DD

Strategic Transformation & Milestones

• Completed the previously announced reverse stock split to align key performance metrics with DuPont's industrial peer group
• GICS code classification updated to Industrials effective July 2026, recognizing the company's multi-year portfolio transformation and better reflecting its current industrial business mix and long-term value creation opportunities
• Management has implemented a unified, connected operating system integrating innovation excellence, commercial excellence, operational excellence, and 80-20 portfolio prioritization to focus on highest-value opportunities, improve execution rigor, and scale successful practices across the organization

Innovation Excellence

• Core priority for customer and shareholder value creation; the innovation pipeline is delivering new wins in high-growth emerging applications, supported by the AI-ready labs initiative that shortens development cycles and strengthens the front-end pipeline
• Recent key launches include: an integrated end-to-end direct lithium extraction solution (including membranes and ion exchange resins) to improve lithium recovery and purity; expanded Livio portfolio for the high-growth biopharma market; new solutions for electric vehicles and battery energy storage systems
• Current product vitality index (share of sales from new products) is 35%, with management focused on shifting the mix toward growth-focused new products rather than replacement products; R&D spend is targeted at ~2.5% of sales, with allocation prioritized for high-growth customer-facing application development

Commercial Excellence

• Implemented AI-accelerated targeted sales plays, moving from process deployment to operating discipline, with early encouraging demand momentum; ~150 opportunities secured to date with a 30% win rate, above historical performance and industry benchmarks
• Building a more systematic commercial engine with clear targeting, improved data quality, accelerated demand generation, and disciplined end-to-end execution to grow the sales pipeline
• 2027 will bring a transition to commission-based compensation for the full sales force (from a general bonus structure) to incentivize growth and a hunter-focused business development mindset

Operational Excellence

• OpEx improvement is a core value creation driver, delivering measurable gains in productivity, quality, customer delivery, and cost reduction; 100 basis point improvement in OTIF and net productivity achieved in the second quarter, with ongoing cost reduction that supports quality
• Early AI and automation pilots in reliability, maintenance, and quality have identified significant further improvement potential; cost of poor quality currently sits at 4% of sales, below the 5% industry benchmark, with plans to drive this lower
• Annual net productivity target is 3% reduction of cost of goods sold, with management on track to reach this 3% run rate across the organization within 18 months; 200 basis point COGS reduction achieved in Q2 2026, contributing 100 basis point of margin expansion

80-20 Portfolio Prioritization

• Ongoing work to simplify organizational complexity, clarify value creation, and reallocate resources to highest-value opportunities; initial pilot completed across four diversified industrial businesses, with execution of identified value opportunities underway
• Key actions include: reallocating commercial, technical service, and marketing resources to highest-growth geographies and segments, while simplifying smaller market operations via stronger channel partnerships; reducing manufacturing complexity, optimizing production sequencing, and focusing on highest-value product families to improve yields, asset utilization, and capacity within the existing footprint
• Initial $millions in EBITDA benefits are expected in the second half of 2026, with most near-term gains coming from margin improvement; no material top-line headwind is expected, and long-term growth upside is expected from focused resource allocation

• Full year 2026 organic sales growth guidance is raised to slightly above 4%, up from the prior target of 4%; net sales midpoint guidance is set to $7.175 billion, adjusted down due to a reduced expected currency benefit from a stronger US dollar
• Full year 2026 operating EBITDA midpoint guidance is increased to $1.760 billion, upwardly revised to reflect strong Q2 performance that more than offsets currency headwinds; operating EBITDA margin is projected at 24.5%, including a 30 basis point headwind from oil and gas inflation
• Full year 2026 adjusted EPS midpoint guidance is increased to $7.24, a 15 cent upward revision from prior guidance, representing an 18% year-over-year increase from 2025 pro forma results
• Full year 2026 free cash flow conversion is now expected to be above the prior 90% target, and is projected to be much closer to 100% for the full year
• Second half 2026 net sales midpoint is projected at $3.675 billion, implying ~6% year-over-year organic growth, driven by ongoing strength in healthcare, industrial water, and aerospace markets, plus carry forward pricing from prior actions; second half operating EBITDA is projected at $900 billion with a 24.5% margin including a 50 basis point headwind from oil and gas inflation, and adjusted EPS midpoint is expected at $3.73
• Third quarter 2026 estimated net sales is $1.835 billion, operating EBITDA is $448 million, operating EBITDA margin is 24.4% (including a 50 basis point oil and gas inflation headwind), and adjusted EPS is expected in the range of $1.80 to $1.90; organic growth is ~5% year-over-year after adjusting for 2025 timing shifts, or ~3% as reported
• For Q3 2026, Healthcare and Water Technologies is expected to deliver mid-single digits organic growth, while Diversified Industrials is expected to deliver low single digits organic growth
• Full year 2026 water segment organic growth is projected to land in the low to mid-single digits range, with a second half high single digits growth ramp offsetting first half Middle East weakness; full year segment organic growth for Healthcare and Water Technologies overall remains on track, with the overall company's raised full year guidance reflecting Q2 outperformance across multiple end markets
• A $250 million share repurchase program is expected to launch in Q3 2026 as part of DuPont's disciplined capital allocation strategy

