DuPont de Nemours : 1Q 2026 Earnings Presentation
DD
Published on 05/05/2026 at 09:17 am EDT
1Q 2026 Financial Results
May 5, 2026
1Q 2026 Highlights
1Q 2026 Financials
Organic sales growth driven by strength in healthcare and aerospace end-markets
Disciplined execution drove double-digit EBITDA and EPS growth resulting in strong margin expansion
Solid free cash flow generation and conversion
Announces $275 million ASR
Operational Highlights
Continued advancement of strategic priorities - organic growth, business system, capital deployment
Completed divestiture of the Aramids business on April 1st
Recently issued 2026 Sustainability Report and launched 2035 Sustainability Goals
3
Continued Progress on Strategic Priorities
Robust Business System Driving Growth & Continuous Improvement
Enhanced performance-based culture
Launched refreshed set of Core Values
Continue driving excellence and consistent performance
Vitality index increased to 35% in 2025
Advancing digital and AI capabilities; announced collaboration with Uncountable Inc.
Edison awards for recently launched products in Tyvek® and Water
Continued year-over-year improvement in order trends in Industrial Technologies
Advancing demand generation priorities through sales plays
Continued rollout of enhanced process for pipeline management
Held Kaizen events across the businesses, functions and sites
Delivered productivity improvements in maintenance & reliability spend YoY
Continuing to advance digital and AI capabilities to improve asset reliability and performance
4
4
1Q 2026 Financial Highlights
Sales Drivers
Profitability & Cash Flow
Net Sales
Organic Sales
Organic Sales:
Growth in healthcare and aerospace end-markets was partially offset by continued softness in construction and Middle East disruptions
Currency: +2% Portfolio: flat
Organic Sales by Segment:
Healthcare & Water Technologies: +3% Diversified Industrials: ~flat
Operating EBITDA
Adjusted EPS
Transaction-Adjusted FCF1
Up double-digits on organic growth, favorable mix and productivity
Margin +230 bps to 24.6%; +130 bps on a pro forma basis
Higher segment earnings and lower interest expense, corporate costs and tax rate
• +53% YoY; +20% on a proforma basis
Transaction-adjusted free cash flow (FCF) from continuing operations of $147 million and related conversion of 65%
1 Cash provided by operating activities from continuing operations of $232 million, CapEx of $102 million and separation-related transaction cost and other payments of $17 million
resulted in transaction-adjusted free cash flow (FCF) from continuing operations of $147 million. 5
1Q 2026 Adjusted EPS Bridge
+53%
+20%1
$0.02
$0.55
$0.06 $0.00 $0.01
$0.36
$0.10
₊Corporate
₊
+$0.03
Interest, net
+$0.07
$0.46
₊ Organic growth
₊ Productivity
₊Exchange gain
₊
+$0.01
Share count
+$0.01
1Q25
Pro Forma
1Q25 Pro Forma
Segments
Corporate
Tax Rate
Other
1Q26
Adjusted EPS
Adjustments
Adjusted EPS 1
Below-the-Line
Adjusted EPS
1 1Q25 Pro Forma Adjusted EPS is determined consistent with our 2025 Investor Day financial metrics which gave effect to certain post-separation adjustments for comparability purposes. This is not meant to represent a pro forma metric within the meaning of Article 11 of Regulation S-X. Full Year 2025 Investor Day financial metrics assumed corporate cost ($125 million), interest, net ($110 million) and a base tax rate 6 range of 25-26%. Refer to slide 16 for further information.
