DuPont de Nemours, Inc.

RESULTS OF OPERATIONS

The following table summarizes sales variances by segment and geographic region from the prior year:

1. Europe, Middle East and Africa.

The Company reported net sales for the three months ended September 30, 2025 of $3.1 billion, up 7 percent from $2.9 billion for the three months ended September 30, 2024, due to a 7 percent increase in volume and a 1 percent favorable currency impact partially offset by a 1 percent decrease in local price and product mix. The volume increase was driven by ElectronicsCo (up 11 percent) and IndustrialsCo (up 5 percent). Local price and product mix decreased in ElectronicsCo and IndustrialsCo (both down 1 percent). The Company had an approximately $70 million benefit from order timing related to system cut-over activities in advance of the Electronics Separation.

Net sales for the nine months ended September 30, 2025 were 8.7 billion, up 6 percent from $8.3 billion for the nine months ended September 30, 2024, due to a 7 percent increase in volume partially offset by a 1 percent decrease in local price and product mix. The volume increase was primarily driven by ElectronicsCo (up 12 percent). Local price and product mix declined in ElectronicsCo (down 2 percent) and IndustrialsCo (down 1 percent).

Cost of Sales

Cost of sales was $1.9 billion for the three months ended September 30, 2025 up from $1.7 billion for the three months ended September 30, 2024. Cost of sales increased for the three months ended September 30, 2025 primarily due to increased sales volume.

Cost of sales as a percentage of net sales remained flat at 61 percent for both the three months ended September 30, 2025 and 2024.

Cost of sales was $5.3 billion for the nine months ended September 30, 2025, up from $5.1 billion for the nine months ended September 30, 2024. Cost of sales increased for the nine months ended September 30, 2025 primarily due to increased sales volume.

Cost of sales as a percentage of net sales for the nine months ended September 30, 2025 was 61 percent compared with 62 percent for the nine months ended September 30, 2024. The slight decrease as a percentage of sales for the nine months ended September 30, 2025 compared to the prior period was primarily due lower raw material costs.

Research and Development Expenses ("R&D")

R&D expenses totaled $140 million in the third quarter of 2025, up from $127 million in the third quarter of 2024. R&D as a percentage of net sales was relatively consistent period over period at 5 percent and 4 percent for the three months ended September 30, 2025 and 2024, respectively. The slight increase is driven by growth investments.

R&D expenses totaled $404 million in the first nine months of 2025, up from $370 million in the first nine months of 2024. R&D as a percentage of net sales was relatively consistent period over period at 5 percent and 4 percent for the nine months ended September 30, 2025 and 2024. The slight increase is driven by growth investments.

Selling, General and Administrative Expenses ("SG&A")

SG&A expenses were $387 million in the third quarter of 2025, up from $368 million in the third quarter of 2024. SG&A as a percentage of net sales was consistent period over period at 13 percent for the three months ended September 30, 2025 and 2024, respectively. The change for the three months ended September 30, 2025 as compared with the same period of the prior year was primarily due to an increase in legal expenses and personnel-related expenses.

For the first nine months of 2025, SG&A expenses were $1,127 million, down slightly from $1,134 million in the first nine months of 2024. SG&A as a percentage of net sales decreased slightly period over period at 13 percent compared to 14 percent for the nine months ended September 30, 2025 and 2024, respectively. The change for the nine months ended September 30, 2025 as compared with the same period of the prior year was primarily due to lower legal and personnel-related expenses.

Amortization of Intangibles

Amortization of intangibles was $121 million in the third quarter of 2025, down from $132 million in the third quarter of 2024. In the first nine months of 2025, amortization of intangibles was $375 million, down from $396 million in the same period of the prior year. The decrease for the three and nine months ended September 30, 2025 as compared with the same periods of the prior year was primarily due to the absence of amortization in the current period from fully amortized assets.

Restructuring and Asset Related Charges - Net

Restructuring and asset related charges - net were $20 million in the third quarter of 2025, down slightly from $21 million charges in the third quarter of 2024. In the first nine months of 2025, restructuring and asset-related charges - net were $67 million, up from $56 million charges in the same period last year. The activity for the three and nine months ended September 30, 2025 primarily related to the Transformational Separation-Related Restructuring Program. The activity for the three and nine months ended September 30, 2024 primarily related to the 2023-2024 Restructuring Program. See Note 6 to the interim Consolidated Financial Statements for additional information.

