DD

Materials

DuPont

Price Chart

Market Data

Financials

XBRL · SEC EDGAR

2015–2025(11yr)

Revenue

Net Income

Free CF

Metric	FY 2015	FY 2016	FY 2017	FY 2018	FY 2019	FY 2020	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025Latest	YoY
Revenue	$48.8B	$48.2B	$62.5B	$86.0B	$21.5B	$20.4B	$16.7B	$13.0B	$12.1B	$12.4B	$6.8B	-44.7%
Gross Profit	$11.0B	$10.5B	$12.1B	$20.6B	$7.5B	$6.9B	$5.8B	$4.6B	$4.2B	$4.5B	$2.4B	-47.6%
Gross Margin	22.6%	21.8%	19.3%	24.0%	34.7%	33.7%	35.1%	35.5%	35.1%	36.4%	34.5%	-1.9pp
Net Income	$7.7B	$4.3B	$1.5B	$3.8B	$498.0M	-$3.0B	$6.5B	$5.9B	$423.0M	$703.0M	-$779.0M	-210.8%
Net Margin	15.8%	9.0%	2.3%	4.5%	2.3%	-14.5%	38.8%	45.1%	3.5%	5.7%	-11.4%	-17.0pp
Free Cash Flow	$3.9B	$1.8B	$5.1B	$894.0M	-$83.0M	$2.9B	$1.4B	-$155.0M	—	—	—	—
FCF Margin	8.0%	3.7%	8.2%	1.0%	-0.4%	14.2%	8.3%	-1.2%	—	—	—	—
EPS (Diluted)	$6.15	$3.52	$0.91	$1.65	$0.67	$-4.01	$11.89	$11.75	$0.94	$1.67	$-1.86	-211.4%

Total Debt$3.1B

Cash & Equiv.$715.0M

Net Debt$2.4B

4 min read

1. THE BIG PICTURE

DuPont is no longer the broad-based chemical giant of the past; it is now a specialized provider of mission-critical components for regulated industries like healthcare and water filtration. While this shift has decimated its top-line scale—revenue fell 44.7% on a trailing twelve-month basis—it has successfully distilled the business into a high-margin core that generates significantly more cash per dollar of sales than its larger peers (XBRL).

2. WHERE THE RISKS HIT HARDEST

DuPont’s "customer intimacy" and "proprietary technology" (10-K Item 1) are directly threatened by PFAS and "Stray Liabilities." These legacy environmental costs are difficult to estimate due to "geological complexity" and evolving regulations, potentially forcing DuPont to divert cash away from its R&DR&DResearch & Development — spending on creating new products or technologies pipeline to cover costs not indemnified by Chemours. Furthermore, DuPont’s Global Infrastructure is a double-edged sword; while it provides local service capabilities, trade tensions with China now threaten 10% of consolidated net sales, potentially increasing costs and limiting market access for the very products DuPont identifies as its future growth engines.

3. WHAT THE NUMBERS SAY TOGETHER

The financial data reveals a striking disconnect between accounting profits and cash reality. While DuPont reported a net loss of $779 million (XBRL), it leads its peer group with a staggering free cash flow (FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders) margin of 121.2%. This suggests that while depreciation, divestiture-related charges, and "stranded costs" are weighing on net income, the underlying operations remain highly cash-generative.

The massive 44.7% TTMTTMTrailing Twelve Months — the most recent full year of financial data, updated on a rolling basis each quarter revenue decline is a structural result of DuPont’s aggressive divestiture strategy rather than a collapse in demand. However, recent results show a split trajectory: while Healthcare and Water Technologies grew organic sales by 3%, the Diversified Industrials segment saw a 4% decline (8-K). This divergence is driven largely by "construction market weakness," which sent Building Technologies sales down by high-single digits. Short interest remains low at 2.3% of the float, suggesting that despite the GAAPGAAPGenerally Accepted Accounting Principles — the standard U.S. accounting rules all public companies must follow losses, the market is not betting on a collapse.

4. IS IT WORTH IT AT THIS PRICE?

At 18.2x forward earnings, DuPont trades exactly in line with the peer median (18.2x). According to CAPM analysis, this price implies the market expects 5.1% long-term growth. This expectation appears optimistic given that total net sales were "essentially flat" in the most recent quarter (8-K).

While DuPont’s 34.7% operating margin is the highest among its peers—far outperforming Dow’s -3.1%—its valuation is capped by the "Stray Liabilities" and tax risks. If growth were to slow to a GDP-pace of 2.5%, the justified multiple would drop to 12.3x, representing significant downside. Investors are currently paying a "fair value" price for a company that has superior margins but carries a much higher risk of sudden, non-operational cash outflows than peers like PPG or Packaging Corp of America.

5. WHAT WOULD CHANGE THIS VIEW?

Cautious if the IRS challenges the tax-free status of the Qnity, M&M, or N&B divestitures, which would trigger "significant tax liabilities" and impair cash flows.
Constructive if the Building Technologies segment returns to growth, signaling that the high-single-digit decline in construction-related sales has bottomed out.
Constructive if the "electronics separation" activities are completed without further "order timing shifts," which previously created a $30 million headwind to net sales (8-K).