Healthcare & Water Technologies
1Q NetVSola(l+e2s%), Price (-1%), Currency (0%), Portfolio (0%)
1Q 2026 YoY Highlights
$ in Millions
$763
+3%
+3% flat
+6%
$806
1Q25 Organic Currency Portfolio 1Q26
1Q Operating EBITDA
Organic Sales by Line of Business
Healthcare Technologies Sales up high-single digits on an organic basis on broad-based growth led by medical packaging and biopharma
$350
$ in Millions
$300
$250
$200
$150
29.2% 30.3%
$223
1Q25 1Q26
35%
30%
$244
25%
20%
15%
Water Technologies Sales down low to mid-single digits on an organic basis as strength in industrial water and microelectronics markets were more than offset by logistics disruptions in the Middle East
Margin %
Operating EBITDA increased on organic growth and productivity
Operating EBITDA margin of 30.3% increased 110 basis points, on organic growth, favorable mix and productivity
Diversified Industrials
1Q Net Sales
1Q 2026 YoY Highlights
$ in Millions
$849
~flat
+3% flat
+3%
$875
1Q25 Organic Currency Portfolio 1Q26
1Q Operating EBITDA
Organic Sales by Line of Business
Building Technologies Sales down low-single digits on an organic basis from ongoing weakness in construction markets
$300
$ in Millions
$250
21.8% 22.9%
30%
25%
Industrial Technologies Sales up low-single digits on an organic basis on strength in aerospace and automotive, partially offset by declines in the printing and packaging businesses
$200
$150
$100
$185
1Q25 1Q26
20%
$200
15%
10%
Operating EBITDA increased on favorable mix and productivity
Margin %
Operating EBITDA margin of 22.9% increased 110 basis points on favorable mix and productivity
2Q and FY 2026 Guidance
Prior Guidance
Current Guidance
Mid-point Changes
Net Sales
$7,075 - $7,135
$7,155 - $7,215
+$80
Operating EBITDA
$1,725 - $1,755
$1,730 - $1,760
+$5
Adjusted EPS
$2.25 - $2.30
$2.35 - $2.40
+$0.10
Current Guidance
Net Sales ~$1,800
Operating EBITDA
~$430
Adjusted EPS ~$0.59
2Q'26 Net Sales assumes ~3 percent organic sales growth YoY
FY'26 Net Sales assumes ~4 percent organic sales growth YoY, including ~1 percent from pricing actions to offset higher input costs
Operating EBITDA mid-point raised on stronger 1Q results
Adjusted EPS includes the interest income benefit from the Aramids transaction
Note: Segment expectations and additional modeling guidance included on slides 13 and 14, respectively. 9
Appendix
10
2026 Sustainability highlights: Achievements and impact
Safest year on
reduction in Scopes 1 & 2
(2019 baseline)
~80%
reduction in Scopes 3
(2020 baseline)
of electricity for operations is renewably sourced, including RECs
51
record
surpassing previous safest years in 2024 and 2025
(total recordable incident rates decreasing year over year)
>3,800 hours
of our innovation portfolio is expected to be sustainably advantaged
sites certified to an environmental management system, including ISO 14001
volunteered at DuPont sponsored events
Recognitions
Awards &
DuPont named to Net Zero Leaders list
1Q 2026 Net Sales Bridge
Organic Sales +2%
$1,612
$ in Millions
flat
+2%
₊ Euro, CNY
+3% ~flat
+4%
Healthcare Technologies
Water Technologies
Building Technologies
$1,681
Industrial Technologies
1Q25 Portfolio Currency Healthcare
& Water Technologies
Diversified Industrials 1Q26
2026 Segment Expectations
Healthcare & Water Technologies Diversified Industrials
2Q2026
Expect mid-single digit organic sales growth year-over-year
Growth in healthcare and water end-markets
FY2026
Expect mid-single digit organic sales growth year-over-year, including benefits from pricing actions
Broad-based strength in Healthcare driven by medical packaging and medical devices; growth in Water led by strength in industrial and municipal markets
2Q2026
Expect low-single digit organic sales growth year-over-year
Growth in aerospace and industrial end-markets partially offset by continued softness in construction end-markets
FY2026
Expect low-single digit organic sales growth year-over-year, including benefits from pricing actions
Industrial Technologies growth driven by strength in aerospace and demand recovery in industrial markets; Building Technologies up slightly
Additional Modeling Guidance
Vol (+2%), Price (-1%), Currency (0%), APodrtdfoitliioo(n0%a)l Modeling Guidance
Base Tax Rate ~24%-25% - FY 26 D&A ~$625 million, pre-tax
Depreciation ~$350 million, pre-tax Intangible Amortization ~$275 million, pre-tax
Interest Expense, net ~$80 million, pre-tax Exchange Losses ~$10-$15 million, after-tax
Share count - diluted
Weighted Average
~410 million
Corporate ~$33 million - 2Q 26
~$115 - $120 million - FY 26
Non-GAAP Financial Measures:
Unless otherwise indicated, all financial metrics presented reflect continuing operations only.
