DOW (DOW) risk factors, FY2025 10-K

DOW's FY2025 10-K, filed Feb 03, 2026, lists 15 risk factors in 3 groups. Against the prior year's 13: 2 new, 6 substantially reworded.

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Risk factors listed
153 groups
New this year
2vs 13 last year
Dropped
0since the prior 10-K
Substantially reworded
6of those kept
Section length
5k wordsItem 1A

What the changes say

  • Dow added risk related to the ongoing Russia-Ukraine conflict and potential loss of cost advantage for US NGLs.

What changed since the prior 10-K

New

  • NewMACROECONOMIC RISKS

    products and result in decreased sales price and volume or supply chain disruptions, which could have a negative impact on the Company’s results of operations

    The ongoing Russia-Ukraine conflict and associated sanctions could cause supply chain disruptions, foreign exchange volatility, and raw material inflation.

  • NewOPERATIONAL AND STRATEGIC RISKS

    propylene, to supplement internal production, as well as other raw materials. The Company also purchases natural gas, primarily to generate electricity, electric power to supplement internal generation, and steam

    If US natural gas liquids become significantly less advantaged than crude oil-based feedstocks, it could negatively impact operations and future investments.

Reworded

  • 93% rewrittenOPERATIONAL AND STRATEGIC RISKS

    Raw Materials and Energy: Availability of purchased feedstock and energy, and the volatility of these costs, impact Dow’s operating costs and add variability to earnings

    The raw materials and energy risk heading was shortened.

    Was: Raw Materials: Availability of purchased feedstock and energy, and the volatility of these costs, impact Dow’s operating costs and add variability to earnings

  • 86% rewrittenMACROECONOMIC RISKS

    Financial Commitments and Credit Markets: Market conditions, availability of credit and changes in the Company's credit ratings could reduce the Company's flexibility to respond to changing economic and business conditions or fund capital needs and could increase borrowing costs

    Added specific risks regarding credit rating changes, including failure to maintain an investment grade rating, and debt maturities.

    Was: Financial Commitments and Credit Markets: Market conditions could reduce the Company's flexibility to respond to changing business conditions or fund capital needs

  • 84% rewrittenMACROECONOMIC RISKS

    Global Economic Considerations: The Company operates in a global, competitive environment which gives rise to operating and market risk exposure

    Updated to note that increased competition has already resulted in lower prices and volumes, prompting targeted cost reduction initiatives.

  • 62% rewrittenMACROECONOMIC RISKS

    Supply/Demand Balance: Earnings generated by the Company's products vary based in part on the balance of supply relative to demand within the industry

    Shifted phrasing from potential future supply-demand imbalances to noting that excess capacity has already disrupted regional balances and impacted results.

  • 22% rewrittenOPERATIONAL AND STRATEGIC RISKS

    Operational Event: A significant operational event could negatively impact the Company's results of operations

    Expanded artificial intelligence risk factors to include expanding utilization in manufacturing controls, supply chain optimization, and HR analysis, plus regulatory environments.

  • 20% rewrittenOPERATIONAL AND STRATEGIC RISKS

    Company Strategy: Implementing certain elements of the Company's strategy could negatively impact its financial results

    Text remained unchanged while listed under reworded risks.

All 15 risk factors

Headings as the filing states them, in filing order.

Other

  1. 01CLIMATE CHANGE - RELATED RISKS
  2. 02Climate Change: Climate change-related risks and uncertainties, legal or regulatory responses to climate change and failure to meet the Company’s climate change commitments could negatively impact the Company’s results of operations, financial condition and/or reputation

MACROECONOMIC RISKS

  1. 03Financial Commitments and Credit Markets: Market conditions, availability of credit and changes in the Company's credit ratings could reduce the Company's flexibility to respond to changing economic and business conditions or fund capital needs and could increase borrowing costs86% rewritten
  2. 04Global Economic Considerations: The Company operates in a global, competitive environment which gives rise to operating and market risk exposure84% rewritten
  3. 05products and result in decreased sales price and volume or supply chain disruptions, which could have a negative impact on the Company’s results of operationsNew
  4. 06Pension and Other Postretirement Benefits: Increased obligations and expenses related to the Company's defined benefit pension plans and other postretirement benefit plans could negatively impact its financial condition and results of operations
  5. 07Supply/Demand Balance: Earnings generated by the Company's products vary based in part on the balance of supply relative to demand within the industry62% rewritten

LEGAL AND REGULATORY RISKS

  1. 08Health and Safety: Increased concerns regarding the safe use of chemicals and plastics in commerce and their potential impact on the environment have resulted in more restrictive regulations and could lead to new regulations
  2. 09Litigation: The Company is party to a number of claims and lawsuits arising out of the normal course of business with respect to product liability, patent infringement, employment matters, governmental tax and regulation disputes, contract and commercial litigation, and other actions
  3. 10Union Carbide is and has been involved in a large number of asbestos-related suits filed primarily in state courts during the past several decades. At December 31, 2025, Union Carbide's total asbestos-related liability, including future defense and processing costs, was $708 million ($791 million at December 31, 2024)

OPERATIONAL AND STRATEGIC RISKS

  1. 11Company Strategy: Implementing certain elements of the Company's strategy could negatively impact its financial results20% rewritten
  2. 12Goodwill: An impairment of goodwill could negatively impact the Company’s financial results
  3. 13Operational Event: A significant operational event could negatively impact the Company's results of operations22% rewritten
  4. 14Raw Materials and Energy: Availability of purchased feedstock and energy, and the volatility of these costs, impact Dow’s operating costs and add variability to earnings93% rewritten
  5. 15propylene, to supplement internal production, as well as other raw materials. The Company also purchases natural gas, primarily to generate electricity, electric power to supplement internal generation, and steamNew

Other DOW 10-Ks

  • FY2024 10-K risk factors
    13 risks

    Dow Inc.'s risk profile is dominated by chemical industry supply and demand volatility, raw material feedstock costs, and environmental liabilities. Additional major exposures include greenhouse gas regulations, litigation including Union Carbide asbestos claims, and plastic waste concerns.

    Filed Feb 04, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.