DuPont de Nemours, Inc. (DD) — Q2 2026 Earnings Preview

1. Earnings Preview

Key Takeaway: Setup is constructive but not a layup — consensus sits essentially at guidance midpoint, leaving little room for error, and the single biggest swing factor is whether Water Technologies recovers as management expects in 2H after Middle East logistics disruptions weighed on Q1.

Heading into Q2 2026, the bar for DuPont is well-defined: management guided to ~$1.8B in net sales, ~$430M in operating EBITDA, and ~$0.59 in adjusted EPS, and consensus sits almost exactly at those levels ($1.81B / $432M / $0.60), meaning the print is essentially a pass/fail on execution rather than a beat-the-bar setup. Management's tone on the Q1 call was notably confident — they raised full-year guidance by $80M at the midpoint on net sales and $0.10 on EPS, launched a $275M ASR funded by Aramids proceeds, and characterized Middle East logistics disruptions as temporary and already resolved (the ~$10M of unshipped water volume had already moved in April). Estimate revisions since the Q1 print have been modest and directionally positive, with the FY 2026 operating EBITDA consensus ticking up slightly to ~$1.742B versus the $1.745B midpoint of guidance — a tight alignment that reflects Street confidence in the guide rather than independent upside. The stock has been essentially flat since the Q1 print (up ~1% over the past month, ~2% over three months), trading at ~11.7x NTM EV/EBITDA versus a prior 12.2x three months ago, suggesting multiple compression has absorbed some of the fundamental improvement and the stock is neither pricing in a big beat nor a miss. The key wildcard is Water Technologies in 2H: management guided to high-single-digit organic growth in H2 water (versus flat in H1) driven by large Middle East desalination project timing — if those projects slip or the conflict escalates further, the full-year organic growth assumption of ~4% comes under pressure and the stock could re-rate lower despite solid Healthcare execution.

2. KPIs & Consensus Expectations

Key Takeaway: Consensus is essentially at guidance midpoint — a low-cushion bar. Operating EBITDA margin is the bigger swing factor: a 30 bps price-cost headwind and 40 bps mix headwind from Q1 to Q2 are already embedded in guidance, but any incremental Middle East cost pressure or Water volume shortfall could compress margins below the ~23.9% implied by the guide.

Table 1 — Current Quarter Snapshot (Q2 2026)

Sources: Visible Alpha consensus and actuals data (net sales, operating EBITDA, adj. EPS, organic growth, segment revenues). Q2 2026 guidance from DuPont Q1 2026 Earnings Release and Q1 2026 Earnings Call Transcript (May 5, 2026). Note: DD completed a 1-for-3 reverse stock split on June 24, 2026; all EPS figures for Q2 2026 and forward are on a post-split basis. Prior-period EPS figures are pre-split and not directly comparable.

Table 2 — Beat/Miss History (Last 8 Quarters, Top 2 KPIs)

Net Sales

Operating EBITDA

Pattern: For the two quarters with clean standalone consensus data (Q4 2025 and Q1 2026), DuPont has beaten operating EBITDA consensus by an average of ~6%, driven by better-than-expected mix and productivity. Prior quarters lack comparable standalone consensus given the Qnity Electronics separation completed in late 2025. Source: Visible Alpha consensus and actuals data.

3. Guidance & Commentary Evolution

Key Takeaway: Management raised full-year guidance at Q1 earnings (May 5) and has not issued any subsequent update — the Q2 guide is unchanged from what was communicated on the Q1 call. Tone remains confident, with the Aramids divestiture closed and ASR launched.

Source: DuPont Q1 2026 Earnings Release and Earnings Call Transcript (May 5, 2026); Visible Alpha consensus data. Note: The 1-for-3 reverse stock split completed June 24, 2026 affects share count and per-share metrics; all EPS figures above are on a post-split basis.

4. Guidance vs. Estimate Revision Tracker

Key Takeaway: Estimates have been broadly stable-to-slightly-positive since the Q1 print, tracking guidance closely. The FY 2026 operating EBITDA consensus has barely moved, suggesting the Street is comfortable with the guide but not adding incremental upside. The modest gap between consensus and guidance on organic growth is the one area where the Street is not fully buying the H2 Water recovery story.

