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 September 30, 2026 of $1.9 billion, up 4 percent from $1.8 billion for the three months ended September 30, 2025, due to a 5 percent increase in organic sales and a 1 percent unfavorable currency impact. Organic sales increased in Healthcare & Water Technologies (up 4 percent) and Diversified Industrials (up 5 percent). The currency impact was primarily driven by the strengthening of the U.S. dollar.

The Company reported net sales for the nine months ended September 30, 2026 of $5.4 billion, up 4 percent from $5.2 billion for the nine months ended September 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 4 percent) and Diversified Industrials (up 3 percent). The currency impact was primarily driven by the weakening of the U.S. dollar compared to the Euro in the first half of 2026.

Cost of Sales

Cost of sales was $1.2 billion for both the three months ended September 30, 2026 and the three months ended September 30, 2025. Cost of sales for the three months ended September 30, 2026 primarily reflects increased sales volume and increased raw materials costs.

Cost of sales as a percentage of net sales was 64 percent and 66 percent for the three months ended September 30, 2026 and 2025, respectively. The decrease in cost of sales as a percentage of net sales was due to manufacturing productivity.

Cost of sales was $3.5 billion for the nine months ended September 30, 2026, slightly up from $3.4 billion and September 30, 2025. Cost of sales for the nine months ended September 30, 2026 primarily reflects increased sales volume and productivity initiatives.

Cost of sales as a percentage of net sales was 64 percent and 66 percent for the nine months ended September 30, 2026 and 2025, respectively. The decrease in cost of sales as a percentage of net sales was due to manufacturing productivity.

Research and Development Expenses ("R&D")

R&D expenses totaled $42 million in the third quarter of 2026, down from $52 million in the third quarter of 2025. R&D as a percentage of net sales for the three months ended September 30, 2026 was relatively consistent at 2 percent compared with 3 percent for the three months ended September 30, 2025.

R&D expenses totaled $131 million in the first nine months of 2026, down from $155 million in the first nine months of 2025. R&D as a percentage of net sales for the nine months ended September 30, 2026 was relatively consistent period over period at 2 percent compared with 3 percent for the nine months ended September 30, 2025.

R&D costs in 2025 include indirect costs, such as those related to corporate and shared service functions previously allocated to the Electronics and Aramids businesses, that did not meet the criteria for discontinued operations and remained reported within continuing operations.

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

SG&A expenses were $260 million in the third quarter of 2026, slightly down from $261 million in the third quarter of 2025. SG&A as a percentage of net sales for the three months ended September 30, 2026 was relatively consistent period over period at 14 percent compared with 15 percent for the three months ended September 30, 2025.

For the first nine months of 2026, SG&A expenses were $784 million, up from $757 million in the first nine months of 2025. SG&A as a percentage of net sales was consistent period over period at 15 percent for the nine months ended September 30, 2026 and 2025.

Amortization of Intangibles

Amortization of intangibles was $68 million in the third quarter of 2026, down from $71 million in the third quarter of 2025. In the first nine months of 2026, amortization of intangibles was $204 million, down from $220 million in the same period of the prior year. The decrease for the three and nine months ended September 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 Charges - Net

Restructuring and asset related charges - net were $6 million and $49 million charges for the three and nine months ended September 30, 2026, respectively, primarily reflecting activity related to the 2026 DuPont Restructuring Program. Comparatively, Restructuring and asset related charges - net for the three and nine months ended September 30, 2025 were $18 million and $57 million, respectively, primarily reflecting charges 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, other contractual transaction payments and certain costs to achieve cost savings targets following the Electronics Separation and the Aramids Divestiture. The Company recorded $15 million and $22 million in costs for the three and nine months ended September 30, 2026, respectively, primarily related to costs to achieve cost savings targets following the Aramids Divestiture and Electronics Separation. Comparatively, the Company recorded $62 million and $167 million in costs for the three and nine months ended September 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 $5 million for the three months ended September 30, 2026, up from zero in the third quarter of 2025. In the first nine months of 2026, the Company's share of earnings of nonconsolidated affiliates was $13 million. The Company's share in the loss of nonconsolidated affiliates was $6 million first nine months of 2025. The increase in earnings of nonconsolidated affiliates over the three and nine month periods was primarily driven by higher equity earnings from Derby in the first nine 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 third quarter of 2026 was income of $38 million compared with income of $24 million in the third quarter of 2025. The increase in income was primarily driven by foreign exchange gains in 2026 compared to losses in the prior-year period. Sundry income (expense) - net for the first nine months of 2026 was income of $116 million compared with income of $115 million in the first nine months of 2025. The slight increase was primarily driven by foreign exchange gains in 2026 compared to losses in the prior-year-period, offset by the absence of a non-cash mark-to-market gain related to the 2022 Swaps and 2024 Swaps. See Notes 6 and 17 to the interim Consolidated Financial Statements for additional information.

Interest Expense

Interest expense was $40 million and $85 million for the three months ended September 30, 2026 and 2025, respectively, and $121 million and $252 million for the nine months ended September 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 effective tax rate on continuing operations for the third quarter of 2026 was 38.7 percent, compared with an effective tax rate of (12.1) percent for the third quarter of 2025. The increase in the effective tax rate was primarily attributable to transaction-related tax benefits recognized in the prior-year period in connection with the separation and spin-off of the Electronics business, as well as U.S. provision-to-return adjustments recorded in 2026. For the first nine months of 2026, the effective tax rate on continuing operations was 29.5 percent, compared with 22.6 percent for the first nine months of 2025. The increase in the effective tax rate for 2026 was primarily attributable to the absence of transaction-related tax benefits recognized in 2025 in connection with the separation and spin-off of the Electronics business, as well as U.S. provision-to-return adjustments recorded in 2026.