With a combined revenue of $21 trillion and $2.1 trillion in profits, the 2026 Fortune 500 is the definitive list of America's largest companies.

Fortune 500

Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

Industries included in the sector are diversified and specialty chemical manufacturers.

Fortune Sector Leaders: Chemicals

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

This year’s Fortune 500 marks the 68th running of the list.

This year’s Fortune 500 marks the 67th running of the list.

F500-2021-144-DuPont

To say that DuPont has been through a lot of changes in recent years would be an understatement. In 2017, DuPont completed a $130 billion merger of equals with Dow to form DowDuPont, one of the world's biggest chemical companies. Then, in 2019, the chemical giant split apart again, this time into three separate companies—Dow, Corteva, and DuPont. Since then, DuPont has been reshuffling its businesses, most recently completing the separation of its nutrition and biosciences operation and signing agreements to divest its clean technologies and advanced solar cell materials businesses. The company expects to generate about $8 billion from the three transactions.

Collectively, the ranked companies produced a three-year average shareholder return of 33%, vs. 19% for the S&P 500.

FGC 2021-DuPont

100 Fastest-Growing Companies

This year's Fortune 500 marks the 66th running of the list.

F500-2020-152-Dupont

One of the three companies to emerge from the breakup of DowDuPont in 2019—just two years after a historic merger—the new DuPont is focused on specialty industrial materials such as Tyvek, used in personal protective gear. In April, the company said it would double its production of garments made with Tyvek to meet high demand resulting from the coronavirus.

This year's Fortune Global 500 generated $27.7 trillion in revenues and $1.5 trillion in profits.

Fortune Global 500

This year's Fortune 500 marks the 65th running of the list.

These 52 companies from across the globe are doing well by doing good.

Change the World

Here are the World's Most Admired Companies for 2018 as ranked in their industries. See who made the list.

World's Most Admired Companies

This year's Fortune 500 marks the 64th running of the list.

This year's Fortune 500 marks the 63rd running of the list.

This year's Fortune Global 500 generated $27.6 trillion in revenues and $1.5 trillion in profits.

This year's Fortune 500 marks the 62nd running of the list.

The world's 500 largest companies generated $31.2 trillion in revenues and $1.7 trillion in profits in 2014. Together, this year's Fortune Global 500 employ 65 million people worldwide and are represented by 36 countries.

This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Global business is back. After limping through a worldwide financial crisis and economic slowdown, the 500 largest companies ranked by revenues shattered all sorts of performance records in 2013: They racked up combined revenues of $31.1 trillion, up 2.5% from 2012, and profits soared 27% to nearly $2 trillion. China’s 95 companies (up from 89 last year) posted $5.8 trillion in revenues. The U.S. has four fewer companies on the list than last year but remains (for now) the country leader, with 128 corporations on the list—including No. 1 Wal-Mart Stores—reporting $8.6 trillion in revenues. 

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DuPont de Nemours manufactures specialty chemicals. The electronics and industrial segment supplies materials for the fabrication of semiconductors and integrated circuits. The water and protection segment provides engineered products and integrated systems for worker safety, water purification and separation, transportation, energy, medical packaging, and building materials. The corporate and other segment offers auto adhesives and fluids as well as Multibase and Tedlar products.

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DuPont (DD): Company Profile, Stock Price, News, Rankings

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DuPont

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Ladies and gentlemen, thank you for standing by. My name is Krista, and I will be your conference operator today. At this time, I would like to welcome you to DuPont's Fourth Quarter and Full-Year 2025 Earnings Conference 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 at that time, simply press star followed by the number 1 on your telephone keypad. And if you'd like to withdraw that question, again, press star one. Thank you. I would now like to turn the conference over to Ann Giancristoforo, Vice President, Investor Relations. Ann, please go ahead.

Good morning, and thank you for joining us for DuPont's Fourth Quarter and Full-Year 2025 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 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 discussion 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. As a quick reminder, on the basis of presentation for our fourth quarter and full year financial results, our total company net sales, operating EBITDA, and adjusted EPS reflect the separation of Qnity and the previously announced divestiture of the Aramids business reported as discontinued operations. I'll now turn the call over to Lori, who will begin on Slide three.