Source: Visible Alpha consensus and actuals data (as-of May 12, 2026 baseline and current consensus). Guidance from DuPont Q1 2026 Earnings Call Transcript (May 5, 2026). The FY 2026 net sales consensus gap vs. guidance midpoint (~-2.3%) reflects the Street’s treatment of Aramids divestiture proceeds and segment reclassification rather than fundamental skepticism on organic growth. Operating EBITDA consensus is essentially at the guidance midpoint, confirming tight alignment.

5. Stock Performance

Key Takeaway: The 12-month +57% gain was driven by a combination of earnings growth and modest multiple expansion (+12% on EV/EBITDA), but the past 6 months tell a different story — the stock is up only +7% while the NTM EV/EBITDA multiple has compressed 23% (from 15.3x to 11.7x), meaning the fundamental improvement has been more than offset by de-rating. Near-term, the stock is essentially flat (up ~1% over 1 month and ~2% over 3 months) with further multiple compression of ~1-4%, suggesting the market is in a “show me” mode ahead of the print.

Stock Performance Decomposition (NTM EV/EBITDA)

Source: Implied stock performance decomposition tool (snapshot August 3, 2026). Current NTM EV/EBITDA: 11.67x. The 6-month multiple compression from 15.3x to 11.7x reflects the market adjusting to the smaller, standalone DuPont post-Qnity Electronics separation (completed late 2025) and the Aramids divestiture (April 1, 2026). At 11.7x NTM EV/EBITDA, DD trades at a meaningful discount to multi-industrial peers, consistent with management’s stated goal of achieving a GICS reclassification to multi-industrial to close the valuation gap.

6. Material News & Developments (Since Q1 2026 Earnings, May 5, 2026)

Key Takeaway: The most important development is the 1-for-3 reverse stock split completed June 24, which is a structural/cosmetic event with no fundamental impact but affects per-share comparisons. The Aramids divestiture close (April 1) and $275M ASR launch are the key capital allocation signals heading into the print.

• April 1, 2026 — Aramids Business Divestiture Closed. DuPont completed the sale of its Aramids business to Arclin (a TJC LP portfolio company) for ~$1.2B in gross cash proceeds, a $300M note receivable, and a $325M non-controlling equity interest in New Arclin U.S. Holding Corp. Net proceeds of ~$1.1B are being deployed into the $275M ASR and held for M&A optionality. Implication: Removes a lower-growth, more cyclical business from the portfolio; interest income on proceeds is a ~$0.10/share EPS tailwind embedded in the raised FY 2026 guide.
• May 5, 2026 — Q1 2026 Earnings Beat & FY 2026 Guidance Raised. DuPont reported Q1 operating EBITDA of $414M (+5.6% vs. consensus of $392M) and raised FY 2026 net sales guidance to $7,155–$7,215M and adj. EPS to $2.35–$2.40 (+$0.10 vs. prior guide). Implication: Sets a high bar for Q2 execution; stock reaction was muted, suggesting the beat was anticipated.
• May 5, 2026 — $275M Accelerated Share Repurchase Announced. Launched under the existing $2B buyback program ($500M ASR previously completed), funded by Aramids proceeds. Total program utilization: $775M of $2B. Implication: Signals management confidence in the balance sheet and earnings trajectory; reduces share count, supporting EPS.
• June 24, 2026 — 1-for-3 Reverse Stock Split Completed. DuPont effected a 1-for-3 reverse stock split of its common stock, with a corresponding reduction in authorized shares. The split was approved at the 2026 Annual Meeting. Implication: Cosmetic/structural; no fundamental impact. All per-share metrics (EPS, dividends) are now on a post-split basis. Investors should adjust prior-period comparisons accordingly.
• Ongoing — Middle East Conflict: Logistics Disruptions & Input Cost Inflation. The U.S.-Iran conflict and Strait of Hormuz disruptions continue to affect logistics and petrochemical feedstock costs (HDPE for Tyvek, styrene for water/shelter products). DuPont has implemented surcharges and price increases (majority effective May 1) to cover ~$90M in incremental annual costs. ~$10M of Q1 water volume that could not ship has already moved in April. Large H2 Middle East desalination projects are currently expected to be on track. Implication: The biggest ongoing risk to the Q2 and H2 outlook; any escalation beyond current assumptions could pressure margins and the Water recovery thesis.
• Ongoing — 80/20 Process in Diversified Industrials. Four businesses selected for the 80/20 initiative; ~2/3 of the initial study complete as of Q1. No impact baked into the FY 2026 guide, but management expects “nice margin appreciation with minimal top-line impact” over time. Implication: A medium-term margin catalyst not yet in numbers; any update on timeline or scope would be a positive catalyst.
• Ongoing — GICS Reclassification Effort. CFO has described achieving a multi-industrial GICS classification as a “personal mission.” Currently classified as a specialty chemicals company, which management believes contributes to the valuation discount vs. multi-industrial peers. Implication: A re-rating catalyst if achieved; management acknowledges performance matters more than the label.

