- Price
- $130.45
- Fair value
- $165.00
- Discount
- 20.9%
- Uncertainty
- High
- LSEG rating
- 2.00
- Moat
- Narrow
- Next earnings
- 2026-11-03
- Next earnings is estimate
- No
- Company name
- DuPont
- Sector
- Specialty materials
- About
- DuPont makes specialty materials and products for healthcare, water, construction and industrial markets. It has two segments. Healthcare & Water Technologies makes products for personal protection, biopharma and water filtration. Diversified Industrials makes building materials and industrial products for aerospace and electric vehicles. DuPont spun off its electronics business as Qnity Electronics on November 1, 2025, and sold its Aramids business, which makes Kevlar and Nomex, to Arclin on April 1, 2026. It did a 1-for-3 reverse stock split on June 24, 2026. For 2026, DuPont expects net sales of $7.16 to $7.19 billion and operating EBITDA of $1.75 to $1.77 billion.
- Thesis
- The market prices DuPont for its legacy PFAS liabilities and for doubts about the smaller company. Under a 2021 agreement, DuPont shares PFAS costs with Chemours and Corteva. In September 2026, the three companies agreed to pay North Carolina $455 million over 15 years, and DuPont recorded a probable loss of about $125 million for its share, before a 44% reimbursement from Qnity. More PFAS claims by states and water utilities are still open. After the Qnity spin-off and the Aramids sale, DuPont is smaller and less known as a company, and its water business was weak in the Middle East in Q2 2026. For the gap to close, three things must be true. DuPont must reach its 2026 guidance of adjusted EPS of $7.17 to $7.32, with mid-single-digit organic sales growth in the second half. New PFAS settlements must stay inside the shared cost limits. The company must keep its free cash flow conversion near 100% and use the cash for buybacks, as with the $250 million planned for Q3 2026. The Q3 2026 report on November 3, 2026 gives the next test. The 2027 guidance in early 2027 is the main test. If these checks pass, the gap can close over the next four to six quarters. The main reason it may not close is a large new PFAS judgment or settlement, which can come at any time.
- Risks
- DuPont shares legacy PFAS liabilities with Chemours and Corteva. Many claims by states, water utilities and individuals are still open, and a large judgment or settlement can cost more than the reserves.
Building Technologies depends on construction, and Water Technologies was weak in the Middle East in Q2 2026. A slowdown in these markets can reduce organic growth.
DuPont holds a $300 million note and a 16% equity interest from the Aramids sale, recorded at fair values of $183 million and $325 million. Their value depends on the results of the buyer.
- Balance sheet
- Cash: $1.7B
Debt: $3.1B
Net debt: $1.4B
Interest cover: 6.5×
Undrawn credit line: $2.0B, to May 2031
Debt due within 12 months: $0.0M
DuPont has a simple debt structure after the Qnity spin-off and the Aramids sale. At June 30, 2026, long-term debt was $3.13 billion and there were no short-term borrowings. Cash was $1.74 billion, up from $715 million at December 31, 2025, mainly because of the Aramids proceeds. Interest expense fell to $81 million in the first half of 2026 from $167 million a year earlier. Interest cover is income before interest and taxes divided by interest expense for the first half of 2026. The undrawn credit is the $2 billion five-year revolving facility. DuPont also has a $750 million 364-day facility, and neither facility was drawn. The board approved a $2 billion share buyback in November 2025. PFAS costs are a liability outside debt, and DuPont will help fund a $135 million reserve fund with Corteva under the North Carolina settlement.
As of 2026-06-30.
- Checkpoints
- Nov 3, 2026: Q3 2026 earnings: organic growth. Pending. Watch: Mid-single-digit organic sales growth and adjusted EPS on track for the $7.17 to $7.32 guidance pass; lower guidance or a new large PFAS charge fails.
Feb 2027 (estimate): Full-year 2026 results and 2027 guidance. Pending. Watch: 2026 adjusted EPS inside the guidance and 2027 guidance for further growth in earnings and free cash flow pass; flat or lower 2027 guidance fails.
- Recent events
- 2026-09-10: DuPont, Chemours and Corteva agreed to settle PFAS claims with the State of North Carolina and local governments for $455 million in cash over 15 years. DuPont recorded a probable loss of about $125 million in Q2 2026 for its share, before Qnity reimburses 44% of it. The payments also satisfy the companies' future contributions to their shared PFAS escrow account.
2026-08-04: DuPont reported Q2 2026 results. Net sales rose 4% to $1.82 billion, with 4% organic growth. Operating EBITDA rose 6% to $448 million and adjusted EPS was $1.88. DuPont raised its 2026 guidance to adjusted EPS of $7.17 to $7.32 and said that it intends to buy back $250 million of shares in Q3 2026.
2026-06-24: A 1-for-3 reverse stock split took effect. Shareholders approved it on May 21, 2026.
2026-04-01: DuPont sold its Aramids business to Arclin for gross consideration of $1.8 billion. It received about $1.2 billion in cash, a $300 million note and a 16% equity interest. DuPont recorded a total loss of $378 million on the sale.