DuPont — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net sales were $1.9 billion, a 4% increase year-over-year, driven by 5% organic sales growth partially offset by a 1% currency headwind.
• GAAP income from continuing operations was $171 million, up 68% from $102 million in the prior year period.
• Operating EBITDA was $469 million, an 8% increase from $436 million, with an operating EBITDA margin of 25.1% compared to 24.3% in the prior year.
• GAAP EPS from continuing operations was $1.24, up 77% from $0.70; adjusted EPS was $2.09, up 62% from $1.29.
• Cash provided by operating activities from continuing operations was $410 million, a 27% increase from $322 million.
• Transaction-adjusted free cash flow was $341 million with a conversion rate of 121% against adjusted earnings.

Guidance and Future Outlook:

• Full-year 2026 net sales guidance raised to approximately $7.19 billion.
• Full-year 2026 operating EBITDA guidance raised to approximately $1.785 billion.
• Full-year 2026 adjusted EPS guidance raised to a range of $7.47 to $7.52 per share.
• Full-year 2026 organic sales growth is now expected to be approximately 4.5%.
• Fourth quarter 2026 net sales guidance is approximately $1.825 billion.
• Fourth quarter 2026 operating EBITDA guidance is approximately $455 million.
• Fourth quarter 2026 adjusted EPS guidance is $1.90 to $1.95 per share.

Business Segments and Product Lines:

• Healthcare & Water Technologies segment net sales were $865 million, up 4% with 4% organic growth.
  • Healthcare Technologies sales grew mid-single digits organically, led by personal protection and medical packaging.
  • Water Technologies sales grew low-single digits organically, driven by industrial water, semiconductor, and specialty markets, partially offset by Middle East disruptions.
• Diversified Industrials segment net sales were $1.003 billion, up 4% with 5% organic growth.
  • Building Technologies sales grew mid-single digits organically due to growth in North America and Asia.
  • Industrial Technologies sales grew mid-single digits organically, supported by aerospace and electric vehicle battery applications.
• Both segments reported increases in Operating EBITDA and margins driven by organic growth and productivity.

Market and Competitive Landscape:

• Management cited continued strength in healthcare, aerospace, and industrial water end-markets as key drivers for growth.
• The company noted a 1% currency headwind impacting net sales for the quarter.
• Disruptions in the Middle East partially offset growth in the Water Technologies segment.

Risks and Challenges:

• Risks include the ability to realize intended benefits of the Electronics Separation and Aramids Divestiture, including tax treatment and liability assumptions.
• Potential impacts from the Aramids Divestiture on the balance sheet and future results, including post-closing adjustments and disputes.
• Risks associated with PFAS, including litigation outcomes, remediation costs, and changes in laws or regulations.
• Risks related to geopolitical conflicts, trade disputes, sanctions, and tariffs, including export controls on U.S.-regulated products to China.
• Supply chain disruptions, raw material cost increases, and inflationary pressures.
• Risks associated with share repurchase timing, market conditions, and the potential for suspension or discontinuation.
• Risks related to the Reverse Stock Split on trading price, liquidity, and marketability.

Management Commentary and Tone:

• CEO Lori Koch stated the company delivered "another quarter of consistent, high-quality performance," exceeding financial guidance.
• Management highlighted mid-single-digit organic growth, strong operating leverage, and disciplined capital allocation as drivers of adjusted EPS growth.
• CFO Antonella Franzen noted results demonstrated the strength of the operating model and consistent execution, with the company well-positioned to deliver attractive growth and strong cash generation.
• Management expressed confidence in unlocking the full potential of the portfolio to deliver sustained long-term value creation.

Other Key Points:

• Completed $250 million in accelerated share purchases and substantially completed $100 million in open market share repurchases during the third quarter.
• Announced intent to repurchase an additional $250 million of shares in the fourth quarter.
• On April 1, 2026, DuPont completed the sale of the Aramids business to Arclin for approximately $1.2 billion in pre-tax cash proceeds, plus a $300 million note receivable and a $325 million equity interest.
• On November 1, 2025, DuPont completed the separation of its Electronics Business into an independent public company, Qnity Electronics, Inc.
• A 1-for-3 reverse stock split became effective on June 24, 2026, with all share information retroactively adjusted.
• Capital expenditures for the quarter were $71 million.
• Separation-related transaction costs and other payments totaled $2 million for the quarter.