DD · DuPont de Nemours, Inc.

DuPont delivered a strong start to fiscal 2026, exceeding its first quarter guidance on both the top and bottom lines. Net sales rose 4% year-over-year to $1.68 billion, supported by a 2% organic sales increase and a 2% currency benefit. The Healthcare & Water Technologies segment led organic growth at 3%, driven by broad-based strength in healthcare technologies, particularly medical packaging and biopharma. Conversely, Water Technologies faced headwinds from logistics disruptions in the Middle East, offsetting strength in industrial water markets. The Diversified Industrials segment posted flat organic sales, as gains in aerospace and automotive were counterbalanced by ongoing weakness in construction markets affecting the Building Technologies unit.

Profitability expanded significantly, with Operating EBITDA margin improving 230 basis points to 24.6%. This margin expansion was attributed to organic growth, favorable mix, and productivity initiatives across both reporting segments. Adjusted EPS of $0.55 represented a 53% increase over the prior year period, driven by higher segment earnings, lower interest expense, and a reduced tax rate. Cash generation was robust, with operating cash flow from continuing operations of $232 million and transaction-adjusted free cash flow of $147 million, representing a 65% conversion rate.

Looking forward, management raised full-year 2026 guidance, citing the strong first quarter performance and interest income benefits from the recently completed Aramids divestiture. The company now forecasts full-year net sales between $7.155 billion and $7.215 billion, implying approximately 4% organic growth. The divestiture of the Aramids business, completed on April 1, 2026, generated approximately $1.2 billion in pre-tax cash proceeds, facilitating the announcement of a $275 million accelerated share repurchase program expected to launch imminently.