7. Insider Transaction Activity

Key Takeaway: No open-market insider buys or discretionary sells were identified for DD in the period since the Q1 2026 earnings release (May 5, 2026 through August 3, 2026). The absence of insider activity is not unusual given the reverse stock split mechanics and the typical quiet period ahead of earnings. Nothing stands out as a signal.

Source: SEC Form 4 insider transactions database, queried for DD, May 5 – August 3, 2026, open-market buy (code P) and sell (code S) transactions. No transactions returned. The company is in a standard pre-earnings quiet period.

8. Peer Commentary Read-Throughs (Last 60 Days — Q2 2026 Reporting Period)

Key Takeaway: Peers reporting Q2 2026 results paint a broadly constructive but nuanced picture for DuPont: specialty/differentiated businesses with pricing power are outperforming; construction/housing remains weak; aerospace is a standout; and the Middle East conflict is creating both cost headwinds (feedstocks, logistics) and, for some, supply-driven pricing tailwinds. The read-through for DD is net positive on Healthcare and Aerospace, cautious on construction, and mixed on Water (logistics disruptions persisting but large project pipeline intact).

Note: Only commentary explicitly addressing Q2 2026 results or the current reporting quarter outlook is included below. Prior-quarter results commentary has been excluded.

DOW — Q2 2026 Earnings (Reported July 23, 2026)

DOW reported Q2 2026 adj. EPS of $1.44 vs. consensus of $1.31, with net sales of $12.09B and EBITDA of $2.3B, both slightly ahead of estimates. Management is increasing its cost savings target from restructuring by ~$200M. Q3 EBITDA guidance of $1.75B fell slightly short of Street expectations of $1.86B.

Key Read-Throughs for DD:

• Middle East / Strait of Hormuz disruptions ongoing: DOW confirmed that “Middle East geopolitical tensions remain elevated and logistics are still constrained” and that “traffic through the Strait of Hormuz remains below historical levels.” This directly validates DD’s Q1 characterization of the disruption as ongoing and supports the ~$90M incremental cost assumption embedded in DD’s FY 2026 guide. Importantly, DOW noted that “oil is up $10 just before the beginning of the week” and “key feedstocks are also on the rise,” suggesting DD’s HDPE and styrene input costs may face incremental pressure in Q2 beyond what was assumed in the May 5 guide.
• Pricing power in specialty/differentiated products: DOW described “pricing leadership” and “better integrated margins” as key Q2 drivers, consistent with DD’s strategy of implementing surcharges and price increases to offset Middle East-related input cost inflation. The fact that DOW achieved meaningful EPS upside through pricing discipline is a positive read-through for DD’s ability to execute its own ~$25M Q2 price/surcharge plan.
• Data center demand outpacing supply: DOW stated that “packaging remains resilient globally and data center demand is outpacing supply,” creating “new demand for solutions that address thermal management, water usage, energy demand, and noise abatement needs.” This is a direct positive read-through for DD’s Water Technologies segment (ion exchange for microelectronics/data centers, ~20% of ion exchange sales) and for DD’s industrial water business.
• U.S. housing market remains soft: DOW confirmed that “the U.S. housing market is still soft under the weight of affordability concerns and high mortgage rates” and expects “normal seasonal declines in building and construction” in Q3. This is consistent with DD’s own guidance for construction markets to be “about flat” on a full-year basis, with Building Technologies down low-single digits in Q1.
• EV/automotive strength: DOW highlighted “double-digit growth in EVs” for silicones, consistent with DD’s commentary on battery adhesive volumes growing “well above 20% EV growth expectations” given new wins. Positive read-through for DD’s ~$300M EV-exposed revenue base.
• China consumer demand soft: DOW noted that “China’s consumer demand remains soft and uneven.” DD has limited direct China consumer exposure but this is a watch item for any demand normalization assumptions.
• Limits: DOW’s primary exposure is commodity polyolefins (polyethylene, polyurethanes) — a very different product mix from DD’s specialty healthcare, water, and industrial materials. DOW’s Q3 EBITDA guidance miss vs. Street suggests some caution on H2 normalization that may not apply to DD’s more differentiated portfolio.