This communication includes information that does not conform to accounting principles generally accepted in the United States of America ("U.S. GAAP") and are considered non-GAAP measures. Management uses these measures internally for planning, forecasting and evaluating the performance of the Company, including allocating resources. DuPont's management believes these non-GAAP financial measures are useful to investors because they provide additional information related to the ongoing performance of DuPont to offer a more meaningful comparison related to future results of operations. These non-GAAP financial measures supplement disclosures prepared in accordance with U.S. GAAP, and should not be viewed as an alternative to U.S. GAAP. Furthermore, such non-GAAP measures may not be consistent with similar measures provided or used by other companies. Reconciliations for these Non-GAAP measures to U.S. GAAP are provided in the Selected Financial Information and Non-GAAP Measures starting on page 18. Non-GAAP measures included in this communication are defined below. The Company has not provided forward-looking U.S. GAAP financial measures or a reconciliation of forward-looking non-GAAP financial measures to the most comparable U.S. GAAP financial measures on a forward-looking basis because the Company is unable to predict with reasonable certainty the ultimate outcome of certain future events. These events include, among others, the impact of portfolio changes, including asset sales, mergers, acquisitions, and divestitures; contingent liabilities related to litigation, environmental and indemnifications matters; impairments and discrete tax items. These items are uncertain, depend on various factors, and could have a material impact on U.S. GAAP results for the guidance period.
Key Terms
Significant Items
Significant items are items that arise outside the ordinary course of business for the Company and includes items for nonconsolidated affiliates, that the Company's management believes may cause misinterpretation of underlying business and investment performance, both historical and future, based on a combination of some or all of the item's size, unusual nature and infrequent occurrence. Management classifies as significant items certain costs and expenses associated with integration and separation activities related to transformational acquisitions and divestitures as they are considered unrelated to ongoing business performance. There were no significant items associated with nonconsolidated affiliates recorded for the three month periods ended March 31, 2026 and March 31, 2025.
Future Reimbursable Indirect Costs
Indirect costs, such as those related to corporate and shared service functions previously allocated to the separated Electronics Business and Aramids Business, do not meet the criteria for discontinued operations and are reported within continuing operations in all respective periods presented. The Company has, is, will or expects to be reimbursed in accordance with the applicable transition service agreements ("TSAs") for the portion of indirect costs related to activities the Company is, will or expects to undertake on a transitional basis to support a) Qnity not beyond year end 2027 for services and 2040 for site leases and, b) the Aramids Business post the intended Aramids Divestiture, but not beyond 2028 (such indirect costs "Future Reimbursable Indirect Costs"). Services provided and costs reimbursed in accordance with the applicable TSAs include but are not limited to, costs associated with information technology services/support, product stewardship and regulatory support, facilities services, and shared property lease costs.
Future Reimbursable Indirect Costs do not meet the criteria for discontinued operations and therefore are included in both GAAP Net Income from Continuing Operations and in GAAP Cash provided by operating activities-continuing operations for all periods presented. Future Reimbursable Indirect Costs are excluded from Adjusted Earnings, Operating EBITDA and Transaction-Adjusted Free Cash Flow, each defined below. Such indirect costs that are not subject to future reimbursement are reported within continuing operations in Corporate and are included within Adjusted Earnings, Operating EBITDA, and Cash provided by operating activities-continuing operations.
