DuPont De Nemours (DD) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 2024 reached $3.2 billion, up 4% year-over-year, with organic sales growth of 3% and strong performance in electronics and water end-markets, driven by a 5% volume increase.

• 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 conversion was 130%, reflecting disciplined working capital management.

• Announced plan to separate into three public companies—Industrial, Electronics, and Water—with separations targeted within 18–24 months from May 2024.

• Completed Donatelle acquisition, enhancing the healthcare platform, and finalized Delrin® divestiture.

Financial highlights

• Net sales: $3.2B (+4% YoY); organic sales +3%, volume +5%, price -2%, portfolio +2%, currency -1%.

• Operating EBITDA: $857M (+11% YoY); margin 26.8% (+150 bps YoY).

• Adjusted EPS: $1.18 (+28% YoY); GAAP EPS from continuing operations: $1.13 (+82% YoY).

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

• Cash from operations for Q3: $737M; capital expenditures: $109M.

Outlook and guidance

• Raised full-year 2024 guidance: net sales ~$12.365B, operating EBITDA ~$3.125B, adjusted EPS ~$3.90.

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

• Expects continued growth in Electronics & Industrial and Water & Protection, with normal seasonal declines in electronics and construction.

• Anticipates year-over-year volume improvement for the remainder of 2024, driven by electronics recovery and reduced destocking in water and medical packaging.

• FY24 transaction-adjusted free cash flow conversion expected well above target.