DuPont de Nemours, Inc. (DD) Q3 2025 Earnings Summary

Executive Summary

• Q3 2025 delivered a beat and raise: net sales $3.07B (+7% YoY), adjusted EPS $1.09 (flat YoY), driven by electronics (AI-led) and healthcare/water demand; DuPont exceeded prior 3Q guidance and raised FY 2025 operating EBITDA guidance to ~$1.60B .
• Revenue and EPS beat Wall Street consensus; Q3 revenue came in above ~$2.90B and EPS above ~$0.98, with management noting ~$70M order timing pull-forward ahead of the electronics separation blackout, implying a normalization headwind in Q4* .
• Capital return accelerates: new $2B repurchase authorization including an imminent $500M ASR and a new quarterly dividend of $0.20/share (target 35–45% payout), providing near-term stock support .
• Corporate actions: completed separation of Qnity Electronics (Nov 1), positioning “new DuPont” (IndustrialsCo) for secular mid-single-digit growth in healthcare and water; Aramids classified as discontinued ops and sale expected 1Q26 .

What Went Well and What Went Wrong

What Went Well

• Strong top-line and EBITDA growth: net sales +7% YoY to $3.07B; operating EBITDA +6% YoY to $840M; organic sales +6% (volume +7%, price −1%, FX +1%) .
• Segment strength and AI tailwinds: ElectronicsCo organic +10% (Interconnect low-teens; Semiconductor high-single digits) on advanced nodes and AI demand; IndustrialsCo organic +4% (Healthcare & Water high-single digits) .
• Management raising FY guidance and capital returns: FY 2025 operating EBITDA target lifted to ~$1.60B; dividend initiated at $0.20/share; $2B buyback with $500M ASR planned .
  • “We exceeded our previously announced third quarter guidance… raising our full year earnings guidance for new DuPont.” — CEO Lori Koch .

What Went Wrong

• GAAP EPS and income down YoY: GAAP income from continuing ops fell to $308M (−32% YoY) and GAAP EPS to $0.70 (−34% YoY), primarily on higher separation costs and lapping prior-year swap gains .
• Electronics mix and FX pressure margins: operating EBITDA margin declined 30 bps to 27.3% (ElectronicsCo −140 bps YoY) on unfavorable mix and currency headwinds .
• Construction/shelter softness persists: diversified industrials faced continued construction market weakness; shelter expected down ~3–4% in Q4 and ~4% for full year 2025 per CFO commentary .

Financial Results

Key Metrics (quarterly trend)

YoY Comparison (Q3 2025 vs Q3 2024)

Actuals vs Wall Street Consensus (Q3 2025)

Values retrieved from S&P Global.*

Q4 2025 Guidance vs Consensus

Values retrieved from S&P Global.*

Segment Breakdown (Q3 2025 vs Q3 2024)

KPIs and Operational Notes (Q3 2025)

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “Ongoing strength in electronics, healthcare and water end-markets… continued to drive strong top-line growth and cash conversion.” — CEO Lori Koch .
• “Organic sales growth for the full year remains… up 2 percent year-over-year on strong demand in healthcare and water… partially offset by continued weakness in construction markets.” — CFO Antonella Franzen .
• On order timing: “Customers accelerated [October] orders into the third quarter… given we were going to be in a blackout period.” — CFO .
• On capital allocation: “Pro forma net debt/EBITDA ~1.7x, target <2x; $2B buyback and $500M ASR imminent; deploy ~$500M/year FCF over 3 years” — CFO .

Q&A Highlights

• Order timing pull-forward clarified as customer-driven ahead of systems blackout, implying lower organic growth in Q4 as timing normalizes .
• Balance sheet and capital returns: pro forma debt ~$3.25B, cash ~$1B, leverage ~1.7x; balanced approach to buybacks and M&A (healthcare/water focus) .
• Operational excellence and 80/20: Lean KPIs deployed; portfolio tilt towards secular growth, aiming ~2/3 healthcare & water longer-term .
• Segment outlook: Healthcare & water mid/high-single-digit growth; diversified industrials slight growth with shelter drag easing; EV battery exposure growing .

Estimates Context

• Q3 beat vs consensus: Revenue $3.07B vs ~$2.90B*, EPS $1.09 vs ~$0.98*; magnitude aided by ~$70M order pull-forward and AI-led electronics strength* .
• Q4 alignment: Company guides net sales ~$1.685B, adj EPS ~$0.43, op EBITDA ~$385M; consensus closely tracks on revenue and EPS* .
• FY 2025 raise: Operating EBITDA lifted to ~$1.60B despite trimming sales for smaller FX tailwind .

Values retrieved from S&P Global.*

Key Takeaways for Investors

• Near-term: Expect Q4 organic sales modestly down (~1%) due to Q3 timing pull-forward; watch shelter trajectory and FX; capital return (ASR + dividend) supports shares .
• Medium-term: Secular growth engines (healthcare, water) underpin 3–4% organic growth algorithm; lean/stranded cost removal target 150–200 bps margin expansion by 2028 .
• Electronics separation reduces mix volatility; “new DuPont” positioned as multi-industrial with improving margins and cash conversion .
• Valuation re-rating case as multi-industrial peer set improves with consistent delivery and classification progress (MSCI/S&P industry code efforts ongoing) .
• Monitor Aramids sale proceeds (1Q26) and RO capacity addition in China for local-for-local execution and growth capacity .
• Risks: FX headwinds, construction market sensitivity, PFAS legacy allocations and regulatory developments per forward-looking statements .
• Actionables: Lean into capital return catalysts, track Q4 conversion vs guidance, and watch healthcare/water backlog/order momentum and shelter stabilization.

Other Relevant Q3 2025 Press Releases

• Tyvek APX launch enhances PPE breathability and durability, reinforcing innovation narrative in worker safety .
• Qnity Electronics separation completed (Nov 1), formalizing discontinued ops treatment and New DuPont focus .