DuPont De Nemours Inc. | North America 2Q26 Preview

Research evidence excerpt

DuPont De Nemours Inc. | North America 2Q26 Preview

d with implied volatility data from the options market as of 16

Jun 2026. All figures are approximate risk-neutral probabilities of the stock reaching beyond the scenario price in either

three-months’ or one-years’ time. View explanation of Options Probabilities methodology here

BULL CASE $65.00 BASE CASE $52.00 BEAR CASE $30.00

~16x '26 EBITDA: Xs towards high peers Sum of the parts: ~14x 2026 EBITDA; SOTP: ~10x Bear Case 2026 EBITDA; $1B

$300M PFAS PFASHigher multiples on macro recovery, strong

execution, capital allocation and PFAS risk Our base case assumes DuPont's businesses Broader macro challenges materialize,

ring fencing. DuPont demonstrates quick are on track for its medium-term financial putting medium-term targets out of reach.

progress toward margin targets and sees targets in 2026. Health care & Water PFAS flares up. Recession drives stagnation

above-target (~4%+) 2026 growth. Technologies sees ~MSD% growth while in Building & Construction and Industrial end

Construction recovers. Announces additional Diversified Industrials sees ~LSD% growth markets. Additional cost inflation related to

ASRs ($250M underway) or expands related to continuing construction Iran conflict which is not neutralized by

through M&A. PFAS settled (State AGs and weakness. EBITDA margin expansion price/surcharges. Health Care holds up

Personal Injury cases incrementally) with supported by reduction of stranded costs better, but is far from immune. PFAS flares

remaining liability no more than $300M (i.e., and productivity initiatives. up as personal injury cases are not settled

the remainder of the $1.36B construct but instead appear headed for trial.

between DuPont, Qnity, Chemours and

Corteva).

Morgan Stanley Research 5