DuPont Q2 Beats Market; Sees Q3 Results Above Street, Lifts FY25 Earnings View; Stock Up - Update

(RTTNews) - Specialty chemicals firm DuPont de Nemours, Inc. (DD), while reporting second-quarter results above market estimates, on Tuesday issued third-quarter outlook and raised its fiscal 2025 earnings guidance, both above the Street.

In the pre-market activity, DD shares were gaining around 5.5 percent to trade at $74.81.

Lori Koch, DuPont Chief Executive Officer, said, "Ongoing strength in electronics, healthcare and water end-markets, along with our team's focus on operational execution continued to drive strong earnings growth and cash conversion. As a result of our strong second quarter performance, we are raising our full year earnings guidance, which now incorporates the impact of tariffs."

Further, the company said it continues to advance plans for the intended separation of its electronics business, Qnity, including completing Board of Director appointments as well as assembling management teams for both companies. The firm is on track for a November 1, 2025 spin-off date.

Looking ahead, for the third quarter, the company projects adjusted earnings per share of around $1.15, operating EBITDA of around $875 million and net sales of around $3.32 billion.

The Wall Street analysts on average expect the company to report earnings of $1.13 per share on sales of $3.30 billion. Analysts' estimates typically exclude special items.

Antonella Franzen, DuPont Chief Financial Officer, said, "Our third quarter guidance assumes about 3 percent organic growth year-over-year with continued strength expected in healthcare, water and electronics end-markets, partially muted by continued weakness in construction end-markets."

For fiscal 2025, DuPont now expects adjusted earnings per share of around $4.40, operating EBITDA of around $3.36 billion and net sales of around $12.85 billion.

The company previously expected adjusted earnings per share of $4.30 to $4.40, operating EBITDA of $3.325 billion to $3.375 billion, and net sales of $12.80 billion to $12.90 billion.

Analysts expect earnings of $4.30 per share on sales of $12.80 billion for the year.

The net tariff impact assumed in the second half of 2025 is currently estimated as a $20 million headwind, or $0.04 per share.

In the second quarter, net income available for stockholders plunged to $59 million or $0.14 per share from last year's $178 million or $0.42 per share.

On a continuing operations basis, income was $238 million or $0.54 per share, up from $176 million or $0.40 per share last year.

Adjusted earnings per share were $1.12, compared to $0.97 a year ago. Analysts had expected the company to earn $1.06 per share.

Net sales were $3.26 billion, up 3% from last year's $3.17 billion. Organic sales increased 2%.

The Street expected sales of $3.24 billion.

The company reported higher volume, driven by continued strength in electronics, healthcare and water end- markets.

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