Materials
Specialty Chemicals
$32.44B
24K
DuPont de Nemours, Inc. is a global innovation leader providing technology-based materials and solutions across various industries. The company's core business model revolves around applying diverse science and expertise to help customers advance their ideas and deliver innovations in key markets such as electronics, transportation, and healthcare. DuPont has a global presence with subsidiaries in approximately 50 countries and manufacturing operations in about 24 countries, positioning itself as a key player in the materials science sector.
Key insights and themes extracted from this filing
For the three months ended June 30, 2025, net sales increased 3% year-over-year to $3,257 million, and for the six months, they rose 4% to $6,323 million. This growth was primarily due to a 4% volume increase in Q2 and 5% for 6M, partially offset by a 2% and 1% decrease in local price and product mix, respectively.
DuPont reported a net loss of $512 million for the six months ended June 30, 2025, a substantial decline from $382 million net income in the prior year period. This was primarily driven by a $768 million non-cash goodwill impairment charge in Q1 2025 and a $202 million loss from discontinued operations.
Cash provided by operating activities from continuing operations decreased to $763 million for the six months ended June 30, 2025, from $1,020 million in the prior year. This decrease is primarily from increased cash used by net working capital, driven by higher trade receivables and inventory, partially offset by higher accounts payable.
DuPont is targeting November 1, 2025, for the completion of the intended separation of its Electronics business (Qnity Electronics, Inc.) via a spin-off transaction. This strategic move aims to create a new independent, publicly traded electronics company, with financial statements already recast to reflect the new two-segment structure.
The acquisition of Donatelle Plastics, LLC, a medical device company, was completed on July 28, 2024, for $365 million and is now part of the IndustrialsCo segment. This acquisition is expected to optimize the combined Healthcare & Water Technologies business and contribute to future customer relationships.
Research and development expenses increased to $142 million in Q2 2025 (from $134 million YoY) and $279 million for 6M 2025 (from $259 million YoY). These investments are strategically directed towards advanced node transitions and AI technology ramps, particularly within the ElectronicsCo segment.
Effective in Q1 2025, the Company realigned its management and reporting structure into ElectronicsCo and IndustrialsCo segments. This proactive step facilitates the planned separation of the Electronics business, demonstrating management's commitment to strategic portfolio optimization.
DuPont recorded $49 million in pre-tax restructuring charges inception-to-date for the Transformational Separation-Related Restructuring Program in Q1 2025, primarily for severance and stock compensation. This program, expected to be substantially complete by end of 2026, aims to streamline organizational structures.
Selling, general and administrative expenses decreased to $405 million in Q2 2025 from $418 million in Q2 2024, and to $774 million for 6M 2025 from $802 million in 6M 2024. This reduction was primarily due to lower legal and personnel-related expenses, indicating effective cost management.
A non-cash goodwill impairment charge of $768 million was recorded in Q1 2025, specifically related to the Aramids reporting unit within the IndustrialsCo segment. This indicates that the carrying amount of the Aramids unit exceeded its fair value, leading to a complete write-off of its goodwill.
DuPont recognized a $177 million pre-tax charge in Q2 2025 related to a proposed Judicial Consent Order with the State of New Jersey for PFAS claims, with a net present value of $311 million. Total environmental accrued obligations remain high at $271 million, with a potential exposure of $312 million above the accrued amount.
Standard & Poor's, Moody's, and Fitch Ratings have all placed DuPont on a 'Watch Negative' or 'Negative' outlook following the May 2024 separation announcement. This indicates increased scrutiny and potential for credit downgrades, which could impact the company's access to debt capital markets and cost of capital.
ElectronicsCo net sales increased 6% in Q2 2025 and 10% for 6M 2025, primarily driven by 8% and 12% volume growth, respectively. This growth is attributed to AI-driven technology ramps, advanced nodes, and content/share gains in advanced packaging and thermal management, highlighting a strong competitive stance in high-growth areas.
IndustrialsCo net sales increased 1% in Q2 2025 and 1% for 6M 2025, with volume gains in Healthcare & Water Technologies (medical packaging, biopharma, reverse osmosis) partially offset by volume declines in Diversified Industrials due to weak demand in construction and automotive end-markets. This indicates varying competitive strength across its diverse portfolio.
