DuPont’s focused specialty-materials portfolio, 24.6% EBITDA margin, and secular water and healthcare tailwinds support upside, but PFAS liabilities remain the key discount and execution risk.
Overview
DuPont de Nemours has emerged from a major portfolio transformation as a more focused specialty-materials company, following the November 2025 Qnity Electronics spin-off and April 2026 Aramids sale for $1.8 billion. Its continuing portfolio comprises Healthcare & Water Technologies, 47% of sales, and Diversified Industrials, 53%, with trusted brands such as FilmTec and Tyvek, regulatory certifications, proprietary formulations, and customer switching costs. Q2 2026 sales increased 4.0% to $1.819 billion; Operating EBITDA rose 8% to $448 million, a 24.6% margin, and adjusted EPS climbed 48% to $1.88. Free cash flow was $326 million, or 127% of adjusted net income. Management raised FY 2026 guidance to $7.16–$7.19 billion in sales, $1.76 billion midpoint Operating EBITDA, and $7.17–$7.32 adjusted EPS, with approximately 6% organic growth expected in H2. At roughly $133, shares trade near 18.2x FY 2026 adjusted EPS and 11.1x EBITDA, below legacy specialty peers at 20x–22x forward earnings. **The key discount is unresolved PFAS exposure; water-project execution and legal progress are near-term catalysts.**