Acquisition, Integration and Separation Costs

Acquisition, integration and separation costs primarily consist of financial advisory, information technology, legal, accounting, consulting and other professional advisory fees. The Company recorded $139 million and $43 million for the three months ended September 30, 2025 and 2024, respectively, and $383 million and $51 million for the nine months ended September 30, 2025 and 2024, respectively. These costs for all periods presented were associated with the Electronics Separation.

Equity in Earnings of Nonconsolidated Affiliates

The Company's share of the earnings of nonconsolidated affiliates was $14 million in the third quarter of 2025, up from $7 million in the third quarter of 2024. The increase for the three month period is due to higher equity earnings in an equity affiliate offset by the loss from equity earnings from Derby.

In the first nine months of 2025, the Company's share of earnings of nonconsolidated affiliates was $30 million, up from $27 million in the first nine months of 2024.The increase for the nine month period is due to higher equity earnings across affiliates offset by the loss from equity earnings from Derby.

See Note 11 to the interim Consolidated Financial Statements for additional information.

Sundry Income (Expense) - Net

Sundry income (expense) - net includes a variety of income and expense items such as foreign currency exchange gains or losses, interest income, dividends from investments, gains and losses on sales of investments, losses on debt extinguishments and assets, non-operating pension and other post-employment benefit plan credits or costs, interest rate swap mark-to-market adjustments, interest rate swap net interest settlement and certain litigation matters. Sundry income (expense) - net in the third quarter of 2025 was $24 million of income compared with $200 million in the third quarter of 2024. Interest rate swap impacts includes a loss of $3 million and a gain of $191 million for the three months ended September 30, 2025 and 2024, respectively, and included mark-to-market adjustments. Interest income was $27 million and $14 million for the three months ended September 30, 2025 and 2024, respectively, which includes $9 million for the three and nine months ended September 30, 2025 related to interest income earned from cash received associated with the Qnity Notes. The three months ended September 30, 2025 and 2024 included $11 million and $17 million, respectively, net foreign exchange loss.

In the first nine months of 2025, sundry income (expense) - net was income of $112 million compared $147 million in the first nine months of 2024. The first nine months of 2025 included $48 million gain related to interest rate swap activity including mark-to-market adjustments and interest income of $68 million, partially offset by foreign exchange losses of $33 million. The first nine months of 2024 included a $152 million net gain related to interest rate swap activity including mark-to-market adjustments and $55 million of interest income partially offset by a $74 million loss on debt extinguishment and a $17 million loss on foreign exchange.

See Notes 7 and 19 to the interim Consolidated Financial Statements for additional information.

Interest Expense

Interest expense was $99 million and $87 million for the three months ended September 30, 2025 and 2024, respectively, and $266 million and $282 million for the nine months ended September 30, 2025 and 2024, respectively. The increase in interest expense during the three months ended September 30, 2025 compared to the same period the prior year is primarily due to $14 million of interest expense associated with the Qnity Notes partially offset by a reduction in capitalized interest.

The decrease in interest expense during the nine months ended September 30, 2025 compared to the same period the prior year is primarily due to the absence of interest expense on the partial redemption of $650 million aggregate principal amount of the 2038 notes and the dedesignation of 2022 Swaps partially offset by interest expense associated with the Qnity Notes.

See Note 19 to the interim Consolidated Financial Statements for further detail on the 2022 Swaps.

Provision for Income Taxes on Continuing Operations

The Company's effective tax rate fluctuates based, among other factors, on where income is earned and the level of income relative to tax attributes. The effective tax rate on continuing operations for the third quarter of 2025 was 5.8 percent, compared with an effective tax rate of 17.9 percent for the third quarter of 2024. The lower effective tax rate for the third quarter of 2025 in comparison to the third quarter of 2024 was principally the result of the release of a valuation allowance on certain tax attributes in connection with the anticipated Aramids Divestiture. For the first nine months of 2025, the effective tax rate on continuing operations was 20.4 percent, compared with 27.7 percent for the first nine months of 2024. The decrease of the effective tax rate in 2025 included the previously mentioned valuation allowance release in comparison to 2024 which included certain discrete tax expenses, including an international statutory tax settlement for which the Company is partially indemnified.