Both ElectronicsCo and IndustrialsCo experienced a decrease in local price and product mix (2% and 1% respectively for Q2 2025). This suggests that despite volume growth in some areas, the company faces challenges in maintaining or increasing pricing, possibly due to competitive pressures or product mix shifts.
Cost of sales as a percentage of net sales decreased to 63% for the six months ended June 30, 2025, compared to 64% in the prior year period. This improvement was primarily driven by lower raw material costs, indicating enhanced efficiency in managing input expenses.
Selling, General and Administrative expenses decreased by $13 million in Q2 2025 and $28 million for 6M 2025 year-over-year. This reduction is primarily attributed to lower legal and personnel-related expenses, reflecting successful efforts in administrative cost control.
The Transformational Separation-Related Restructuring Program, initiated in March 2025, incurred $49 million in pre-tax charges inception-to-date, primarily for severance and stock compensation. This program aims to streamline organizational structures in preparation for the Electronics Separation, indicating ongoing efforts to optimize operational efficiency.
Research and development expenses rose to $142 million in Q2 2025 and $279 million for the six months, consistently representing 4% of net sales. ElectronicsCo specifically highlights strategic growth investments to support advanced node transitions and AI technology ramps, underscoring a commitment to innovation.
Volume growth in ElectronicsCo's Interconnect Solutions was driven by AI-driven technology ramps and content/share gains in advanced packaging and thermal management. Semiconductor Technologies also saw gains from end-market demand, primarily due to advanced nodes and AI applications, demonstrating strong technological capabilities.
IndustrialsCo's Healthcare & Water Technologies segment achieved volume gains driven by growth in medical packaging, biopharma, and continued strength in reverse osmosis. This indicates the success of product development and innovation in addressing critical customer needs within these markets.
Cash used for investing activities from continuing operations increased to $358 million for the six months ended June 30, 2025, compared to $302 million in the prior year. This increase is primarily attributable to higher capital expenditures, indicating the company's commitment to investing in its core businesses.
Cash used for financing activities from continuing operations decreased significantly to $390 million for the six months ended June 30, 2025, from $1,531 million in the prior year. This reduction is primarily due to the absence of substantial share buyback activities in 2025 compared to the $500 million repurchased in Q1 2024.
The Board of Directors declared a second and third quarter 2025 dividend of $0.41 per share, consistent with the first quarter. This demonstrates a continued commitment to returning value to shareholders through regular dividends, even as the company undergoes significant strategic separation.
DuPont recorded a $177 million pre-tax charge in Q2 2025 related to a proposed Judicial Consent Order with the State of New Jersey for PFAS claims. Total environmental accrued obligations remain high at $271 million, with a potential exposure of $312 million above this amount, highlighting ongoing material environmental responsibilities.
The company faces various lawsuits alleging damages due to PFAS contamination and other environmental torts, including a Notice to Show Cause from the EPA regarding hazardous waste violations at its Spruance facility. While management believes the impact on financial position is remote for some matters, the scale of ongoing litigation remains a significant risk.
DuPont, Chemours, and Corteva continue to operate under an MOU to share eligible PFAS costs up to $4 billion, with DuPont having paid $645 million against its $1.4 billion portion. This framework provides a structured approach to managing substantial, long-term environmental liabilities, offering some predictability.
The U.S. government's actions related to trade, including new tariffs on product imports from countries like Canada, Mexico, and China, create significant uncertainty. These disputes have the potential to reduce the competitiveness of DuPont products and cause sales to decline, particularly given China/Hong Kong's 19% contribution to 2024 net sales.
The 'One Big Beautiful Bill Act,' enacted on July 4, 2025, includes broad tax reform provisions such as immediate expensing of R&D and revised corporate interest limitation rules. The Company is currently evaluating the complex impact of this new legislation on its financial position and results of operations.
ElectronicsCo benefits from strong demand in AI-driven technology and advanced nodes, reflecting positive industry trends in semiconductors. Conversely, IndustrialsCo faces weak demand in construction and automotive end-markets, indicating a challenging environment in certain industrial sectors.