DuPont de Nemours (DD 2.38%), a diversified global chemical and materials company, reported its second quarter 2025 earnings on August 5, 2025. The company posted adjusted earnings per share of $1.12 for Q2 2025, above analyst expectations of $1.06 (non-GAAP), and GAAP revenue of $3,257 million for Q2 2025, narrowly topping the $3,239.93 million GAAP consensus. Results reflected meaningful year-over-year improvements in key metrics. Electronics and healthcare segments reported robust volume growth, offsetting ongoing pricing pressures. The period also included a large GAAP goodwill impairment related to the Aramids business within IndustrialsCo. Overall, the quarter marked continued progress in profitability and operational focus, with management raising full-year 2025 guidance.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| Adjusted EPS (Non-GAAP) | $1.12 | $1.06 | $0.97 | 15% |
| Revenue | $3.26 billion | N/A | $3.17 billion | 3% |
| Operating EBITDA (Non-GAAP) | $859 million | $798 million | 8% | |
| Transaction-Adjusted Free Cash Flow (Non-GAAP) | $433 million | $425 million | 1.9% | |
| Operating EBITDA Margin | 26.4% | 25.2% | 1.2 pp |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Business Overview and Key Success Factors
DuPont de Nemours is known for developing advanced materials and specialty solutions across a variety of industries, including electronics, water, healthcare, and construction. Its product portfolio spans from semiconductor materials for AI, data centers, and advanced packaging, to filtration technologies for water purification and industrial processes.
In recent years, DuPont has focused on refining its core business lines through strategic acquisitions, divestitures, and targeted R&D. This means it has sold segments with lower growth outlooks, like the Mobility & Materials and Delrin businesses, while purchasing companies such as Spectrum Plastics Group in August 2023 to build its position in healthcare. The company identifies its core strengths as innovation, financial discipline, focus on high-growth end markets (like electronics and medical devices), and investment in sustainability and talent.
Quarter in Detail: Financial and Segment Performance
During Q2 2025, DuPont beat consensus estimates for both adjusted (non-GAAP) EPS and GAAP revenue, reflecting solid underlying execution. Revenue grew 3%, driven by a 4% increase in sales volume (organic, non-GAAP), with the electronics, healthcare, and water markets each contributing. Price headwinds continued, with a -2% impact across the company, but were partially offset by favorable currency movements that added one percentage point.
The ElectronicsCo segment, which supplies semiconductor materials and interconnect solutions for industries such as AI and high-performance computing, delivered 6% net sales growth in Q2 2025. Volume climbed 8%, while pricing slipped 2%. Notably, semiconductor technologies organic revenue rose mid-single digits, and interconnect solutions sales grew by high-single digits on an organic basis, both fueled by ongoing demand for AI-enabled applications. The segment’s operating EBITDA improved by 14% on a non-GAAP basis, and its operating EBITDA margin expanded to 31.9%, up 2.2 percentage points.
IndustrialsCo, encompassing offerings for healthcare, water filtration, and diversified industrials, showed a more mixed but still positive picture. Net sales edged up 5%, with healthcare and water technology sales increasing by high-single digits organically. The diversified industrials line saw a mid-single digit decline on an organic basis, which management linked mainly to construction market weaknesses. Segment operating EBITDA (non-GAAP) was 3% higher year over year (to $509 million), and operating EBITDA margin improved to 24.4%.
Transaction-adjusted free cash flow (non-GAAP), a measure that excludes spin-off costs to better reflect underlying cash generation, rose 2% to $433 million, as separation-related fees and investments continued to weigh on reported figures.
A notable one-time item was a $768 million goodwill impairment (GAAP) related to the Aramids business, a type of high-performance fiber used for protective gear and industrial uses. The charge stemmed from realignment and more granular segment reporting, not from a sudden change in expected business performance.
Strategic Moves, Products, and Material Events
DuPont continued to advance its core strategy of portfolio optimization during the period. The planned spin-off of its Electronics business (to be branded as “Qnity”) remains on schedule for completion by November 1, 2025. Management expects no significant mergers or acquisitions before the separation.
Innovation remains central for the company. The ElectronicsCo segment benefited from growing demand for advanced-node semiconductor materials -- products used in new generations of microchips, especially those tailored for AI and data center markets. Interconnect Solutions, which supplies materials for circuit connections in electronics, also delivered growth as adoption of higher-density packaging and advanced chip designs intensified.
The industrial portfolio’s healthcare and water units continued their steady climb, with water-related product lines (such as reverse osmosis membranes and ion exchange filters) meeting needs in both industrial purification and environmental clean-up, including PFAS (per- and polyfluoroalkyl substances) remediation. The company also called out development work in emerging water technologies, for example, direct lithium extraction for battery manufacturing.
Operational efficiency gains were clear, with the company achieving a 1.2 percentage point increase in operating EBITDA margin year over year (non-GAAP), signaling ongoing investment in both new technology and production capacity.
Sustainability continues to be a stated priority, both as a business opportunity and a compliance factor. Research and development spending increased 6% to $142 million (GAAP) compared to Q2 2024 as DuPont kept funding for new product development and innovation.
Exposure to China is sizeable but mitigated by product integration and long-standing customer relationships, limiting sales volatility from sudden policy changes or trade disputes.
The period included $154 million in acquisition, integration, and separation costs, which continued to impact near-term cash flow visibility. Meanwhile, management flagged that the goodwill impairment in Aramids stemmed from accounting rules triggered by segment realignment, not from unexpected revenue or profit shortfalls. Overall equity (GAAP) was down slightly to $23.1 billion as of June 30, 2025, versus $23.4 billion at December 31, 2024.
Looking Ahead: Management Guidance and Investor Focus
Management raised its full-year fiscal 2025 outlook. It now expects revenue of approximately $12.85 billion for full year 2025, operating EBITDA (non-GAAP) of $3.36 billion for full year 2025, and adjusted EPS (non-GAAP) around $4.40 for full year 2025. Third quarter 2025 targets are $3.32 billion of revenue, $875 million in operating EBITDA for Q3 2025 (non-GAAP), and adjusted EPS of $1.15 for Q3 2025 (non-GAAP). These forecasts incorporate $20 million in expected tariff-related headwinds for FY2025, down from an earlier $60 million estimate for FY2025.
Despite higher guidance, management remains cautious about persistent price erosion, negative trends in industrial end markets, and the continuation of significant separation costs through at least the November 2025 spin date. Volume growth in electronics, healthcare, and water remains a key focus, while construction and automotive businesses face a much slower path to recovery. The company identified continuing innovation in semiconductor and water technologies, further supply chain flexibility, and the post-spin capital structure as elements to watch in the quarters ahead.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
