DuPont Swings to Loss Amid Major Divestitures, Sales Up 7.3%

TL;DR

**DuPont's massive portfolio reshuffle is causing short-term pain with a net loss, but the strategic focus on higher-growth areas could pay off long-term; buy the dip if you believe in the new vision.**

AI Summary

DuPont de Nemours, Inc. (DD) reported a net loss of $107 million for the three months ended September 30, 2025, a significant decline from a net income of $465 million in the same period of 2024. This loss was primarily driven by a substantial loss from discontinued operations, totaling $415 million for the quarter and $1.365 billion for the nine months ended September 30, 2025, compared to income of $12 million and $93 million respectively in 2024. Net sales increased by 7.3% to $3.072 billion for the quarter, up from $2.862 billion in 2024, and by 5.5% to $8.720 billion for the nine months. The company completed the separation of its Electronics business into Qnity Electronics, Inc. on November 1, 2025, and announced the sale of its Aramids business to TJC LP for approximately $1.2 billion in cash, a $300 million note, and a $325 million equity interest, expected to close in Q1 2026. These divestitures and associated realignments are significantly impacting reported financials, with the divested businesses now classified as discontinued operations. DuPont also announced a $2 billion share buyback authorization on November 6, 2025.

Why It Matters

DuPont's strategic pivot, marked by the Qnity Electronics spin-off and the Aramids divestiture, signals a significant reshaping of its portfolio towards higher-growth, less cyclical businesses like Healthcare & Water Technologies. For investors, the immediate net loss of $107 million, largely due to discontinued operations, obscures underlying sales growth in continuing operations. The $2 billion share buyback authorization could provide a floor for the stock, but the competitive landscape in its new core segments will intensify. Employees in divested units face uncertainty, while customers of the remaining businesses can expect a more focused DuPont. The broader market will watch how this industrial giant successfully transforms itself, setting a precedent for other conglomerates.

Risk Assessment

Risk Level: medium — The risk level is medium due to significant ongoing portfolio transformations and associated financial impacts. The company reported a net loss of $107 million for the quarter and a $618 million net loss for the nine months ended September 30, 2025, primarily driven by a $1.365 billion loss from discontinued operations. Additionally, the filing highlights risks related to the realization of intended benefits from the Electronics Separation and Aramids Divestiture, including potential disputes, litigation, and unanticipated costs, as well as ongoing PFAS liabilities.

Analyst Insight

Investors should closely monitor DuPont's performance in its newly defined Healthcare & Water Technologies and Diversified Industrials segments, which will be reflected in the 2025 Annual Report on Form 10-K. The $2 billion share buyback authorization suggests management confidence and could support the stock price, making it a potential entry point for long-term investors who believe in the strategic transformation. However, be prepared for continued volatility as the company navigates the full financial impact of its divestitures and realignments.

Financial Highlights

revenue

$3.072B

total Debt

$7.049B

net Income

$(107)M

eps

$(0.29)

revenue Growth

+7.3%

Revenue Breakdown

Key Numbers

• $(107)M — Net (loss) income (for the three months ended September 30, 2025, compared to $465M net income in 2024)
• $(618)M — Net (loss) income (for the nine months ended September 30, 2025, compared to $846M net income in 2024)
• $3.072B — Net sales (for the three months ended September 30, 2025, up 7.3% from $2.862B in 2024)
• $8.720B — Net sales (for the nine months ended September 30, 2025, up 5.5% from $8.263B in 2024)
• $(415)M — (Loss) income from discontinued operations (for the three months ended September 30, 2025, compared to $12M income in 2024)
• $(1.365)B — (Loss) income from discontinued operations (for the nine months ended September 30, 2025, compared to $93M income in 2024)
• $1.2B — Cash proceeds (from the Aramids business divestiture)
• $2B — Share buyback authorization (announced on November 6, 2025)
• 418.98M — Common shares outstanding (at November 4, 2025)
• $7.049B — Long-Term Debt (as of September 30, 2025, up from $5.323B at December 31, 2024)

