DuPont De Nemours (DD) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 2024 were $3.2 billion, up 4% year-over-year, with organic sales growth of 3% and strong performance in electronics and water end-markets.

• Operating EBITDA rose 11% to $857 million, with margin expanding 150 basis points to 26.8%; adjusted EPS increased 28% to $1.18.

• Transaction-adjusted free cash flow was $640 million, with a conversion rate of 130%.

• Announced plan to separate into three independent, publicly traded companies, with Electronics and Water businesses to be spun off within 18–24 months; board and leadership appointments expected by Q1 2025.

• Completed acquisition of Donatelle Plastics for $365 million, integrated into Electronics & Industrial; finalized Spectrum acquisition accounting.

Financial highlights

• Q3 2024 net sales: $3.2 billion, up 4% year-over-year, with 3% organic growth, 5% volume growth, 2% portfolio impact, 2% price decline, and 1% currency headwind.

• Operating EBITDA: $857 million, up 11% year-over-year; margin 26.8% (up 150 bps); adjusted EPS: $1.18, up 28% year-over-year.

• Transaction-adjusted free cash flow: $640 million; conversion 130%.

• GAAP income from continuing operations margin: 15.0% (vs. 9.5% prior year); GAAP EPS from continuing operations: $1.13, up 82% year-over-year.

• Cash from operations (nine months): $1.76 billion; cash and equivalents: $1.65 billion at quarter end.

Outlook and guidance

• Q4 2024 guidance: net sales ~$3.07 billion, operating EBITDA ~$790 million, adjusted EPS ~$0.98.

• Full-year 2024 guidance raised: net sales ~$12.365 billion, operating EBITDA ~$3.125 billion, adjusted EPS ~$3.90, reflecting 12% EPS growth year-over-year.

• Expect continued volume recovery in water and medical packaging, with normal seasonal declines in electronics and construction.

• Monitoring macroeconomic and geopolitical developments; expects sufficient liquidity and financial flexibility.