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 June 30, 2026 of $1.8 billion, up 4 percent from $1.7 billion for the three months ended June 30, 2025, due to a 4 percent increase in organic sales. Organic sales increased in Healthcare & Water Technologies (up 4 percent) and Diversified Industrials (up 3 percent).

The Company reported net sales for the six months ended June 30, 2026 of $3.5 billion, up 4 percent from $3.4 billion for the six months ended June 30, 2025, due to a 3 percent increase in organic sales and a 1 percent favorable currency impact. Organic sales increased in Healthcare & Water Technologies (up 3 percent) and Diversified Industrials (up 2 percent). 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 $1.2 billion for the three months ended June 30, 2026, up slightly from $1.1 billion for the three months ended June 30, 2025. Cost of sales for the three months ended June 30, 2026 primarily reflects increased sales volume.

Cost of sales as a percentage of net sales was consistent at 65 percent for the three months ended June 30, 2026 and 2025.

Cost of sales was $2.3 billion for the six months ended June 30, 2026, slightly up from $2.2 billion and June 30, 2025. Cost of sales for the six months ended June 30, 2026 primarily reflects increased sales volume and productivity initiatives.

Cost of sales as a percentage of net sales was 65 percent and 66 percent for the six months ended June 30, 2026 and 2025, respectively.

Research and Development Expenses ("R&D")

R&D expenses totaled $42 million in the second quarter of 2026, down from $53 million in the second quarter of 2025. R&D as a percentage of net sales for the three months ended June 30, 2026 was relatively consistent at 2 percent compared with 3 percent for the three months ended June 30, 2025.

R&D expenses totaled $89 million in the first six months of 2026, down from $103 million in the first six months of 2025. R&D as a percentage of net sales was consistent period over period at 3 percent for the six months ended June 30, 2026 and 2025.

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

SG&A expenses were $269 million in the second quarter of 2026, slightly up from $262 million in the second quarter of 2025. SG&A as a percentage of net sales was consistent period over period at 15 percent for the three months ended June 30, 2026 and 2025.

For the first six months of 2026, SG&A expenses were $524 million, up from $496 million in the first six months of 2025. SG&A as a percentage of net sales was consistent period over period at 15 percent for the six months ended June 30, 2026 and 2025.

Amortization of Intangibles

Amortization of intangibles was $68 million in the second quarter of 2026, down from $74 million in the second quarter of 2025. In the first six months of 2026, amortization of intangibles was $136 million, down from $149 million in the same period of the prior year. The decrease for the three and six months ended June 30, 2026 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 (Benefits) Charges - Net

Restructuring and asset related (benefits) charges – net were $3 million of benefits and $43 million of charges for the three and six months ended June 30, 2026, respectively, primarily reflecting activity related to the 2026 DuPont Restructuring Program. Comparatively, Restructuring and asset related (benefits) charges – net for the first six months of 2025 were $39 million, primarily reflecting charges related to the Transformational Separation-Related Restructuring Program during the first quarter of 2025. 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, other contractual transaction payments and certain costs to achieve cost savings targets following the Electronics Separation and the Aramids Divestiture. The Company recorded $7 million in costs for the three and six months ended June 30, 2026, primarily related to costs to achieve cost savings targets following the Aramids Divestiture and Electronics Separation. Comparatively, the Company recorded $55 million and $105 million in costs for the three and six months ended June 30, 2025, respectively, which were primarily related to preparations for the Electronics Separation and Aramids Divestiture.

Equity in Earnings (Loss) of Nonconsolidated Affiliates

The Company's share of earnings from nonconsolidated affiliates was flat at $9 million for the three months ended June 30, 2026 and 2025. In the first six months of 2026, the Company's share of earnings of nonconsolidated affiliates was $8 million. The Company's share of loss of nonconsolidated affiliates was $6 million first six months of 2025. The increase in earnings of nonconsolidated affiliates over the six month periods was primarily driven by higher equity earnings from Derby in the first six months 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 second quarter of 2026 was income of $42 million compared with expense of $9 million in the second quarter of 2025. The increase in income was primarily driven by the absence of a non-cash mark-to-market loss related to the 2022 Swaps and 2024 Swaps, as well as foreign exchange gains in 2026 compared to losses in the prior-year period. Sundry income (expense) - net for the first six months of 2026 was income of $78 million, compared with income of $91 million in the first six months of 2025. The decrease was primarily driven by the absence of a non-cash mark-to-market gain related to the 2022 Swaps and 2024 Swaps, offset by a foreign exchange gains in 2026 compared to losses in the prior-year period. See Notes 6 and 17 to the interim Consolidated Financial Statements for additional information.

Interest Expense

Interest expense was $41 million and $84 million for the three months ended June 30, 2026 and 2025, respectively, and $81 million and $167 million for the six months ended June 30, 2026 and 2025, respectively. The decrease in interest expense from the prior year for both periods is primarily due to the changes in capital structure during 2025 as a result of the Electronics Separation, partially offset by a reduction in capitalized interest and interest expense from the interest rate swap.

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 second quarter of 2026 was 28.2 percent, compared with an effective tax rate of 69.2 percent for the second quarter of 2025. The decrease in the effective tax rate for 2026, compared with 2025, was primarily due to transaction-related items recognized in 2025. For the first six months of 2026, the effective tax rate on continuing operations was 23.7 percent, compared with 40.6 percent for the first six months of 2025. The decrease in the effective tax rate for 2026, compared with 2025, was primarily due to transaction-related items recognized in 2025.