DuPont de Nemours Inc. (NYSE:DD) reported first-quarter net sales of $1.68 billion on Tuesday, up 4% year over year, while organic sales increased 2%. Shares were trading higher following the results.
The company beat analyst expectations, reporting adjusted EPS of 55 cents versus a 48 cents estimate and revenue of $1.681 billion versus a $1.666 billion estimate.
Operating EBITDA rose 15% to $414 million, with margin expanding 230 basis points to 24.6%, driven by organic growth, favorable mix, and productivity.
“We delivered a strong start to the year, exceeding our financial guidance through disciplined commercial and operational execution,” said Lori Koch, DuPont Chief Executive Officer.
Segment Performance
Healthcare & Water Technologies sales rose 6% to $806 million, with EBITDA up 9% to $244 million (30.3% margin). Healthcare grew strongly, while Water declined due to disruptions in Middle East logistics.
Diversified Industrials sales rose 3% to $875 million, with EBITDA up 8% to $200 million (22.9% margin). Building Technologies declined, while Industrial Technologies grew in aerospace and automotive.
Cash Flow And Capital Actions
Operating activities from continuing operations generated $232 million in cash, while transaction-adjusted free cash flow reached $147 million. Cash and cash equivalents totaled $710 million.
DuPont completed the Aramids divestiture on April 1, receiving about $1.2 billion in pre-tax cash proceeds, a $300 million note receivable, and a $325 million equity interest.
The company also announced an accelerated $275 million share repurchase and plans to seek approval for a reverse stock split.
Outlook
For the second quarter, DuPont expects adjusted EPS of about 59 cents, versus a 58 cents estimate, and sales of about $1.8 billion, versus a $1.805 billion estimate.
DuPont raised full-year 2026 guidance, expecting adjusted EPS of $2.35 to $2.40, above the $2.27 estimate. The company forecasts net sales of $7.155 billion to $7.215 billion, exceeding the $7.097 billion estimate.
The outlook assumes about 4% organic growth, including pricing actions to offset higher input costs tied to the Middle East conflict.
Conference Call Highlights
DuPont de Nemours exceeded its first-quarter targets, supported by margin expansion. “Through disciplined commercial and operational execution, we delivered organic sales growth of 2%, 130 basis points of pro forma margin expansion and double-digit adjusted EPS growth,” said CEO Laurie Koch.
About 50 basis points came from a favorable mix and 70 basis points from net productivity gains.
Middle East logistics disruptions reduced Water Technologies shipments by about $10 million during the quarter. Management said those materials were cleared in April.
Full-year water growth is expected to be back-half weighted, with underlying growth normalizing to around 4% to 5%.
Healthcare showed strength across medical packaging, biopharma, and cardiovascular devices. Diversified Industrials benefited from about $300 million in EV battery adhesive sales, growing faster than the broader market.
DD Price Action: DuPont de Nemours shares were up 7.66% at $48.89 at the time of publication on Tuesday, according to Benzinga Pro data.
Photo by Sundry Photography via Shutterstock