Corporate DDOB Remediation Costs
Corporate DDOB Remediation Costs are environmental remediation costs, including certain investigate, remediate and restoration costs, associated with discontinued or divested operations, businesses or product lines ("Corporate DDOB Remediation Costs"). DDOB Remediation Costs are excluded from Adjusted Earnings and Operating EBITDA, as defined below, to provide better insight into the underlying business performance of the Company.
Non-GAAP Financial Measures Definitions
Organic Sales
Organic Sales is defined as net sales excluding the impacts of currency and portfolio.
Adjusted Earnings
Adjusted Earnings is defined as income from continuing operations excluding the after-tax impact of significant items, after-tax impact of amortization expense of intangibles, the after-tax impact of non-operating pension / other post employment benefits ("OPEB") credits / costs, Future Reimbursable Indirect Costs and Corporate DDOB Remediation Costs.
Adjusted Earnings is the numerator used in the calculation of Adjusted EPS, as well as the denominator in Adjusted Free Cash Flow Conversion.
Adjusted EPS
Adjusted EPS is defined as Adjusted Earnings per common share - diluted. Management estimates amortization expense in 2026 associated with intangibles to be about $275 million on a pre-tax basis, or approximately $0.51 per share.
Operating EBITDA, EBITDA Margin & Incremental Margin
The Company's measure of profit/loss for segment reporting purposes is Operating EBITDA as this is the manner in which the Company's chief operating decision maker ("CODM") assesses performance and allocates resources. The Company defines Operating EBITDA as earnings (i.e., "Income from continuing operations before income taxes") before interest, depreciation, amortization, non-operating pension / OPEB benefits / charges, and foreign exchange gains / losses, excluding Future Reimbursable Indirect Costs, Corporate DDOB Remediation Costs, and adjusted for significant items. Reconciliations of these measures are provided on the following pages.
Operating EBITDA Margin is defined as Operating EBITDA divided by Net Sales.
Incremental Margin is the change in Operating EBITDA divided by the change in Net Sales for the applicable period.
Pro Forma Operating EBITDA, Pro Forma Operating Margin, and Pro Forma Adjusted EPS
Management uses the supplemental pro forma non-GAAP financial measures to assist in evaluating DuPont's results as a stand-alone company for the twelve months ended December 31, 2025 following the November 1, 2025 separation of Qnity. These measures are intended to reflect the impact of the separation on the Company's historical non-GAAP results by adjusting for corporate cost and capital structure changes that occurred as a result of the separation. Management believes these measures provide a more meaningful comparison of the Company's historical non-GAAP results in relation to future results of operations. The 2025 pro forma amounts are adjusted as if the separation occurred on January 1, 2025 for comparability. The Corporate cost benefit reflects the elimination of costs associated with the separation of Qnity that are not included in discontinued operations and relate primarily to corporate functions that no longer support the Company's continuing operations. These supplemental pro forma non-GAAP financial measures are not prepared in accordance with Article 11 of Regulation S-X and should not be viewed as an alternative to U.S. GAAP.
Pro Forma Operating EBITDA is defined as Operating EBITDA adjusting for the impact of the reduction in corporate costs post separation, inclusive of changes in Delrin equity earnings/losses.
Pro Forma Adjusted EPS is defined as Adjusted EPS adjusting for the impact of changes in net interest expense resulting from the post-separation capital structure, and the impact of the reduction in corporate costs post separation (inclusive of changes in Delrin equity earnings/losses) and applying a 25.5 percent adjusted base tax rate.
