Key facts
- DuPont narrowed its annual sales forecast for 2026 to between $7.16 billion and $7.19 billion, down from a previous range of $7.16 billion to $7.22 billion.
- The company raised its 2026 adjusted core profit forecast to between $1.75 billion and $1.77 billion.
- DuPont reported adjusted earnings per share of $1.88 for the second quarter, exceeding the average analyst estimate of $1.76.
- Shares of DuPont fell 4.8% after the company announced its updated financial outlook.
DuPont announced on Tuesday that it has narrowed its annual sales forecast, attributing the revision to weakness in its Middle East water business and a reduced currency benefit. This news led to a 4.8% decline in the company's shares, despite the company surpassing quarterly profit expectations and increasing its full-year earnings outlook.
The industrial materials maker now projects net sales for 2026 to be between $7.16 billion and $7.19 billion, a tighter range than the previously guided $7.16 billion to $7.22 billion. DuPont has been leveraging price increases, productivity gains, and capital allocation strategies, including a business spin-off, debt reduction, and share buybacks, to counteract sluggish demand in certain chemical market segments.
Morningstar analyst Seth Goldstein noted that DuPont's strategy of passing on cost inflation through price hikes could potentially dampen demand, particularly in more cyclical markets like building technologies. However, DuPont CFO Antonella Franzen indicated that continued strength in healthcare, industrial water, and aerospace sectors is expected to support mid-single-digit organic sales growth in the latter half of the year. J.P. Morgan analysts anticipate that uncertainty in the water business will persist into the second half, even with anticipated organic growth ramp-up, suggesting a mixed trading performance for the stock.
During a post-earnings call, DuPont expressed expectations for improved performance in the Middle East during the second half of the year, with the majority of water-project revenues anticipated in the fourth quarter. This timing is due to the transition of large, already-booked projects from past logistical delays into execution phases. The company also raised its 2026 adjusted core profit forecast to a range of $1.75 billion to $1.77 billion, up from its prior guidance of $1.73 billion to $1.76 billion. Additionally, DuPont now expects adjusted earnings per share to be between $7.17 and $7.32, an increase from the previous forecast of $7.02 to $7.16, a range that was restated to account for a 1-for-3 reverse stock split effective in June. For the three months ended June 30, DuPont reported an adjusted profit of $1.88 per share, surpassing the average analyst estimate of $1.76 per share.