EMN (Eastman Chemical) — Q2 2026 Earnings (Reported July 30, 2026)

EMN reported Q2 2026 results with solid volume and mixed growth in Advanced Materials (+5% organic), robust volume growth in Chemical Intermediates, and strong pricing execution. Revenue is expected to be ~$500M higher for the full year due to pricing actions.

Key Read-Throughs for DD:

• Specialty pricing power is real and durable: EMN’s teams did a “phenomenal job of getting prices up with raw materials” and expects this to “flip into a tailwind in the back half of the year.” EMN implemented price increases “to cover raw material and energy and distribution costs,” demonstrating that “these are specialty products that have value that customers will pay a higher price.” This is a strong positive read-through for DD’s ability to sustain its ~$25M Q2 price/surcharge actions and the ~1% full-year pricing embedded in the FY 2026 organic growth guide.
• Semiconductor/electronics demand growing at “very high rates”: EMN highlighted “ultra-high-purity solvents for semiconductors, which is growing at very high rates right now with the market, at good margins.” This is a direct positive read-through for DD’s Water Technologies ion exchange business serving microelectronics and data center markets.
• Water treatment is a “very stable market”: EMN characterized water treatment as one of its “very stable markets” alongside pharma, ag, and personal care. Positive read-through for the underlying demand resilience of DD’s Water Technologies segment, even as logistics disruptions create near-term noise.
• Aviation is a stable and growing end market: EMN noted “aviation continuing to roll” with “new products coming out soon that are a big deal for the industry.” Consistent with DD’s commentary on aerospace strength within Industrial Technologies.
• Weak consumer durables and auto OEM production: EMN noted “lower OEM production, weak aftermarket durables” as offsets in Advanced Materials and is “not expecting any improvement in weak discretionary markets (auto B and C, consumer durables)” in H2. This is a mild negative read-through for DD’s printing/packaging and certain industrial end markets within Diversified Industrials.
• Raw material and energy costs still flowing through: EMN confirmed that “raw material cost and energy costs, as well as distribution costs are still flowing through.” Consistent with DD’s ~$90M incremental cost assumption and the 30 bps price-cost margin headwind guided for Q1-to-Q2.
• Limits: EMN’s Advanced Materials and Additives segments are not a direct analog to DD’s Healthcare & Water or Diversified Industrials. EMN’s specific product lines (Tritan, Eastman Renew, para-xylene derivatives) have different competitive dynamics. The “incredibly weak economy” characterization from EMN may be more reflective of EMN’s consumer-facing exposure than DD’s more B2B/mission-critical portfolio.

HUN (Huntsman) — Q2 2026 Earnings (Reported July 30–31, 2026)

HUN reported a Q2 EPS miss but sales and EBITDA were slightly ahead of plan. The company delivered higher volumes across all three segments and pricing actions that offset a significant increase in raw material costs. Advanced Materials grew 8% and Polyurethanes grew 4% organically.