Non-GAAP Financial Measures Definitions (Continued)
Adjusted Free Cash Flow & Adjusted Free Cash Flow Conversion
Adjusted Free Cash Flow is defined as cash provided by/used for operating activities from continuing operations less capital expenditures and excluding the impact of cash inflows/outflows that are unusual in nature and/or infrequent in occurrence that neither relate to the ordinary course of the Company's business nor reflect the Company's underlying business liquidity. As a result, Adjusted Free Cash Flow represents cash that is available to the Company, after investing in its asset base, to fund obligations using the Company's primary source of liquidity, cash provided by operating activities from continuing operations. Management believes Adjusted Free Cash Flow, even though it may be defined differently from other companies, is useful to investors, analysts and others to evaluate the Company's cash flow and financial performance, and it is an integral measure used in the Company's financial planning process. Management notes that there were no exclusions for items that are unusual in nature and/or infrequent in occurrence for the three month period ended March 31, 2026.
Adjusted Free Cash Flow Conversion is defined as Adjusted Free Cash Flow divided by Adjusted Earnings. Management uses Adjusted Free Cash Flow Conversion as an indicator of our ability to convert earnings to cash.
Transaction Adjusted Free Cash Flow & Transaction Adjusted Free Cash Flow Conversion
Management believes supplemental non-GAAP financial measures including Transaction-Adjusted Free Cash Flow and Transaction-Adjusted Free Cash Flow Conversion (each defined below) provide an integral view of information on the Company's underlying business performance during this period of transformational change. Management believes the Electronics Separation and Aramids Divestiture collectively represent a significant transformational change for the Company and separation-related transaction cost payments impact comparability to the Company's continuing operations. Management believes Transaction-Adjusted Free Cash Flow, which may be defined differently from other companies, is useful to investors, analysts and others to evaluate the Company's cash flow and financial performance, and it is an integral measure used in the Company's financial planning process. These non-GAAP financial measures are not intended to represent residual cash flow for discretionary expenditures since other non-discretionary expenditures, such as mandatory debt service requirements, are not deducted from the measure.
Transaction-Adjusted Free Cash Flow is defined as cash provided by/used for operating activities from continuing operations less capital expenditures and removing the impact of separation-related transaction costs and other payment and cash inflows/outflows that are unusual in nature and/or infrequent in occurrence that neither relate to the ordinary course of the Company's business nor reflect the Company's underlying business liquidity.
Transaction-Adjusted Free Cash Flow Conversion is defined as Transaction-Adjusted Free Cash Flow excluding separation-related transaction costs, divided by Adjusted Earnings.
Separation-related transaction costs and other payments include cash outflows directly associated with the Electronics Separation and the Aramids Divestiture. These costs include advisor and banking fees, payments related to establishing a new capital structure (including fees associated with interest rate swaps), capital expenditures required to facilitate physical asset separation, restructuring payments associated with senior leadership, and Future Reimbursable Indirect Costs, among other expenditures.
Future Reimbursable Indirect Costs are excluded from Adjusted Earnings and Operating EBITDA. To provide comparable data analysis, the Company has also adjusted payments associated with Future Reimbursable Indirect Costs within Separation-related transaction costs and other payments. This adjustment is intended to provide insight into the Company's underlying business performance. For the three months ended March 31, 2026, the Company adjusted $8 million associated with Future Reimbursable Indirect Costs within Separation-related transaction costs and other payments.
Additionally, $3 million was reflected in Separation-related transaction costs and other payments for the three month period ended March 31, 2026, respectively, for capital expenditures incurred to complete the physical separation of shared locations.
Finally, $6 million of restructuring and short-term incentive program payments to former senior leadership were reflected in Separation-related transaction costs and other payments for the three month period ended March 31, 2026. These payments were reflected in other cash payments as they related to the establishment of the post-spin leadership structure.
Selected Financial Information and Non-GAAP Measures
Selected Financial Information and Non-GAAP Measures
Selected Financial Information and Non-GAAP Measures
Disclaimer
DuPont de Nemours Inc. published this content on May 05, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 05, 2026 at 13:16 UTC.