DuPont de Nemours, Inc.

DuPont reported Q2 net sales of $1.8 billion, up 4% year over year on 4% organic sales growth. Operating EBITDA was $448 million, up 8%, with operating EBITDA margin of 24.6%, up 80 basis points, though management cited a 30 basis point headwind from price/cost dynamics. Adjusted EPS was $1.88, up 21% year over year. Transaction-adjusted free cash flow was $326 million with 127% conversion. For the full year 2026, DuPont raised guidance to slightly above 4% organic sales growth, $1.760 billion of operating EBITDA at the midpoint, 24.5% operating EBITDA margin, and adjusted EPS of $7.24 at the midpoint. For Q3 2026, management expects net sales of $1.835 billion, operating EBITDA of $448 million, adjusted EPS of $1.80 to $1.90, and about 3% reported organic growth (about 5% adjusted for the prior-year timing shift).

Lori Koch emphasized that DuPont is seeing the business system start to show up in results through innovation, commercial excellence, operational excellence and 80/20 simplification. Her tone was upbeat and confident, with repeated references to stronger pipeline quality, faster development cycles, better order trends and disciplined execution. She also highlighted the reverse stock split, the move to an Industrials GICS classification, and the planned share repurchase as signs of a more disciplined capital allocation model.

Antonella Franzen focused on the quality of the quarter and the raised outlook. She cited $1.8 billion of sales, $448 million of operating EBITDA, 24.6% margin, $1.88 of adjusted EPS and $326 million of free cash flow, then raised full-year midpoint guidance to $7.175 billion of net sales, $1.760 billion of operating EBITDA and $7.24 of adjusted EPS. She also said full-year free cash flow conversion should be ahead of the 90% target, Q3 EBITDA should hold at $448 million, and pricing tied to oil and gas headwinds is about $90 million for the full year, with the majority in the second half.

Analysts pressed on the impact and timing of the company’s innovation, AI-enabled commercial plays, OTIF and cost of poor quality, and management said vitality is about 35%, cost of poor quality is about 4% of sales versus a benchmark near 5%, and 80/20 should contribute a few million dollars of second-half EBITDA. Questions also focused on Middle East project timing, where management said there is no structural change and that delayed RO/desalination projects are shifting rather than disappearing. Other topics included margin mix in Healthcare & Water, EV battery and industrial order strength, and capital allocation; management said it has a robust M&A pipeline, over $1 billion of M&A capacity, and is launching a $250 million repurchase.