DuPont de Nemours, Inc. (DD)

DuPont de Nemours, Inc. is a leading provider of advanced solutions that improve everyday life across healthcare, water, construction and industrial markets. The Company has subsidiaries in about 50 countries worldwide and manufacturing operations in about 20 countries. The markets in which the Company participates are served by a variety of competitors including multinational companies with significant sales, marketing, research, and financial capabilities, as well as well-established regional companies. Within these markets, competition is driven by product innovation, technological advancement, sustainable practices, pricing strategies, customer services and a changing regulatory landscape. The Company believes that its proprietary product and process technologies, robust product and application development pipelines, well-known brands, customer intimacy, global manufacturing capability, and local service capability help strengthen its competitive position and enable it to compete successfully.

The Company provides its customers with extensive support and technical and testing services, in addition to new product development informed by specific industry technological, sustainability and regulatory needs and evolving customer demands. The Company believes that its combination of differentiated technology, in-depth application expertise, and a commitment to quality and performance makes Healthcare & Water Technologies a preferred choice for customers seeking to develop their next-generation products. Diversified Industrials develops technologies designed to enhance safety, performance, and operational efficiency for customers across these end markets, leveraging market-driven innovation, design capabilities, advanced manufacturing capabilities, and application development expertise, supported by a portfolio of established brands.

The Company generates revenue through the sale of advanced solutions across healthcare, water, construction and industrial markets. Most products are marketed primarily through the Company's sales organization, although for some product lines, more emphasis is placed on sales through distributors. The Company has a diverse worldwide network which markets and distributes the Company's brands to customers globally, consisting of the Company's sales and marketing organization partnering with distributors, independent retailers, cooperatives and agents throughout the world. Certain of the Company's sales are seasonal as construction market demand for North America in Building Technologies generally increases in the second and third fiscal quarters.

Healthcare & Water Technologies is a global leader in providing innovative high-performance products, components, and solutions across a number of industries including medical packaging, medical devices, water filtration and purification, and protective garments. Healthcare Technologies delivers specialized materials and product design, prototyping, and manufacturing services tailored for situations where technological advancement is paramount, and the assurance of quality and performance is required, producing medical packaging, high-performance parts and components to meet stringent performance, quality, and regulatory requirements for the biopharma and medical device markets. Key offerings include specialty components for medical devices, TYVEK medical packaging and garments, as well as TYCHEM protective suits. Water Technologies operates as a pure play provider of advanced water filtration and separation solutions, including elements, modules, and systems serving primarily industrial wastewater and energy markets, municipal and desalination applications, and life sciences and specialty sectors, with a product suite including AMBERLITE ion exchange resins, FILMTEC reverse osmosis and nanofiltration elements and INGE and ITEGRATEC ultrafiltration modules. For the year ended December 31, 2025, Healthcare & Water Technologies net sales were $3,233 million ¹, up 9 percent from $2,976 million ² for the year ended December 31, 2024. Operating EBITDA was $972 million ³ for the year ended December 31, 2025, up 15 percent compared with $844 million ⁴ for the year ended December 31, 2024.

Diversified Industrials provides engineered products and integrated solutions that enhance safety, performance, durability and operational efficiency across construction and industrial end markets, including aerospace, automotive, electric vehicles, and broader industrial markets, consisting of the Building Technologies and Industrial Technologies businesses. Building Technologies provides solutions for the non-residential, residential, and repair-and-remodel construction markets, delivering integrated systems designed to support energy efficiency, durability, and comfort, including TYVEK house wrap, STYROFOAM insulation, and CORIAN solid surface. Industrial Technologies specializes in the design and production of engineered components, systems, and process solutions used in critical OEM and operational applications across industrial end markets such as automotive, aerospace, printing, and packaging, offering brands such as Vespel shapes and parts, MOLYKOTE specialty lubricants, BETAFORCE and BETASEAL structural adhesives, and Cyrel flexographic printing plates. For the year ended December 31, 2025, Diversified Industrials net sales were $3,616 million ⁵, down 3 percent from $3,743 million ⁶ for the year ended December 31, 2024. Operating EBITDA was $800 million ⁷ for the year ended December 31, 2025, down 5 percent compared with $839 million ⁸ for the year ended December 31, 2024.

