DuPont Raises Outlook as Organic Sales Growth Accelerates
Transaction-adjusted free cash flow more than doubled sequentially to $326 million.
DuPont de Nemours (DD), the specialty-materials maker, accelerated organic sales growth to 4% in the second quarter from 2% in the first, as improving demand across its businesses supported another increase in its full-year outlook.
The quarter marked a shift in the composition of growth. The 4% year-over-year sales increase came entirely from organic growth, compared with an even split between organic growth and currency benefits in the preceding quarter.
Net sales rose 4% from a year earlier to $1.819 billion, up sequentially from $1.681 billion. Adjusted earnings increased 48% to $1.88 a share, after rising 53% in the first quarter, reflecting higher segment earnings, lower net interest expense and a lower tax rate.
Healthcare & Water Technologies posted 4% organic sales growth, accelerating from 3% as Water Technologies swung to low-single-digit growth from a low-to-mid-single-digit decline. Weakness in the Middle East partly offset the improvement. The segment’s margin slipped to 30.1% and declined 30 basis points from a year earlier as less favorable mix and growth investments outweighed productivity and higher organic sales.
Diversified Industrials recorded 3% organic growth after roughly flat sales in the first quarter. Mid-single-digit growth in Industrial Technologies, driven by aerospace and electric-vehicle applications, led the advance, while Building Technologies grew at a low-single-digit rate. Segment EBITDA rose 7% to $213 million, though its margin eased sequentially to 22.1%.
Companywide operating EBITDA increased 6% to $448 million, slowing from 15% growth in the first quarter. The operating EBITDA margin held at 24.6%, while year-over-year expansion narrowed to 40 basis points from 230 basis points in the prior period. Cash provided by continuing operations rose sequentially to $400 million, and transaction-adjusted free cash flow increased 205% from a year earlier.
DuPont now expects 2026 net sales of $7.160 billion to $7.190 billion, operating EBITDA of $1.750 billion to $1.770 billion and adjusted earnings of $7.17 to $7.32 a share. Organic sales growth is expected to be slightly above 4%.
The company planned to repurchase $250 million of shares in the third quarter, following a $275 million accelerated repurchase announced earlier in the year. DuPont also completed the Aramids divestiture on April 1 for about $1.2 billion in cash, a $300 million note receivable and a $325 million noncontrolling equity interest, leaving those operations classified as discontinued.