DuPont Q1 2026 Earnings Call Summary

1Key Financial Results and Metrics

Net Sales: $1.7 billion, up 4% year-over-year, driven by 2% organic growth and a 2% currency benefit.

Operating EBITDA: $414 million, a 15% increase year-over-year, with a margin of 24.6%, up 230 basis points.

Adjusted EPS: $0.55, a 53% increase year-over-year; on a pro forma basis, EPS was up 20%.

Free Cash Flow: Transaction-adjusted free cash flow of $147 million, with a conversion rate of 65%.

Segment Performance:

Healthcare & Water Technologies: Net sales of $806 million, up 6% (3% organic growth).

Diversified Industrials: Net sales of $875 million, up 3% (flat organic growth).

2Strategic Updates and Business Highlights

DuPont completed the divestiture of its Aramids business on April 1, 2026, and plans to launch a $275 million accelerated share repurchase.

The company issued its 2026 sustainability report and set new 2035 sustainability goals focusing on sustainable innovation and operational resilience.

Continued investment in R&D and digital capabilities, including a collaboration with an AI-driven platform to enhance product development.

The company is implementing its 80/20 strategy in Diversified Industrials to enhance margins without significant top-line impact.

3Forward Guidance and Outlook

Full-Year 2026 Guidance:

Net sales expected to be approximately $7.185 billion, reflecting a 4% organic growth.

Operating EBITDA projected at $1.745 billion.

Adjusted EPS guidance raised to $2.35 - $2.40 per share.

Q2 2026 Guidance:

Estimated net sales of about $1.8 billion and operating EBITDA of about $430 million.

Anticipated organic sales growth of 3% year-over-year.

4Bad News, Challenges, or Points of Concern

Middle East Conflict: Logistics disruptions due to the ongoing conflict impacted sales, particularly in the water business, with $10 million in sales unable to ship in Q1. The company is cautious about potential macroeconomic headwinds.

Construction Market Weakness: Continued softness in construction markets is expected to result in flat growth for the year.

Stranded Costs: Approximately $30 million in stranded costs are being managed, with $10 million expected to be removed this year.

Pricing Pressures: Increased input costs are anticipated, with the company implementing price increases to offset these costs.

5Notable Q&A Insights

80/20 Strategy: The company is progressing well, with expectations for margin improvements but minimal top-line impact.

Water Business: Despite the challenges, the company expects to maintain mid-single-digit growth in the water segment for the year, with large projects anticipated in the second half.

Healthcare Growth: Strong demand driven by aging populations and healthcare access is expected to continue supporting growth in the healthcare segment.

Operational Improvements: Strong productivity gains contributed to margin expansion, with a mix of favorable product mix and operational efficiencies.

Future M&A: The company remains open to acquisitions to enhance its portfolio, particularly in healthcare, while maintaining a disciplined approach to capital allocation. Overall, DuPont's Q1 2026 results reflect a strong operational start to the year, with solid financial performance and strategic initiatives aimed at long-term growth, despite facing challenges from geopolitical tensions and market softness in certain sectors.