DuPont De Nemours (DD) Q2 2024 earnings summary

Executive summary

• Net sales grew 2% year-over-year to $3.2 billion in Q2 2024, driven by strong electronics recovery and sequential improvement across all Water & Protection lines.

• Operating EBITDA increased 8% year-over-year to $798 million, with margin expansion of 130 basis points to 25.2%.

• Adjusted EPS rose 14% year-over-year to $0.97, and adjusted free cash flow increased 53% to $425 million, with a 104% conversion rate.

• Completed acquisition of Donatelle, expanding medical device capabilities and healthcare exposure.

• Announced plan to separate into three independent, publicly traded companies, targeting completion in 18–24 months.

Financial highlights

• Net sales: $3.2 billion (up 2% year-over-year); organic sales flat, with 2% volume growth offset by 2% price decline.

• Operating EBITDA: $798 million (up 8% year-over-year); margin improved by 130 basis points to 25.2%.

• Adjusted EPS: $0.97 (up 14% year-over-year); adjusted free cash flow: $425 million (up 53% year-over-year); conversion rate 104%.

• Cash from operating activities: $527 million; capital expenditures: $102 million.

• Weighted average diluted share count: ~419 million for Q3 2024.

Outlook and guidance

• Full-year 2024 guidance raised: net sales expected at $12.45 billion, operating EBITDA at $3.085 billion, and adjusted EPS at $3.75.

• Q3 2024 guidance: net sales of ~$3.2 billion, operating EBITDA of ~$815 million, and adjusted EPS of ~$1.03.

• Electronics & Industrial sales expected up low double digits for FY 2024; Water & Protection sales expected down low single digits, with YoY growth in Q4.

• Guidance factors in FX headwinds and incremental contributions from Donatelle acquisition.

• Anticipates return to organic sales growth in Q3, led by Electronics & Industrial.