DuPont delivered a stronger-than-expected third quarter, with adjusted EPS rising 62% and both operating segments expanding margins. The chemicals group has lifted its full-year outlook again while committing to another US$250 million share repurchase.
- US$1.868 billion quarterly sales, up 4% year on year
- Adjusted EPS increased 62% to US$2.09
- Operating EBITDA margin expanded 80 basis points to 25.1%
- Full-year adjusted EPS guidance lifted to US$7.47-US$7.52
- Another US$250 million share repurchase planned for the fourth quarter
DuPont lifts guidance after another earnings beat
DuPont de Nemours, Inc. (NYSE:DD) raised its full-year 2026 outlook after adjusted EPS surged 62% in the third quarter, signalling another strong period for the reshaped specialty chemicals group. Net sales rose 4% to US$1.868 billion, while organic sales increased 5% despite a 1% currency headwind.
GAAP income from continuing operations climbed 68% to US$171 million, producing diluted GAAP EPS of US$1.24. The company’s adjusted EPS, a non-GAAP measure, reached US$2.09 compared with US$1.29 a year earlier. Operating EBITDA rose 8% to US$469 million, lifting the margin to 25.1% from 24.3%.
Both operating segments expanded margins
Healthcare & Water Technologies generated US$865 million in sales, up 4%, and increased operating EBITDA 7% to US$263 million. Healthcare Technologies benefited from mid-single-digit organic growth in personal protection and medical packaging, while Water Technologies gained from industrial water, semiconductor and specialty markets. DuPont said Middle East disruptions continued to weigh on the water business.
Diversified Industrials produced US$1.003 billion in sales, also up 4%, with organic growth of 5%. Operating EBITDA rose 11% to US$242 million and the segment margin widened 140 basis points to 24.1%. Building Technologies grew across North America and Asia, while Industrial Technologies benefited from aerospace and electric vehicle battery applications.
Cash generation supports further buybacks
Cash provided by operating activities from continuing operations reached US$410 million in the quarter. After capital expenditure and separation-related adjustments, transaction-adjusted free cash flow was US$341 million, representing 121% conversion of adjusted earnings. DuPont completed a US$250 million accelerated share purchase and substantially finished a further US$100 million of open-market repurchases during the quarter.
The company now intends to repurchase another US$250 million of shares in the fourth quarter. That capital return comes as DuPont continues to operate on a continuing-operations basis after the Electronics business was separated into Qnity and the Aramids business was sold to Arclin. The comparison therefore describes the post-separation DuPont rather than the larger portfolio reported in earlier periods.
Raised full-year targets carry non-GAAP qualifiers
DuPont now expects full-year 2026 sales of about US$7.190 billion, operating EBITDA of about US$1.785 billion and adjusted EPS of US$7.47 to US$7.52. It also expects organic growth of about 4.5%, with the targets described as at or above the high end of its previous guidance. The forward figures are non-GAAP measures, and the release does not provide a forward-looking reconciliation to GAAP results.
The quarter was not free of complications: DuPont recorded legal costs tied to Corian Quartz personal injury cases and a pending intellectual property matter. The immediate question is whether productivity and end-market demand can keep margins moving higher once separation effects, legal costs and the remaining portfolio transition become less prominent in the accounts.
Bottom Line?
The raised targets and buybacks strengthen the near-term case, but the next test is whether organic growth and margin gains persist across the post-separation portfolio.
Questions in the middle?
- Can DuPont sustain mid-single-digit organic growth once the current aerospace, water and healthcare tailwinds moderate?
- How much of future adjusted EPS growth will come from operating improvement versus the planned share repurchases?
- Will Middle East disruption, Corian Quartz litigation and the pending intellectual property matter create further volatility in GAAP results?