DuPont De Nemours, Inc: 2Q Wrap and Model Update

研报英文原文证据摘录

J P M O R G A N

North America Equity Research

07 August 2026

DuPont De Nemours, Inc

Overweight

DD, DD US

Price (07 Aug 26):$142.47

2Q Wrap and Model Update

▲Price Target (Dec-26):$172.00

Prior (Dec-26):$171.00

DD reported another beat and raise quarter but the profile mixed versus previous

quarters with a beat in Diversified Industrial more than offsetting a miss in

Healthcare and Water. Water came in below expectations +LSD driven by soft

recurring demand in the Middle East due to the conflict lingering longer than

expected. As a result, they reduced Water expectations for the year to LSD-MSD

(MSD prior), with still HSD expected in the 2H driven by large project timing

globally, with ME large projects still expected to ramp in 4Q after timing was

pushed from “2H” last quarter. Importantly, there are only two large projects in the

Middle East, ~$5mm in value each, so if these were to slip into 2027, it would be

a half a point impact to 4Q revenue, not significant. Additionally, while they

tempered down the Water expectations, they tempered up the Healthcare

expectations, and still see the same growth profile for the overall Healthcare &

Water segment. Stepping back, looking at total DD, top line growth was broadbased, led by continued strength in Healthcare, Aerospace, and Industrial Water

and Semiconductor Market. Industrial Technologies is showing a nice short cycle

inflection, continuing to drive LDD order gains, coupled with nice growth in EV

battery. Additionally, in Shelter, DD sees outperformance on the resi side, with

growth across residential and non-residential, and they are incrementally

optimistic on the business. Shifting to margins, DD is tracking ahead on the

stranded cost takeout by $2.5mm, leading to better than expected corporate cost for

the year. On the price cost front, if we see sustained de-escalating costs, DD expect

surcharges to come down commensurately, so we don’t factor in price cost margin

positivity, but we expect the margin headwind to be less of a drag. Operationally,

DD is making good progress highlighting 100 bps+ improvement in OTIF and net

productivity with a continued reduction in cost of poor quality, a few million of

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