DuPont's Electronics Spinoff: The Start of Something Big

Core Viewpoint - DuPont de Nemours Inc. is positioned to benefit from the AI boom, with strong performance in its Electronics division and a planned spinoff of this division set for November 1, 2025 [2][3]. Financial Performance - DuPont reported Q4 2024 adjusted EPS of $1.13, exceeding consensus estimates by $0.15, with revenues increasing by 6.7% year-over-year to $3.09 billion, surpassing the $3.07 billion consensus [3]. - The full year 2024 net sales rose by 3% to $12.4 billion, with GAAP income of $778 million and operating EBITDA of $3.14 billion [4]. - Operating cash flow was $2.3 billion, and free cash flow reached $1.8 billion, with margins expanding by 100 basis points to 17% [4]. Division Performance - The Electronics & Industrial division achieved 11% year-over-year revenue growth to $1.51 billion, with an operating EBITDA of $457 million, reflecting a 30.3% margin [2]. - The company decided to retain its Water & Protection business instead of spinning it off, focusing on the Electronics division spinoff [2]. Future Outlook - For 2025, DuPont expects EPS between $4.30 and $4.40, aligning closely with the consensus estimate of $4.37, and revenue guidance is set between $12.8 billion and $12.9 billion, compared to the consensus of $12.9 billion [5]. - Analysts project an average price target of $98.75 for DuPont stock, indicating a potential upside of 20.92% [3][8]. Market Position - DuPont faces competition from major players like 3M, Huntsman Co., and Celanese Co. in the industrial materials and specialty chemicals sector [1]. - The stock has received 10 Buy ratings and 2 Hold ratings from analysts, with a short interest of 0.91% [8].