Dive Brief:
- DuPont de Nemours’ third quarter earnings exceeded the chemical manufacturer’s expectations as net sales hit $3.1 billion, up 7% year over year, per a release Thursday.
- The increase was attributed to sales growth in its electronics, healthcare and water end-markets as well as its cost-effective operational strategy announced at DuPont’s investor day in September, CEO Lori Koch said in the release. Q3 income fell 32% YoY to $308 million.
- Looking ahead, the company updated its “New DuPont” full-year guidance to $1.6 billion, up from $1.575 billion. The guidance also reflects the discontinued operations of DuPont’s aramid fiber business, which is in the process of being sold, and the electronics business separation, Qnity Electronics, which was completed Nov. 1.
Dive Insight:
Of the two business segments, electronics saw sales jump 11% to approximately $1.3 billion compared to the same period last year. The increase for interconnect and semiconductor components was driven by demand for artificial intelligence, CFO Antonella Franzen said on the earnings call Thursday.
The company expects organic sales to grow up to 2% year over year, driven by demand in the healthcare and water industries, partially offset by ongoing weakness in construction end-markets, Franzen said.
With Qnity now separated as an independent company and the aramids business, which includes personal protective gear brands Kevlar and Nomex, set to close by Q1 2026, the company revised its full-year 2025 sales guidance from about $12.9 billion to $6.8 billion.
In connection with the Qnity separation transaction, DuPont received approximately $4.2 billion in cash, which Franzen said will be used to reduce its debt and target growth in its healthcare and water segments.
Part of the growth strategy includes innovation. On Monday, DuPont introduced a new disposable chemical garment fabric, meant to be an improvement of its Tyvek brand. The protective coverall is supposed to be more comfortable and breathable, while also preventing workers from overheating.
DuPont’s growth strategy also calls for streamlining operations. In September, DuPont signed an agreement to acquire manufacturing capacity to expand its reverse osmosis footprint in China, Koch said. The purchase will help the company meet the growing demand for its industrial water purification and reuse in the region.
