Breaking Down DuPont de Nemours, Inc. (DD) Financial Health: Key Insights for Investors

You're looking at DuPont de Nemours, Inc. (DD) right now and seeing a specialty chemicals giant navigating a tricky market, so you need to know if the underlying financials support the stock's recent volatility. Honestly, the numbers for the 2025 fiscal year paint a picture of strategic focus amid sector headwinds: the trailing twelve-month (TTM) revenue through September 30, 2025, sits at a solid $12.817 billion, but that top-line strength is paired with a projected full-year 2025 Earnings Per Share (EPS) consensus of around $4.22, suggesting margin discipline is key. The company's management is defintely leaning into that, having raised their full-year 2025 operating EBITDA guidance for the new DuPont to $1.6 billion, plus they've announced a substantial $2 billion share repurchase authorization, signaling confidence in their valuation. Still, keep an eye on the Return on Equity (ROE) of 7.85%-it's positive, but its trajectory will tell us how efficiently the firm is converting that revenue into shareholder value, especially with soft spots remaining in construction and a slow China recovery.

Revenue Analysis

You need to know where the money is coming from at DuPont de Nemours, Inc. (DD) right now to make a smart investment decision. The direct takeaway is that the company is showing modest top-line growth, driven by its Electronics business's exposure to AI, but the revenue profile is undergoing a massive, structural shift due to the recent spin-off.

For the twelve months ending September 30, 2025, DuPont de Nemours, Inc. reported trailing twelve-month (TTM) revenue of about $12.84 Billion. This TTM figure reflects a solid year-over-year increase of approximately 15.07%, a welcome rebound from the prior year's decline. Still, the full-year 2025 organic sales growth is only expected to be up around 2% year-over-year, which shows the market is still a little choppy.

The company's revenue is primarily split between two major operational segments: IndustrialsCo and ElectronicsCo. In the third quarter of 2025, total net sales were $3.1 Billion, with a clear weighting toward the industrial side before the separation took effect.

Here's the quick math: IndustrialsCo is the larger, more mature revenue driver, but ElectronicsCo is the growth engine right now. The 10% organic sales growth in ElectronicsCo was led by high-single-digit growth in Semiconductor Technologies and low-teens growth in Interconnect Solutions, largely tied to the demand from advanced nodes and AI technology ramps. That's a defintely strong tailwind.

On the IndustrialsCo side, the 4% organic growth was fueled by strength in healthcare and water end-markets, specifically volume gains in medical packaging, biopharma, and water technologies like reverse osmosis. But, to be fair, that growth was partially offset by continued weakness in construction markets, which is a key exposure for this segment. This is why you see the segment's growth rate lagging its electronics counterpart. This is a classic tale of two businesses.

The most significant change to the revenue structure is the separation of ElectronicsCo into an independent public company, Qnity Electronics, Inc., which was completed on November 1, 2025. This means that starting in the fourth quarter of 2025, the revenue base of the 'new DuPont' will fundamentally exclude the ElectronicsCo segment's contribution, shifting the company's focus and risk profile almost entirely to the IndustrialsCo portfolio. This is a critical factor for anyone looking at the future revenue trajectory of DuPont de Nemours, Inc. Breaking Down DuPont de Nemours, Inc. (DD) Financial Health: Key Insights for Investors is a good place to start your deeper dive.

Profitability Metrics

You need to know if DuPont de Nemours, Inc. (DD) is making money efficiently, especially after the major portfolio changes like the Qnity electronics business spin-off. The short answer is yes, operational execution is strong, but the overall profitability picture is complex due to restructuring and non-cash charges.

Looking at the trailing twelve months (TTM) ended September 30, 2025, DuPont de Nemours, Inc. generated a gross profit of $4.753 billion on revenue of $12.817 billion. Here's the quick math on the key margins:

• Gross Profit Margin: Approximately 37.08% (TTM Sep 2025).
• Operating EBITDA Margin: Ranged from 25.7% to 27.3% in the first three quarters of 2025.
• Net Profit Margin: Remained volatile, with GAAP Income from continuing operations at $308 million in Q3 2025.

