NYSE$DD

DuPont de Nemours Inc. · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

DuPont's Q2 2023 performance exceeded expectations with sequential revenue and earnings growth as well as margin improvement.

DuPont reported Q2 2023 results with net sales of $3.1 billion, a 7% decrease from the previous year. However, the company's revenue and operating EBITDA exceeded expectations with sequential revenue and earnings growth and margin improvement. Strength was seen in industrial end-markets, while consumer-driven businesses within electronics experienced softness.

  • Net sales decreased 7% to $3.1 billion; organic sales decreased 4% versus year-ago period.
  • GAAP Income from continuing operations was $269 million; operating EBITDA was $738 million.
  • GAAP EPS from continuing operations was $0.55; adjusted EPS was $0.85.
  • Cash provided by operating activities from continuing operations was $400 million; adjusted free cash flow was $277 million.

Headline financials

Total Revenue

$3.09B

Previous: $3.32B-6.9%
EPS (adj)

$0.85

Previous: $0.88-3.4%
Operating EBITDA

$738M

Previous: $829M-11.0%
EBITDA margin

23.9%

Previous: 25.0%-4.4%
Transaction-adjusted FCF

$277M

No prior period
Free Cash Flow

-$131M

Previous: $787M-116.6%
Net Income

-$131M

Previous: $787M-116.6%
Operating Income

-$2.76B

Previous: -$2.85B+3.2%
Gross Profit

$1.06B

Previous: $1.17B-9.3%
Cash & Equivalents

$4.89B

Previous: $1.44B+239.5%
Total Assets

$40.8B

Previous: $44.4B-8.2%

Revenue & EPS history

DuPont · Revenue · Quarterly

$3.09B

Q2 2023-6.9%vs Q2 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

DuPont anticipates fairly steady demand in most industrial-based end-markets within the E&I and W&P segments. Sales moderation is expected in the Water Solutions business due to slower demand in China. Sequential sales improvement is expected in the Interconnect Solutions business, and sales in Semiconductor Technologies are expected to improve slightly in the second half of 2023.

Tailwinds

  • Expect fairly steady demand in most industrial-based end-markets within the E&I and W&P segments.
  • Saw sequential sales improvement in our Interconnect Solutions business during the second quarter
  • Mid-single digit sequential sales lift expected in the third quarter in Interconnect Solutions business
  • Assume sales in the second half of 2023 will improve slightly in Semiconductor Technologies
  • Estimated contribution from Spectrum beginning August 1

Headwinds

  • Expect sales moderation in our Water Solutions business due to slower demand in China
  • Net sales ~$3,150 million for 3Q23
  • Operating EBITDA(2) ~$755 million for 3Q23
  • Adjusted EPS(2)(3) ~$0.84 for 3Q23
  • Net sales $12,450 - $12,550 million for Full Year 2023

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+0.8%

Avg return

Earnings day

+1.0%

Avg return

5 days after

+0.0%

Avg return

30 days after

63%

40 / 64 earnings

Positive

+12.5%

Q3 2021

Best reaction

-11.3%

Q4 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.1%+9.6%+4.0%
Q4 2025+4.9%+6.6%-3.7%
Q3 2025-1.1%+1.9%+2.2%
Q1 2025+1.7%-2.3%+1.1%
Q4 2024+6.8%+9.2%-1.8%
Q3 2024+3.0%+2.8%-0.1%
Q2 2024+2.8%-3.2%+4.8%
Q1 2024+7.2%+8.3%+13.3%
Q4 2023+8.6%-15.0%-6.3%
Q3 2023-6.5%-4.6%-0.6%
Q2 2023+0.1%+1.3%+1.2%
Q1 2023-7.2%-5.6%-2.8%
Q4 2022+6.3%+4.8%-2.1%
Q3 2022+8.6%+14.7%+13.1%
Q2 2022-3.4%-2.2%-8.3%
Q1 2022+4.4%-0.7%+4.4%
Q4 2021+8.1%+5.2%-4.4%
Q3 2021+12.5%+12.9%+5.7%
Q2 2021-0.5%+1.9%-1.0%
Q1 2021+3.4%+5.8%+9.1%
Q4 2020-7.2%-2.3%-14.3%
Q3 2020+1.7%+6.6%+15.4%
Q2 2020-3.7%-4.3%+3.0%
Q1 2020-1.5%+4.9%+22.9%
Q4 2019-11.3%-8.6%-25.6%
Q3 2019+6.2%+10.4%-1.2%
Q2 2019-4.3%-5.0%-5.9%
Q1 2019-6.5%-13.9%-18.2%
Q4 2018-9.8%-8.5%-10.0%
Q3 2018+7.1%+7.6%+7.3%
Q2 2018-1.7%+0.3%+3.2%
Q1 2018+1.5%+1.2%+4.2%
Q4 2017-6.2%-4.9%-9.5%
Q3 2017-3.0%-3.0%-3.2%
Q2 2017+0.3%-0.8%-2.8%
Q1 2017+2.4%-0.0%-3.5%
Q4 2016+5.4%+7.3%+10.9%
Q3 2016-0.9%-0.6%-0.3%
Q2 2016+0.7%+0.8%+1.4%
Q1 2016+2.0%
Q4 2015-1.8%
Q3 2015+1.8%
Q2 2015+3.9%
Q1 2015-0.1%
Q4 2014-3.4%
Q3 2014+1.9%
Q2 2014+3.9%
Q1 2014+0.5%
Q4 2013+3.8%
Q3 2013-0.8%
Q2 2013-0.6%
Q1 2013+3.8%
Q4 2012+4.5%
Q3 2012+1.3%
Q2 2012+0.0%
Q1 2012+1.0%
Q4 2011+3.6%
Q3 2011-9.4%
Q2 2011+1.5%
Q1 2011+1.7%
Q4 2010+2.1%
Q3 2010+1.8%
Q2 2010-3.7%
Q1 2010+1.8%

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