DuPont’s Electronics Spinoff: The Start of Something Big
DuPont de Nemours Inc. (NYSE: DD) is a leading industrial materials and specialty chemicals company that has been a surprising beneficiary of the AI boom. The basic materials sector leader manufactures products used in many industries, including construction, healthcare, transportation, electronics and worker safety. They face competition from well-known competitors like 3M (NYSE: MMM), Huntsman Co. (NYSE: HUN), and Celanese Co. (NYSE: CE).
While shareholders wait for the planned spinoff of its Electronics division, which produces semiconductor materials, interconnect solutions, advanced materials for displays, and flexible electronics and industrial polymers, the company posted robust top and bottom-line beats.
The Electronics Division Spinoff Is Now Targeted for Nov. 1, 2025
DuPont will spin off its Electronics division on Nov. 1, 2025. It will no longer separate its Water & Protection business, and it will remain within DuPont. The Water division was originally planned to also spin off into a public company, but DuPont decided to keep it and instead focus on accelerating the spin-off of its Electronics division. The Electronics division will be spun off as an independent publicly listed company in a tax-free transaction to DuPont shareholders. The Electronics & Industrial division saw 11% YoY revenue growth to $1.51 billion and operating EBITDA of $457 million for a 30.3% margin. This division is the main benefactor of the AI boom with its interconnect solutions and semiconductor technologies.
Robust Cash Flow Supports DuPont’s Financial Health
DuPont posted Q4 2024 adjusted EPS of $1.13, beating consensus estimates by 15 cents. Revenues grew 6.7% YoY to $3.09 billion, beating the $3.07 billion consensus analyst estimates.
GAAP loss was $61 million, while operating EBITDA was $807 million. GAAP EPS loss was 17 cents.
The full year 2024 net sales rose 3% to $12.4 billion. GAAP income was $778 million, with an operating EBITDA of $3.14 billion.
Operating cash flow was $2.3 billion, and free cash flow was $1.8 billion. Margins expanded 100 bps to 17%
DuPont’s 2025 Outlook Holds Steady With In-Line EPS and Revenue Guidance
The company issued full-year 2025 EPS of $4.30 to $4.40 versus $4.37 consensus estimates. Full year 2025 revenue is expected between $12.8 to $12.9 billion versus $12.9 billion consensus estimates. Adjusted EPS is expected to be around 95 cents for Q1, and net sales of $1.03 billion in Q1.
DuPont CEO Lori Koch commented, "DuPont closed out a year of strong financial performance with solid fourth-quarter results as we saw continued strength in electronics end-markets and a return to year-over-year top-line growth in Water & Protection driven by further improvement in water and medical packaging end-markets."
Analysts See 18.54% Upside for DD Stock, Targeting $98.75
A cup and handle pattern consists of a rounded cup formation followed by a shallow handle pullback. The cup forms when a stock declines from a peak to a swing low, rounds out, and rallies back to retest the previous high. A brief pullback from that high creates the handle, and a breakout is signaled when the stock finally exceeds this level on a subsequent move.
DD formed the cup lip line at $85.12 before falling to a low near $72.69 and then staging a rally back up through the daily anchored VWAP at $78.02 to retest the cup lip line again at $85.12 and complete the cut pattern. From here a shallow pullback is expected in order to form the handle. The pullback shouldn't fall below the $79.40 gap-fill support. The bounce will need to break out through the cup lip line to trigger the cup and handle pattern. The daily anchored VWAP is $78.02. The daily RSI peaked at the 68-band. Fibonacci (Fib) pullback support levels are at $82.55, $80.30, $77.73, and $74.06.
DD stock’s average consensus price target is 18.54% higher at $98.75, and its highest analyst price target sits at $112.00. It has 10 analysts' Buy ratings and two Hold ratings. The stock has a 0.91% short interest.
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