 Financed acquisitions of property 5.12 % 11 % Finance lease obligations 2 1,070 1,126 Unamortized debt discount and issuance costs (213) (226) Long-term debt due within one year 3 (758) (222) Long-term debt $ 17,151 $ 17,849 1. Cost includes net fair value hedge adjustment gains of $26 million at June 30, 2026 ($27 million at December 31, 2025). See Note 18 for additional information. 2. See Note 13 for additional information. 3. Presented net of current portion of unamortized debt issuance costs. Maturities of Long-Term Debt for Next Five Years at Jun 30, 2026 In millions 2026 $ 107 2027 $ 781 2028 $ 765 2029 $ 1,071 2030 $ 1,046 2031 $ 871 2026 Activity In the second quarter of 2026, the Company redeemed $12 million aggregate princ …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Disaggregation of Revenue The Company disaggregates its revenue from contracts with customers by operating segment and business, as the Company believes it best depicts the nature, amount, timing and uncertainty of its revenue and cash flows. See details in the tables below: Net Trade Sales by Segment and Business Three Months Ended Six Months Ended In millions Jun 30, 2026 Jun 30, 2025 Jun 30, 2026 Jun 30, 2025 Hydrocarbons & Energy $ 1,635 $ 1,350 $ 2,941 $ 2,928 Packaging and Specialty Plastics 4,750 3,675 8,363 7,407 Packaging & Specialty Plastics $ 6,385 $ 5,025 $ 11,304 $ 10,335 Industrial Solutions $ 1,101 $ 985 $ 2,069 $ 2,039 Polyurethanes & Construction Chemicals 2,060 1,797 3,713 3,594 Other 5 4 10 8 Industrial Intermediates & Infrastructure $ 3,166 $ 2,786 $ 5,792 $ 5,641 Coatings & Performance Monomers $ 1,036 $ 864 $ 1,855 $ 1,709 Consumer Solutions 1,325 1,265 2,586 2,491 Performance Materials & Coatings $ 2,361 $ 2,129 $ 4,441 $ 4,200 Corporate $ 180 $ 164 $ 349 $ 359 Total $ 12,092 $ 10,104 $ 21,886 $ 20,535 Net Trade Sales by Geographic Region Three Months Ended Six Months Ended In millions Jun 30, 2026 Jun 30, 2025 Jun 30, 2026 Jun 30, 2025 U.S. & Canada $ 4,782 $ 3,988 $ 8,578 $ 8,215 EMEAI 1 3,930 3,272 7,114 6,546 Asia Pacific 1,817 1,737 3,555 3,595 Latin America 1,563 1,107 2,639 2,179 Total $ 12,092 $ 10,104 $ 21,886 $ 20,535 1. Europe, Middle East, Africa and India.

DisaggregationOfRevenueTableTextBlock

"STOCK-BASED COMPENSATION A summary of the Company's stock-based compensation plans can be found in Note 20 to the Consolidated Financial Statements included in the 2025 10-K. Stock Incentive Plan The Company grants stock-based compensation to employees and non-employee directors under the 2019 Stock Incentive Plan, as amended (the ""2019 Plan""). The Board approved the second amendment to the 2019 Plan to increase the shares authorized for issuance on February 12, 2026, which was approved by the Company's stockholders at the 2026 Annual Meeting of Stockholders held on April 9, 2026. Most of the Company's stock-based compensation awards are granted in the first quarter of each year. In the first quarter of 2026, Dow Inc. granted the following stock-based compensation awards to employees: 1.8 million stock options with a weighted-average exercise price of $32.65 per share and a weighted-average fair value of $8.00 per share; 3.2 million restricted stock units with a weighted-average fair value of $32.64 per share; and 2.4 million performance stock units with a weighted-average fair value of $35.62 per share. There was minimal grant activity in the second quarter of 2026. Employee Stock Purchase Plan Under the 2026 annual offering of the 2021 Employee Stock Purchase Plan (the ""2021 ESPP""), most employees are eligible to purchase shares of common stock of Dow Inc. valued at up to 10 percent of their annual total base salary or wages. The number of shares purchased will be dete …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

"FAIR VALUE MEASUREMENTS A summary of the Company's recurring and nonrecurring fair value measurements can be found in Note 22 to the Consolidated Financial Statements included in the 2025 10-K. Fair Value Measurements on a Recurring Basis The following table summarizes the bases used to measure certain assets and liabilities at fair value on a recurring basis: Fair Value Measurements on a Recurring Basis Jun 30, 2026 Dec 31, 2025 In millions Fair Value Level Cost Gain Loss Fair Value Cost Gain Loss Fair Value Assets at fair value: Cash equivalents: Held-to-maturity securities 1 Level 2 $ 634 $ $ $ 634 $ 624 $ $ $ 624 Money market funds Level 2 710 710 923 923 Marketable securities 2 Level 2 460 (17) 443 446 (61) 385 Other investments: Debt securities: 3 Government debt 4 Level 2 1,248 19 (82) 1,185 1,221 24 (83) 1,162 Corporate bonds Level 1 14 (1) 13 14 (1) 13 Corporate bonds Level 2 965 5 (58) 912 910 10 (57) 863 Corporate bonds Level 3 200 (9) 191 200 (35) 165 Equity securities 3, 5 Level 1 26 52 78 4 5 9 Derivatives relating to: 6 Interest rates Level 2 19 19 18 18 Foreign currency Level 2 187 187 98 98 Commodities Level 1 4 4 2 2 Commodities Level 2 268 268 246 246 Total assets at fair value $ 4,644 $ 4,508 Liabilities at fair value: Long-term debt including debt due within one year 7 Level 2 $ (17,909) $ 1,636 $ (324) $ (16,597) $ (18,071) $ 1,746 $ (342) $ (16,667) Guarantee liability 8 Level 3 (450) (212) Derivatives relating to: 6 Interest rates Level 2 (23) (23) (2 …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