The Operating EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin is the clearest indicator of core business health, and its expansion is a strong signal.

Profitability Trends and Industry View

The trend in gross profitability is defintely positive. Gross profit increased by a solid 9.49% year-over-year for the TTM ended September 30, 2025, which shows pricing power and/or lower cost of goods sold. This is a critical trend to watch, especially as the company focuses on high-growth, high-margin areas like healthcare and water technologies post-spin. The 'new DuPont' is expected to see a full-year 2025 adjusted earnings per share (EPS) of $1.66 per share, up from the prior year, reflecting this focus.

When you compare DuPont de Nemours, Inc. to the broader U.S. Chemicals and Allied Products industry, the story is nuanced. The industry median Gross Margin in 2024 was around 50.3%, which suggests DuPont de Nemours, Inc.'s TTM margin of 37.08% is lagging. However, the industry's median Operating Margin was a shocking -56.9% in 2024, indicating widespread operational struggles. DuPont de Nemours, Inc.'s consistently positive Operating EBITDA margin (in the mid-twenties) shows superior operational execution compared to the industry average, which is currently grappling with a prolonged downcycle.

Here is a quick comparison of the key operational ratios:

Operational Efficiency and Cost Management

The company's operational efficiency is clearly improving. In Q1 2025, the Operating EBITDA margin expanded by 240 basis points year-over-year, which is a significant jump and a direct result of effective cost discipline. This margin improvement is not an accident; it's driven by strategic cost management actions.

A great example of this is how the company handled tariff exposure. DuPont de Nemours, Inc. successfully mitigated a potential annualized tariff cost of approximately $500 million down to a net cost impact of only about $60 million in 2025. They did this through smart supply chain adjustments and sourcing alternatives, not just relying on government exemptions. The continued focus on high-growth segments like electronics, healthcare, and water, as detailed in the company's Mission Statement, Vision, & Core Values of DuPont de Nemours, Inc. (DD), is expected to further boost margins. The Q3 2025 results showed continued strong volume growth in healthcare and water, coupled with strength in electronics driven by AI technology demand.

Debt vs. Equity Structure

You want to know if DuPont de Nemours, Inc. (DD) is leaning too heavily on borrowed money to fuel its growth. The short answer is no, they are defintely not overleveraged. They are running a relatively conservative balance sheet, prioritizing a strong investment-grade credit rating while still using a mix of debt and equity to fund their strategic shifts.

As of the quarter ending June 2025, DuPont de Nemours, Inc.'s total debt stood at approximately $7.17 billion. This is split between a manageable $1.849 billion in short-term debt and the bulk of their obligations, $5.326 billion, in long-term debt and capital lease obligations.

Here's the quick math on their financial leverage (the use of borrowed money to increase asset returns):

• Short-Term Debt: $1.849 billion
• Long-Term Debt: $5.326 billion
• Total Stockholders' Equity: $23.064 billion

The key metric here is the debt-to-equity (D/E) ratio, which shows how much debt the company uses to finance its assets compared to the value of its shareholders' equity. For DuPont de Nemours, Inc., the D/E ratio as of June 2025 was a solid 0.31. To be fair, this is a strong position; the median D/E ratio for companies in the Chemicals industry is slightly higher at 0.36, so DuPont de Nemours, Inc. is using less debt relative to its peers.

Their financing strategy is a clear balancing act between debt and equity. The company is committed to maintaining a strong financial position, which is why they focus on keeping an investment-grade credit rating. S&P Global Ratings affirmed a 'BBB+' long-term issuer credit rating and 'A-2' short-term rating in November 2025, with a stable outlook, reflecting this conservative profile. This rating helps them keep their cost of capital low when they do issue debt.

Recent corporate actions show a clear move to reduce debt further while also rewarding shareholders. The separation of the electronics business (Qnity) on November 1, 2025, for example, generated $4.2 billion in proceeds, which management expects to use for debt reduction. This debt paydown is being balanced by a significant return of capital to shareholders, as the Board authorized a $2.0 billion share repurchase plan, signaling management views the stock as undervalued.

