Shares of Dow Inc. (DOW) plummeted 12.58% in Thursday's pre-market trading following the release of its disappointing second-quarter 2025 financial results. The chemical giant reported a wider-than-expected loss and announced a significant cut to its dividend, citing a prolonged industry downturn and ongoing global trade uncertainties.

Dow reported an adjusted loss of $0.42 per share for the quarter ended June 30, far exceeding analysts' expectations of a $0.17 per share loss. Revenue fell 7.4% year-over-year to $10.10 billion, missing the consensus estimate of $10.23 billion. The company's packaging and specialty plastics segment, its largest by revenue, saw sales decline by 8.9% to $5.03 billion.

In response to what CEO Jim Fitterling described as a "lower-for-longer earnings environment," Dow announced it would slash its quarterly dividend by 50% to $0.35 per share. This move, aimed at maintaining financial flexibility, comes alongside other cost-cutting measures, including previously announced job cuts and plant closures in Europe. Fitterling stated that these actions are part of a strategy to deliver "near-term cash support and earnings growth levers" expected to total more than $6 billion by 2026. The CEO also highlighted challenges from new market entrants exporting at "anti-competitive" prices, suggesting a need for additional regulatory action to restore competitive dynamics in the industry.