Dow’s Transform to Outperform initiative targets $2 billion EBITDA growth through simplification, automation, productivity gains, and structural cost optimization.
Dow has unveiled a wide-ranging transformation initiative called “Transform to Outperform,” aimed at redefining operational excellence and setting a higher competitive benchmark for productivity, growth, and financial performance across the industry. Through this initiative, the company plans to simplify its operating model, streamline end-to-end processes, reset its cost structure, and modernize how it delivers value to customers. Collectively, these actions are designed to strengthen Dow’s resilience, improve efficiency, and enhance returns for shareholders.
At the core of Transform to Outperform is Dow’s objective to generate at least $2 billion in near-term operating EBITDA, driven by a combination of productivity improvements and accelerated growth. A key enabler of this ambition will be the expanded use of artificial intelligence, automation, and advanced digital tools, which the company expects to unlock step-change improvements in operational efficiency, decision-making, and customer engagement. These technologies are intended not only to reduce complexity but also to enable faster execution and greater accountability across the organization.
Dow’s leadership emphasizes that the initiative builds upon the company’s ongoing self-help measures rather than replacing them. According to Dow’s Chief Operating Officer Karen S. Carter, Transform to Outperform is designed to deliver meaningful productivity and growth gains that elevate Dow’s competitive positioning. By simplifying how work is done and embedding best-in-class processes, Dow aims to become a more agile organization that consistently delivers value to customers while strengthening its financial performance through industry cycles.
The transformation effort is the result of an intensive, company-wide evaluation and is being led by a dedicated internal team established specifically to guide implementation. Dow expects that roughly two-thirds of the targeted EBITDA uplift will come from productivity enhancements, such as streamlined operations, automation, and structural cost reductions. The remaining one-third is expected to be driven by growth, enabled by improved customer service models, faster innovation, and more efficient deployment of resources.
To achieve these benefits, Dow anticipates one-time costs of approximately $1.1 billion to $1.5 billion over the course of the program. These costs include an estimated $600 million to $800 million in severance expenses, associated with the reduction of around 4,500 roles globally, as well as $500 million to $700 million in other transformation-related costs. The financial impact of the initiative is expected to unfold over several years, with approximately $500 million in operating EBITDA improvement targeted in 2026, followed by $1.2 billion of incremental uplift in 2027, and an additional $300 million in 2028.
Dow’s Chair and CEO Jim Fitterling highlighted that Transform to Outperform reflects the company’s commitment to long-term competitiveness and global leadership. By adopting proven cross-industry practices and leveraging leading-edge technologies, Dow intends to further accelerate actions already underway to address prolonged industry downturns and structural challenges. Importantly, these efforts will continue to prioritize safe and reliable operations while fostering a culture of continuous improvement and accountability.
As the transformation progresses, Dow has stated that it will engage with local stakeholders across regions and implement changes in full compliance with local regulations and consultation requirements. Through Transform to Outperform, Dow aims to emerge as a simpler, stronger, and more competitive organization, capable of delivering improved growth, higher productivity, and enhanced shareholder returns over the long term.
