DuPont De Nemours (DD) Q2 2025 earnings summary

Executive summary

• Net sales for Q2 2025 rose 3% year-over-year to $3.3 billion, with 2% organic growth, led by strong performance in electronics, healthcare, and water end-markets.

• Operating EBITDA increased 8% to $859 million, with adjusted EPS up 15% to $1.12, driven by higher segment earnings and a lower tax rate.

• A $768 million goodwill impairment in IndustrialsCo led to a six-month net loss of $512 million, despite strong segment results.

• A proposed $875 million settlement with New Jersey for environmental claims resulted in a $177 million pre-tax charge in Q2 2025.

• The Electronics (Qnity) spin-off is targeted for November 1, 2025, with management and board finalized and internal separations underway.

Financial highlights

• Q2 2025 net sales: $3.3 billion (up 3% year-over-year); operating EBITDA: $859 million (up 8%); adjusted EPS: $1.12 (up 15%).

• Operating EBITDA margin expanded 120 basis points to 26.4% year-over-year.

• Transaction-adjusted free cash flow was $433 million, with a 93% conversion rate.

• Net income from continuing operations was $238 million, up 35% year-over-year.

• Q2 2025 gross margin was 37%; cost of sales as a percentage of net sales remained flat at 63%.

Outlook and guidance

• Full-year 2025 guidance: net sales ~$12.85 billion, operating EBITDA ~$3.36 billion, adjusted EPS ~$4.40, including a $20 million net tariff impact.

• Q3 2025 guidance: net sales ~$3.32 billion, operating EBITDA ~$875 million, adjusted EPS ~$1.15.

• Organic sales growth expected at 3-4% for FY25; cash conversion expected to exceed 90%.

• Management expects sufficient liquidity, supported by $1.8 billion in cash and $2.0 billion in working capital as of June 30, 2025.

• Capital structure actions, including potential debt repayments or exchanges, are being considered for the Electronics separation.