On November 1, 2025, the Company completed the separation of its semiconductor and interconnect solutions businesses into an independent public company, Qnity Electronics, Inc., by way of the distribution to DuPont's stockholders of record as of October 22, 2025 of all the issued and outstanding common stock of Qnity on November 1, 2025. In connection with the Electronics Separation, Qnity paid a cash distribution to DuPont of approximately $4.1 billion ⁹. On August 29, 2025, DuPont announced a definitive agreement to sell the Aramids business to Arclin, a portfolio company of an affiliate of TJC LP, in return for pre-tax cash proceeds of approximately $1.2 billion ¹⁰, subject to customary transaction adjustments, a note receivable in the principal amount of $300 million ¹¹ and a non-controlling common equity interest valued at $325 million ¹². On October 10, 2025, the Company completed the acquisition of Sinochem (Ningbo) RO Memtech Co., Ltd. for a net purchase price of $56 million ¹³. On July 28, 2024, the Company completed the acquisition of Donatelle Plastics, LLC for a net purchase price of $365 million ¹⁴. On August 1, 2023, the Company completed the acquisition of Spectrum Plastics Group from AEA Investors for a net purchase price of approximately $1,781 million ¹⁵. In the fourth quarter of 2025, the Company's Board of Directors approved a new share repurchase authorization of up to $2 billion ¹⁶ of common stock. In the fourth quarter of 2025, DuPont entered into an ASR agreement for repurchase of about $500 million ¹⁷ of common stock, receiving initial deliveries of 10.2 million ¹⁸ shares at a price per share of $39.15 ¹⁹. In March 2025, the Company approved the Transformational Separation-Related Restructuring Program, recording pre-tax restructuring charges of $69 million ²⁰ inception-to-date.

The Company reported net sales for the year ended December 31, 2025 of $6.8 billion ²¹, up 2 percent from $6.7 billion ²² for the year ended December 31, 2024. Net income (loss) from continuing operations was $98 million ²³ for the year ended December 31, 2025, compared to a loss of $96 million ²⁴ for the year ended December 31, 2024. Net loss available for DuPont common stockholders was $779 million ²⁵ for the year ended December 31, 2025, compared to net income of $703 million ²⁶ for the year ended December 31, 2024. Diluted loss per common share was $1.86 ²⁷ for the year ended December 31, 2025, compared to diluted earnings per common share of $1.68 ²⁸ for the year ended December 31, 2024. Cash provided by operating activities of continuing operations was $560 million ²⁹ for the year ended December 31, 2025, compared to $765 million ³⁰ for the year ended December 31, 2024.

For the full year 2026, the Company expects continued growth within Healthcare driven by broad-based strength in medical packaging applications and medical devices. In Water, the Company expects continued growth primarily driven by demand for reverse osmosis and ion exchange within industrial and municipal water markets. Within Building Technologies, after a year of market declines, the Company expects 2026 to be about flat, on stabilization within US construction markets. In Industrial Technologies, the Company expects low-single digit growth year over year driven by strength in aerospace and demand recovery within markets served by DuPont's remaining industrial-based product lines.

The Company expects continued growth within Healthcare driven by broad-based strength in medical packaging applications and medical devices. In Water, the Company expects continued growth primarily driven by demand for reverse osmosis and ion exchange within industrial and municipal water markets. The Company expects 2026 capital expenditures to be about $320 million ³¹.

Within Building Technologies, after a year of market declines, the Company expects 2026 to be about flat, on stabilization within US construction markets. In Industrial Technologies, the Company expects low-single digit growth year over year driven by strength in aerospace and demand recovery within markets served by DuPont's remaining industrial-based product lines.

The Company expects to contribute approximately $55 million ³² to its pension plans in 2026. The Company expects 2026 capital expenditures to be about $320 million ³³. On February 13, 2026, the Company committed to a plan aimed at reducing costs, streamlining operations, and aligning its organizational and cost structure with its strategic priorities, currently anticipating incurring pre-tax restructuring and other costs of approximately $100 million to $150 million ³⁴, starting in the first quarter of 2026 and continuing through 2028.

The Company expects to contribute approximately $55 million ³⁵ to its pension plans in 2026. The Company expects 2026 capital expenditures to be about $320 million ³⁶. The Company may adjust its spending throughout the year as economic conditions develop.

In the fourth quarter of 2025, the Company's Board of Directors approved a new share repurchase authorization of up to $2 billion ³⁷ of common stock. Under the $2B Authorization, repurchases may be made from time to time on the open market at prevailing market prices or in privately negotiated transactions off market, including accelerated share repurchase transactions. The $2B Authorization will terminate once the authorized amount of shares have been repurchased and retired or when terminated by the Board of Directors. The Company expects to continue to pay quarterly dividends, although each dividend is subject to the approval of the Company's Board of Directors.

The Aramids Divestiture is expected to close around the end of the first quarter 2026, subject to customary closing conditions and receipt of regulatory approvals. Factors that could affect DuPont's ability to realize the anticipated benefits from the Aramids Divestiture include the parties' ability to meet expectations regarding the timing, completion, accounting and tax treatment of the proposed transaction, including any failure to obtain necessary regulatory approvals or to satisfy any of the other conditions to the proposed transaction, and the impact of the Aramids Equity Consideration on DuPont's results of operations.

The Company's results are affected by its ability to foresee and respond to competitive conditions and customer preferences. Demand for the Company's products, which impacts revenue and profit margins, is affected by the development and timing of the introduction of competitive products; the Company's response to downward pricing trends to stay competitive; changes in customer preferences, order patterns, such as changes in the levels of inventory maintained by customers and the timing of customer purchases which may be affected by announced price changes and other factors outside of the Company's control; availability and cost of raw materials and energy, as well as the Company's ability and success in passing through increases in such costs; levels of economic growth in the geographic and end use markets served by the Company; changes in buying patterns thought to be temporary destocking could be indicative of loss of market share and the mega-trends in digital transformation, connectivity, automation and ethics, environmental impact and sustainability driven purchasing decisions.