This is a company that is deleveraging after a major restructuring, but still sees enough value in its own stock to execute a buyback. You can learn more about who is betting on this strategy by Exploring DuPont de Nemours, Inc. (DD) Investor Profile: Who's Buying and Why?

Liquidity and Solvency

DuPont de Nemours, Inc.'s short-term liquidity, while still acceptable, is definitely tighter than in prior years. The core financial ratios show adequate coverage, but the real story is the massive cash influx from the recent portfolio restructuring, which fundamentally changes the company's near-term cash position and capital allocation strategy.

Looking at the short-term coverage, the trailing twelve months (TTM) Current Ratio sits at approximately 1.41 as of mid-2025. This ratio measures current assets against current liabilities-can you pay your bills in the next year? A 1.41x ratio means DuPont de Nemours, Inc. has $1.41 in current assets for every dollar of short-term debt. This is down significantly from a peak of around 3.0x in 2022, signaling a clear reduction in working capital (the difference between current assets and current liabilities) over the last two years. Still, it's above the critical 1.0x mark.

The Quick Ratio (or acid-test ratio), which strips out inventory-the least liquid current asset-is a more stringent measure. DuPont de Nemours, Inc.'s quick ratio is approximately 0.94. This is the one to watch. A ratio below 1.0x suggests that, without selling inventory, the company cannot cover its immediate liabilities. Here's the quick math: the ratio has fallen below 1.0x, but the risk is mitigated by strong cash flow generation and the fact that $1.83 billion in restricted cash was on the balance sheet as of Q3 2025, linked to pre-spin activities, which temporarily inflates liabilities relative to immediately available, unrestricted cash. You need to look past the surface-level ratio.

Working capital trends show a strategic shift. The lower ratios are a direct result of the company's aggressive portfolio separation activities, which included a major cash dividend from the spin-off. This is not a sign of operational distress, but rather a planned move to optimize the balance sheet post-divestiture. The key is how they manage the remaining working capital cycle, especially inventory and receivables, in the new, streamlined structure.

The cash flow statement provides the clearest picture of operational health. In the third quarter of 2025 alone, cash provided by operating activities from continuing operations was a strong $591 million. This operational strength, combined with low capital expenditures (CapEx) of $146 million, resulted in a transaction-adjusted free cash flow of $576 million for the quarter, reflecting a robust 126% conversion rate. That's a great sign of efficiency.

The financing and investing cash flow tells the rest of the story. The successful separation of the Electronics business (Qnity) in November 2025 resulted in a massive cash injection of approximately $4.2 billion via a dividend from the spun-off entity. This is a game-changer for solvency. Management has already signaled its intent to use this capital for debt reduction and has authorized a new $2.0 billion share repurchase program, including an immediate $500 million accelerated share repurchase (ASR). This is a clear, aggressive capital return focus post-divestiture.

Here is a snapshot of the Q3 2025 cash flow highlights:

The liquidity position is a strength, not a concern, despite the lower quick ratio. The company is generating significant cash internally and has just received a multi-billion-dollar boost from the spin-off, which is earmarked for shareholder returns and balance sheet optimization. The risk is not in the ability to pay short-term debts, but in the execution of the new, leaner operating model. For a deeper dive, review the full post on Breaking Down DuPont de Nemours, Inc. (DD) Financial Health: Key Insights for Investors.

Your next step: Investment Team: Model the impact of the $2.0 billion share repurchase on 2026 EPS and the new debt structure by end-of-week.

Valuation Analysis

You want to know if DuPont de Nemours, Inc. (DD) is a buy, hold, or sell, and the valuation multiples give us a clear, though complex, picture. The short answer is that the stock looks reasonably priced on a forward basis, but its recent trailing earnings are messy, which is a key risk you need to understand.

As of November 2025, the stock price is around $40.40 per share, reflecting a strong year-to-date performance with shares up over 26.1%, significantly outpacing the S&P 500's rise. That kind of run-up always makes me check the fundamentals to see if the valuation has gotten ahead of itself.

