DD · Q4 2025 Earnings

Bullish

DuPont

Reported February 10, 2026

30-second summary

Standalone DuPont closed FY2025 with Q4 revenue of $1.69B (+0.2% YoY) and non-GAAP EPS of $0.46, both modestly ahead of last quarter's Q4 guide ($1.685B / $0.43), with operating EBITDA of $409M beating the $385M guide by 6.2% and margin holding at 24.2% — a softer step-down than the implied 22.8%. The FY2026 guide is the headline: revenue $7.075–$7.135B (~+3.3–4.2% YoY) and non-GAAP EPS $2.25–$2.30 (~+34–37% YoY), with operating EBITDA up 6–8% and 60–80bps of margin expansion — an EPS algorithm that depends heavily on the $500M ASR, productivity, and a lower share count rather than topline. Construction stabilization, healthcare and water mid-single-digit growth, and improving January order trends are the validating data points; the GICS reclassification push and an active healthcare M&A pipeline are the open optionality.

Headline numbers

EPS

Q4 FY2025

$0.46

Revenue

Q4 FY2025

$1.69B

+0.2% YoY

Gross margin

Q4 FY2025

35.3%

Operating margin

Q4 FY2025

24.2%

Key financials

Q4 FY2025

Metric	Q4 FY2025	YoY	Q3 FY2025	QoQ
Revenue	$1.69B	+0.2%	$3.07B	-44.9%
EPS	$0.46	—	$1.09	-57.8%
Gross margin	35.3%	—	38.9%	-360bps
Operating margin	24.2%	—	27.3%	-310bps

Guidance

Guidance is issued for the full year only, refreshed each quarter. Prior and new below are the same FY updated this quarter.

Actuals vs prior guidance

Metric	Period	Prior guide	Actual	Δ	Result
Revenue	Q4 FY2025	$1.685 billion	$1.693 billion	in-line	Met
Operating EBITDA	Q4 FY2025	$385 million	$409 million	+$24M above guide	Beat
EPS	Q4 FY2025	$0.43	$0.46	+$0.03 above guide	Beat
Revenue	FY 2025	$6.84 billion	$6.849 billion	in-line	Met
EPS	FY 2025	$1.66	$1.68	+$0.02 above guide	Beat
Operating EBITDA	FY 2025	$1.6 billion	$1.61 billion (implied from Q4 $409M + prior quarters)	+$10M above guide	Beat

New guidance

Metric	Period	Guide	YoY
Revenue	Q1 FY2026	$1.67 billion	—
EPS	Q1 FY2026	$0.48	—
Operating EBITDA	Q1 FY2026	~$395 million	—
Revenue	FY 2026	$7.075 - $7.135 billion	+3.3% to +4.2%
EPS	FY 2026	$2.25 - $2.30	+33.9% to +36.9%
Operating EBITDA	FY 2026	$1,725 - $1,755 million	+6.0% to +8.0%

Segment KPIs

Q4 FY2025

Segment	Q4 FY2025	YoY
Healthcare & Water Technologies	$0.821B	+3.0%
Diversified Industrials	$0.872B	-4.0%

Other KPIs

Q4 FY2025

Segment	Q4 FY2025	YoY
U.S. & Canada	$0.839B	-0.7%
EMEA	$0.357B	+7.2%
Asia Pacific	$0.419B	-2.8%
Latin America	$0.078B	-3.8%
Operating EBITDA	$409M	—
Operating EBITDA Margin	24.2%	—
Organic Sales Growth (Q4)	-1.0%	—
Organic Sales Growth (FY)	2.0%	—
Healthcare & Water Technologies Operating EBITDA Margin	31.1%	—
Diversified Industrials Operating EBITDA Margin	22.6%	—
Transaction-Adjusted Free Cash Flow (Q4)	$228M	—
Transaction-Adjusted Free Cash Flow (FY)	$689M	—

Management tone

Q2 anchor → Q3 anchor → Q4 anchor: "Spin execution and AI concentration" → "Post-separation offensive posture with operational governance" → "Execution-driven growth with credible 2026 algorithm"

