DD's Q2 Earnings Beat on Higher Organic Sales, Revenues Up Y/Y

Net sales of $1,819 million increased 4% year over year and marginally topped the Zacks Consensus Estimate of $1,817.9 million. Organic sales also improved 4%, driven by continued strength across healthcare, industrial water and aerospace end markets. 

DuPont de Nemours, Inc. Price, Consensus and EPS Surprise

DD’s Segment Highlights

Healthcare & Water Technologies generated net sales of $856 million, up 5% year over year. It missed the Zacks Consensus Estimate of $860 million. Organic sales rose 4%, while currency contributed 1%. Healthcare Technologies recorded mid-single-digit organic growth on broad-based increase led by personal protection and biopharma, while Water Technologies posted low-single-digit organic growth driven by industrial water and semiconductor markets, partly offset by weakness in the Middle East. Operating EBITDA increased 4% to $258 million.  

Diversified Industrials recorded net sales of $963 million, up 3% year over year, exceeding the Zacks Consensus Estimate of $947 million. Organic sales increased 3%, supported by growth in Building Technologies from residential and non-residential construction markets and continued aerospace and electric vehicle strength in Industrial Technologies. Operating EBITDA improved 7% year over year to $213 million. 

DD’s Financials

DuPont ended the quarter with cash and cash equivalents of $1.74 billion, up significantly from $715 million at the end of 2025. Long-term debt was $3.13 billion, essentially flat with year-end 2025.  

Cash provided by operating activities from continuing operations totaled $400 million in the quarter compared with $74 million in the year-ago period. Transaction-adjusted free cash flow rose to $326 million from $107 million a year ago, reflecting stronger earnings and improved cash conversion. 

DD’s Outlook

Following its second-quarter outperformance, DuPont raised the midpoint of its full-year 2026 operating EBITDA and adjusted earnings guidance. The company now expects net sales in the range of $7.16-$7.19 billion, operating EBITDA between $1.75 billion and $1.77 billion and adjusted earnings of $7.17-$7.32 per share. 

For the second half of 2026, DuPont projects net sales of $3.66-$3.69 billion, operating EBITDA of $890-$910 million and adjusted earnings of $3.65-$3.80 per share. Management also expects organic sales growth to be slightly above 4% for the full year. 

The outlook reflects continued strength across healthcare, industrial water and aerospace end markets. Management expects mid-single-digit organic sales growth in the second half and remains focused on productivity, profitable growth and shareholder value creation. 

DD’s Price Performance 

DD's shares are down 35.1% in the past year compared with the Zacks Chemicals Diversified industry’s 3.9% rise. 

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DD’s Zacks Rank & Key Picks

DD currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Basic Materials space are Avient Corporation AVNT, Neo Performance Materials Inc. NOPMF and Lundin Mining Corporation LUNMF.

Avient is scheduled to report second-quarter results on Aug. 6. The Zacks Consensus Estimate for AVNT’s second-quarter earnings is pegged at 89 cents per share. It carries a Zacks Rank #2 (Buy) at present. 

NOPMF is slated to report second-quarter results on Aug. 11. The Zacks Consensus Estimate for earnings is pegged at 5 cents per share. NOPMF has a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Lundin Mining is scheduled to report second-quarter results on Aug. 5. The Zacks Consensus Estimate for LUNMF’s second-quarter earnings is pegged at 34 cents per share. It currently carries a Zacks Rank #2. 

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