Dow Inc

ITEM 1A. RISK FACTORS

Since December 31, 20245, there have been no material changes to the Company's Risk Factors, except as noted below, which was updated in the first, second and third quarters of 2025:

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

The Company sells its broad range of products and services in a competitive, global environment, and competes worldwide for sales on the basis of product quality, price, technology and customer service. Increased levels of worldwide competition hasve resulted in lower prices and lower sales volume, which have had a negative impact on the Companys results of operations. These factors are expectWhile global trade disruptions caused toby the continue and may worsen in flict in the Middle East may provide opportunities for the Company to increase certain sales prices and volumes in the near term, whichthe could cnflict and its impacts continue to challenge the Company's ongoing results of operationsevolve and are expected to remain volatile, and there is no guarantee any such increases will continue. To address these challenges amidst the ongoing macroeconomic uncertainty, the Company has taken taand continues to take targeted cost reduction initiatives and other actions to advance its balanced capital allocation approach and enhance financial flexibility, and. The Company will continue to seek additional actions to mitigate the impact of macroeconomic uncertainty. Unforeseen macroeconomic conditions could result in additional actions thatand could adversely affect equity performance until market conditions improve. For additional information, see Note 5 to the Consolidated Financial Statements and Part I Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations and Note 4 to the Consolidated Financial Statements.

Sales of the Company's products are also subject to extensive federal, state, local and foreign laws and regulations; trade agreements; import and export controls; taxes; and duties and tariffs. The imposition of additional regulations, controls, taxes, duties and tariffs or changes to bilateral and regional trade agreements could also result in lower sales volume, which could negatively impact the Companys results of operations.

During 2025, the United States changed its long-standing trade policies and announced significant new tariffs on virtually all imported goods, with the exception of cecertain goods that are compliant with the United States-Mexico-Canada Agreement, a trade agreement which became effective in 2020exceptions, on virtually all imported goods. These actions triggered the negotiation of new trade agreements with certain U.S. trading partners. While these negotiations , resulteding in the reduction of certain recentof the newly imposed tariffs, the a. Severagel U.S. tariff rate remains at its highest level since rading partners also imposed retaliatory tariffs on U.S. imports. While certain U.S. tariffs were struck down by the 1930s. In response toU.S. Supreme Court in February 2026, the changes in U.S. trade policies, certain U.S. trading partnersUnited States subsequently announced additional new tariffs on virtually all nonexempt imposed retaliatory tariffs on U.S. importrts, and the U.S. tariff rate remains at its highest level in over 80 years. Shifts in tariffs, trade agreements, import/export restrictions, trade sanctions, sector specific trade barriers, and other governmental trade actions, whether enacted by the United States or other countries, and especially those instituted in the associaCompany's significant markets or markets where its significant customers or suppliers are located , and the associated uncertainty of long-term trade policies, could impact the Company's sales volume, sales price, and production and other costs. Changes in trade policies may also cause disruptions to material sourcing and availability, global supply chains and logistics and access to end markets. Additionally, changes in U.S. trade policy and associated responses from trading partners may create shifts in global market dynamics, disrupt the long-term planning process for governments and private enterprises and result in continued global financial market volatility. The impact of these changes in trade policies and the resulting trade and market uncertainty could have a negative impact on the Companys results of operations. Tariffs and trade policies are expected to continue to evolve, and the United States, other countries and international trade bodies may institute new tariffs or more restrictive trade policies or remedies and, as a result, the Company may face additional uncertainties and adverse impacts on its business, financial condition and results of operations.

Economic conditions around the world, and in certain industries and geographic regions in which the Company does business, also impact sales price and volume and the efficacy of the Company's supply chain. For example, long-term market uncertainty, an economic downturnimpacts driven by trade policies and inflationary pressures, and higher input costs have reduced demand for the Company's products, resulting in decreased sales price and volume. Adverse economic conditions have also caused supply chain constraints. These factors have had and are continuing to have a negative impact on the Company's results of operations. Additionally, political tconditions or tensions; war, inclvasion or conflict, including the new and ongoing conflicts in the Middle East and , such as the recent conflict between Russiathe United States, Israel and Ukraine with the relaIran, which began in February 2026 and has resulted sanctionsin volatility and export restrictionsdisruption of the global energy market, and the ongoing conflict between Russia and Ukraine; terrorism; epidemics; pandemics; or political instability in the geographic regions or industries in which the Company soperates or sells its products c, have created and could further reduce continue to create volatility in global demand for the Company's products, and result in decreased sales price ahave disrupted and volume or supply chain could continue to disruptions, which could have a negative impact on  the supply chains, assets or operations of the Companys resul and/or its of operationjoint ventures.

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The Russia-Ukraine conflict has been ongoing for more than threefour years since Russia's February 2022 invasion of Ukraine, and although there have been recent efforts to seek a resolution, it remains unclear if these will be successful. In light of sanctions imposed by the United States, Canada, the European Union and other countries as a result of this conflict, Dow ceased in-bound investment to Russia and maintains reasonable, risk-based measures to ship into Russia only limited goods that comply with applicable legal restrictions. These actions have not had and are not expected to have a material impact on the Company's financial condition or results of operations. The situation remains fluid and the ongoing conflict may result in additional economic sanctions or other measures, which could have a negative impact on the Companys financial condition, results of operations and cash flows.

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These impacts could include decreased sales; supply chain and logistics disruptions; volatility in foreign exchange rates and interest rates; inflationary pressures on and availability of raw materials and energy, most notably in Europe; and heightened cybersecurity threats. Further, the intensity and duration of conflicts in the Middle East a, including the recent conflict between the United States, Israel and Iran, and the potential efor the expansion of hostilities in the region, are difficult to predict and could disrupt the Company's supply chain s and operations, which could have a negative impact on the Company's results of operations.

In addition, volatility and disruption of financial markets could limit the ability of Dow's customers and suppliers to obtain adequate financing to maintain operations, which could result in a decrease in sales volume and have a negative impact on the Companys results of operations. The Companys global business operations also give rise to market risk exposure related to changes in inflation, foreign currency exchange rates, including the impact of foreign currency exchange rates resulting from highly inflationary economies such as Argentina, interest rates, commodity prices and other market factors such as equity prices. To manage such risks, the Company enters into hedging and other investment transactions, where deemed appropriate, pursuant to established guidelines and policies. If the Company fails to effectively manage such risks, it could have a negative impact on its results of operations.

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.

The balance of supply relative to demand within the industry has been and continues to be significantly impacted by the addition of new capacity, especially for basic commodities where capacity is generally added in large increments as world-scale facilities are built. This has resulted in excess capacity which has disrupted and continues to disrupt regional industry supply and demand balances, particularly in Europe, the Middle East, Africa and India ("EMEAI") and Asia Pacific, resulting in downward pressure on prices and decreased operating rates, which has and continues to negatively impact the Companys results of operations.