Good morning, and thanks everyone for joining our fourth quarter call. Earlier today, we reported our fourth quarter and full-year financial results, which were ahead of our previously communicated guidance. We finished the year strong, delivering full year organic sales growth of 2%, operating EBITDA growth of 6%, and 100 basis points of margin expansion. Operational discipline and a focus on productivity were key to our earnings growth and margin improvement. These results led to an adjusted EPS of $1.68 per share, up 16% year-over-year. Free cash flow generation was strong in the year. While delivering on our financial metrics, we also executed significant operational and portfolio transformation during the year. We successfully completed the separation of Qnity Electronics, standing up a premier pure-play technology solutions partner to the semiconductor value chain.

We also completed the build-out of my executive leadership team, adding external talent from well-run companies as well as promoting within the organization. We set the strategic direction of new DuPont, starting with enhancing our core values to drive a culture focused on growth and continuous improvement. This includes building a robust business system and continuing the progress on both our commercial and operational excellence frameworks. Finally, we set clear and robust medium-term financial targets aligned with our performance-based culture. I want to thank our employees for remaining focused on delivering these results and driving the transformation during the year. The momentum and progress we made in 2025 is carrying forward to our 2026 strategic priorities, which I will cover on Slide four.

Consistent with what we outlined at Investor Day, our strategic priorities for 2026 are clear: drive above-market organic growth, continue to build out a robust business system, deploy a balanced capital allocation model, all while consistently delivering financial results. We have successfully repositioned ourselves and have a streamlined portfolio of leading businesses, the majority of which are aligned to secular end markets, which will enable strong organic growth. We saw 2% organic growth for full year 2025 and expect that to accelerate to about 3% in 2026. We are well-positioned in secular end markets, and our top-line growth will continue to be bolstered by our innovation engine, which launched more than 125 new products in 2025. Our new products generated greater than $2 billion in sales this past year, and our Vitality Index remained strong at about 30%.

We are advancing the build-out of our business system and made significant progress last year. We introduced a core set of enhanced KPIs focused on driving improvement for our shareholders, customers, and employees. These KPIs are embedded in our refreshed set of management standards, which has added more visibility, rigor, and structure to our business processes. In addition, we will continue to expand the use of Kaizen events across the businesses and functions to identify areas to drive productivity, improve end-to-end processes, and accelerate commercial development. On commercial excellence, we continue to advance the framework across commercial enablement, sales effectiveness, and strategic marketing. We have completed a maturity assessment resulting in the identification of key initiatives in 2026 centered primarily on demand generation and pipeline discipline. Operational excellence enhancements will continue in 2026.

Last year, we rolled out an updated set of KPIs aligned with our focus on safety, quality, delivery, and cost, and refreshed our excellence toolkit with a stronger focus on lean methodologies. In addition, we invested in people and process capabilities across our supply chain and quality functions in order to enhance the customer experience. These improvements and investments will drive overall productivity in 2026. Across these disciplines, we are also actively deploying digital capabilities and AI to accelerate our progress. Within innovation, we are making investments in our labs to enable streamlined workflows and accelerate our product development cycle times. Within operations, we are utilizing tools in the reliability and maintenance space to improve uptime and reduce costs. And on the commercial side, we are focusing on investments in workflow and process automation to improve the customer experience.

On capital allocation, we have a proven model that enables both consistent investments and high-return organic opportunities, as well as bolting on to existing businesses with M&A to enable even greater returns. A strong balance sheet is a priority for us. We will continue to return cash to shareholders through a quarterly dividend in line with our targeted payout ratio, as well as utilizing share repurchases. We previously announced a $2 billion share repurchase authorization, and we executed a $500 million ASR in the fourth quarter of 2025. With these priorities, let's move to our 2026 outlook on slide 5. Our financial guidance for 2026 is in line with the medium-term targets that we outlined at our September Investor Day.

On a reported basis, we expect organic sales to grow about 3% year-over-year, operating margins to expand 60-80 basis points, and adjusted EPS of $2.25-$2.30 per share. On a pro forma basis, our EPS will grow 10%-12% year-over-year. Free cash flow generation will be solid with an expected conversion of greater than 90%. Underpinning our organic growth is a mixed macro environment. Market indicators for Healthcare and Water technologies continue to expect mid-single-digit growth in both spaces on increasing medical procedures to support an aging and growing population and strong global Water demand. Overall automotive demand is about flat in 2026 with weakness in the U.S. and Europe. However, we continue to expect EV builds to significantly outpace overall builds. In construction, after years of declines, market stabilization is expected with flatish demand year-over-year.

