Dow reports higher silicone sales amid downstream demand surge

US chemicals giant Dow Inc. has posted a double-digit sales increase in its Performance Materials & Coatings segment for Q2 2026, driven by soaring demand for downstream silicones. The segment’s revenue climbed 11% year-on-year to $2.36 billion (€2 billion), supported by a 6% volume rise and a 4% lift in local prices, the company announced on 23 July. Growth was led by both the ‘consumer solutions’ and ‘coatings & performance materials’ businesses, with silicones downstream applications—such as consumer goods, electronics, and home-care products—acting as the primary catalyst. However, operating earnings before interest and taxes (EBIT) slipped to $133 million from $152 million a year earlier, partly due to elevated costs and the shutdown of Dow’s upstream siloxanes plant in Barry, UK. The company cited higher fixed costs, including planned maintenance shutdowns and costs tied to the Barry facility closure, as key drags on profitability. Within the segment, the consumer solutions business expanded sales year-on-year, fueled by increased volumes in downstream silicones, while the coatings & performance monomers unit reported higher sales across all regions, boosted by price and volume gains in acrylic monomers and architectural coatings. At the group level, Dow’s total net sales surged 20% to $12.1 billion, and operating EBIT rebounded to $1.6 billion from a prior-year loss, driven largely by higher prices and internal cost-cutting measures. CEO Karen Carter highlighted accelerating benefits from the company’s ‘Transform to Outperform’ programme, with projected incremental savings of approximately $200 million in 2026 and total self-help benefits expected to exceed $1.3 billion for the year. Carter emphasized that these cost-saving initiatives are set to gain further momentum in the second half of 2026 and into 2027.