DuPont de Nemours, Inc. (DD) Q2 2025 Earnings Summary

Executive Summary

DuPont delivered modest top-line growth and margin expansion: net sales $3.26B (+3% YoY), operating EBITDA $859M (+8% YoY) and adjusted EPS $1.12 (+15% YoY), with strength in electronics, healthcare and water end-markets .
Results were above Wall Street consensus: revenue beat by ~0.5% ($3.26B vs $3.24B*) and adjusted EPS beat by ~5% ($1.12 vs $1.06*). Management raised full-year earnings guidance to ~~$4.40 adjusted EPS, incorporating a smaller tariff headwind (~~$20M vs prior ~$60M) .
Segment trends: ElectronicsCo net sales +6% and margin +220 bps to 31.9% on AI-driven semi and interconnect demand; IndustrialsCo net sales +1% and margin +50 bps to 24.4%, led by healthcare and water growth and offset by construction softness .
Strategic catalysts: Qnity (electronics) spin on track for Nov 1, 2025 and Qnity financing launched in August, while DuPont agreed to divest Aramids (Kevlar/Nomex) for ~$1.8B to streamline “new DuPont” and improve its growth/margin profile .

What Went Well and What Went Wrong

What Went Well

Electronics momentum and pricing power: Semiconductor Technologies up mid-single digits organically on advanced nodes and AI; Interconnect Solutions up high-single digits with AI ramps and share/content gains .
Margin expansion and cash conversion: Operating EBITDA margin rose 120 bps YoY to 26.4%; transaction-adjusted FCF $433M with 93% conversion despite separation cost payments .
Guidance raised with tariff mitigation: FY25 adjusted EPS guided to ~$4.40 and tariffs now modeled at ~~$20M headwind (~~$0.04/share), materially better than the $60M net impact previously discussed .

Management quote: “We delivered another quarter of year-over-year organic sales growth and solid margin expansion… As a result of our strong second quarter performance, we are raising our full year earnings guidance, which now incorporates the impact of tariffs.” — CEO Lori Koch .

What Went Wrong

Construction-exposed businesses were soft: Diversified Industrials down low-single digits organically due to weakness in construction markets, offsetting strength in healthcare and water .
GAAP cash flow down YoY: Cash provided by operating activities from continuing ops fell to $381M vs $527M in 2Q24, reflecting separation-related cash costs and working capital movements .
Separation-related costs elevated: Acquisition/integration/separation costs were a significant item at $(154)M pretax in Q2, impacting GAAP results though excluded from adjusted metrics .

Financial Results

Consolidated Performance (USD)

Metric	Q4 2024	Q1 2025	Q2 2025
Net Sales ($MM)	$3,092	$3,066	$3,257
GAAP EPS – Continuing Ops ($)	$(0.17)	$(1.33)	$0.54
Adjusted EPS ($)	$1.13	$1.03	$1.12
Operating EBITDA ($MM)	$807	$788	$859
Operating EBITDA Margin (%)	26.1%	25.7%	26.4%
Cash from Ops – Cont. Ops ($MM)	$564	$382	$381
Transaction-Adjusted FCF ($MM)	$455	$212	$433

Revenue and EPS vs Estimates

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue Consensus ($MM)	3,067*	3,043*	3,242*
Actual Net Sales ($MM)	$3,092	$3,066	$3,257
Beat/Miss	Beat	Beat	Beat
Adj. EPS Consensus ($)	0.980*	0.953*	1.061*
Actual Adjusted EPS ($)	1.13	1.03	1.12
Beat/Miss	Beat	Beat	Beat

Values marked with * retrieved from S&P Global.

Segment Breakdown

Segment Metric	Q2 2024	Q1 2025	Q2 2025
ElectronicsCo Net Sales ($MM)	$1,104	$1,118	$1,170
ElectronicsCo Operating EBITDA ($MM)	$328	$373	$373
ElectronicsCo EBITDA Margin (%)	29.7%	33.4%	31.9%
IndustrialsCo Net Sales ($MM)	$2,067	$1,948	$2,087
IndustrialsCo Operating EBITDA ($MM)	$495	$464	$509
IndustrialsCo EBITDA Margin (%)	23.9%	23.8%	24.4%

KPIs and Mix

KPI	Q2 2025
Organic Sales Growth (Total)	+2% (Volume +4%, Price −2%; FX +1%)
Regional Organic Growth	APAC +4%; EMEA +2%; U.S./Canada +1%
Transaction-Adjusted FCF Conversion	93%
Equity Earnings (Total)	$30MM

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Sales ($B)	Q3 2025	—	~$3.32	New/Introduced
Operating EBITDA ($MM)	Q3 2025	—	~$875	New/Introduced
Adjusted EPS ($)	Q3 2025	—	~1.15	New/Introduced
Net Sales ($B)	FY 2025	$12.8–$12.9	~12.85	Maintained/Specified mid
Operating EBITDA ($B)	FY 2025	$3.325–$3.375	~3.36	Raised midpoint
Adjusted EPS ($)	FY 2025	$4.30–$4.40	~4.40	Raised to high end
Tariff net impact ($MM)	FY 2025	~60 (excluded from prior guide)	~20 (included in guide)	Improved/more mitigation
Dividend	FY 2025	Regular quarterly declared (Jun 25)	—	No change noted

Earnings Call Themes & Trends

Note: Q2 2025 earnings call transcript could not be retrieved due to a document access error; themes below reflect Q4 2024 and Q1 2025 call commentary and Q2 press release.