Key Players & Entities

• DuPont de Nemours, Inc. (company) — registrant
• Qnity Electronics, Inc. (company) — independent public company formed from Electronics business separation
• TJC LP (company) — acquirer of Aramids business
• $1.2 billion (dollar_amount) — cash proceeds from Aramids Divestiture
• $300 million (dollar_amount) — note from TJC in Aramids Divestiture
• $325 million (dollar_amount) — value of minority equity interest in Arclin holding company
• Arclin (company) — future holding company for global materials and Aramids businesses
• New York Stock Exchange (regulator) — exchange where Common Stock is registered
• SEC (regulator) — U.S. Securities and Exchange Commission
• $2 billion (dollar_amount) — share buyback authorization

FAQ

Risk Factors

• Impact of Discontinued Operations [high — financial]: The company reported a significant net loss of $107 million for Q3 2025, largely due to a $415 million loss from discontinued operations. This contrasts sharply with a $465 million net income in Q3 2024. The nine-month loss from discontinued operations reached $1.365 billion.
• Divestiture Execution and Integration [medium — operational]: DuPont completed the separation of its Electronics business and announced the sale of its Aramids business. These complex transactions, involving significant cash, notes, and equity, introduce execution risks and potential disruptions to ongoing operations.
• Increased Leverage [medium — financial]: Long-term debt increased to $7.049 billion as of September 30, 2025, up from $5.323 billion at December 31, 2024. This substantial increase in debt requires careful management to maintain financial flexibility.
• Market Volatility and Competition [medium — market]: While net sales grew 7.3% in Q3 2025, the company operates in competitive markets. Fluctuations in raw material costs, global economic conditions, and competitive pressures can impact profitability.
• Regulatory Compliance [low — regulatory]: As a global chemical company, DuPont is subject to various environmental, health, and safety regulations. Changes in these regulations or non-compliance could lead to significant fines, operational disruptions, and reputational damage.

Industry Context

DuPont operates in the specialty chemicals sector, characterized by innovation, R&D intensity, and cyclical demand tied to global economic activity. The industry is undergoing significant transformation driven by sustainability trends, digitalization, and strategic portfolio adjustments by major players. Competition is intense, with companies focusing on high-growth, high-margin segments.

Regulatory Implications

The company faces ongoing scrutiny regarding environmental, health, and safety regulations globally. Divestitures and operational changes may trigger new regulatory reviews or compliance requirements. Changes in tax laws or trade policies could also impact future profitability.

What Investors Should Do

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Key Dates

• 2025-11-01: Separation of Electronics business into Qnity Electronics, Inc. — Marks a significant strategic shift, removing a business segment from consolidated reporting.
• 2025-11-06: Announcement of $2 billion share buyback authorization — Signals management's confidence and commitment to returning capital to shareholders.
• 2025-Q1: Expected closing of Aramids business sale — Further portfolio reshaping, generating significant cash proceeds and reducing operational complexity.

Glossary

Discontinued Operations

A component of a business that the reporting entity has disposed of or classified as held for sale, and that represents a separate major line of business or geographical area of operations. (Crucial for understanding DuPont's reported net loss, as a substantial loss from these operations significantly impacted the overall financial results.)

Amortization of Intangibles

The systematic allocation of the cost of an intangible asset over its useful life. (A non-cash expense that reduces reported income, reflecting the consumption of value from acquired intangible assets.)

Noncontrolling Interests

The portion of equity in a subsidiary not attributable to the parent company. (Reflects ownership stakes in consolidated entities that belong to external parties, impacting net income attributable to DuPont stockholders.)

Other Comprehensive Income (Loss)

Unrealized gains and losses that bypass the income statement but affect equity, such as foreign currency translation adjustments. (Explains the significant swing in total comprehensive income, particularly the large positive impact from cumulative translation adjustments in the prior year.)

