DuPont de Nemours, Inc. Q4 FY2024 earnings call

• Solid quarterly results with 7% sales growth, 13% increase in operating EBITDA to $807 million, and 30% growth in adjusted EPS to $1.13.
• Strong end market demand in Electronics, health care, and Water. Electronics saw continued demand from advanced nodes and AI-enabling tech. Health care markets improved with double-digit growth in medical packaging and biopharma. Water had 4% sequential sales lift and 11% y-o-y increase.
• Key priorities for 2025: targeting mid-single-digit organic sales growth, focusing on organic growth, operational execution, and portfolio management. Announced spin-off of Electronics business targeting November 1, 2025, with progress on establishing future boards and executive leadership.
• Operational excellence initiatives including enhanced productivity and cost actions, with working capital optimization driving strong cash generation.

E&I: Fourth quarter net sales of $1.5 billion, up 11% year-over-year with 10% organic sales growth. Full year net sales of $5.9 billion, up 11% with 6% organic sales growth. Operating EBITDA for E&I in Q4 was $457 million, up 21% y-o-y. Full year operating EBITDA was $1.7 billion, up 17%. W&P: Fourth quarter net sales of $1.4 billion, up 6% y-o-y with 8% volume growth. Full year net sales of $5.4 billion. Operating EBITDA for W&P in Q4 was $357 million, up 14% y-o-y. Full year operating EBITDA was $1.4 billion. Corporate: Organic sales declined 7% year-over-year.

• First quarter 2025: Estimated net sales of about $3.025 billion, operating EBITDA of about $760 million, and adjusted EPS of $0.95 per share. Assumes mid-single-digit organic growth and 1.5% currency headwind.
• Full year 2025: Estimated consolidated net sales of $12.8 billion to $12.9 billion, operating EBITDA of $3.325 billion to $3.375 billion, and adjusted EPS of $4.30 to $4.40 per share. Assumes mid-single-digit organic growth and 1% currency headwind. ElectronicsCo expected 6%-7% organic growth; IndustrialsCo expected 3%-4% organic growth.

• Differences between forward-looking statements and actual performance due to risks and uncertainties. Currency and portfolio impacts. Separation costs and potential dissynergies related to the spin-off of Electronics business.

Q: Scott Davis asked about AI-related revenues.

A: Lori Koch said AI-related sales were up over $300 million in 2024, up about 30%, and expected to be a key growth piece for ElectronicsCo.

Q: John McNulty asked about Water growth drivers.

A: Lori Koch said Water had 11% organic y-o-y growth in Q4 and expects mid- to high single-digit organic growth in 2025 due to secular tailwinds in the Water space.

Q: Jeff Sprague asked about spin-off timing and costs.

A: Antonella Franzen said timing is locked in for November 1, 2025, and separation costs were expected to be around $700 million but now expected to be less due to Water remaining in the portfolio.

Q: Steve Byrne asked about service components in the Water business.

A: Lori Koch said there's no service revenue today but services and other areas in the Water landscape are on the table.