We are off to a good start to the year. Our January sales were in line with expectations, and overall, we are seeing improving order trends in our Industrial Technologies business, which we view as an indication that these markets, which were down last year, are beginning to stabilize and recover. Overall, our teams are executing with a 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.

Thanks, Lori, and good morning, everyone. The fourth quarter marked a strong operational finish to the year. We exceeded our financial guidance on better-than-expected top-line mix and productivity, resulting in strong EBITDA and margin improvement in the quarter. Beginning with fourth quarter financial highlights on slide 6. Net sales of $1.7 billion were about flat versus the year-ago period, as a 1% organic sales decline was offset by a 1% benefit from currency. Organic sales consisted of a 1% decrease in volume, which included a $30 million or 2% headwind from order timing shifts into the third quarter from the fourth quarter due to system cutover activities in advance of the electronic separation. Adjusting for the timing shift, organic sales would have grown 1% in the quarter. Looking at the second half, organic sales increased 2% versus the year-ago period.

From a segment view, during the quarter, organic sales grew 3% in healthcare and Water technologies, offset by a 4% decline in Diversified Industrials. From a second-half perspective, healthcare and Water technologies grew 5% on an organic basis, partially offset by a 1% decline in Diversified Industrials. From a regional perspective, in the quarter, we saw organic growth in Europe up 2% year-over-year, with Asia-Pacific down 2%. North America was about flat year-over-year. Fourth quarter operating EBITDA of $409 million increased 4% versus the year-ago period on favorable mix and cost productivity. Operating EBITDA margin during the quarter of 24.2% increased 80 basis points year-over-year. Turning to Slide seven. Adjusted EPS for the quarter of $0.46 was up 18% versus the year-ago period.

The increase was driven by higher segment earnings of $0.02, lower interest expense of $0.04, and a $0.02 benefit from exchange gains and losses. This was partially offset by a $0.01 headwind from a higher tax rate. Turning to Slide eight. Healthcare and Water technologies fourth quarter net sales of $821 million were up 4% versus the year-ago period on a 3% organic growth and a 1% benefit from currency. Organic growth included a headwind of approximately $15 million or 2% in order timing shifts into the third quarter. Adjusting for this headwind, organic sales growth was 5% in the quarter. For the fourth quarter, healthcare sales were up mid-single digits on an organic basis versus the year-ago period. Organic growth was broad-based, led by continued strength in medical packaging and medical devices.

Water sales were up low single digits on an organic basis, primarily due to strength in industrial Water markets. A majority of the headwind from the order timing shift was within Water. Operating EBITDA for the segment during the quarter of $255 million was up 4% versus the year-ago period on organic growth and productivity gains, partially offset by growth investments. Operating EBITDA margin during the quarter was 31.1%, flat with the prior year. Turning to Diversified Industrials on slide 9. Fourth quarter net sales of $872 million decreased 3% versus the year-ago period on a 4% organic decline, partially offset by a 1% benefit from currency. The organic decline included a headwind of approximately $15 million in order timing shifts into the third quarter. Adjusting for this headwind, organic sales declined 2% in the quarter.

At the line of business level, organic sales for Building Technologies were down high single digits on continued weakness in construction markets. Industrial Technologies organic sales were down low single digits as strength in aerospace was more than offset by weakness in printing and packaging markets. A majority of the headwind from the order timing shift was within Industrial Technologies. Operating EBITDA for Diversified Industrials of $197 million was up 2% versus the year-ago period on favorable mix and cost productivity. Operating EBITDA margin during the quarter was 22.6%, up 110 basis points versus the year-ago period. Turning to slide 10, which outlines our first quarter and full year 2026 financial guidance. For the first quarter, we estimate net sales of about $1.67 billion, operating EBITDA of about $395 million, and adjusted EPS of $0.48 per share.