Year-Over-Year Comparison

Compared to the prior year's nine-month period, DuPont has shifted from a net income of $846 million to a net loss of $618 million, primarily driven by a substantial increase in losses from discontinued operations ($1.365 billion in 2025 vs. $93 million in 2024). While net sales have shown growth (5.5% year-to-date), the overall profitability picture is significantly impacted by these divestiture-related charges. New risks related to the execution of these strategic divestitures and an increase in long-term debt are now more prominent.

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share DD New York Stock Exchange
• $1.2 b — turn for cash proceeds of approximately $1.2 billion, subject to customary transaction
• $300 million — ote from TJC in the principal amount of $300 million and a minority equity interest valued a
• $325 million — nd a minority equity interest valued at $325 million in the future Arclin holding company th
• $2 billion — nties in connection with completing the $2 billion share buyback authorization DuPont anno

Filing Documents

• dd-20250930.htm (10-Q) — 2088KB
• exhibit311093025.htm (EX-31.1) — 10KB
• exhibit312093025.htm (EX-31.2) — 11KB
• exhibit321093025.htm (EX-32.1) — 5KB
• exhibit322093025.htm (EX-32.2) — 5KB
• 0001666700-25-000061.txt ( ) — 13315KB
• dd-20250930.xsd (EX-101.SCH) — 99KB
• dd-20250930_cal.xml (EX-101.CAL) — 157KB
• dd-20250930_def.xml (EX-101.DEF) — 505KB
• dd-20250930_lab.xml (EX-101.LAB) — 1042KB
• dd-20250930_pre.xml (EX-101.PRE) — 773KB
• dd-20250930_htm.xml (XML) — 2349KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION PAGE

Consolidated Financial Statements (Unaudited)

Item 1. Consolidated Financial Statements (Unaudited) Consolidated Statements of Operations 6 Consolidated Statements of Comprehensive Income 7 Condensed Consolidated Balance Sheets 8 Consolidated Statements of Cash Flows 9 Consolidated Statements of Equity 10 Notes to the Consolidated Financial Statements (Unaudited) 12

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 50 Overview 50 Results of Operations 52 Segment Results 55 Changes in Financial Condition 57

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 62

Controls and Procedures

Item 4. Controls and Procedures 62

- OTHER INFORMATION

PART II - OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 63

Risk Factors

Item 1A. Risk Factors 64

Unregistered Sales of Equity Securities, Use of Proceeds and Purchases of Equity Securities

Item 2. Unregistered Sales of Equity Securities, Use of Proceeds and Purchases of Equity Securities 65

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 65

Other Information

Item 5. Other Information 65

Exhibits

Item 6. Exhibits 66

SIGNATURES

SIGNATURES 67 3 Table of Contents DuPont de Nemours, Inc. DuPont TM and all products, unless otherwise noted, denoted with TM , SM or are trademarks, service marks or registered trademarks of affiliates of DuPont de Nemours, Inc. Overview DuPont de Nemours, Inc. ("DuPont") completed the previously announced separation of its Electronics business (the "Electronics Separation") into an independent public company, Qnity Electronics, Inc. ("Qnity"), by way of the distribution to DuPont's stockholders of record as of October 22, 2025 of all the issued and outstanding common stock of Qnity on November 1, 2025 (the "Distribution"). As a result, beginning in the fourth quarter of 2025, the financial results of the divested Electronics business will be reflected in DuPont's Consolidated Financial Statements as discontinued operations, along with comparative periods. On August 29, 2025, DuPont announced a definitive agreement to sell the Aramids business (the "Aramids Divestiture") to TJC LP, ("TJC"), in return for cash proceeds of approximately $1.2 billion, subject to customary transaction adjustments, a note from TJC in the principal amount of $300 million and a minority equity interest valued at $325 million in the future Arclin holding company that will hold the Arclin global materials business and the Aramids business being divested. The transaction is expected to close in the first quarter of 2026, subject to customary closing conditions and receipt of regulatory approvals. As a result, beginning in the third quarter of 2025, the financial results of the Aramids business being divested are reflected in DuPont's Consolidated Financial Statements as discontinued operations, along with comparative periods. Effective in the first quarter of 2025, in preparation for the Electronics Separation, the Company realigned its management and reporting structure. This realignment resulted in a change in reportable segments in the first quarter of 2025 which changed t

