DuPont Financial Model
Chemicals Company Financials Example (Free Excel Download)
DuPont de Nemours, Inc. is a global advanced materials and engineered solutions company that provides highly specified products to regulated and performance-critical industries.
professionals from Deloitte
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About this model
This model provides a comprehensive equity valuation and scenario planning tool for "New DuPont" following the transformational November 2025 spin-off of its Electronics business (Qnity) and the planned 2026 divestiture of its Aramids business, allowing an analyst to forecast the standalone cash generation of the remaining Healthcare & Water Technologies and Diversified Industrials segments.
DuPont de Nemours, Inc. is a global advanced materials and engineered solutions company that provides highly specified products to regulated and performance-critical industries. Following a massive portfolio realignment completed in late 2025, the company now operates as a more focused industrial and specialty materials manufacturer.
The company operates through two primary business segments:
- Healthcare & Water Technologies (approximately 47% of 2025 revenue): Provides medical packaging, biopharma components, and water filtration technologies (reverse osmosis, ultrafiltration, and ion exchange).
- Diversified Industrials (approximately 53% of 2025 revenue): Provides engineered materials and safety solutions for aerospace, construction, and printing markets.
DuPont operates globally, with significant revenue contributions from North America, Asia Pacific, and EMEA. The business model is asset-heavy but relies heavily on intellectual property, regulatory approvals, and proprietary manufacturing processes, giving it strong pricing power in niche markets. Its competitive position is particularly dominant in industrial water purification and medical device packaging. The company has undergone extreme restructuring in recent years, most notably the November 2025 tax-free spin-off of its semiconductor and interconnect business into a new public company called Qnity Electronics, Inc., and the planned Q1 2026 sale of its Aramids business to Arclin.
The downloadable DuPont financial model includes SEC-sourced historical financials, forecast assumptions, core operating schedules, and valuation outputs in an Excel workbook built for review and scenario analysis.
A turnkey financial model
Live formulas, no hardcoded values
Outputs are driven by live formulas, so the workbook updates from its assumptions instead of relying on hardcoded results.
All assumptions in one tab
Inputs are clearly marked in the Assumptions tab and separated from calculations, making it clear what to change and what to leave intact.
Statements always balancing
For integrated-statement models, the balance sheet, cash flow, and supporting schedules tie through properly.
Distinct schedules for clarity
Debt, working capital, taxes, and cash flow can get messy quickly. We group calculations in clear schedules, not across disconnected tabs.
No hidden macros or external links
There are no unexplained external workbook links or macros to undermine auditability or portability.
Changes flow through the model
Update a key driver and see the impact carry through the forecast, financing, and return outputs. We never use hardcoded numbers in formulas.
Historicals & AssumptionsDuPont financial modelCompany, Historicals & Assumptions used
Source: SEC EDGAR · values in USD
| Line item | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
| Revenue | $12.57B | $13.02B | $6.61B | $6.72B | $6.85B |
| Gross profit | $4.59B | $4.62B | $2.17B | $2.22B | $2.36B |
| Cost of sales | $10.80B | $8.40B | $7.83B | $7.88B | $4.49B |
| Net income | $6.47B | $5.87B | $423.0M | $703.0M | $88.0M |
Forecast assumptions
Defaults used in the downloadable model. Forecast horizon: FY2026–FY2030.
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How to build a detailed financial model for DuPont
A complete walkthrough of every driver, margin, working-capital input, and capital-allocation assumption used in the downloadable model.
Revenue Deep Dive
Healthcare & Water Technologies
- Segment name: Healthcare & Water Technologies
- Revenue driver formula: Volume x Price/Mix x FX Impact + M&A Contribution
- Historical growth rate: 7% organic growth in 2025 (9% total reported growth).
- Key growth levers and headwinds: Driven by secular trends in biopharma production, increasing global regulations around water purity (including PFAS remediation), and direct lithium extraction for batteries.
- Pricing dynamics: Highly specified products with rigorous regulatory approvals (e.g., FDA for medical packaging) create sticky customer relationships and strong value-based pricing power.