The narrative has completed its transition from portfolio transformation to operational growth. Through 2025, management's framing arc moved from defending the separation, to introducing operational KPIs, to — this quarter — committing to a specific 2026 algorithm grounded in productivity and innovation rather than restructuring. The anchor quote: "Operational discipline and a focus on productivity were key to our earnings growth and margin improvement." The 60–80bps margin expansion guide and explicit 6–8% EBITDA growth target are concrete commitments that didn't exist in this form two quarters ago. The signal is that the post-spin team feels confident enough to publish a forward algorithm without hedging it against "transitional" qualifiers.

Construction has moved from "embedded drag" (Q2) to "footnote risk" (Q3) to "stabilization" (Q4). Last quarter management framed shelter as "the negative offset that's smaller than the positives"; this quarter Lori Koch stated: "In construction, after years of decline, market stabilization is expected with flattish demand year over year." The granular Q&A breakdown — non-res and repair/remodel up low-single-digits, residential down low-to-mid-single-digits — converts a vague stabilization narrative into a falsifiable forecast. This is the call where the construction watch item materially shifted from headline risk to a flat-to-up assumption embedded in guidance.

Innovation framing pivoted from "replacement" to "growth mix shift." "There is a portion of that 30% vitality index that is replacement... we want to continue to do that, but also shift the mix towards growth so that we can get incremental top line growth out of the innovation engine." This is the first quarter management has explicitly called out a strategic intent to re-weight the new-product pipeline toward growth-creating launches rather than defensive replacements — a tell that they view the portfolio quality as durable enough to take that risk.

Early-2026 data points are being used offensively, not defensively. "We are off to a good start to the year. Our January sales were in line with expectations, and overall, we are seeing improving order trends in our industrial technologies business, which we view as an indication that these markets, which were down last year, are beginning to stabilize and recover." Two quarters ago this commentary would have been hedged with macro caveats; this quarter it's used to validate the FY2026 acceleration thesis.

Capital allocation language remained deliberately flexible. Management deflected analyst pressure for specific M&A vs. buyback allocation percentages, maintaining the ~$1B cash target and >90% FCF conversion targets without earmarking deployment. This is the one area where the tone is still "optionality" rather than "commitment" — consistent with an active healthcare M&A pipeline management characterized as "more robust."

Recurring themes management leaned on this quarter:

Organic growth acceleration (2% in 2025 to 3% expected in 2026)Operational excellence and productivity-driven margin expansion (60-80 bps guidance)Business system buildout with enhanced KPIs and Kaizen deploymentInnovation momentum (125 new products, $2B in new product sales, 30% vitality index)Healthcare and water secular tailwinds (mid-single digit growth expected)Industrial stabilization and aerospace strength offsetting construction weakness

Risks management surfaced:

Mixed macroeconomic environment with U.S. and Europe automotive weaknessChina industrial production slowdown impacting water segment growthConstruction market weakness persisting into early 2026 despite stabilization narrativeOrder timing shifts and supply chain distributor relationship changes (Asia Pacific)High valuations in potential M&A targets limiting acquisition opportunities

Q&A highlights

Rachel Leon · Citi

Clarification on organic sales growth expectations across regions in Q1 and full year 2026, and visibility into order books across the healthcare portfolio.

Management expects organic growth across all regions in Q1 (2%) and full year (3%), with most improvement in North America driven by shelter business improvement. Order book visibility: 80% at month start, 50% at quarter start. Shelter has shortest cycle; aerospace and water have longest cycles.

Q1 2026 organic growth: 2%Full year 2026 organic growth: 3%80% of orders on books at month start50% of orders on books at quarter start

Michael Susan · Wells Fargo

Breakdown of U.S. construction outlook (non-res, residential, repair/remodel) and status on industry designation reclassification from chemicals.

Non-res and repair/remodel expected up low single-digit; residential expected down low-to-mid single-digit. Company continues pursuing GICS classification change to better reflect portfolio; not a specialty chemical company.

