DuPont's Earnings Growth Holds Up Despite Iran-Linked Headwinds, RBC Says

MT Newswires Live05-12

DuPont de Nemours (DD) continues to post solid earnings growth as cost-optimization efforts and stronger volumes in key end markets counter weakness in the building and construction segment and higher expenses tied to the Iran conflict, RBC Capital Markets said Friday in a report.

Most near-term headwinds stem from the Middle East conflict, and DuPont expects $90 million in cost pressure, while the company plans to recover earnings through price increases and customer surcharges, the report said.

Softness in building and construction is weighing on the building technologies division, and DuPont expects low single-digit organic sales growth in Q2 and the full year, the report said.

Given H1 and full-year guidance, RBC said it does not expect a material margin step-up in H2. Even so, projections indicate H2 EPS of $1.23, compared with $1.15 in H1, the report said.

RBC cut its Q2 EPS estimate to $0.59 from $0.61 while boosting forecasts to $2.41 from $2.23 in 2026 and to $2.69 from $2.59 in 2027.

RBC raised its price target on DuPont stock to $60 from $56 and maintained its outperform rating.

Price: 50.70, Change: +0.94, Percent Change: +1.89

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