- Revenue recognition notes: Recognised primarily at a point in time when control of the manufactured goods transfers to the customer.
- Seasonality: Relatively stable across the year, though municipal water projects can skew slightly towards the second half of the calendar year.
Diversified Industrials
- Segment name: Diversified Industrials
- Revenue driver formula: Volume x Price/Mix x FX Impact
- Historical growth rate: 2% organic decline in 2025 (3% total reported decline).
- Key growth levers and headwinds: Highly dependent on global macroeconomic cycles. Aerospace demand provides a strong tailwind, while persistent weakness in global construction and printing/packaging markets acts as a severe headwind.
- Pricing dynamics: Pricing is often tied to raw material pass-throughs and cyclical demand.
- Revenue recognition notes: Standard point-in-time recognition upon shipment or delivery.
- Seasonality: Construction-exposed product lines typically see stronger volumes in the Northern Hemisphere spring and summer (Q2 and Q3).
Cost Structure
Variable Costs / COGS
- Cost of goods sold includes raw materials (petrochemical derivatives, specialized polymers), energy, manufacturing overhead, and freight.
- Gross margins typically range between 35% and 38% for the newly focused portfolio.
- Key input costs include energy prices and specialized chemical feedstocks, which the company attempts to pass through via price increases.
- COGS scales relatively linearly with volume, though the company benefits from operating leverage when manufacturing plants run at higher capacity utilisation rates.
Operating Expenses
- R&D: Approximately 4% of revenue, critical for maintaining the company's competitive moat in materials science and securing new patents.
- SG&A: Typically runs at 12% to 14% of revenue, covering global sales forces, marketing, and corporate administrative functions.
- Depreciation & Amortisation: Approximately 6% to 8% of revenue, reflecting the capital-intensive nature of chemical manufacturing and heavy intangible amortisation from recent acquisitions (Spectrum Plastics, Donatelle).
- Restructuring / one-time charges: Highly frequent and material. The company recorded $151 million in restructuring and asset-related charges in 2025, largely tied to the Transformational Separation-Related Restructuring Programme.
Margin Profile
- Operating EBITDA Margin: Consolidated margin expanded to 23.8% in 2025.
- Segment Margins: Healthcare & Water Technologies is highly profitable (30.1% Operating EBITDA margin in 2025), while Diversified Industrials operates at a lower, but still robust, margin (22.1% in 2025).
- Margin trend: Expanding. The removal of lower-margin legacy businesses and aggressive cost productivity actions drove a 100 basis point margin expansion in 2025.
Balance Sheet Structure
- Total assets: Dramatically reduced following the 2025 spin-off of Qnity Electronics.
- Key asset categories: Property, plant, and equipment (specialised manufacturing facilities) and a massive balance of goodwill and intangible assets generated from historical mergers (DowDuPont) and recent bolt-on acquisitions.
- Working capital profile:
- Days Sales Outstanding (DSO): 45 to 55 days.
- Days Inventory Outstanding (DIO): 65 to 75 days.
- Days Payable Outstanding (DPO): 50 to 60 days.
- Net working capital is positive and represents a use of cash during periods of high growth.
- PP&E: Consists of global chemical processing plants and filtration membrane manufacturing lines. Useful lives for machinery typically range from 10 to 20 years.
- Right-of-use assets: Material but manageable, representing leased warehouses, office space, and some transport equipment.
Capital Expenditure & Investment
- Capex as % of revenue: Approximately 4.5% to 5.0% (actual 2025 capex was $333 million on $6.85 billion in revenue).
- Maintenance vs. growth capex: Roughly an even split, with growth capex directed heavily toward water filtration capacity expansions and medical packaging lines.
- M&A pattern: Active bolt-on acquirer in the healthcare space. Recent examples include the $1.75 billion acquisition of Spectrum Plastics in 2023 and the $365 million acquisition of Donatelle Plastics in 2024.
