Investment Thesis
DuPont faces severe profitability challenges with negative net income of $779M despite $6.8B in revenue, indicating fundamental operational distress beyond temporary headwinds. The 301.4% gross margin is mathematically impossible and suggests critical data quality issues that undermine confidence in reported financials. While the balance sheet remains relatively stable with adequate liquidity, the company's inability to convert revenue into profits, combined with deteriorating returns (ROE: -5.6%, ROA: -3.6%), signals structural problems requiring urgent resolution.
DD Strengths
- Solid balance sheet with $13.9B stockholders equity and manageable 0.23x debt-to-equity ratio
- Adequate liquidity position with 2.42x current ratio and $715M cash reserves
- Positive operating cash flow of $343M demonstrates some ability to generate cash despite losses
DD Risks
- Negative net income of $779M with -11.4% net margin indicates severe profitability crisis and operational failure
- Gross margin of 301.4% is mathematically implausible and suggests serious data quality/reporting issues that undermine financial credibility
- Minimal free cash flow conversion (0.1% FCF margin) despite $343M operating cash flow indicates capital efficiency problems and inability to reinvest sustainably
- Deteriorating shareholder returns (ROE: -5.6%, ROA: -3.6%) show capital is not being deployed effectively
Key Metrics to Watch
- Net income trend and path to profitability - critical to assess if losses are temporary or structural
- Gross margin correction - verify if 301.4% figure is data error and establish true profitability metrics
- Free cash flow sustainability - monitor ability to generate positive FCF beyond minimal $10M current level
- Operating margin improvement - assess whether 2.9% can expand as company stabilizes operations
DD Financial Metrics
DD Profitability Ratios
DD Balance Sheet & Liquidity
DD 5-Year Financial Trend
5-Year Trend Summary: DuPont de Nemours, Inc.'s revenue has declined by 59% over the 5-year period, indicating business contraction. The most recent EPS of $0.94 reflects profitable operations.
DD Growth Metrics (YoY)
DD Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $2.9B | -$123.0M | $-0.29 |
| Q2 2025 | $3.2B | $59.0M | $0.14 |
| Q1 2025 | $2.9B | $189.0M | $0.45 |
| Q3 2024 | $3.1B | $319.0M | $0.70 |
| Q2 2024 | $3.1B | $126.0M | $0.27 |
| Q1 2024 | $2.9B | $189.0M | $0.45 |
| Q3 2023 | $3.1B | $319.0M | $0.70 |
| Q2 2023 | $3.1B | $126.0M | $0.27 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
DD Capital Allocation
DD SEC Filings
Access official SEC EDGAR filings for DuPont de Nemours, Inc. (CIK: 0001666700)