DuPont's shares fall on lower profits; chemical maker approves $2B buyback

[DuPont Silicon Valley Technology & Innovation Center offices]
Sundry Photography/iStock Editorial via Getty Images

Shares of DuPont de Nemours (DD [https://seekingalpha.com/symbol/DD]) fell 7.5% in premarket trading Thursday after the company reported third-quarter results that showed weaker year-over-year earnings and cash flow.

The chemical and materials company posted adjusted earnings of $1.09 a share, topping analysts’ consensus of $0.64, and revenue of $3.07 billion, beating projections of $1.77 billion.

Net income fell to $308 million, or $0.70 a share, from $453 million, or $1.06 a share, a year earlier.

DuPont (DD [https://seekingalpha.com/symbol/DD]) said net sales rose 7% from the prior-year quarter, driven by 10% organic growth in its ElectronicsCo division and 4% in IndustrialsCo. The company attributed the performance to ongoing demand in electronics, healthcare and water technologies, offset by softness in construction markets.

The company’s continuing operations exclude its Aramids business, which earlier this year DuPont (DD [https://seekingalpha.com/symbol/DD]) agreed to sell for $1.8 billion to Arclin.

DuPont’s (DD [https://seekingalpha.com/symbol/DD]) ElectronicsCo division this month was officially spun off as Qnity Electronics (Q [https://seekingalpha.com/symbol/Q]), marking its debut as a standalone company specializing in semiconductor materials and advanced chip production technologies.

The latest divestitures continue a years-long restructuring effort that has dramatically streamlined the company through multiple spinoffs and asset sales. Management has said the strategy is designed to sharpen the company’s focus, enable its separate businesses to chart independent growth paths, and enhance long-term shareholder returns.

CEO COMMENTARY

Chief Executive Officer Lori Koch said DuPont (DD [https://seekingalpha.com/symbol/DD]) “exceeded our previously announced third quarter guidance” and cited strong momentum in key end markets and solid operational execution.

“As a result of our strong third quarter performance and operational improvements, we are raising our full year earnings guidance for new DuPont,” Koch said in a statement.

Earnings, before interest, taxes, depreciation and amortization, rose 6% year over year to $840 million, while the company’s ebitda margin edged slightly lower to 27.3% from 27.6%.

Cash flow from operating activities totaled $591 million, down from $665 million a year ago, as higher transaction and separation-related costs weighed on results.

The company also announced plans to return capital to shareholders, including a $2 billion share repurchase authorization, an imminent $500 million accelerated buyback, and a new quarterly dividend of $0.20 a share payable Dec. 15 to shareholders of record as of Nov. 28.

Chief Financial Officer Antonella Franzen said the company’s improved guidance reflects ongoing demand strength in healthcare and water applications, offset by weakness in construction. DuPont now expects full-year operating ebitda of about $1.6 billion and adjusted earnings of roughly $1.66 a share.

MORE ON DUPONT, QNITY ELECTRONICS, INC.

* DuPont: Buy Peers Instead; Here Is Why [https://seekingalpha.com/article/4833378-dupont-buy-peers-instead-here-is-why]
* DuPont De Nemours, Inc. (DD) 2025 Investor Day Call (Transcript) [https://seekingalpha.com/article/4824122-dupont-de-nemours-inc-dd-2025-investor-day-call-transcript]
* DuPont de Nemours, Inc. (DD) Analyst/Investor Day - Slideshow [https://seekingalpha.com/article/4824095-dupont-de-nemours-inc-dd-analyst-investor-day-slideshow]
* DuPont Non-GAAP EPS of $1.09 beats by $0.45, revenue of $3.07B [https://seekingalpha.com/news/4517049-dupont-non-gaap-eps-of-109-beats-by-045-revenue-of-307b]
* DuPont Q3 2025 Earnings Preview [https://seekingalpha.com/news/4515892-dupont-q3-2025-earnings-preview]