Our first quarter net sales guidance assumes about 2% organic growth and about a 2% benefit from currency. Our operating EBITDA assumes a 10% increase year-over-year and margin expansion driven by business improvement and lower corporate costs. For the full year 2026, as Lori noted, our guidance is in line with our medium-term targets. We expect net sales of about $7.1 billion, operating EBITDA of about $1.74 billion, and adjusted EPS of $2.25-$2.30 per share. Our full year net sales guidance assumes about 3% organic growth and a currency benefit of about 1%. Our operating EBITDA assumes a 6%-8% increase year-over-year with 60 to 80 basis points of margin expansion. Our adjusted EPS guidance at the midpoint assumes about a 35% increase on a reported basis and an 11% increase on a pro forma basis.

For the Healthcare and Water segment, we expect full year 2026 organic sales growth in the mid-single-digits percent range. This assumed growth is expected to be driven by broad-based strength within healthcare, primarily due to demand in medical packaging applications and medical devices. In Water, we expect continued growth primarily driven by demand for reverse osmosis and ion exchange within industrial and municipal Water markets. For the diversified Industrial segment, we expect full year 2026 organic sales growth in the low single-digits percent range.

Within building technologies, after a year of market declines, we are expecting 2026 to be about flat, primarily driven by stabilization within U.S. construction markets. In Industrial Technologies, we expect a low single-digit growth year-over-year driven by strength in aerospace and demand recovery within markets served by our industrial-based product lines. With that, we are pleased to take your questions, and let me turn it back to the operator to open the Q&A.

Thank you. We will now begin the question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad to raise your hand and join the queue. If you'd like to withdraw that question, again, press star one. We also ask that you limit yourself to one question and one follow-up. Any additional questions, please requeue. Your first question comes from the line of Jeff Sprague with Vertical Research Partners. Please go ahead.

Hey, thank you. Good morning, everyone. Hey, nice to see you.

Good morning. Nice to see a solid, clean quarter. Also, Lori, your opening remarks there, all the focus on internal KPIs and growth. You were working on that along the way, but the shift to execution from portfolio moves is welcome on my behalf, anyhow.

Yeah. Good luck with all that. I wanted to shift, though, a little bit to the external, if I could. Can you just put a little bit finer point on the industrial side of the equation, sort of the soft U.S. industrial production in your guide that you mentioned, but then seems a little bit countered by your comments about industrial orders picking up? So maybe just a little bit more color, what you're seeing really in the core industrial parts of the portfolio, how orders are trending, and what you think is going on with channel inventories?

Yeah, thanks, Jeff. So on the Industrial side, so talking ex the Shelter business, which we had mentioned, we think will be about flat this year, so moderating from down mid-single digits in 2025 and the flat. On the Shelter side is general kind of low single digit growth expectations for the full year on non-Res and repair and remodel, and then down low to mid-single digits on the resi side. But on the Industrial side, it's primarily coming from the Advanced Mobility businesses, which comprise automotive and aerospace, and on the consumer packaged goods side with some of our packaging goods in Cyrel. So we've seen nice order pickup as we exited the year and went into Q1.

A lot of it is being driven by aerospace. We're seeing nice low double-digit improvement in order in aerospace. It's about 3%-4% of our revenue, so it's in that range. But all the businesses kind of in that industrial technology space are doing nicely and seeing kind of the short cycle recovery that other names have been pointing to.

Great. Then just on price-cost, obviously, a lot of attention on metals costs, which is maybe less of an issue for you than some of the metal vendors I cover. But what's going on on the inflation side of the equation? What sort of kind of price is embedded in the outlook for 2026?

So, Jeff, when it's our organic growth of 3% is predominantly related to volume for 2026, I would tell you we're not really expecting any significant headwinds from any of the roles, logistics, and kind of utilities kind of going into next year. We expect that to be relatively flat. And given our productivity initiatives, we expect to see a nice improvement in our gross margins on a year-over-year basis.

Thank you. Your next question comes from the line of Scott Davis with Melius Research. Please go ahead.

Echo what Jeff said. Nice to see a more normalized quarter here. I wanted to follow up a little bit on Jeff's question, but on the Shelter side, going from kind of a negative high single digits to something that's more flat-ish, how do we cadence that into 2026? Is it more backend-loaded, or do you see real green shoots here early in the year that you've already seen to be able to call a recovery?

