DD changes
Pick any two versions below to diff them.
- Price
- $130.45 → $155.61(+19.3%)
- Discount category
- Below intrinsic value → Close to intrinsic value
- Next earnings
- Nov 3, 2026 → Feb 3, 2027
- Next earnings is estimate
- No → Yes
- About
- DuPont makes specialty materials and products for healthcare, water, construction and industrial markets. It has two segments. Healthcare & Water Technologies makes products for personal protection, biopharma and water filtration. Diversified Industrials makes building materials and industrial products for aerospace and electric vehicles. DuPont spun off its electronics business as Qnity Electronics on November 1, 2025, and sold its Aramids business, which makes Kevlar and Nomex, to Arclin on April 1, 2026. It did a 1-for-3 reverse stock split on June 24, 2026. For 2026, DuPont expects net sales of removed: $7.16 to added: about $7.19 removed: billion and added: billion, operating EBITDA of removed: $1.75 added: about $1.785 billion and adjusted EPS of $7.47 to removed: $1.77 billion. added: $7.52.
- Thesis
- The market prices DuPont for its legacy PFAS liabilities and for doubts about the smaller company. Under a 2021 agreement, DuPont shares PFAS costs with Chemours and Corteva. In September 2026, the three companies agreed to pay North Carolina $455 million over 15 years, and DuPont recorded a probable loss of about $125 million for its share, before a 44% reimbursement from Qnity. More PFAS claims by states and water utilities are still open. After the Qnity spin-off and the Aramids sale, DuPont is smaller and less known as a company, and its water business was weak in the Middle East in removed: Q2 2026. For the gap to close, three things must be true. DuPont must reach its added: raised 2026 guidance of adjusted EPS of removed: $7.17 added: $7.47 to removed: $7.32, with mid-single-digit added: $7.52, after organic sales growth added: of 5% in removed: the second half. added: Q3 2026, and it must guide to more growth in 2027. New PFAS settlements must stay inside the shared cost limits. The company must keep its free cash flow conversion near 100% and use the cash for buybacks, as with the $250 million planned for removed: Q3 added: Q4 2026. The removed: Q3 2026 added: full-year report removed: on November 3, 2026 gives added: with the removed: next test. The 2027 removed: guidance added: guidance, expected in early removed: 2027 added: February 2027, is the added: next and main test. If these checks pass, the gap can close over the next four to six quarters. The main reason it may not close is a large new PFAS judgment or settlement, which can come at any time.
- Risks
- DuPont shares legacy PFAS liabilities with Chemours and Corteva. Many claims by states, water utilities and individuals are still open, and a large judgment or settlement can cost more than the reserves. Building Technologies depends on construction, and Water Technologies was weak in the Middle East in Q2 added: and Q3 2026. A slowdown in these markets can reduce organic growth. DuPont holds a $300 million note and a 16% equity interest from the Aramids sale, recorded at fair values of $183 million and $325 million. Their value depends on the results of the buyer.
- Balance sheet
- Cash: $1.7B Debt: $3.1B Net debt: $1.4B Interest cover: removed: 6.5× added: 7.0× Undrawn credit line: $2.0B, to May 2031 Debt due within 12 months: $0.0M DuPont has a simple debt structure after the Qnity spin-off and the Aramids sale. At removed: June added: September 30, 2026, long-term debt was removed: $3.13 billion added: $3.09 billion, no debt was due within one year, and there were no short-term borrowings. Cash was removed: $1.74 added: $1.65 billion, up from $715 million at December 31, 2025, mainly because of the Aramids proceeds. Interest expense fell to removed: $81 added: $121 million in the first removed: half added: nine months of 2026 from removed: $167 added: $252 million a year earlier. Interest cover is income before interest and taxes divided by interest expense for the first removed: half added: nine months of 2026. The undrawn credit is the $2 billion five-year revolving facility. DuPont also has a $750 million 364-day facility, and neither facility was drawn. removed: The board approved a added: Under the $2 billion share buyback added: that the board approved in November removed: 2025. added: 2025, DuPont bought back $250 million of shares in August 2026 and about $100 million in September and October 2026. PFAS costs are a liability outside removed: debt, added: debt. At September 30, 2026, DuPont's share of the North Carolina settlement was a liability of $127 million, before Qnity pays 44% of it, and DuPont removed: will help fund a added: paid $36 million of it on October 9, 2026. DuPont must also provide 71% of $135 million removed: reserve fund with Corteva under the added: of financial assurance for Chemours' obligations in North removed: Carolina settlement. added: Carolina. As of removed: Jun added: Sep 30, 2026.
- Checkpoints
- Nov 3, 2026: Q3 2026 earnings: organic growth. removed: Pending. added: Passed. Watch: Mid-single-digit organic sales growth and adjusted EPS on track for the $7.17 to $7.32 guidance pass; lower guidance or a new large PFAS charge fails. added: Outcome: Organic sales grew 5%, adjusted EPS was $2.09, and DuPont raised its 2026 guidance to $7.47 to $7.52 with no new large PFAS charge. Feb added: 3, 2027 (estimate): Full-year 2026 results and 2027 guidance. Pending. Watch: 2026 adjusted EPS inside the added: $7.47 to $7.52 guidance and 2027 guidance for further growth in earnings and free cash flow pass; flat or lower 2027 guidance fails.
- Recent events
- added: Nov 3, 2026: DuPont reported Q3 2026 results. Net sales rose 4% to $1.87 billion, with 5% organic growth. Operating EBITDA rose 8% to $469 million, and adjusted EPS rose 62% to $2.09. Transaction-adjusted free cash flow was $341 million, 121% of adjusted earnings. DuPont raised its 2026 guidance to adjusted EPS of $7.47 to $7.52 and operating EBITDA of about $1.785 billion. It completed a $250 million accelerated share repurchase and most of a $100 million open market repurchase in Q3, and it intends to buy back $250 million of shares in Q4 2026. Oct 9, 2026: DuPont, Chemours and Corteva made the first payment of $103 million under the North Carolina PFAS settlement. DuPont paid $36 million of it. Sep 10, 2026: DuPont, Chemours and Corteva agreed to settle PFAS claims with the State of North Carolina and local governments for $455 million in cash over 15 years. DuPont recorded a probable loss of about $125 million in Q2 2026 for its share, before Qnity reimburses 44% of it. The payments also satisfy the companies' future contributions to their shared PFAS escrow account. Aug 4, 2026: DuPont reported Q2 2026 results. Net sales rose 4% to $1.82 billion, with 4% organic growth. Operating EBITDA rose 6% to $448 million and adjusted EPS was $1.88. DuPont raised its 2026 guidance to adjusted EPS of $7.17 to $7.32 and said that it intends to buy back $250 million of shares in Q3 2026. Jun 24, 2026: A 1-for-3 reverse stock split took effect. Shareholders approved it on May 21, 2026. Apr 1, 2026: DuPont sold its Aramids business to Arclin for gross consideration of $1.8 billion. It received about $1.2 billion in cash, a $300 million note and a 16% equity interest. DuPont recorded a total loss of $378 million on the sale.