DuPont de Nemours, Inc.

RESULTS OF OPERATIONS

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

1. Organic sales (which includes both volume and selling price impacts), is defined as the change in net sales, absent the impacts from currency and portfolio. DuPont believes this information is useful to investors and management in understanding ongoing operations and in analysis of ongoing operating trends.

The Company reported net sales for the three months ended March 31, 2026 of $1.7 billion, up 4 percent from $1.6 billion for the three months ended March 31, 2025, due to a 2 percent increase in organic sales and a 2 percent favorable currency impact. Organic sales increased in Healthcare & Water Technologies (up 3 percent) and were flat in Diversified Industrials. The currency impact was primarily driven by the weakening of the U.S. dollar compared to the Euro.

Cost of Sales

Cost of sales was $1.1 billion for both the three months ended March 31, 2026 and March 31, 2025. Cost of sales for the three months ended March 31, 2026 primarily reflects the increased sales volume and productivity initiatives.

Cost of sales as a percentage of net sales was 64 percent and 66 percent for the three months ended March 31, 2026 and 2025, respectively.

Research and Development Expenses ("R&D")

R&D expenses totaled $47 million in the first quarter of 2026, down slightly from $50 million in the first quarter of 2025. R&D as a percentage of net sales was consistent period over period at 3 percent for the three months ended March 31, 2026 and 2025.

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

SG&A expenses were $255 million in the first quarter of 2026, up from $234 million in the first quarter of 2025. SG&A as a percentage of net sales was consistent period over period at 15 percent for the three months ended March 31, 2026 and 2025.

Amortization of Intangibles

Amortization of intangibles was $68 million in the first quarter of 2026, down from $75 million in the first quarter of 2025, 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 $46 million in the first quarter of 2026, up from $39 million of charges in the first quarter of 2025. The activity for the three months ended March 31, 2026 is primarily related to the 2026 DuPont Restructuring Program. The activity for the three months ended March 31, 2025 is primarily related to the Transformational Separation-Related Restructuring Program. See Note 5 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, other professional advisory fees and other contractual transaction payments. The Company recorded $50 million in costs for the three months ended March 31, 2025, which were primarily related to preparations for the Electronics Separation.

Equity in Loss of Nonconsolidated Affiliates

The Company's share of losses from nonconsolidated affiliates decreased to $1 million for the first quarter of 2026, compared to $15 million in the first quarter of 2025. The decrease was primarily driven by lower equity losses from Derby in the first quarter of 2026 compared to 2025. See Note 10 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 first quarter of 2026 was $36 million of income compared with $100 million of income in the first quarter of 2025. The period over period decrease is primarily driven by the Company redesignating the 2022 Swaps in the third quarter of 2025. Additionally, the period over period decrease in Sundry income (expense) – net is driven by a decrease in interest income due to reduced interest rates and reduced cash balances in the current period. See Notes 6 and 17 to the interim Consolidated Financial Statements for additional information.

Interest Expense

Interest expense was $40 million and $83 million for the three months ended March 31, 2026 and 2025, respectively. The decrease in interest expense during the three months ended March 31, 2026 compared to the same period the prior year is primarily due to the changes in capital structure during 2025 as a result of the Electronics Separation.

Provision for Income Taxes on Continuing Operations

The Company's effective tax rate fluctuates based on, among other factors, where income is earned and the level of income relative to tax attributes. The effective tax rate on continuing operations for the first quarter of 2026 was 17.1 percent, compared with an effective tax rate of 17.5 percent for the first quarter of 2025. The lower effective tax rate for the first quarter of 2026 in comparison to the first quarter of 2025 was principally the result of a discrete tax benefit relating to a change in tax classification of a non-U.S. legal entity.