Here's the quick math on the key valuation ratios:

• Price-to-Book (P/B): The TTM (Trailing Twelve Months) P/B ratio is a low 0.74. A ratio below 1.0 suggests the market values the company's equity less than the net value of its assets, which often signals a potentially undervalued stock or significant underlying issues.
• EV/EBITDA: The TTM Enterprise Value-to-EBITDA is currently around 7.45. This is a more stable metric, as it strips out non-cash charges and capital structure differences. For a specialty materials company, this is a respectable, if not deeply discounted, level.
• Price-to-Earnings (P/E): This is where things get complicated. Due to recent non-recurring items and losses, the TTM P/E ratio is reported as negative, or 'At Loss.' However, the forward P/E, based on 2025 fiscal year earnings estimates, is a more palatable 19.54. This tells you the market is defintely pricing in a strong earnings recovery.

What this estimate hides is the volatility. The market is betting on future growth, so any earnings miss will hit the stock hard.

Dividend and Analyst Sentiment

For income-focused investors, DuPont de Nemours, Inc. offers a TTM dividend yield of approximately 4.24%, with an annual dividend payout of $1.64 per share as of November 19, 2025. While the TTM Payout Ratio is hard to pin down due to the earnings volatility, the quarterly Payout Ratio for Q3 2025 was a sustainable 0.38. The company has also increased its dividends for four consecutive years, a positive sign of financial stability.

Wall Street analysts are generally optimistic, but not universally so. The consensus rating from 14 analysts is a 'Moderate Buy.' The average 12-month price target is approximately $42.62, suggesting a modest upside from the current price. To be fair, some analysts have targets as high as $50.00, while others are at $30.54, so the range is wide. You can see the breakdown below:

The majority are bullish, but the presence of hold and sell ratings means you shouldn't ignore the risks, particularly around the forward earnings estimates. For a deeper dive into who is actually buying the stock, check out Exploring DuPont de Nemours, Inc. (DD) Investor Profile: Who's Buying and Why?

Next step: Check the upcoming Q4 2025 guidance for any signs of weakness in their core business segments.

Risk Factors

You're looking for a clear-eyed view of DuPont de Nemours, Inc. (DD) beyond the strong Q3 2025 results, and you're right to dig into the risks. The company is undergoing a massive transformation with the Qunity spin-off, so the risks are less about day-to-day operations and more about execution and external headwinds. Simply put, the biggest near-term risks are the soft construction market and the shadow of legacy litigation.

Operational and Market Headwinds

The core business, now largely 'IndustrialsCo' after the November 1, 2025, spin-off of the electronics business (Qunity), faces a cyclical challenge: softness in the construction and automotive end-markets. While the company's focus on healthcare and water technologies is driving organic growth-up about 2% for the full year 2025-the Diversified Industrials segment is still feeling the pinch. This is a classic chemical industry problem: you can't fully outrun macro cycles. Still, the strategic pivot to high-growth areas is the long-term countermeasure.

Another operational risk that has been well-managed is the impact of tariffs. DuPont de Nemours has been defintely proactive, reducing its annual tariff exposure from an estimated $500 million to a net impact of just $20 million for the new DuPont in the second half of fiscal year 2025. This was achieved through supply chain adjustments and sourcing alternatives, a smart move that insulates margins.

• Soft construction demand is a clear drag.
• Supply chain volatility could reverse margin gains.

Financial and Strategic Risks

The most significant financial risk is the ongoing legacy liability from Per- and polyfluoroalkyl substances (PFAS) litigation. While management considers the risk 'material but manageable' due to the company's financial flexibility, the costs remain a continuous pressure on margins and capital allocation. This is a regulatory and legal risk you must monitor closely, as a large settlement could impact the capital structure.

Separately, the debt profile requires attention. As of June 2025, DuPont de Nemours had net debt of $5.43 billion. While the company received approximately $4.2 billion from the Qunity separation to reduce debt, the total liabilities still outweighed the sum of cash and near-term receivables by about $8.85 billion before the spin-off's full financial impact was realized. Maintaining access to capital markets, especially post-spin, is crucial for its ability to finance operations, including the new quarterly dividend of $0.20 per share and the $2 billion share repurchase authorization.