DuPont operates two core reportable product segments: 1. Healthcare and Water Technologies: Second quarter 2026 net sales hit $856 million, representing a 5% year-over-year increase, with 4% organic growth and a 1% currency benefit. Healthcare organic sales grew mid-single digits, led by double-digit gains in personal protection and biopharma markets; water organic sales grew low single digits, driven by double-digit gains in industrial water and semiconductor markets, offset by weakness in the Middle East (excluding the Middle East, water organic growth hit mid-single digits). The segment generated operating EBITDA of $258 million, a 4% year-over-year increase, with an operating EBITDA margin of 30.1% (a 30 basis point year-over-year decrease, driven by unfavorable product mix and growth investments that offset organic growth and productivity gains). This segment accounted for 47.6% of total company net sales in the quarter. 2. Diversified Industrials: Second quarter 2026 net sales reached $963 million, a 3% year-over-year increase, matching 3% organic sales growth. Building technologies organic sales grew low single digits, led by growth in Asia Pacific residential and non-residential construction markets; industrial technologies organic sales grew mid-single digits, led by double-digit gains in aerospace and electric vehicle battery applications, plus mid-single digits growth in printing. The segment generated operating EBITDA of $213 million, a 7% year-over-year increase, with an operating EBITDA margin of 22.1% (a 70 basis point year-over-year increase, driven by organic growth, favorable mix, and productivity gains). This segment accounted for 53.5% of total company net sales in the quarter. Total company net sales for the quarter was $1.8 billion, with 4% organic growth year-over-year.

• Oil and gas price inflation creates ongoing margin headwinds, with a projected 30 basis point full year 2026 headwind and 50 basis point headwind in the second half of 2026; all projected headwinds are expected to be offset by pricing actions to maintain overall dollar price-cost neutrality
• Geopolitical conflict in the Middle East has created project timing delays for water desalination projects, leading to slower near-term growth in the region; the Middle East represents ~10% of the water segment business, with no structural changes to long-term growth expectations
• Currency headwinds from a strengthening US dollar have reduced projected full year net sales, with a 1% currency headwind expected in Q3 2026
• 80-20 portfolio restructuring could result in near-term modest top-line pressure as non-core activities are reduced, though management expects this to be offset by focused growth on core opportunities, with no material net top-line headwind projected
• Forward-looking statements are inherently subject to risks and uncertainties that could cause actual results to differ materially from guidance, with detailed risk factors available in DuPont's periodic SEC filings

Q: The analyst asks for an update on product vitality index, cost of poor quality progress, and the status of 80-20 implementation. / A: DuPont’s current product vitality index is 35%, with a focus on shifting the mix more toward growth-focused new products rather than replacements. Cost of poor quality is currently 4% of sales, below the 5% industry benchmark, with plans to reduce it further. The initial 80-20 pilot in four diversified industrial businesses is complete, and execution of identified opportunities is underway, with a few million dollars of EBITDA benefit expected in H2 2026.

Q: The analyst asks where DuPont stands on its net productivity target, what the best-in-class goal is, and what changes have been made to compensation to support new operational targets. / A: DuPont’s annual net productivity target is a 3% reduction in COGS, up from flat performance in prior years. The company saw 200 basis points of COGS reduction in Q2 2026, and expects to hit the 3% run rate across the organization within 18 months. Short-term incentives have already been moved to the line-of-business level for greater accountability, and a shift to commission-based compensation for the full sales force will launch in 2027 to incentivize growth.

Q: The analyst asks what is driving the projected second half growth acceleration for diversified industrials, and how 80-20 will impact top-line and profitability in H2. / A: The main driver of H2 growth acceleration is incremental pricing from actions taken to offset oil and gas inflation, adding approximately 2 percentage points of organic growth in H2. Near-term 80-20 benefits are focused on margin improvement from yield gains and resource reallocation, with no material top-line headwind expected. Long-term, focused resource allocation on core high-value opportunities is expected to support top-line growth.

Q: The analyst asks for an update on the M&A pipeline, especially for CDMO opportunities in healthcare. / A: DuPont maintains a robust M&A pipeline, with capacity for both the announced $250 million Q3 share repurchase and acquisitions, with over $1 billion of capacity remaining. Opportunities are actively being evaluated in both water and healthcare, including CDMO and packaging assets. Management remains diligent on valuation, targeting mid-teens purchase multiples that fall to lower teens post synergy, and requires any acquisition to be incremental to the company’s existing growth algorithm.