- Typical acquisition multiple paid: Often 12x to 15x EBITDA for high-growth medical technology targets.
Debt & Capital Structure
- Total debt: Approximately $3.13 billion in long-term debt at the end of 2025. The company repaid roughly $4.0 billion in senior notes during 2025 to right-size its capital structure post-spin.
- Debt/EBITDA ratio: Target net leverage is approximately 1.5x to 2.0x.
- Key debt instruments: Senior unsecured notes and a revolving credit facility.
- Interest rate profile: Predominantly fixed-rate bonds, with a weighted average cost of debt around 4.5%. The company frequently uses interest rate swaps, which resulted in significant mark-to-market volatility in 2024 and 2025.
- Share repurchase programme: Highly active. The Board authorised a new $2.0 billion share buyback programme in November 2025, which included an immediate $500 million accelerated share repurchase (ASR).
- Dividend policy: The company pays a steady quarterly cash dividend, targeting a payout ratio of roughly 35% to 45% of adjusted net income.
Cash Flow Characteristics
- Operating cash flow conversion: GAAP OCF is currently distorted by separation costs. In 2025, GAAP OCF from continuing operations was $560 million, which included $462 million in separation-related transaction payments.
- Free cash flow margin: Transaction-adjusted free cash flow was $689 million in 2025, representing a 10% FCF margin.
- Major non-cash items: Depreciation, amortisation of acquired intangibles, and stock-based compensation.
- Working capital cash flow impact: Generally a slight use of cash as the company grows its top line.
- Cash tax rate vs. GAAP effective tax rate: Highly complex due to legacy tax indemnity agreements with Corteva and Chemours, as well as the tax-free nature of the Qnity spin-off. The adjusted effective tax rate typically normalises around 22%.
Sheet Structure
- Assumptions: Macroeconomic drivers, segment organic growth rates, pricing assumptions, margin targets, tax rates, and WACC inputs.
- Revenue & Segment Build: Detailed build for Healthcare & Water Technologies and Diversified Industrials, splitting growth into Volume, Price/Mix, and FX.
- Income Statement: Consolidated statement of operations. Must clearly separate Continuing Operations from Discontinued Operations (Qnity and Aramids).
- Balance Sheet: Standard asset, liability, and equity line items, reflecting the post-spin capital structure.
- Cash Flow Statement: Operating, investing, and financing cash flows. Must include a specific line for "Separation-related transaction payments" to bridge GAAP OCF to Transaction-Adjusted FCF.
- Debt & Interest Schedule: Waterfall of remaining senior notes, calculating interest expense based on the $3.13 billion debt load and tracking interest income on cash balances.
- Working Capital Schedule: Receivables, inventory, and payables driven by DSO, DIO, and DPO assumptions.
- Depreciation & Amortisation: PP&E roll-forward and intangible asset amortisation schedule.
- Shareholders' Equity: Retained earnings roll-forward and a dedicated schedule tracking the execution of the $2.0 billion share repurchase programme.
- DCF Valuation: Unlevered free cash flow calculation, discount rate math, terminal value, and implied share price.
Key Financial Relationships
- Healthcare & Water Revenue = Prior Year H&W Revenue x (1 + H&W Volume Growth + H&W Price/Mix + FX Impact)
- Diversified Industrials Revenue = Prior Year DI Revenue x (1 + DI Volume Growth + DI Price/Mix + FX Impact)
- Total Net Sales = Healthcare & Water Revenue + Diversified Industrials Revenue
- Healthcare & Water Operating EBITDA = Healthcare & Water Revenue x H&W EBITDA Margin (historically ~30.1%)
- Diversified Industrials Operating EBITDA = Diversified Industrials Revenue x DI EBITDA Margin (historically ~22.1%)
- Consolidated Operating EBITDA = Healthcare & Water Operating EBITDA + Diversified Industrials Operating EBITDA - Corporate/Unallocated Costs
- Transaction-Adjusted Free Cash Flow = Cash Provided by Operating Activities (Continuing) + Separation-Related Payments - Capital Expenditures
- Transaction-Adjusted FCF Conversion = Transaction-Adjusted Free Cash Flow / (Net Income from Continuing Operations + D&A + Non-Cash Items)
- Interest Expense = Average Long-Term Debt Balance x Weighted Average Interest Rate
- Ending Shares Outstanding = Beginning Shares Outstanding - (Share Repurchases / Average Share Price)
- Adjusted EPS = (Consolidated Operating EBITDA - D&A - Interest Expense - Adjusted Taxes) / Average Diluted Shares Outstanding
Cross-Sheet Dependencies
- The Assumptions sheet dictates the growth and margin profiles on the Revenue & Segment Build.
