DD earnings analysis
What we found in DD's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
DuPont delivered Q2 2026 net sales of $1.819 billion, up 4% year over year and 8.3% sequentially, with both continuing segments growing and segment EBITDA expanding. Gross margin was stable at 35%, while substantially lower separation costs, higher earnings and improved working capital helped lift six-month operating cash flow to $632 million from $151 million. Liquidity strengthened following the Aramids sale, though PFAS obligations, restructuring charges and the newly updated Middle East supply-chain risk remain material watch items.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue growth accelerated sequentially
- Q2 net sales were $1.819 billion, up $70 million, or 4%, from $1.749 billion a year earlier, driven by 4% organic-sales growth. Revenue also increased 8.3% sequentially from $1.680 billion in Q1 2026.
- Healthcare & Water delivered broad growth
- Healthcare & Water Technologies sales rose 5% to $856 million, with 4% organic growth led by personal protection, biopharma, industrial water and semiconductor markets. Segment Operating EBITDA increased 4% to $258 million.
- Diversified Industrials expanded margins
- Diversified Industrials revenue increased 3% to $963 million and Operating EBITDA rose 7% to $213 million. Aerospace, electric-vehicle applications, construction growth, favorable mix and productivity supported the result.
- Cost profile benefited from lower transaction costs
- Cost of sales remained 65% of net sales, implying a stable 35% gross margin year over year. R&D declined $11 million to $42 million, while acquisition, integration and separation costs fell to $7 million from $55 million.
- Operating cash conversion strengthened
- Six-month operating cash flow from continuing operations rose to $632 million from $151 million, a $481 million increase, primarily from higher earnings and net-working-capital improvement. Net working capital increased to $2.855 billion from $1.728 billion at year-end.
- Aramids sale materially improved liquidity
- Cash and equivalents climbed $1.025 billion to $1.740 billion from $715 million at December 31, 2025, aided by Aramids-divestiture proceeds. Total debt declined $69 million to $3.125 billion.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Updated supply-chain risk tied to Middle East
- The updated risk factor specifically cites the Middle East conflict, which began in February 2026, as a potential source of energy-market volatility, raw-material cost inflation, and logistics disruption. Management says the conflict had not materially affected results through June 30, 2026, but its duration and severity remain uncertain.
- Restructuring charges remain ongoing
- The 2026 restructuring program is expected to generate approximately $100 million to $150 million of pre-tax restructuring charges, asset-related charges and other cost savings through 2028. DuPont had recorded $51 million of pre-tax restructuring charges inception-to-date and held $45 million of related current and noncurrent liabilities at June 30, 2026.
- PFAS settlement and legacy-liability exposure
- The proposed New Jersey settlement is payable over 25 years, subject to court approval. DuPont may need to contribute $106.5 million to an escrow fund for Chemours' share of the settlement, although 44% of funding obligations are contractually allocated to Qnity.
- Discontinued operations consumed cash
- Cash flow from discontinued operations shifted to a $167 million use in the first six months of 2026 from a $330 million source a year earlier. This reflects the continuing classification of the Aramids business as discontinued operations following its April 1, 2026 sale.
- Short-term revolver capacity was reduced
- The replacement 364-day revolving credit facility was reduced to $750 million from $1.0 billion upon the May 2026 renewal. Although there were no drawdowns, the smaller short-term facility modestly reduces committed liquidity capacity.
What they reported.
What the company itself reported, taken out of the document.
- Gross margin
- 35.0%
- Segment
- Healthcare & Water Technologies: $856 million revenue, +5% year over year; Operating EBITDA $258 million, +4% year over year.
- Segment
- Diversified Industrials: $963 million revenue, +3% year over year; Operating EBITDA $213 million, +7% year over year.
What they said about what is next.
The 10-Q does not provide quantitative revenue or EPS guidance. Management states it expects cash, operating cash generation, and debt-market access to provide sufficient liquidity; it also announced an expectation to repurchase $250 million of stock during Q3 2026 and expects the 2026 restructuring program to be substantially complete by the end of 2028.
The filing reads better than the one before it.
What came before.
- 10-Q · May 5, 2026
- DuPont's Q1 2026 results show growth with net sales reaching $1.681 billion, up 4% year-over-year, driven primarily by organic sales increases. Adjusted EPS was impressive at $0.55, beating expectations despite GAAP EPS…
- 10-K · February 17, 2026
- DuPont completed a major portfolio reshaping in 2025 including the Electronics Separation (Qnity distribution on November 1, 2025) and ongoing Aramids divestiture, and implemented a Q4 2025 segment realignment into…
- 10-Q · November 6, 2025
- DuPont reported quarterly net sales of $3,072 million, up $210 million (+7.3%) versus the prior-year quarter but down versus the prior quarter. Gross margin was 38.9% and operating margin was 12.6%;…
- 10-Q · August 5, 2025
- DuPont reported Q2 net sales of $3,257 million, up modestly from $3,171 million a year ago and sequentially above Q1 implied sales of $3,066 million. Continuing operations showed underlying strength (diluted continuing…
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