Management's message emphasizes the Company's transformation journey from a specialty products company to a focused advanced solutions provider, highlighting the completion of the Electronics Separation on November 1, 2025, the announced Aramids Divestiture expected to close around the end of the first quarter 2026, and the creation of two new reportable segments: Healthcare & Water Technologies and Diversified Industrials. Key strategic priorities include executing the Aramids Divestiture, achieving the intended benefits of the Electronics Separation, and driving growth through innovation in healthcare, water, and industrial markets. Management expects continued growth within Healthcare driven by broad-based strength in medical packaging applications and medical devices, continued growth in Water primarily driven by demand for reverse osmosis and ion exchange within industrial and municipal water markets, Building Technologies to be about flat in 2026 on stabilization within US construction markets, and Industrial Technologies to achieve low-single digit growth year over year driven by strength in aerospace and demand recovery.

For the year ended December 31, 2025, total net sales were $6,849 million ⁴⁵ compared to $6,719 million ⁴⁶ for the year ended December 31, 2024 and $6,614 million ⁴⁷ for the year ended December 31, 2023. Income from continuing operations before income taxes was $200 million ⁴⁸ for 2025, compared to $117 million ⁴⁹ for 2024 and a loss of $279 million ⁵⁰ for 2023. Net income (loss) from continuing operations was $98 million ⁵¹ for 2025, compared to a loss of $96 million ⁵² for 2024 and a loss of $62 million ⁵³ for 2023. Diluted earnings (loss) per common share from continuing operations was $0.21 ⁵⁴ for 2025, compared to a loss of $0.23 ⁵⁵ for 2024 and a loss of $0.15 ⁵⁶ for 2023. Net loss available for DuPont common stockholders was $779 million ⁵⁷ for 2025, compared to net income of $703 million ⁵⁸ for 2024 and net income of $423 million ⁵⁹ for 2023. Diluted loss per common share was $1.86 ⁶⁰ for 2025, compared to diluted earnings per common share of $1.68 ⁶¹ for 2024 and $0.94 ⁶² for 2023. Operating EBITDA for Healthcare & Water Technologies was $972 million ⁶³ for 2025, compared to $844 million ⁶⁴ for 2024. Operating EBITDA for Diversified Industrials was $800 million ⁶⁵ for 2025, compared to $839 million ⁶⁶ for 2024. Cash and cash equivalents were $715 million ⁶⁷ at December 31, 2025, compared to $1,792 million ⁶⁸ at December 31, 2024. Total debt was $3,194 million ⁶⁹ at December 31, 2025, compared to $7,171 million ⁷⁰ at December 31, 2024. Cash provided by operating activities of continuing operations was $560 million ⁷¹ for 2025, compared to $765 million ⁷² for 2024 and $845 million ⁷³ for 2023. Capital expenditures totaled $333 million ⁷⁴ for 2025, compared to $285 million ⁷⁵ for 2024 and $302 million ⁷⁶ for 2023. The effective tax rate on continuing operations was 51.0 percent ⁷⁷ for 2025, 182.1 percent ⁷⁸ for 2024, and 77.7 percent ⁷⁹ for 2023. Significant items affecting reported results include a goodwill impairment charge of $768 million ⁸⁰ related to the Aramids Business in discontinued operations in 2025, a goodwill impairment charge of $668 million ⁸¹ related to the Diversified Industrials segment in 2023, restructuring and asset related charges of $151 million ⁸² in 2025, $57 million ⁸³ in 2024, and $99 million ⁸⁴ in 2023, and acquisition, integration and separation costs of $203 million ⁸⁵ in 2025, $90 million ⁸⁶ in 2024, and $19 million ⁸⁷ in 2023.

DuPont faces material risks from the failure of the Qnity Distribution to qualify for tax-free treatment, which could result in significant tax liabilities; the Tax Opinion relied on certain facts, assumptions, and undertakings, and if the IRS determines the distribution should be taxable, DuPont could incur significant tax liabilities. The Company is subject to significant PFAS-related litigation and cost-sharing obligations under the MOU, with total pre-tax charges of $235 million ³⁸ in 2025, $46 million ³⁹ in 2024, and $487 million ⁴⁰ in 2023 reflected as a loss from discontinued operations, and an indemnification liability of $185 million ⁴¹ recorded at December 31, 2025. The Aramids Divestiture is subject to risks including failure to obtain regulatory approvals or satisfy closing conditions, and the impact of the Aramids Equity Consideration on results. The Company's international operations expose it to foreign currency fluctuations, with approximately 53 percent ⁴² of net sales on a continuing operations basis generated internationally for the year ended December 31, 2025, and the largest currency exposures being the European euro, Chinese renminbi, Japanese yen, Canadian dollar and Indian rupee. An impairment of goodwill or intangible assets could negatively impact financial results, as demonstrated by the $768 million ⁴³ goodwill impairment charge for the Aramids Business in 2025 and the $668 million ⁴⁴ goodwill impairment charge for the Diversified Industrials segment in 2023.