DuPont Q2 2026 earnings: Adjusted EPS rises 48% on 4% sales growth

DuPont (NYSE: DD) reported second-quarter 2026 net sales of $1.819 billion, up 4% year over year, while diluted GAAP EPS from continuing operations rose to $1.37 from $0.17. Adjusted EPS increased 48% to $1.88, supported by higher segment earnings, lower net interest expense and a lower tax rate, while operating cash flow from continuing operations reached $400 million. The company also raised its full-year operating EBITDA and adjusted EPS guidance.

Core Earnings Data

Organic sales increased 4%, matching reported growth and indicating that currency and portfolio changes had no net effect on consolidated revenue. Operating EBITDA rose 6%, faster than sales, as organic growth and productivity lifted the companywide margin by 40 basis points.

GAAP earnings increased more sharply because DuPont also benefited from lower interest expense and transaction costs. Consolidated net income was $147 million after discontinued operations recorded a $44 million loss, while income from continuing operations was $191 million.

Operating EBITDA, adjusted EPS and transaction-adjusted free cash flow are non-GAAP measures covering continuing operations. DuPont’s one-for-three reverse stock split became effective June 24, 2026, and all comparative share and per-share data were retrospectively adjusted.

Business and Segment Performance

Both operating segments generated organic growth, but their margin trends diverged. Healthcare & Water Technologies produced the faster sales growth, while Diversified Industrials delivered stronger EBITDA growth and margin expansion.

Healthcare Technologies recorded mid-single-digit organic growth, led by personal protection and biopharma. Water Technologies grew at a low-single-digit organic rate as industrial water and semiconductor demand offset weakness in the Middle East.

Healthcare & Water Technologies’ EBITDA increased with sales and productivity, but less favorable product mix and growth investments pushed its margin down. In contrast, Diversified Industrials benefited from organic growth, favorable mix and productivity. Building Technologies grew at a low-single-digit organic rate across residential and non-residential construction, while Industrial Technologies posted mid-single-digit growth on aerospace strength and higher sales into electric-vehicle applications.

Lower Financing and Transaction Costs Amplified EBITDA Growth

The gap between 6% operating EBITDA growth and 48% adjusted EPS growth reflects substantial improvement below the EBITDA line. Interest expense fell to $41 million from $84 million, while acquisition, integration and separation costs declined to $7 million from $55 million.

DuPont attributed the adjusted EPS increase to higher segment earnings, lower net interest expense and a lower tax rate. These factors also helped GAAP income from continuing operations rise much faster than revenue, although the unusually low prior-year GAAP earnings base makes the percentage comparison less informative.

Cash Flow, Balance Sheet and Capital Allocation

Quarterly operating cash flow from continuing operations was $400 million. After $76 million of capital expenditures, adjusted free cash flow was $324 million; adding back $2 million of separation-related payments produced transaction-adjusted free cash flow of $326 million and conversion of 127%.

Cash and cash equivalents stood at $1.740 billion on June 30, up from $715 million at the end of 2025. The increase occurred during a six-month period that included $1.158 billion of net proceeds from business sales, principally associated with the April divestiture of the Aramids business. Long-term debt was nearly unchanged at $3.125 billion, while short-term borrowings declined to zero from $60 million.

DuPont used $275 million for common-stock purchases and forward contracts during the first half of 2026. It separately announced an intention to repurchase another $250 million of shares during the third quarter.

The Aramids business and the previously separated Qnity electronics business are classified as discontinued operations, including in comparative periods. Investors should therefore distinguish DuPont’s continuing-operations results from consolidated net income and cash flow that include discontinued operations.

2026 Guidance

DuPont raised the midpoint of its full-year operating EBITDA guidance to approximately $1.76 billion and adjusted EPS guidance to $7.24. It also increased its full-year organic sales growth expectation to slightly above 4%, citing continued strength in healthcare, industrial water and aerospace markets.

The source did not provide the previous numerical guidance ranges, so the size of the increases cannot be calculated. DuPont also did not reconcile its forward-looking non-GAAP guidance to GAAP measures because it said several future adjustments cannot be predicted with reasonable certainty.

Recent Insider Transactions

The separately supplied insider data contained four recent transactions with complete dates, transaction types and reported values. The stock awards should not be interpreted as open-market purchases, and the data do not support conclusions about insiders’ views of DuPont’s valuation or outlook.

Other supplied entries dated May 21 lacked both a transaction type and a value and were therefore omitted.

Risks Investors Should Monitor

• Healthcare & Water Technologies margin pressure: Its EBITDA margin declined despite organic growth because unfavorable mix and growth investments more than offset productivity. Continued mix pressure could limit the segment’s earnings conversion.
• Uneven water-market demand: Industrial water and semiconductor demand remained favorable, but weakness in the Middle East partially offset that strength.
• Dependence on selected end markets: The raised outlook assumes continued strength in healthcare, industrial water and aerospace. Softer demand in these markets would make the expected second-half organic growth more difficult to achieve.
• Portfolio and legacy liabilities: The Qnity separation and Aramids divestiture create transition-service, cost-allocation and execution risks. DuPont also identifies potential PFAS litigation, remediation obligations and cost-sharing disputes as material uncertainties.
• Legal expenses: Q2 significant items included $7 million of costs related to a pending Healthcare & Water Technologies intellectual-property matter and $8 million related to Corian Quartz personal-injury cases. These costs affected GAAP results even though they were excluded from adjusted earnings.

Summary

DuPont’s second-quarter results combined 4% organic sales growth with productivity gains, lower financing costs and sharply reduced transaction expenses, allowing EPS and cash flow to grow substantially faster than revenue. Diversified Industrials delivered the stronger margin performance, while Healthcare & Water Technologies faced mix and investment pressure. The main follow-up points are whether end-market strength supports the raised 2026 outlook and whether DuPont can maintain cash conversion while managing portfolio-transition and legacy liabilities.