DuPont Reports $582 Million Net Loss in Q1 2025 Amid Goodwill Impairment

DuPont de Nemours, Inc. reported a net loss of $582 million for the first quarter of 2025, a significant decline compared to a net income of $197 million in the same period of 2024. The loss per share from continuing operations was $(1.33), compared to earnings of $0.41 per share in the prior year. The company's net sales increased by 5% to $3.1 billion, up from $2.9 billion, driven by an 8% increase in volume, although this was partially offset by a 2% decrease in local price and product mix. The cost of sales remained flat at $1.9 billion, resulting in a gross margin improvement as a percentage of sales, decreasing from 65% to 63%.

The financial results were impacted by a goodwill impairment charge of $768 million related to the IndustrialsCo segment, which contributed to the overall loss. Additionally, DuPont incurred $125 million in acquisition, integration, and separation costs primarily associated with the Intended Electronics Separation, which is targeted for completion by November 1, 2025. The company also reported restructuring and asset-related charges of $47 million, up from $39 million in the previous year, as part of its ongoing efforts to streamline operations in preparation for the separation.

In terms of operational metrics, DuPont's ElectronicsCo segment saw a 14% increase in net sales to $1.1 billion, driven by a 16% increase in volume, particularly in semiconductor technologies and interconnect solutions. Conversely, the IndustrialsCo segment's net sales remained flat at $1.9 billion, with a 3% increase in volume offset by declines in local price and product mix. The company continues to focus on enhancing productivity and managing costs, which contributed to a 6% increase in operating EBITDA for the IndustrialsCo segment.

DuPont's cash and cash equivalents stood at $1.8 billion as of March 31, 2025, down from $1.9 billion at the end of 2024. The company reported cash provided by operating activities of $382 million, a decrease from $493 million in the prior year, primarily due to increased working capital needs. The company is actively managing its liquidity and capital resources, with plans to enter a new revolving credit facility in May 2025, which will support its operational and strategic initiatives.

Looking ahead, DuPont remains focused on executing its Intended Electronics Separation and optimizing its business structure. The company anticipates that the separation will enhance its strategic focus and operational efficiency, although it acknowledges potential risks related to macroeconomic conditions and trade policies that could impact its financial performance.