Topic	Previous Mentions (Q4 2024, Q1 2025)	Current Period (Q2 2025)	Trend
AI/Semiconductor demand	AI-related sales up ~$300M in 2024; advanced nodes/packaging drive growth; China semi strong, normalizing in 2025	Semi Tech up MSD; Interconnect up HSD on AI ramps and share/content gains	Positive; sustained AI-driven growth; some normalization in China
Supply chain/tariffs	Net exposure ~$500M annual; mitigation to ~$60M in 2025; limited U.S.-to-China flows; strong spec-in share	Tariff headwind now ~$20M in H2, included in guidance	Improving mitigation; lower modeled impact
Water & Healthcare	Water recovered; mid- to high-single digit FY25 outlook; medical packaging/biopharma strengthening	IndustrialsCo HSD growth in healthcare & water; APAC/EMEA organic growth	Strengthening; secular tailwinds persist
Construction markets	Shelter/auto softness; low single-digit shelter growth expected in 2025	Diversified Industrials down LSD on construction weakness	Ongoing headwind
Regulatory/legal (PFAS)	Bellwether PI cases expected in Oct 2025; Tyvek review contained	No new Q2 developments disclosed	Stable; watch litigation milestones
Spin and portfolio	Qnity spin targeted Nov 1, 2025; Qnity financing; dis-synergies ~$40MM; separation costs < ~$700MM; Aramids divestiture announced Aug 29	Spin “on track”; guidance reflects separation costs and tariffs	Execution progressing; portfolio simplification

Management Commentary

“Ongoing strength in electronics, healthcare and water end-markets, along with our team's focus on operational execution continued to drive strong earnings growth and cash conversion.” — CEO Lori Koch .
“Our third quarter guidance assumes about 3 percent organic growth year-over-year… strength in healthcare, water and electronics… muted by continued weakness in construction end-markets.” — CFO Antonella Franzen .
Spin execution: “We remain on track for a November 1, 2025 spin-off date.” — CEO Lori Koch .

Q&A Highlights

Note: Q2 2025 call transcript unavailable; highlights reflect prior quarter Q&A and Q2 disclosures.

Tariff mitigation: Management outlined procurement/supply-chain optimization and product exemptions; net 2025 impact expected around $60M in Q1, subsequently improved to ~$20M modeled in H2 per Q2 release .
China and spec-in resilience: ~70%+ of China electronics sales are spec’d-in, reducing substitution risk; finished goods exports from U.S. to China only ~$200M, limiting exposure to certain tariffs .
Segment cadence: Electronics growth normalizes after strong China semi in 2024; IndustrialsCo growth led by healthcare/water; construction remains soft .
Guidance clarity: Q3 guide provided; FY25 EPS raised and tariff impact embedded; separation dis-synergies ~ $40M vs prior $60M .

Estimates Context

Q2 2025 Revenue: Consensus ~$3,242MM* vs actual $3,257MM — beat.
Q2 2025 Adjusted EPS: Consensus ~$1.061* vs actual $1.12 — beat.
Prior quarters also exceeded consensus on both revenue and EPS (see table). Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

DuPont is executing through macro/tariff uncertainty with improving mitigation, embedding a smaller tariff headwind into FY25 guidance and still raising EPS to ~$4.40 .
ElectronicsCo remains the growth/margin engine, benefiting from advanced node transitions and AI packaging/interconnect demand; watch for China normalization and node ramps into H2 .
IndustrialsCo’s healthcare and water franchises provide secular growth and margin support; construction-exposed lines are the key drag to monitor .
Cash generation is solid despite separation outflows; transaction-adjusted FCF conversion at 93% in Q2 underscores disciplined execution .
Upcoming catalysts: Q3 print (guide implies continued organic growth), Qnity spin (Nov 1 target), Qnity financing completion, and Aramids divestiture (closing expected 1Q26) — each with potential to rerate “new DuPont” toward multi-industrial comps .
Positioning: Favor exposure ahead of spin given sustained beat/raise, portfolio simplification, and AI-driven cycle support, while hedging construction sensitivity and tracking PFAS litigation milestones .