Yes. So let me start on that one. So when you look at our overall Shelter business, we mentioned that it was down around mid-single digits in 2025. So when we start off 2026, I would tell you that we expect it to be slightly down as we start the year. So part of it's going to be the comps on a year-over-year basis. So just keep in mind that in Q1 of 2025, we were down around 6% in that business.

So on a year-over-year basis, when you look at the two-year stack, it's not really changing significantly from kind of the second half of the year of where we're exiting, kind of going into the beginning of the year. So we do expect slight improvement as we go through the course of the year. If we start out slightly negative, getting a little bit better, that gets you to the overall flat for the year.

Okay. That's helpful and I don't recall hearing Vitality Index on these calls in the past. Maybe you do, and I just haven't heard it. But 30% seems like a pretty robust number, but I don't really have any context to what that's been historically. And perhaps just some color on how helpful is this as it relates to mix or price or volume? Are these iterative slight improvements, or are there real meaningful product changes? Just some color would be helpful, I think. Thanks.

Sure. Yeah. We had first talked about it in yesterday where we mentioned that the 2024 number was about 30%. We expect that same performance in 2025. So it is helpful on both the top-line side as well as the margin side. So there's work that goes into not only releasing new products where we can get enhanced price and get some incremental share, there's also work that goes on kind of the value engineering side to take cost out and deliver margin improvement. So if we look at the margin profile of those products that comprise the new product sales, it is higher than the overall margin of the company. And so we're seeing nice lift from both sides. Our efforts internally, we did 125 new products last year. We'll expect to continue to do nicely this year.

We'll focus on making sure that the shift is happening from renew versus grow. You had mentioned the impact to the top line. There is a portion of that 30% Vitality Index that is replacement and making sure that we stay competitive and differentiated. We want to continue to do that, but also shift the mix towards growth so that we can get incremental top-line growth out of the innovation engine.

Okay. Thanks, Lori. Best of luck. I just appreciate it. Pass it on to Ken.

Your next question comes from the line of Steve Tusa with JPMorgan. Please go ahead.

Hi. This is Chigusa Katoku on for Steve Tusa. Thanks for taking my question. So my first question is on, so you're making great progress on the margin front and I just wanted to go back to the margin bridge that you provided at Analyst Day. You provided 0-50 basis points of productivity here. And I was wondering, given the execution, is there potential upside here, or are you tracking ahead of plan?

Yes. Well, I'll say let's take it one year at a time as we progress through the three-year plan. But I would say we're clearly starting out of the gates in a nice good spot. And when you look at our guidance for 2026, we have at least 20 basis points of margin expansion coming from productivity. Clearly, the teams are doing a great job. Lori outlined a lot of activities that we have ongoing in the organization. I think you saw some of the benefit of that in our Q4 results. You'll see that continue as we go into 2026, and we'll continue to drive that as we move through the three-year period.

Okay. That's great. Thanks. Then on the Aramids divestiture, I think, is expected to close at the end of the first quarter, which is going to bring in about $1.2 billion of pre-tax proceeds, if I remember correctly. But any initial thoughts on what you were thinking about capital deployment? Thanks.

Yeah. So we're still in that range of closing around the end of the first quarter, and it'll be about $1 billion on an after-tax basis. Keep in mind, we've already deployed about half of that with the $500 million ASR that we announced last quarter and have completed already with EPS growth for us this year. So we'll continue to be shareholder-friendly with respect to deployment of the proceeds. We have mentioned that we would like to continue to add to the top line through M&A. So we've got some opportunities that we're looking at primarily in the healthcare side right now within similar aspects to what we did with Spectrum and Donatelle.

We'll continue to be mindful, obviously, about ensuring a really strong return. So we'll look to get up to higher than our cost of capital by year five with respect to the IRR on the deal. So we'll continue to be shareholder-friendly. We've proven that we've done it in the past significantly, and we'll look to deploy them efficiently.

Your next question comes from the line of John McNulty with BMO. Please go ahead.

