DuPont(DD) - 2025 Q3 - Quarterly Results

Financial Performance - Net sales for Q3 2025 were $3.1 billion, a 7% increase year-over-year, with organic sales growth of 6%[4] - GAAP income from continuing operations decreased to $308 million, down 32% from $453 million in Q3 2024[3] - Operating EBITDA increased to $840 million, reflecting a 6% growth compared to $791 million in the prior year[3] - The company raised its full-year 2025 operating EBITDA guidance to approximately $1.6 billion[4] - DuPont reported net sales of $3,072 million for Q3 2025, a 7.3% increase from $2,862 million in Q3 2024[48] - Income from continuing operations before income taxes decreased to $327 million in Q3 2025 from $552 million in Q3 2024, a decline of 40.7%[48] - The adjusted earnings per share (EPS) for Q3 2025 was $0.70, compared to $1.06 in Q3 2024, a decrease of 34%[48] - DuPont's net loss attributable to common stockholders was $123 million in Q3 2025, compared to a net income of $455 million in Q3 2024[48] - The company reported a loss from discontinued operations of $415 million in Q3 2025, contrasting with a gain of $12 million in Q3 2024[48] - Total net sales for the nine months ended September 30, 2025, reached $8,720 million, a 5.5% increase compared to $8,263 million in the prior year[54] - Operating EBITDA for the nine months ended September 30, 2025, was $2,361 million, up from $2,124 million in the same period of 2024, reflecting an increase of 11.2%[57] - For the nine months ended September 30, 2025, reported losses (GAAP) were $938 million, compared to earnings of $1,041 million in the same period of 2024[73] Cash Flow and Dividends - Transaction-adjusted free cash flow for the quarter was $576 million, with a conversion rate of 126%[7] - Cash provided by operating activities from continuing operations was $1,260 million for the nine months ended September 30, 2025, compared to $1,517 million in 2024, indicating a decrease of 16.9%[52] - Cash provided by operating activities for Q3 2025 was $591 million, down from $665 million in Q3 2024, representing a decrease of 11.1%[61] - Adjusted free cash flow for Q3 2025 was $445 million, a decline of 21.4% compared to $566 million in Q3 2024[61] - The adjusted free cash flow conversion rate for Q3 2025 was 97%, down from 123% in Q3 2024[61] - A quarterly dividend of $0.20 per share was declared, aligning with a targeted payout ratio of 35%-45%[10] Costs and Expenses - The cost of sales for Q3 2025 was $1,877 million, up from $1,739 million in Q3 2024, reflecting a 7.9% increase[48] - Research and development expenses increased to $140 million in Q3 2025 from $127 million in Q3 2024, a rise of 10.2%[48] - The company incurred acquisition, integration, and separation costs of $139 million in Q3 2025, significantly higher than $43 million in Q3 2024[48] - Acquisition, integration, and separation costs for the nine months ended September 30, 2025, totaled $383 million, significantly impacting reported losses[73] - The company incurred $131 million in separation-related transaction costs for Q3 2025, compared to $12 million in Q3 2024[61] Assets and Liabilities - Total assets increased to $38,044 million as of September 30, 2025, up from $36,636 million at December 31, 2024, representing a growth of 3.9%[50] - Total current liabilities increased to $5,005 million as of September 30, 2025, from $4,887 million at December 31, 2024, marking a rise of 2.4%[50] - Long-term debt rose significantly to $7,049 million as of September 30, 2025, compared to $5,323 million at December 31, 2024, an increase of 32.5%[50] - The company’s accumulated deficit increased to $(23,728) million as of September 30, 2025, compared to $(23,076) million at December 31, 2024[50] Market Performance - ElectronicsCo achieved 10% organic sales growth, while IndustrialsCo saw 4% organic sales growth[11] - DuPont's operational improvements and strong performance in healthcare and water end-markets contributed to the positive outlook despite challenges in construction markets[23] - Net sales in the Asia Pacific region for the nine months ended September 30, 2025, were $4,020 million, up from $3,767 million in 2024, reflecting a growth of 6.7%[54] Future Outlook - The company expects full-year net sales to be approximately $6.84 billion, reflecting a slight decrease from prior guidance[21] - The company plans to continue its focus on the Electronics Separation and Distribution, which is expected to impact its future capital structure and operational efficiencies[30]