DuPont De Nemours (DD) Q4 2025 earnings summary

Executive summary

• Fourth quarter and full-year 2025 results exceeded guidance, with strong operational discipline and productivity driving earnings and margin improvement.

• Full-year 2025 net sales rose 2% to $6.8 billion, with organic sales up 2%; adjusted EPS increased 16% year-over-year to $1.68.

• Major portfolio transformation included the separation of Qnity Electronics and the divestiture of the Aramids business, both reflected as discontinued operations.

• $500 million accelerated share repurchase executed in Q4 2025, with a $2 billion authorization announced and $1.5 billion remaining.

• Strategic priorities for 2026 focus on above-market organic growth, business system enhancement, balanced capital allocation, and consistent financial delivery.

Financial highlights

• Q4 2025 net sales were $1.7 billion, flat year-over-year; organic sales declined 1% but would have grown 1% adjusting for order timing.

• Q4 2025 operating EBITDA was $409 million (margin 24.2%), up 4% year-over-year; full year operating EBITDA was $1.63 billion (margin 23.8%), up 6%.

• Q4 2025 adjusted EPS was $0.46, up 18% year-over-year; full year adjusted EPS was $1.68, up 16%.

• Transaction-adjusted free cash flow for FY25 was $689 million (98% conversion); Q4 2025 was $228 million (118% conversion).

• Full year 2025 capital expenditures were $333 million.

Outlook and guidance

• 2026 guidance: net sales $7.08–$7.14 billion, organic sales growth of ~3%, operating margin expansion of 60–80 basis points, adjusted EPS of $2.25–$2.30.

• Q1 2026 guidance: net sales ~$1.67 billion, operating EBITDA ~$395 million, adjusted EPS ~$0.48.

• Medium-term (2025–2028): 3–4% CAGR organic net sales, 150–200bps EBITDA margin improvement, 8–10% adjusted EPS CAGR, >90% free cash flow conversion.

• Healthcare and Water expected to grow mid-single digits; Diversified Industrials to grow low single digits.

• Market stabilization expected in construction; automotive demand flat overall but EV builds to outpace.