Dow Inc.

Greetings and welcome to the Dow second quarter 2025 earnings conference call. At this time, all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. If you would like to ask a question at that time, please press star followed by one on your telephone keypad. As a reminder, this conference is being recorded. I'll now turn it over to Dow investor relations vice president Andrew Riker. Mr. Riker, you may begin.

Good morning. Thank you for joining today. The accompanying slides are provided through this webcast and posted on our website. I'm Andrew Riker, Dow investor relations vice president. Leading today's call are Jim Federling, chair and chief executive officer, Jeff K, chief financial officer, and Karen S. Carter, chief operating officer. Please note our comments contain forward-looking statements and are subject to the related cautionary statements contained in the earnings news release and slides. Please refer to our public filings for further information about principal risk and uncertainties. Unless otherwise specified, all financials where applicable exclude significant items. We will also refer to non-GAAP measures, a reconciliation of the most directly comparable GAAP financial measure and other associated disclosures are contained in the earnings news release that is posted on our website. On slide two is our agenda for today's call. Jim will review our second quarter results and provide an update on how we are navigating the challenging market conditions in restoring core earnings. Karen will then provide an overview of our operating segment performance. Jeff will share an update on the macroeconomic environment we are facing and our modeling guidance for third quarter. Following that, we will share more on the strategic in-flight actions our teams are taking to navigate this prolonged downturn. Specifically around cash support, operational execution, and structurally improving our global asset footprint in the near term to position Dow well for when our industry recovers. Following that, we will take your questions. Now, let me turn the call over to Jim. Thank you, Andrew. Beginning on slide three,

the prolonged down cycle our industry has been experiencing was further amplified this quarter by heightened trade and geopolitical uncertainties. Which have strained profitability across our industry. In this environment, it is critical that we successfully navigate the near term, protect Dow's financial flexibility, and advance our near term growth initiatives to support higher earnings as the industry recovers. Additionally, growing signs of oversupply from newer market entrants being exported to other regions and anti-competitive economics requires an aggressive industry response and regulatory action to restore competitive dynamics. Given these challenges, we remain focused on driving operational discipline in everything we do. In the second quarter, net sales were $10.1 billion down 7% versus the year ago period, reflecting declines in all operating segments. Sequentially, net sales decreased 3% as seasonally higher demand in performance materials and coatings was more than offset by declines in our other operating segments. Even Dow was $703 million, which is also lower than the same period last year. Following a significant analysis and consideration, we announced this morning that Dow would implement a 50% dividend reduction effective in the third quarter of this year. This decision was not taken lightly as we understand the importance our shareholders place on the dividend. And we carefully considered this on top of the financial impacts that we modeled. The dividend is a key element of our investment thesis, and that is not changing. We remain committed to targeting a competitive dividend across the economic cycle. However, given the current lower for longer earnings environment and the lack of a clear line of sight to a recovery for our industry, this is the most prudent way to maintain financial flexibility and maximize long-term value for our shareholders. Also in the second quarter, we progressed several near-term cash support levers. The close of our strategic infrastructure asset partnership, named Diamond Infrastructure Solutions, delivered $2.4 billion of cash for Dow in the second quarter, and has already captured growth opportunities with new customers. We also expect to receive cash proceeds from the NOVA judgment this year, and consistent with our best owner mindset, we recently announced two non-core product line divestitures, totaling approximately $250 million at attractive EBITDA multiples of around 10x. These divestitures are additive to our announcement that we will shut down three upstream assets in Europe to address structural challenges in that region. We are confident that these actions, paired with the completion of our near-term incremental growth projects, will support long-term value creation. Additionally, we are accelerating progress on our $1 billion in cost savings actions, where we now expect to deliver approximately $400 million this year. We are committed to continuing Dow's track record of operational and financial discipline, executing near-term actions to maximize shareholder value, and navigating the current environment, all to better position the company for profitable growth and higher shareholder returns as the industry recovers. Next, I'll turn the call over to Karen, who will provide an overview of our second quarter performance across Dow's operating segments.