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DuPont de Nemours, Inc.
5/5/2026
Thank you for standing by. My name is Bailey and I will be your conference operator today. At this time, I would like to welcome everyone to the Dewpoint first quarter 2026 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press star and one. I would now like to turn the call over to Anne Gian-Christofaro, VP of Investor Relations. You may begin.
Good morning, and thank you for joining us for DuPont's first quarter 2026 Financial Results Conference call. Joining me today are Lori Koch, Chief Executive Officer, and Antonella Franzen, Chief Financial Officer. We have prepared slides to supplement our remarks which are posted on DuPont's website under the investor relations tab and through the webcast link. Please read the forward-looking statement disclaimer contained in the slides. During this call, we will make forward-looking statements regarding our expectations or predictions about the future. Because these statements are based on current assumptions and factors that involve risks and uncertainties, our actual performance and results may differ materially from our forward-looking statements. Our Form 10-K, as updated by our current and periodic reports, includes detailed discussions of principal risks and uncertainties which may cause such differences. Unless otherwise specified, all historical financial measures presented today are on a continuing operations basis and exclude significant items. We will also refer to other non-GAAP measures A reconciliation to the most directly comparable GAAP financial measure is included in our press release and presentation materials and has been posted to DuPont's Investor Relations website.
I'll now turn the call over to Lori, who will begin on slide three. Good morning, and thanks everyone for joining our call. Earlier today, we reported our first quarter financial results, which exceeded our previously communicated guidance. Through disciplined commercial and operational execution, we delivered organic sales growth of 2%, 130 basis points of pro forma margin expansion, and double-digit adjusted EPS growth. Free cash flow generation and conversion were solid in the quarter. As a result of our first quarter performance, along with price increases due to the Middle East conflict, we are raising our full year 2026 financial guidance. Antonella will provide further details shortly. We also announced that we expect to launch a $275 million accelerated share repurchase under our existing program, a clear example of how we continue to advance our strategic priority of driving disciplined capital allocation by returning cash to shareholders. On the next slide, I will cover the progress we are making on driving growth and continuous improvement. We completed the previously announced investiture of the Aramids business on April 1st. We are confident in ARCLIN's ability to continue to drive growth and opportunity for the employees and customers of the combined businesses. We also recently issued our 2026 sustainability report and announced our new 2035 sustainability goals. The progress we made in 2025 highlights the power of our innovation engine creating sustainably advanced solutions that help our customers succeed. We continue to reduce our environmental footprint and increase the use of renewable energy sources across our operations while maintaining a strong focus on execution and discipline. Safety and culture continue to differentiate DuPont with record safety performance and high employee engagement, reinforcing the connection between what we do every day and the values we create for our customers. Our 2035 goals reinforce our commitment to delivering value by embedding sustainability directly into our business strategy. These goals focus on three impact areas, sustainable innovation, resilient operations, and people, partners, and communities. They are designed to drive growth through innovation, operational excellence, and accountability across our value chain, while also advancing progress in areas such as climate action, circularity, safety, and responsible sourcing. Moving to slide four, we continue to advance our strategic priorities and are seeing direct impacts from the implementation of our business system. We strengthen our performance-based culture with a clear emphasis on growth and continuous improvement, reinforced by the launch of our refreshed core values. This is enabling greater consistency across the businesses as we drive excellence in innovation, commercial execution, and operations. Starting with innovation, it remains at the core of our value proposition. Our 2025 Vitality Index was 35% above the benchmark we previously outlined, reflecting the strength and relevance of our product portfolio. During the quarter, we delivered a steady cadence of new product introductions and customer wins across healthcare, water, and diversified industrial end markets. Recent launches include upgraded film tech nanofiltration elements designed to help municipalities and drinking water utilities produce high-quality water with lower energy consumption and reduced operating costs. These innovations are being enabled not only by strong R&D execution but also by continuing investments in digital and AI capabilities. Last week, we announced that we are collaborating with Uncountable, an AI-driven platform for end-to-end product and application development, focused on accelerating development, improving cycle time, and sharpening how we translate ideas into differentiated solutions for customers. This collaboration streamlines and accelerates the work we have been doing on connected lab infrastructure and digital innovation. From a commercial standpoint, we are making steady progress in demand generation and pipeline discipline. Across the businesses, we are advancing targeted sales plays that bring together our technologies and application expertise to address specific end markets where we see attractive growth and differentiated value. We continue to standardize how opportunities are identified, reviewed, and advanced, supported by a clear cadence, better data quality, and stronger collaboration between commercial, technical, and operations teams. These efforts are driving better visibility, improved conversion, and stronger alignment between our commercial team and customers' highest value needs, improving the quality and durability of our pipeline. On operational excellence, our teams remain intensely focused on the fundamentals, safety, quality, delivery, inventory, and productivity. During the quarter, we delivered meaningful improvements in asset reliability and equipment effectiveness across our key facilities, which supported better on-time delivery and stronger operational throughput. At the same time, we continue to drive productivity through focused maintenance and reliability initiatives, lean execution, and Kaizen activity across our sites. I am personally excited as we recently kicked off our annual CEO Kaizen event, in which myself and the executive leadership team will each participate in events focused on strengthening our value creation processes across the company. We are also advancing how we operate by pairing process discipline with digital and AI capabilities. Over the last several quarters, we have expanded the use of data-enabled tools to improve maintenance, planning, accelerate defect detection, and optimize asset performance. These capabilities are allowing our teams to convert operational data into actionable insights faster, improving reliability, reducing variability, and reinforcing safe operations, all while delivering cost and productivity benefits. Importantly, this operational rigor positions us well as we navigate a dynamic external environment. While we are mindful of potential macro and geopolitical headwinds, our focus on productivity, automation, and structural improvement is creating resilience in the businesses. We are building a strong pipeline of cause and events and improvement projects for the balance of the year aimed at sustaining momentum and growth and productivity. Our first quarter results demonstrate that we are off to a great start. Our April sales were in line with our expectations, and we continue to see strong order growth trends across the majority of our businesses. Our teams continue to focus on driving growth and operational discipline, and our strategic priorities position us well for long-term value creation. With that, I'll now turn the call over to Antonella to cover the financials and outlook in more detail.
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