INCOME TAXES As the financial statements for Dow Inc. and TDCC are substantially similar, including the provision for income taxes, the following income tax discussion does not include reference to TDCC's provision for income taxes or its effective tax rate. The Company's effective tax rate fluctuates based on, among other factors, where income is earned, the level of income relative to tax attributes and the level of equity earnings, since most earnings from the Company's equity method investments are taxed at the joint venture level. The following table provides effective tax rate information for Dow Inc. for the three and six months ended June 30, 2026 and 2025: Effective Tax Rate Information Three Months Ended Six Months Ended Amounts in millions Jun 30, 2026 Jun 30, 2025 Jun 30, 2026 Jun 30, 2025 Income (loss) before income taxes $ 871 $ (659) $ 481 $ (1,033) Provision for income taxes $ 69 $ 142 $ 124 $ 58 Effective tax rate 7.9 % (21.5) % 25.8 % (5.6) % The provision for income taxes for the three months ended June 30, 2026 was favorably impacted by changes in the Companys ability to utilize foreign tax credits associated with cash proceeds received in March 2026 related to the Nova Chemicals Corporation ethylene asset matter, partially offset by tax charges related to changes in uncertain tax positions. See Note 12 for additional information about the ethylene asset matter. The provision for income taxes for the six months ended June 30, 2026 was primarily impacted by …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

"PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS A summary of the Company's pension and other postretirement benefit plans can be found in Note 19 to the Consolidated Financial Statements included in the 2025 10-K. The following table provides the components of the Company's net periodic benefit credit for all significant plans: Net Periodic Benefit Credit for All Significant Plans Three Months Ended Six Months Ended In millions Jun 30, 2026 Jun 30, 2025 Jun 30, 2026 Jun 30, 2025 Defined Benefit Pension Plans Service cost $ 9 $ 11 $ 19 $ 21 Interest cost 225 249 450 495 Expected return on plan assets (298) (322) (597) (641) Amortization of prior service credit (3) (3) (7) (6) Amortization of net loss 59 41 119 81 Net periodic benefit credit $ (8) $ (24) $ (16) $ (50) Other Postretirement Benefit Plans Service cost $ 1 $ 1 $ 2 $ 2 Interest cost 9 11 17 20 Amortization of net gain (9) (12) (18) (23) Net periodic benefit cost (credit) $ 1 $ $ 1 $ (1) The net periodic benefit cost (credit), other than the service cost component, is included in ""Sundry income (expense) - net"" in the consolidated statements of income."

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"RESTRUCTURING AND ASSET RELATED CHARGES - NET Charges for restructuring programs and other asset related charges, which include asset impairments, are recorded in ""Restructuring and asset related charges - net"" in the consolidated statements of income. For additional information on the Company's restructuring programs and other asset related charges, see Note 5 to the Consolidated Financial Statements included in the 2025 10-K. Transform to Outperform On January 26, 2026, the Dow Inc. Board of Directors (""Board"") approved Transform to Outperform, a comprehensive set of actions designed to improve near-term Operating EBITDA by simplifying the Company's operating model, reducing its cost structure and delivering faster growth. The actions, which include a workforce reduction of approximately 4,500 roles, are expected to be substantially complete by the end of 2027. As a result, in the first and second quarters of 2026, the Company recorded pretax charges of $27 million and $445 million, respectively, for severance and related benefits costs, included in ""Restructuring and asset related charges - net"" in the consolidated statements of income, related to Corporate. The Company has recorded pretax inception-to-date charges of $472 million for severance and related benefit costs associated with Transform to Outperform and has made related payments of $18 million. At June 30, 2026, $405 million of the reserve balance was included in ""Accrued and other current liabilities"" a …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

"REVENUE Revenue Recognition The majority of the Company's revenue is derived from product sales. The Company's revenue related to product sales was 98 percent for the three and six months ended June 30, 2026 (98 percent and 97 percent for the three and six months ended June 30, 2025, respectively). The remaining sales were primarily related to the Company's insurance operations and licensing of patents and technologies. Product sales consist of sales of the Company's products to manufacturers and distributors. The Company considers order confirmations or purchase orders, which in some cases are governed by master supply agreements, to be contracts with a customer. The Company enters into licensing arrangements in which it licenses certain rights of its patents and technology to customers. Revenue from the Companys licenses for patents and technology is derived from sales-based royalties and licensing arrangements based on billing schedules established in each contract. Remaining Performance Obligations Remaining performance obligations represent the transaction price allocated to unsatisfied or partially unsatisfied performance obligations. At June 30, 2026, the Company had unfulfilled performance obligations of $564 million ($617 million at December 31, 2025) related to the licensing of technology. The Company expects revenue to be recognized for the remaining performance obligations over the next five years. The Company has additional remaining performance obligations for …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing