DuPont(DD) - 2025 Q1 - Quarterly Report

Financial Performance - DuPont reported net sales of $3.1 billion for the three months ended March 31, 2025, a 5$2.9 billion in the same period of 2024, driven by an 8% increase in volume [194]. - ElectronicsCo segment net sales reached $1,118 million, up 14$984 million year-over-year, primarily due to a 16% increase in volume [209]. - Net sales for the three months ended March 31, 2025, were $1,948 million, remaining flat compared to$1,947 million for the same period in 2024, with a 3% increase in volume offset by a 1% decrease in local price and product mix [212]. - Operating EBITDA increased by 6% to $464 million for the three months ended March 31, 2025, compared to$439 million for the same period in 2024, driven by increased productivity and savings from prior year restructuring actions [213]. Expenses - Cost of sales remained flat at $1.9 billion for both the three months ended March 31, 2025, and 2024, with cost of sales as a percentage of net sales decreasing from 65$137 million in Q1 2025 from $125 million in Q1 2024, maintaining a consistent percentage of 4$369 million in Q1 2025 from 384 million in Q1 2024, with SG&A as a percentage of net sales remaining stable at 12% [197]. - Acquisition, integration, and separation costs for Q1 2025 were 125 million, significantly higher than $3 million in Q1 2024, related to the Intended Electronics Separation [201]. - The company recorded pre-tax restructuring charges of$46 million for the three months ended March 31, 2025, related to the Transformational Separation-Related Restructuring Program [240]. Cash Flow and Debt - Cash provided by operating activities of continuing operations was $382 million for the first three months of 2025, down from$493 million in the same period last year, primarily due to increased cash used by net working capital [228]. - Cash used for investing activities of continuing operations was $247 million in the first three months of 2025, compared to$202 million in the same period in 2024, primarily due to higher capital expenditures [230]. - Total debt as of March 31, 2025, was $7,174 million, slightly up from$7,171 million as of December 31, 2024 [218]. - The company is contractually obligated to make future cash payments of $1.9 billion in principal and$359 million in interest on debt obligations due in the next twelve months [219]. Dividends - The Company declared a second quarter 2025 dividend of $0.41 per share, payable on June 16, 2025 [192]. - The company declared a first quarter 2025 dividend of$0.41 per share, paid on March 17, 2025, to shareholders of record on March 3, 2025 [234]. Tax and Financial Health - The effective tax rate on continuing operations for Q1 2025 was (27.7)%, a decrease from 31.5% in Q1 2024, primarily due to the non-tax-deductible goodwill impairment charge [205]. - The current ratio improved to 1.4:1 as of March 31, 2025, compared to 1.33:1 as of December 31, 2024, indicating better short-term financial health [229]. Goodwill and Separation Plans - Goodwill impairment charges amounted to $768 million in Q1 2025, compared to no charges in Q1 2024 [200]. - DuPont is targeting November 1, 2025, for the completion of the Intended Electronics Separation, which will not require a shareholder vote [187].