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS Certain statements in this document may be considered forward-looking statements, within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements often contain words such as "expect", "anticipate", "intend", "plan", "believe", "seek", "see", "will", "would", "target", "outlook", "stabilization", "confident", "preliminary", "initial", "continue", "may", "could", "project", "estimate", "forecast" and similar expressions and variations or negatives of these words. All statements, other than statements of historical fact, are forward-looking statements. Forward-looking statements address matters that are, to varying degrees, uncertain and subject to risks, uncertainties, and assumptions, many of which are beyond DuPont's control, that could cause actual results to differ materially from those expressed in any forward-looking statements. Forward-looking statements are not guarantees of future results. Some of the important factors that could cause DuPont's actual results to differ materially from those projected in any such forward-looking statements include, but are not limited to (i) the ability to realize the intended benefits of the Electronics Separation and Distribution, including achievement of the intended tax treatment; contractual allocation to, and assumption by Qnity of certain liabilities, including certain legacy liabilities with respect to PFAS; the possibility of disputes, litigation or unanticipated costs in connection with the Electronics Separation and Distribution; and DuPont's success in achieving its intended post-Electronics Separation capital structure; (ii) the ability to timely effect, if at all, the Aramids Divestiture and the impact of the Aramids Divestiture on DuPont's balance sheet, financial condition and future results of operations; (iii) risks and costs related t

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS DuPont de Nemours, Inc. Consolidated Statements of Operations Three Months Ended September 30, Nine Months Ended September 30, In millions, except per share amounts (Unaudited) 2025 2024 2025 2024 Net sales $ 3,072 $ 2,862 $ 8,720 $ 8,263 Cost of sales 1,877 1,739 5,302 5,107 Research and development expenses 140 127 404 370 Selling, general and administrative expenses 387 368 1,127 1,134 Amortization of intangibles 121 132 375 396 Restructuring and asset related charges - net 20 21 67 56 Acquisition, integration and separation costs 139 43 383 51 Equity in earnings of nonconsolidated affiliates 14 7 30 27 Sundry income (expense) - net 24 200 112 147 Interest expense 99 87 266 282 Income from continuing operations before income taxes $ 327 $ 552 $ 938 $ 1,041 Provision for income taxes on continuing operations 19 99 191 288 Income from continuing operations, net of tax $ 308 $ 453 $ 747 $ 753 (Loss) income from discontinued operations, net of tax ( 415 ) 12 ( 1,365 ) 93 Net (loss) income $ ( 107 ) $ 465 $ ( 618 ) $ 846 Net income attributable to noncontrolling interests 16 10 35 24 Net (loss) income available for DuPont common stockholders $ ( 123 ) $ 455 $ ( 653 ) $ 822 Per common share data: Earnings per common share from continuing operations - basic $ 0.70 $ 1.06 $ 1.70 $ 1.74 (Loss) earnings per common share from discontinued operations - basic ( 0.99 ) 0.03 ( 3.26 ) 0.22 (Loss) earnings per common share - basic $ ( 0.29 ) $ 1.09 $ ( 1.56 ) $ 1.96 Earnings per common share from continuing operations - diluted $ 0.70 $ 1.06 $ 1.70 $ 1.74 (Loss) earnings per common share from discontinued operations - diluted ( 0.99 ) 0.03 ( 3.25 ) 0.22 (Loss) earnings per common share - diluted $ ( 0.29 ) $ 1.08 $ ( 1.56 ) $ 1.96 Weighted-average common shares outstanding - basic 419.0 417.9 418.8 419.5 Weighted-average common shares outstanding - diluted 420.1 419.5 419.9 420.8 See Notes to the Consolidated Fina