DuPont De Nemours (DD) Q3 2025 earnings summary

Executive summary

• Net sales for Q3 2025 reached $3.1 billion, up 7% year-over-year, with 6% organic growth driven by strong performance in electronics, healthcare, and water.

• Operating EBITDA was $840 million, up 6% year-over-year, with a 27.3% margin; adjusted EPS was flat at $1.09 due to a higher tax rate.

• Completed the separation of the Electronics business (Qnity Electronics) and announced the divestiture of the Aramids business, both reflected as discontinued operations.

• Announced a $2 billion share repurchase authorization, $500 million accelerated share repurchase, and a new quarterly dividend of $0.20 per share.

• Portfolio realignment and major divestitures position the company as a focused technology solutions provider.

Financial highlights

• Net sales increased 7% year-over-year, with 6% organic growth and a 1% currency benefit; volume rose 7%, price declined 1%.

• Operating EBITDA margin was 27.3%, down 30 bps year-over-year due to unfavorable mix.

• Adjusted EPS was $1.09, flat year-over-year, as higher segment earnings were offset by a higher tax rate (24.6%–28%).

• Free cash flow was $576 million, with a 126% transaction-adjusted conversion rate.

• GAAP income from continuing operations fell to $308 million, with a net loss due to discontinued operations and restructuring.

Outlook and guidance

• Full-year 2025 net sales guidance is ~$6.84 billion, with operating EBITDA of ~$1.6 billion and adjusted EPS of ~$1.66.

• Organic sales growth for the full year expected at 2%, with strength in healthcare and water offsetting construction market weakness.

• Q4 2025 guidance: net sales ~$1.685 billion, operating EBITDA ~$385 million, adjusted EPS ~$0.43.

• Medium-term (2026–2028) targets: 3%-4% organic growth, 150-200 bps margin expansion, 8%-10% EPS growth, >90% free cash flow conversion.

• Full-year guidance raised due to stronger business performance and accelerated cost reductions.