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…
Earnings analysis · 10-Q
DD earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
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…
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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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Gross margin
- 35.0%
What stood out
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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.
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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.
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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.
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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.
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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.
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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.
What to watch
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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.
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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.
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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.
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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.
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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.
Management's outlook
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.
Earlier filings 4
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…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.