DOW and Carbice Join Forces to Develop Thermal Interface Materials

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Dow Inc. DOW and Carbice have announced a partnership to develop a multi-generational thermal interface material (TIM) product solution for high-performance electronics in the mobility, industrial and consumer industries, and semiconductors.

Dow Bets on Rising Demand for Reliability in TIM Market

The collaboration announced at The Battery Show North America combines Dow's silicone legacy with Carbice's CNT technology to provide innovative thermal management products. This partnership will provide unique pad solutions for e-mobility and electronics applications in response to the growing demand for reliability in the thermal interface sector. 

This collaboration aligns with Dow's MobilityScience commitment to influencing the future of mobility through cutting-edge material research. 

DOW's partnership with Carbice allows it to improve its customer service by providing heat management solutions that mix liquid silicones and solid pads. This alliance is uniquely beneficial to the industry. 

Dow silicones' superior wetting characteristics and precision dispensing, together with the versatility and durability of Carbice CNTs, form an interface contact that reduces all forms of stress transmission for dependable solutions that can work in various settings. Customers may minimize interface stress by combining Carbice's CNT technical and modeling experience with Dow's material science understanding to create thermal management materials tailored to their applications with the thinnest bondlines.

Customers will be able to rapidly access extensive modeling capabilities through collaboration from the beginning of the design process, ensuring more predictable results. This method not only allows for more cost-effective design optimization but also enables more efficient manufacturing processes, particularly in focused applications. In addition, ongoing joint research and development (R&D) will ensure the continuous delivery of cutting-edge liquid and solid heat management technology.

Shares of DOW have gained 7.1% over the past year compared with 5.5% rise of its industry.

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Dow recently updated its third-quarter 2024 guidance, forecasting revenues of approximately $10.6 billion and operating earnings before interest, taxes, depreciation and amortization (EBITDA) of about $1.3 billion. Dow stated that its revised outlook is mainly prompted by a major unexpected incident in late July at one of its ethylene crackers in Texas. The company is also dealing with higher input costs and margin pressures in Europe.

For the fourth quarter, Dow indicated that demand is expected to align with typical seasonal trends. It expects to benefit from lower turnaround costs, increased operating rates as the Texas cracker ramps up and fewer weather-related disruptions on the U.S. Gulf Coast. Dow emphasized its commitment to maintaining strong operational and financial discipline while continuing to focus on long-term growth initiatives.

Dow Inc. Price and Consensus

Dow Inc. price-consensus-chart | Dow Inc. Quote

Zacks Rank & Key Picks

DOW currently carries a Zacks Rank #5 (Strong Sell).

Better-ranked stocks in the basic materials space include Carpenter Technology Corporation CRS, IAMGOLD Corporation IAG and Centrus Energy Corp. LEU. 

Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 15.9%. The company's shares have soared 149.4% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for IAG’s current-year earnings is pegged at 49 cents, indicating a year-over-year rise of 444.4%. The Zacks Consensus Estimate for IAG's current-year earnings has been going up in the past 30 days. IAG, a Zacks Rank #1 stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 200%. The company's shares have rallied roughly 110.9% in the past year.

The Zacks Consensus Estimate for Centrus’ current-year earnings is pegged at $3.06 per share. LEU, a Zacks Rank #1 stock, beat the consensus estimate in three of the last four quarters while missed once, with the average earnings surprise being 107.1%. LEU has rallied around 12.5% in the past year.



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