Key Takeaways:
DuPont (NYSE: DD) narrowed its 2026 net sales forecast to $7.16 billion-$7.19 billion, hurt by weakness in its Middle East water business, sending shares down 5.9 percent premarket.
CFO Antonella Franzen said continued strength in healthcare, industrial water and aerospace end-markets was expected to drive mid-single-digit organic sales growth in the second half of the year.
The Wilmington, Delaware-based company posted adjusted profit of $1.88 per share for the three months ended June 30, beating analysts' average estimate of $1.76 per share, according to data compiled by LSEG. Sales in its healthcare and water technologies segment rose nearly 5 percent to $856 million from a year earlier, while diversified industrials increased 3.3 percent to $963 million.
DuPont raised its 2026 adjusted core profit forecast to $1.75 billion-$1.77 billion, from its previous range of $1.73 billion-$1.76 billion, and lifted adjusted EPS guidance to $7.17-$7.32 from $7.02-$7.16. The range was restated to reflect its 1-for-3 reverse stock split, which took effect in June.
J.P. Morgan analysts said uncertainty in the water business was likely to persist in the second half, even as the company factors in a ramp-up in organic growth, and expected the stock to trade mixed on Tuesday.
The industrial materials maker has relied on price increases, productivity gains and capital allocation actions, including the spin-off of its electronics business, debt reduction and share buybacks, to offset weak underlying demand across parts of the chemicals market. The stock had gained 17 percent this year before Tuesday's decline.
The guidance revision shows that water demand in the Middle East remains a drag even as healthcare, aerospace and industrial water segments show resilience. Investors will watch for further commentary on the water business when DuPont reports third-quarter results in November.
This article is for informational purposes only and does not constitute investment advice.