Key Read-Throughs for DD:

• Aerospace: recovery continues with new applications growing faster than composites: HUN noted that “the recovery continues” in aerospace and that “new applications (interior parts, aerospace adhesions) are growing faster than the composite side.” Widebody build rates (777, 787, A350) are “still not back to pre-COVID 2018-2019 levels” but recovering. This is a positive read-through for DD’s aerospace exposure within Industrial Technologies, where management cited “continued strength in aerospace” in Q1.
• Automotive: new EV applications driving above-market growth: HUN is “seeing a little bit better growth than inflation or PMI growth in automotive” driven by “new applications, particularly in EVs.” Advanced Materials automotive is “another area where we’re seeing stronger than expected growth.” Consistent with DD’s battery adhesive volume commentary and the ~$300M EV revenue base growing well above market.
• North American housing stats have softened: HUN confirmed that “North American housing stats have softened” and that “improved housing demand, particularly in North America, would be very helpful.” MDI inventory was built up in Q2 “for a housing season that really didn’t take off as much as probably some anticipated.” Direct negative read-through for DD’s Building Technologies (construction markets down low-single digits in Q1, guided flat for FY 2026).
• Surcharges being aggressively implemented: HUN is “aggressively moving on surcharges on everything and everywhere that we can.” The company noted that “if you can provide documentation to customers around what we’re seeing with respect to input costs, the conversation has been constructive.” Consistent with DD’s own surcharge/price increase implementation and management’s comment that customer pushback “has not been abnormal.”
• European energy costs rising sharply: HUN flagged that European natural gas prices rose from ~$13-14/MMBtu to above $20/MMBtu in the last 2-3 weeks, which “is going to pose some headwinds” if sustained. DD has European manufacturing exposure; this is a watch item for Q3 cost assumptions.
• July order patterns described as “stable”: HUN characterized July order patterns as “stable,” consistent with DD’s Q1 commentary that “order trends in April were very similar to previous periods with nice year-over-year increases.”
• Limits: HUN’s primary business is MDI/polyurethanes, a commodity chemical with very different pricing dynamics from DD’s specialty healthcare and water materials. HUN’s “disappointment” at the lack of greater demand improvement and “0-2% global MDI demand growth” is specific to that market and does not translate directly to DD’s secular growth Healthcare segment.

LYB (LyondellBasell) — Q2 2026 Earnings (Reported July 31, 2026)

LYB reported Q2 2026 EBITDA of $2.12B, significantly exceeding Street expectations of $1.78B, benefiting from Middle East conflict-driven supply disruptions that tightened global polyolefin markets and drove record price increases. The company characterized market normalization as “a long process extending beyond 2026.”

Key Read-Throughs for DD:

• Middle East supply disruption is unprecedented in scale and duration: LYB estimated that ~6 million tons of polyethylene capacity (~20-25% of Middle East supply) “sustained damage from the conflict and will not restart until at least 2027.” Recovery time is “measured in quarters, not months.” This validates DD’s assumption that the Middle East disruption is not a short-term event and supports the full-year pricing/surcharge strategy. However, it also means DD’s HDPE input costs (for Tyvek) are likely to remain elevated through the year.
• Logistics disruptions: Asian freight rates surged, closing arbitrage routes: LYB noted “large increases in Asian freight rates, which essentially closed the arbitrage from Asia to Europe and Central America.” This is directly relevant to DD’s Water Technologies logistics disruptions in the Middle East and the ~$10M of Q1 volume that could not ship. The ongoing freight disruption suggests Q2 water logistics may still face some headwinds even as the specific Q1 volume has already moved.
• Underlying demand is resilient; no broad demand destruction: LYB confirmed “relatively resilient underlying demand” and “not observed broad demand destruction across key end markets, with packaging remaining stable.” For Q3, LYB expects “resilient demand in packaging, healthcare, and infrastructure.” The explicit mention of healthcare demand resilience is a positive read-through for DD’s Healthcare & Water segment.
• Data centers: “very strong demand” for infrastructure materials: LYB highlighted “very strong demand” in data centers, with “pipe, wire and cable and data center related investments” driving steady growth in healthcare and infrastructure applications. Consistent with DD’s ion exchange/microelectronics growth commentary.
• Housing recovery remains delayed; automotive stable but softer: LYB confirmed that “housing and automotive demand remain at subdued levels” and that “building and construction is stable but subdued as any housing recovery remains delayed.” Automotive is “softer, reflecting affordability and broader macroeconomic pressures.” Consistent with DD’s construction market outlook.
• Rhine water levels remain low in Europe: LYB noted it is “proactively managing operating rates” due to low Rhine water levels and expects to operate European assets at ~70% utilization in Q3. While this is specific to LYB’s European chemical production, it highlights broader European operational challenges that could affect DD’s European manufacturing footprint.
• Limits: LYB’s massive EBITDA beat was driven by commodity polyolefin price spikes that are specific to that market and do not translate to DD’s specialty portfolio. DD does not benefit from polyethylene price spikes in the same way — in fact, higher HDPE prices are a cost headwind for DD’s Tyvek business. The LYB read-through is most useful for understanding the macro logistics/supply chain environment, not for inferring DD’s pricing power.