Yeah. Good morning. Thanks for taking my question. Maybe you wanted to dig into the diversified margin lift. It was a pretty chunky lift. I guess, how much of that is around the mix with the benefit of aerospace kind of hanging in as a really strong driver versus how much of it is tied to some of that 80/20 kind of work that I know Beth is working on really kind of accelerating as we push over the next 12-18 months? Can you help us to think about that?

Yeah. So a couple of things that I would mention there. I would say you're not really yet seeing the benefits of 80/20. It's a little too early. As you know, Beth recently arrived, so yes, she's working on that. But the benefits of that, I would say, are to come as we move forward. When you kind of look at the activity in the fourth quarter, I would point more towards what drove the margin expansion to be a bit of mix related to the businesses that were growing when you look at the line of business level, as well as a strong push relative to productivity is what really drove the nice margin expansion in the fourth quarter on a year-over-year basis.

Got it. Okay. No, thanks for the color and then in terms of innovation, I mean, you mentioned the Vitality Index. You kind of spoke to, I think it was $2 billion of growth that you saw from some of the new products. I guess, can you help us to think about some of the more exciting innovations, the ones that are starting to move the needle maybe more than others that we should be looking for as we kind of look through 2026 into 2027?

Yeah. So the $2 billion is the total new product sales that are within the roundly $7 billion of sales that we reported. So it's a portion of replacement and a portion of growth. So we'll continue to try to shift that mix towards more growth versus replacement in the future. But as far as exciting innovations that are on the come, I think, one, for this year, we highlighted on the last call, and I'll highlight again just because it was such a sizable improvement, were the enhanced Tyvek garments. So we announced at a trade show late last year that we came out with a new model that has the best breathability and the best protection in the industry and we've seen really, really nice customer reaction to that. We announced it first in Europe, and we'll continue to roll it out across the globe.

On the Water side, we continue to advance the latest technology within the reverse osmosis side. So this year, we're expanding capacity at our Edina site to be able to produce the Gen 4, which would be the highest-end technology that would enable a significant total cost of ownership to our customers. So we're continuing to advance that, and we'll look to commercialize that in 2027. So those are just two of the highlights. But obviously, with 125 new products last year, it's happening kind of all across the portfolio.

Your next question comes from the line of John Roberts with Mizuho. Please go ahead.

Good. Thank you and congrats on a good start here. Could you provide some margin color on the four subsegments: Water, Health, Building, and Industrial? I'm not sure how much detail you want to provide there.

Yes. We typically give color on the revenue side of our segments. But when you do look from a margin perspective, I mean, what I would add is you will see margin improvement, I would say, in both of our reportable segments as we move forward. And we'll also, obviously, get some margin expansion from a lower corporate cost as well. And that's certainly what's going to drive the 60-80 basis points of margin expansion in 2026.

Your Asia-Pacific sales were down 2% organic. Was that Water supply chain contraction again, or is there something else going on there?

No, it wasn't Water. It was primarily within the diversified side. We had a supply chain change in our Shelter business that was the single largest item. So it was really just a change in the distributor joint venture relationship. So nothing permanently will push it into 2026. So nothing material. We expect a return to growth across all the regions, both in the quarter and the full year for 2026.

Your next question comes from the line of Josh Spector with UBS. Please go ahead.

Yeah. Hi. Good morning. I had two questions on Water, maybe one slightly related to the comment earlier on Asia. Is that when you're forecasting, you're talking about mid-single-digit growth in Water for 2026. China's lower than that. Can you go into some of the details on why and what you're seeing there? I mean, you and some other peers are seeing slower growth in China in general. And then secondly, does that help or hurt your mix in the overall segment?

Yeah. So we are seeing a slower start in China with respect to overall growth within the Water business. And it's primarily stemming from just the reduced industrial production in the region. So we'll start in the low single digits in China in Water, and then we'll ramp into the back half to get overall to that mid-single digit. And I think, as you had mentioned, our peers are seeing a similar dynamic. So it's really just a reflection of the industrial production malaise in China. About half of our Water is used in the industrial wasteWater treatment or industrial utility water space. And so when industrial production is down, obviously, it would have an impact on that. As far as the mix, no material change in mix depending on where the regional growth is or margin.

Your next question comes from the line of Aleksey Yefremov with KeyBanc Capital Markets. Please go ahead.

