DuPont(US:DD)2025-09-18 14:02Summary of DuPont's Investor Day 2025 Company Overview - Company: DuPont - Event: Investor Day 2025 - Key Themes: Transformation, innovation, and acceleration [1][2] Financial and Strategic Highlights - Pro Forma Basis: Presentation based on the new DuPont after the spin-off of Delrin and divestiture of the Aramids business [2] - New Reporting Segments: Focus on healthcare, water technologies, and diversified industrials [2] - Timeline: Spin-off expected on November 1, 2025, and divestiture completion in Q1 2026 [2] Key Messages from Leadership 1. Transformation Execution: Focus on portfolio and operational transformation to reduce complexity and cyclicality [7] 2. Excellence Focus: Codifying innovation excellence and operational excellence into a comprehensive business system [8] 3. Growth Acceleration: Half of the businesses positioned in markets growing above GDP, with continued investment in these areas [8] 4. Capital Allocation: Disciplined model to deliver strong returns for shareholders [9] 5. Cultural Enhancement: Building a culture focused on growth and continuous improvement [9] Financial Performance and Projections - Revenue Growth: Divestiture of the Aramids business expected to increase revenue growth by 50 basis points and margin by 90 basis points [10] - Long-term Targets: Projecting 3-4% organic growth CAGR, margin expansion of 150-200 basis points by 2028, and EPS growth of 8-10% [25][26] Business Segments Healthcare and Water Technologies - Sales Contribution: Healthcare and water technologies each represent about 25% of sales [13] - Market Position: Leading position in medical devices, biopharma, and water filtration [34][42] - Growth Drivers: Aging population, chronic diseases, and increasing demand for clean water [38][46] - Expected EBITDA Margin: Approximately 30% for the Healthcare and Water segment [34] Diversified Industrials - Sales Contribution: Represents about 50% of DuPont's portfolio [14] - Market Leadership: Strong presence in construction, automotive, aerospace, and industrial sectors [55] - Sales and Margin: $3.6 billion business with a 22% operating margin [55] - Growth Opportunities: Focus on energy efficiency, sustainability, and innovation in product offerings [62][63] Innovation and R&D - Investment Focus: Emphasis on innovation to drive growth, with a vitality index of 30% [16] - New Product Sales: 40% growth and 60% renew, with plans to shift towards more growth [16] - Customer Collaboration: Strong partnerships with leading medical device and biopharma companies [41] Market Opportunities - Addressable Market: Combined addressable market of over $40 billion [14] - Sustainability Trends: Increasing focus on sustainability and regulatory requirements driving growth in water technologies [46][48] Conclusion - Commitment to Excellence: DuPont aims to enhance shareholder value through disciplined capital decisions and consistent delivery of growth and margin expansion [26][27] - Future Outlook: Positioned to lead in innovation and sustainability, with a strong focus on operational excellence and customer collaboration [69][70]