Mitigation and Forward Action

The entire strategy for DuPont de Nemours is a mitigation plan. The spin-off of Qunity, which was completed in November 2025, streamlines the company, focusing it on more resilient, secular-growth markets like water and healthcare. This is a clear move to reduce exposure to the cyclicality that has plagued the chemical sector.

Management is also reinforcing its balance sheet by using the proceeds from the Qunity separation to pay down debt and fund capital returns, including the imminent launch of a $500 million Accelerated Share Repurchase (ASR). This disciplined capital allocation is key to maintaining a strong credit rating and financial flexibility to handle unexpected litigation costs or market downturns. You can review the full strategic alignment, which is designed to drive value creation, in the Mission Statement, Vision, & Core Values of DuPont de Nemours, Inc. (DD).

Here's the quick math: the successful tariff mitigation alone saved the company an estimated $440 million in annualized exposure, which is a significant operational win. This kind of execution is what you want to see when a company is facing multiple external pressures.

Growth Opportunities

You're looking at DuPont de Nemours, Inc. (DD) right now, and the biggest thing to understand isn't their past, but the massive strategic pivot happening this month. The company is defintely shedding its conglomerate skin to become a more focused, high-margin player in Water & Protection and Healthcare, a move that is designed to unlock shareholder value.

The core of the near-term growth story is the planned spin-off of the Electronics & Industrial segment into a new, independent company, Qnity™, which is targeted for completion in November 2025. This separation creates two distinct entities, each focused on secular growth trends. The remaining DuPont, which I call the 'New DuPont,' will concentrate on essential, less cyclical markets.

Future Revenue and Earnings Estimates for New DuPont

The financial projections for the New DuPont portfolio-Water & Protection, and Healthcare-reflect this streamlined focus. Remember, these numbers are recast to treat the Electronics and Aramids businesses as discontinued operations, so they look smaller than the old, consolidated guidance. Here's the quick math on the New DuPont's expected performance for the 2025 fiscal year:

What this estimate hides is the margin expansion, which is the real prize. The New DuPont is targeting a medium-term (2025-2028) organic sales growth Compound Annual Growth Rate (CAGR) of 3-4%, which is solid for a specialty materials company.

Key Growth Drivers and Strategic Actions

The growth for the New DuPont isn't coming from broad industrial recovery; it's coming from targeted product innovations and market expansions in areas with non-negotiable demand. This is where the company is putting its money.

• Healthcare Expansion: A significant strategic move was the June 2025 expansion of the Costa Rica manufacturing facility. This addition focuses on new sterile packaging and medical tubing capabilities, directly tapping into the rapidly expanding global medical device market.
• Water Infrastructure: The Water & Protection segment is poised to capitalize on global scarcity and regulatory demand for clean water solutions. This segment is less vulnerable to economic cycles.
• Portfolio Optimization: The divestiture of the Aramids business, which was agreed to in August 2025 for a total consideration of $1.825 billion ($1.2 billion cash, $300 million note, and $325 million equity interest), further sharpens the focus and provides capital for future growth or shareholder returns.
• Innovation Investment: The company is backing its growth with real R&D dollars, spending $140 million in R&D expenses in the third quarter of 2025 alone.

For a deeper dive into who is buying the stock during this transition, you should check out Exploring DuPont de Nemours, Inc. (DD) Investor Profile: Who's Buying and Why?

Competitive Advantages Post-Spin-off

The New DuPont's competitive edge comes down to two things: its IP moat and its global reach. You don't build a specialty chemicals giant without a fortress of intellectual property (IP). The company holds approximately 12,800 patents and patent applications globally. Plus, 80% of that patent estate has a remaining term of more than five years, which gives them long-term product exclusivity and revenue potential. That's a huge barrier to entry for competitors.

Also, the global footprint, with subsidiaries in about 50 countries and manufacturing operations in 24 countries, is a logistical and commercial advantage that few can replicate. The strategic focus on essential, high-margin markets like water and healthcare, which are less sensitive to construction and automotive cycles, creates a more resilient and predictable earnings profile going forward. This is a much cleaner investment story.