Earlier today we reported another solid quarter ahead of our previously communicated guidance. Second quarter sales of $3.3 billion grew 2% on an organic basis. Operating EBITDA of $859 million increased 8% year over year, resulting in operating EBITDA margin of 26.4%, an increase of 120 basis points from the prior year. As a result of our strong second quarter financial performance, we are raising our full year earnings guidance.
Second quarter saw continued strength in electronics driven by AI technology demand in both Interconnect Solutions and Semi and strong volume growth in Healthcare and Water. DuPont, we've assembled a highly experienced senior leadership team consisting of a healthy mix between in-house and external talent who bring great experience in driving growth and margin expansion. Jeroen has both internal and external experience in complex global markets with a strong focus on commercial excellence as well as a growth mindset. Dave brings extensive knowledge and operational excellence with a proven track record of driving performance improvement and implementing business systems.
The new DuPont will have a more focused portfolio highlighted by high-growth healthcare and water end markets, with a continued emphasis on innovation and customer relationships. We are well positioned to accelerate growth through a more agile and focused organization. Cunity is well positioned for growth, powered by a large and expanding addressable market. At that event, I will share more about our portfolio and strategy, unique competitive advantages, and innovation engine to drive long term growth.
What went well
- Second quarter sales of $3.3 billion grew 2% organically (3% reported), with operating EBITDA of $859 million up 8% year-over-year.
- Operating EBITDA margin of 26.4% increased 120 basis points from the prior year; adjusted EPS of $1.12 was up 15% from $0.97.
- Electronics Company organic sales up 6%, led by high single-digit growth in interconnect solutions and mid single-digit strength in semi on AI demand; Electronics EBITDA up 14% with margin up 220 basis points to 31.9%.
- Healthcare and water sales up high single digits organically with strong growth in both businesses, supported by lapping of prior-year destocking.
- Transaction adjusted free cash flow of $433 million and conversion of 93%, in line with expected acceleration.
- Announced a New Jersey settlement (with Chemours and Corteva) resolving environmental and PFAS claims, with DuPont's portion of $177 million on an NPV basis payable over a 25-year period.
What went wrong
- Organic price declined 2% in the quarter, primarily on the diversified industrial side as pricing taken during the inflationary period was given back.
- Diversified Industrial sales were down low single digits organically due primarily to softness in construction markets, with weakness in construction continuing to impact the business.
- The midpoint of full year total company net sales guidance remained unchanged as currency benefits were offset by volume softness, primarily a delayed recovery in construction end markets.
- Tariffs created a net second-half headwind, estimated at $20 million or $0.04 per share, split between Q3 and Q4.
- Most of the non-AI electronics economy remained relatively weak, with consumer devices expected to be up only low single digits.
Guidance Changes
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Performance Breakdown
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Earnings Call Themes & Trends
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More on DuPont de Nemours, Inc.
Reported 2025-08-05 · figures from the DuPont de Nemours, Inc. Q2 2025 earnings call.