DuPont de Nemours, Inc. 10-Q Summary: Q2 2026
Business Context and Reporting Period
This report covers the quarterly period ended June 30, 2026. DuPont operates as a leading provider of advanced solutions in healthcare, water, construction, and industrial markets. The reporting period reflects significant structural changes, including a 1-for-3 reverse stock split effective June 24, 2026, and the completion of the Aramids Divestiture on April 1, 2026. The Electronics Business was separated into Qnity Electronics, Inc. in November 2025. Both divested businesses are reported as discontinued operations.
Key Financial Metrics
| Metric | Q2 2026 (3 Months) | Q2 2025 (3 Months) | YTD 2026 (6 Months) | YTD 2025 (6 Months) |
|---|---|---|---|---|
| Net Sales | $1,819 million | $1,749 million | $3,500 million | $3,361 million |
| Income from Continuing Ops (Net of Tax) | $191 million | $24 million | $341 million | $104 million |
| Net Income (Loss) | $147 million | $70 million | $311 million | $(511) million |
| Diluted EPS (Continuing Ops) | $1.37 | $0.17 | $2.43 | $0.73 |
| Diluted EPS (Total) | $1.05 | $0.42 | $2.22 | $(3.79) |
| Operating Cash Flow (Continuing) | N/A | N/A | $632 million | $151 million |
| Cash and Equivalents | $1,740 million | N/A | $1,740 million | $715 million (Dec 31, 2025) |
| Total Debt | $3,125 million | N/A | $3,125 million | $3,194 million (Dec 31, 2025) |
Note: YTD Operating Cash Flow is provided for the six-month period only as per the filing.
Material Changes vs. Prior Period
- Revenue Growth: Net sales increased 4% in Q2 2026 and 4% YTD 2026, driven primarily by organic sales growth (4% in Q2, 3% YTD) across both Healthcare & Water Technologies and Diversified Industrials segments.
- Profitability Surge: Income from continuing operations improved significantly due to lower effective tax rates (28.2% in Q2 2026 vs. 69.2% in Q2 2025) and reduced acquisition/separation costs ($7 million in Q2 2026 vs. $55 million in Q2 2025).
- Discontinued Operations: The prior year (2025) included a $768 million goodwill impairment charge related to the Aramids business, which is now classified as discontinued operations. Q2 2026 discontinued operations resulted in a $44 million loss, primarily due to a $125 million accrual for North Carolina PFAS litigation matters.
- Divestiture Proceeds: The Aramids Divestiture generated approximately $1.2 billion in cash proceeds, a $300 million note receivable, and a $325 million equity interest in the buyer.
Guidance, Outlook, and Risks
- Restructuring: DuPont is executing the "2026 DuPont Restructuring Program," anticipating total pre-tax charges of approximately $75 million through 2028. $51 million has been recorded to date.
- Share Repurchases: The company has a $2 billion authorization. In Q2 2026, it completed an accelerated share repurchase (ASR) of $275 million. Management expects to repurchase an additional $250 million in Q3 2026.
- Dividends: A quarterly dividend of $0.60 per share (post-split) was declared for Q3 2026.
- Key Risks:
- PFAS Litigation: Significant exposure remains regarding Per- and Polyfluoroalkyl Substances. A proposed settlement with the State of New Jersey involves an $875 million payment over 25 years (DuPont's share approx. $311 million). A $125 million charge was recorded for North Carolina matters.
- Geopolitical: Ongoing monitoring of Middle East conflicts and potential supply chain disruptions.
- Regulatory: Changes in tariffs and environmental regulations.
Investor Verification Checklist
- Discontinued Operations Impact: Verify the classification of the $125 million North Carolina PFAS charge and the $768 million prior-year Aramids impairment to ensure accurate year-over-year comparisons.
- Reverse Stock Split Adjustments: Confirm that all share counts and per-share data in historical comparisons have been retroactively adjusted for the 1-for-3 split.
- PFAS Liability Exposure: Review the status of the New Jersey Judicial Consent Order and the potential for additional costs beyond the accrued $530 million in MOU-related liabilities.
- Divestiture Accounting: Examine the valuation of the $325 million equity interest and $300 million note receivable from the Aramids sale.
- Restructuring Progress: Monitor the execution of the 2026 Restructuring Program and the realization of anticipated cost savings.