Hi. This is Paul on for Aleksey. Can you discuss what you're currently seeing in auto trends right now and maybe the cadence for your outlook for 2026? Thanks so much. 

Yeah. Overall, the expectation for auto builds from IHS is to be about flat. We would expect a slightly outperform that just based on our EV growth. And so we did see nice EV growth in 2025, and we'll continue to see nice EV growth in 2026. It'll vary by quarter, but overall, the full year is about flat and will be slightly up.

Your next question comes from the line of Matthew DeYoe with Bank of America. Please go ahead.

Morning, everyone. Clearly, the portfolio is shaken out a lot. But as we settle here, is there any hope to establish annual pricing initiatives in any of the businesses that could be enough to actually drive structural pricing gains across consolidated DuPont, whether that's 50 basis points or 100 basis points? Do we have a framework there?

We do. I mean, obviously, the past two years have been the unwind of the sizable price that we took through the inflationary environment coming out of COVID. But going forward, we would expect to see structural price lift. As Antonella mentioned at the beginning, in 2026, our 3% organic is primarily volume. But underneath that, there is some price in some of the businesses. We continue to expect to have to give back a little bit on the Shelter side primarily as that sizable price raise that we drove in the 2022-2023 timeframe starts to unwind. But yes, there is opportunity to drive structural price in most of the businesses in our portfolio.

Thanks for that. As you comment on something like Tyvek with the new advanced garments, right, how much margin uplift would something like that give versus a legacy product? I guess maybe I don't know if you want to comment specifically on that, but as a different one, maybe what is the average margin uplift? If you were to look at the Vitality Index and you're thinking about replacement, is this through the index of 30 basis points or 100 basis points, or is it flat? What's the uplift look like as we think about layering?

Yeah. I'd rather not comment on the margin lift at kind of at the product line level. But overall, in the Vitality Index in the 30%, we have about 145 basis points of margin lift from those products that are introduced in the past five years.

Your next question comes from the line of Chris Parkinson with Wolfe Research. Please go ahead.

Great. Thanks so much for taking my question. We just take a step back and look at your healthcare portfolio. I know this is a focus of your CMD. But Lori, where are you the most enthusiastic as you go through 2026 and perhaps even the longer-term growth algo? Is it on the biopharma side? Is it pharma solutions, med device? If you could just comment on your enthusiasm in terms of your product portfolio, Lori, that would be particularly helpful. And then I'll have a follow-up. Thank you.

Yeah. It's really across all three. So both med packaging, med device, and biopharma all are nicely contributing to the kind of mid to high single-digit range in 2026. They all participate nicely in the higher-end aspects of the med device universe. So if you think about the majority of our applications, they're more in the cardiovascular space, which has an overall higher growth rate with respect to overall surgical procedures. So all three of them are going to contribute nicely. We'll continue to differentially invest in those businesses to ensure that we can continue to grow.

Got it. And just a similar question for the Water business now that all the dust is settled post the split. When you take a look at your Water portfolio, filtration, in particular, across NF, RO, UF, it's clearly a great business, but do you feel as though you're missing any scale? Do you feel as though there's a piece of your portfolio? Obviously, you've added other things in on ion exchange over the years. What else do you think you need to do, if anything, quite frankly, to further garner investor appreciation for that specific business?

Yeah. I think from a technology perspective, we've got the leading technology across all the main components within water filtration, so leading in RO, leading in ion exchange, leading in UF, and nanofiltration. So we're nicely positioned there. We've mentioned the desire to start to build around Water, so potentially going into spaces beyond filtration, just given filtration would be difficult from a regulatory perspective for us, given that we've got the leading position. So we continue to scout and look for opportunities to expand in the water space. Obviously, we'll be highly in tune to the valuations there. They can be quite pricey. We've seen a few assets with some of our competitors trade in the last few quarters that had a high valuation that would make it difficult for us. But we'll continue to see.

We recently added just to continue to shore up our supply chain in the water space, an asset in China. RO has huge growth in China. We didn't have an established footprint. We bought an asset outside of Shanghai that gave us established membrane capacity in the region for us to continue to be competitive and local to our customers there.

Your next question comes from the line of Vincent Andrews with Morgan Stanley. Please go ahead.