PPG — Q2 2026 Earnings (Reported July 28–29, 2026)

PPG reported Q2 2026 adj. EPS of $2.23, slightly missing the Street estimate of $2.25, and reiterated (rather than raised) its EPS guidance. The company delivered its sixth consecutive quarter of organic sales growth at +4%, outpacing the industry by 300 bps. PPG covered ~90% of COGS inflation with pricing in Q2 and expects 100% coverage by Q4.

Key Read-Throughs for DD:

• Aerospace: exceptional double-digit growth, $300M backlog, $500M+ capacity investment: PPG’s Aerospace business achieved “exceptional quarterly sales with double-digit percentage growth” and maintained an order backlog of ~$300M. PPG is investing over $500M in additional aerospace capacity (including a new $380M plant in Shelby, NC). The business is “diversified across commercial, general aviation, and military end uses” with “strong order books in all subsegments.” This is the strongest positive read-through for DD’s aerospace exposure within Industrial Technologies — the market is clearly in a sustained upcycle.
• Specialty pricing power: 90% COGS inflation coverage in Q2, targeting 100% by Q4: PPG implemented price adjustments “globally and across all businesses,” achieving a net 2% selling price improvement in Q2 with a 3% exit run rate in June. PPG estimates COGS inflation of mid-to-high single digits between Q2 and Q4 2026. This validates DD’s own pricing strategy and suggests the ~$25M Q2 price/surcharge target is achievable, though the 90% (not 100%) coverage rate in Q2 is a reminder that full offset takes time.
• Raw material costs “up more than initially thought”: PPG noted that raw materials were “up more than we thought initially” due to the conflict with Iran, with solvents (10-15% of spend) moving “very quickly because it’s pretty much straight off the wellhead.” This is a mild negative read-through for DD’s HDPE and styrene cost assumptions — if PPG’s raw material basket surprised to the upside, DD’s may have as well.
• Automotive refinish destocking is behind; returning to growth in H2: PPG confirmed that “refinish destocking in the US is behind us” and expects refinish to return to growth in Q3 and Q4. Auto insurance premiums declined low-single digits in Q2 — the first year-over-year decline in five years. This is a positive read-through for DD’s automotive-exposed materials (adhesives, films) as the aftermarket channel normalizes.
• Data center pipeline: fire protection, structural steel, insulating/dielectric coatings: PPG highlighted “quite a pipeline in data center work” including fire protection, structural steel, flooring, insulating coatings, and dielectric coatings. Consistent with DD’s data center/AI demand commentary for ion exchange and industrial water.
• European architectural coatings: mixed by country, consumer sentiment mixed: PPG noted that European market demand “remains mixed by country” and that “consumer sentiment in Europe is anticipated to remain mixed” in Q3. Relevant for DD’s European industrial and construction exposure.
• Limits: PPG is primarily a coatings company with very different product chemistry and end-market exposure from DD. PPG’s EPS miss (vs. DD’s recent beat pattern) reflects PPG-specific dynamics (index-based pricing timing, refinish destocking) rather than a broad specialty chemicals read. The 90% COGS coverage rate is a PPG-specific metric; DD’s surcharge/price mechanism is structured differently.

Peer Read-Through Summary Table

Sources: DOW Q2 2026 Earnings Call Transcript (July 23, 2026); EMN Q2 2026 Earnings Call Transcript (July 30–31, 2026); HUN Q2 2026 Earnings Call Transcript (July 30–31, 2026); LYB Q2 2026 Earnings Call Transcript (July 31, 2026); PPG Q2 2026 Earnings Call Transcript (July 28–29, 2026). All commentary is from Q2 2026 reporting period only; prior-quarter results commentary excluded per user instruction.