6. BOTTOM LINE

Structural Advantage: DuPont maintains a dominant position in regulated markets through its proprietary Tyvek® and FilmTec™ brands, which are protected by deep application expertise and high switching costs in medical and water infrastructure.

Bottom Line: DuPont is a high-efficiency cash machine currently obscured by legacy legal baggage and a complex corporate restructuring that makes it a "show-me" story for conservative investors.

Source: Synthesis · LLM Analysis

4 min read

1. Top 5 Material Risks

Tax Treatment of Divestitures: If the Qnity Distribution, M&M Divestitures, or N&B transactions fail to qualify for non-recognition treatment, DuPont could incur significant tax liabilities. While DuPont has received tax opinions and rulings, the IRS could challenge these transactions, leading to material adverse impacts on financial condition and cash flows.
Contingent Liabilities from DWDP Distributions: DuPont remains jointly and severally liable for the U.S. federal income tax of the consolidated groups of Dow and Corteva for periods prior to the DWDP Merger. If those entities cannot pay their allocated taxes, DuPont may be required to cover the entire amount.
PFAS and Stray Liabilities: DuPont retains responsibility for "Stray Liabilities," including those related to PFAS, which are not defended or indemnified by Chemours. Estimating these costs is difficult due to geological complexity, evolving regulations, and the financial viability of other potentially responsible parties.
Supply Chain and Operational Disruptions: Complex global supply chains are subject to geopolitical dynamics, labor shortages, and natural disasters. Disruptions can increase costs and expenses, adversely impacting sales, earnings, and access to liquidity.
Cybersecurity and IT Systems: DuPont relies on centralized IT networks and is a target for cyber-attacks. While previous incidents have not materially affected DuPont, future breaches could result in loss of trade secrets, regulatory sanctions, and business interruptions.

2. Company-Specific Risks

Indemnification Obligations: DuPont has entered into various agreements (including the Core DWDP Agreements and Core Electronics Agreements) to indemnify Dow, Corteva, and Qnity. If these parties fail to perform their own indemnification obligations, DuPont may be forced to bear these losses, potentially diverting cash from operations.
Share Repurchase Execution: Under the $2B Authorization, DuPont may fail to realize anticipated benefits if it cannot execute repurchases as planned, or if the market price of common stock declines below the repurchase price, which could negatively impact investor confidence and stock price.
Portfolio Management: DuPont’s strategy to actively manage its portfolio through M&AM&AMergers & Acquisitions — the buying, selling, or combining of companies and divestitures carries the risk that it may fail to integrate acquired businesses or successfully separate underperforming assets, potentially leading to impairment charges or lost operating income.
Credit Rating Sensitivity: A decrease in credit ratings could increase the cost of borrowing and restrict access to debt capital markets, which are essential for financing long-term and day-to-day operations.

3. Regulatory/Legal Risks

Trade Controls: Export control and economic sanctions laws restrict the delivery of products to certain countries and end users. Compliance is costly, and failure to obtain necessary licenses could limit sales. China and Hong Kong represented approximately 10 percent of consolidated net sales in 2025.
Antitrust Investigations: The State Administration for Market Regulation of the People’s Republic of China initiated an investigation into the Tyvek® business, which accounted for approximately 1 percent of 2025 consolidated net sales.
Environmental Regulation: Evolving laws regarding pollution, greenhouse gas emissions, and hazardous substances require ongoing capital expenditures. Violations can lead to strict or joint and several liability, as well as restrictions on plant operations.
Tax Law Changes: The Inflation Reduction Act (IRA) and the One Big Beautiful Bill Act (OBBBA) introduced complex changes to international corporate income tax, including a 15 percent corporate alternative minimum tax and modifications to foreign tax credit calculations.

4. Financial Impact Map

Tax Treatment of Divestitures → Cash Flows and Results of Operations → Potential for significant tax liabilities if non-recognition treatment is denied. Contingent Liabilities (DWDP) → Cash Flows and Financial Condition → Potential requirement to pay prior period taxes for Dow or Corteva if they are unable to satisfy their obligations. PFAS and Stray Liabilities → Results of Operations → Indemnification liabilities recorded at December 31, 2025; costs are subject to uncertainty and potential material increases. Supply Chain Disruptions → Operating Profit and Cash Flows → Increased costs and expenses from raw material price volatility and operational outages. Trade Controls (China/Hong Kong) → Consolidated Net Sales → 10 percent of 2025 net sales are exposed to geopolitical and trade regulation risks.

Source: 10-K Item 1A · LLM Analysis

Recent Filings

Form	Filed	Period
10-K	Feb 2026	Dec 2025
8-K	Feb 2026	—
10-Q	Nov 2025	Sep 2025
14A	Apr 2025	—