Thank you very much. I wanted to ask on healthcare. You called out in the deck that surgical procedures are expecting to be up mid-single digits this year. Can you just give us a sense? Is that sort of the normal growth rate, and is that favorable, about the same versus 2025? And then is your portfolio sort of well-represented across that entire cohort, or how should we think about it?

Yeah. I would say it's a similar growth rate to what we saw in 2025 minus the de-stock that happened in the first quarter that kind of drove up the overall healthcare growth for the year. So we're nicely positioned, as I mentioned, in the areas that are driving kind of above the average surgical procedure rate. So if you say general surgeries, it's about 4%. Where we play, we expect that overall average to be more market-weighted to about 5%. So we're nicely positioned on both the healthcare side with the Tyvek packaging as well as on the Spectrum and Donatelle side on the device. Our single largest end market there is also within the cardiovascular and vascular space.

Okay. And then just to follow up on the balance sheet and capital allocation, the end of the year with, I think, $715 million in cash, you've got the $1 billion coming in. Earlier, you spoke to, "Well, we've kind of spent some of that $1 billion already with the $500 million ASR." So can you just refresh us on sort of what the minimum level of cash is that you want to carry?

And then as you move forward through the year and generate more cash, obviously, expecting another very strong year of cash conversion, understanding sort of the dual track of pursuing M&A as well as share repurchases, should we think about that sort of remaining proceeds from the divestiture to be sort of earmarked for M&A but the sort of free cash flow generation from this year to sort of be ratably allocated to CapEx, to dividends, and to repurchases? Or is that not the right way to think about it?

Yeah. So let me start with your first question. So typically, on the balance sheet, we would carry around $1 billion in cash. So we were a little bit below that at the end of the year given the cash that we spent on the ASR of $500 million. So as you mentioned, we will have a nice cash flow generation year in 2026. So we do expect our free cash flow conversion in 2026 to be greater than 90%. In addition to that, we do have the proceeds that are coming in the door related to the Aramids transaction. As Lori kind of mentioned earlier, I would say in terms of capital allocation, we view that in the eyes of a shareholder in terms of what creates the most amount of value.

So I wouldn't say there's a specific amount earmarked towards an M&A deal or a specific amount earmarked towards share repurchases. We'll continue to look at both. We do have a pipeline of some M&A that we are looking at. Ultimately, you'll see if they come to fruition or not. But clearly, we will continue to deploy capital in the best interest of our shareholders as we move forward.

Your next question comes from the line of Patrick Cunningham with Citi. Please go ahead.

Hi. This is Rachel Leoff for Patrick. So I think in an earlier response, you mentioned all regions should be up organic sales-wise this year and in 1Q. So with recent PMIs trending more favorably, can you just provide more color on that response and maybe what you're seeing in terms of organic sales growth versus GDP?

You kind of dropped off at the end, so I couldn't hear which quarter you were referencing. But to the earlier comment, we do expect to see organic growth across all regions both in the first quarter and in the full year. The improvement, kind of the first quarter being at 2% organic and the full year being at 3%, most of that improvement is going to be in North America just based on the improvement that we expect to see on the Shelter side. So with Shelter starting kind of slightly negative and then trending to even on the full year, you'll see that lift given the majority of the end markets in Shelter are in North America.

Got it. Thank you. Can I just ask what sort of level of visibility you have for order books across the healthcare portfolio in general?

Yeah. I'll answer the question broadly for the company because it's a bit about we don't have a long lead time, put it that way. So we start each month with about 80% of the orders on the books, and we start each quarter with about 50% of the orders on the books, and then we build from there. Shelter is definitely the shortest cycle. On the longest cycle, I would say it would be our Aerospace businesses and our Water business would be on the longer end, and everyone else would kind of fall in between.

Your next question comes from the line of Michael Sison with Wells Fargo. Please go ahead.

Hey. Good morning. Nice quarter and outlook. Just a quick one on U.S. construction. Your outlook is flat. Any differences between non-Res, Res, and repair and remodel in that outlook?

Yes. So as we look into 2026, our expectations would be that non-res would be up in the low single-digit range as well as repair and remodel, and that would be offset by a low to mid-single-digit decline on the resi side of the business.

DuPont (DD) Q4 2025 Earnings Call Transcript

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