Non-res construction: up low single-digitRepair and remodel: up low single-digitResidential: down low-to-mid single-digitGICS reclassification efforts ongoing

Arun Viswanathan · RBC Capital Markets

Destocking concerns in healthcare and water segments, and M&A strategy/pipeline in these businesses.

No destocking observed; inventory levels normalized post-Q1 2025. Healthcare M&A pipeline more robust due to fragmentation and lower valuations. Med device acquisitions (Spectrum, Donatella model) continue. Actively scouting opportunities in both healthcare and water.

Destocking in Q1 2025 is now behind the companyHealthcare M&A pipeline described as more robustFocus on med device acquisitions to build total solutions portfolioSpectrum and Donatella cited as acquisition template

Answers to last quarter's watch list

Q4 organic sales decline holding near ~-1% reported / ~+1% normalized — Q4 organic sales declined 1.0%, exactly in line with the prior guide. The timing pull-forward from Q3 reversed cleanly, with no evidence of incremental end-market deterioration.

Resolved positively

Q4 operating EBITDA margin landing near implied ~22.8% — Q4 operating EBITDA margin came in at 24.2%, 140bps above the implied guide, with EBITDA of $409M vs. $385M guide. The sequential step-down from Q3's 27.3% was 310bps rather than the implied 450bps, indicating better structural margin run-rate than feared.

Resolved positively

First disclosed divestiture or M&A action — No concrete transaction announced in Q4. Management said the healthcare M&A pipeline is "more robust" and continues scouting med device opportunities (Spectrum/Donatelle template), but no signed deal. Aramid divestiture proceeds are noted as forthcoming.

Continue monitoring

ASR execution and pace of remaining buyback authorization — Management confirmed $500M was deployed via ASR in 2025; the remaining ~$1.5B of the $2B authorization was not given a specific timeline. The capital allocation answer was deliberately framed around shareholder value optionality rather than committed pace.

Continue monitoring

Shelter/construction stabilization signal — Construction explicitly framed as stabilizing with flat 2026 demand; non-res and R&R up low-single-digits, residential down low-to-mid. The shelter component is starting Q1 slightly negative and expected to trend to even for the full year — consistent with the multi-hundred-bps tailwind story management built last quarter.

Resolved positively

What to watch into next quarter

Bridge from +6–8% EBITDA growth to +34–37% EPS growth — the gap is unusually wide; investors need explicit commentary on share-count contribution from the completed $500M ASR, corporate cost normalization, tax rate, and any additional capital returns from Aramid proceeds. A miss anywhere in this bridge undermines the FY2026 EPS algorithm.

Q1 organic growth landing at +2% with positive sequential momentum in Diversified Industrials — Q4 Diversified was -4%; Q1 needs to show a clear bounce off the timing-reversal trough. Anything weaker than flat YoY in Q1 reopens the question of whether the FY2026 +3% organic is achievable.

Healthcare & Water re-accelerating toward mid-single-digit growth — Q4 printed +3% reported, below the segment's medium-term mid-single-digit target. The FY2026 guide implies acceleration; Q1 needs to show that path.

First concrete M&A transaction or progress on Aramid proceeds deployment — management has now spent three calls articulating the healthcare M&A pipeline; investor patience for "active scouting" language will erode if Q1 passes without a signed deal or a specific capital deployment announcement.

GICS reclassification progress — management confirmed this is an active workstream; any procedural update would be a material valuation catalyst given the multi-industrial vs. specialty chemical multiple gap.

Pace of remaining ~$1.5B buyback authorization — with the ASR done and Aramid proceeds incoming, the rate of execution against the residual authorization is the cleanest read on whether capital allocation truly tilts toward returns or holds dry powder for M&A.

Sources

DuPont Q4 2025 Earnings Press Release / Schedules (8-K Ex. 99.1), filed February 10, 2026: https://www.sec.gov/Archives/edgar/data/1666700/000166670026000007/exhibit991enrschedules-4q25.htm
DuPont Q4 2025 Earnings Conference Call commentary (as referenced in extraction inputs).

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