- The Revenue & Segment Build feeds the top line and segment profitability into the Income Statement.
- The Income Statement generates Net Income, which feeds the top of the Cash Flow Statement and the Retained Earnings line on the Balance Sheet.
- The Working Capital Schedule calculates changes in operating assets and liabilities, which feed into the Operating Cash Flow section of the Cash Flow Statement.
- The Debt & Interest Schedule calculates interest expense for the Income Statement and debt paydowns for the Cash Flow Statement.
- *Circularity Risk:* Interest expense depends on the average debt balance, which depends on the cash flow sweep, which in turn depends on net income and interest expense. A toggle must be included to break this circularity.
Sign Convention
- Revenue, Assets, and Equity are entered as positive numbers.
- Expenses (COGS, SG&A, Interest) are entered as positive numbers in their respective schedules but subtracted in aggregation formulas (e.g., Gross Profit = Revenue - COGS).
- On the Cash Flow Statement, cash inflows are positive. Cash outflows (Capital Expenditures, Dividends Paid, Share Repurchases, Debt Repayment) must be negative.
- Working capital changes: An increase in an asset (Receivables) is a negative cash flow; an increase in a liability (Payables) is a positive cash flow.
Things Most Likely to Go Wrong
- Discontinued Operations: Failing to exclude Qnity Electronics and the Aramids business from historical continuing operations will wildly overstate the baseline revenue and earnings of "New DuPont".
- Separation Costs: The company incurred $462 million in separation-related transaction costs in 2025. If the model does not add these back, it will severely underestimate the true cash-generating power of the ongoing business.
- Share Count Dynamics: Ignoring the aggressive $2.0 billion share repurchase programme will result in an underestimation of 2026 and 2027 Adjusted EPS.
- Margin Mix: Applying a consolidated margin assumption rather than segment-level margins will fail to capture the profitability uplift as the higher-margin Healthcare & Water segment outgrows Diversified Industrials.
- PFAS Liabilities: DuPont shares legacy PFAS and environmental liabilities with Chemours and Corteva. Unpredictable cash outflows related to these indemnity agreements can suddenly impact operating cash flow.
- Interest Rate Swaps: The company frequently records large non-operating gains or losses related to interest rate swaps (e.g., a $138 million loss in 2024). These must be excluded from core operating forecasts.
- Intangible Amortisation: DuPont has massive non-cash amortisation charges from acquisitions. Excluding these from "adjusted" figures flatters earnings, but the cash was already spent; the model must clearly bridge GAAP to Adjusted EPS.
- Order Timing Shifts: The company experienced a $30 million revenue headwind in Q4 2025 due to an IT system cut-over related to the spin-off. This artificially depressed Q4 2025 growth and must be normalised in year-over-year comparisons.
Validation Checks
- "Total 2025 Net Sales must equal exactly $6.85 billion; flag if historicals include the spun-off Electronics segment."
- "Healthcare & Water Technologies Operating EBITDA margin should be in the 29% to 31% range; flag if outside this band."
- "Transaction-Adjusted FCF conversion should be >90% (company demonstrated 98% in 2025)."
- "2026 Implied Net Sales should land between $7.075 billion and $7.135 billion based on management guidance."
- "2026 Adjusted EPS should land between $2.25 and $2.30 based on management guidance."
- "Balance sheet must balance: Total Assets = Total Liabilities + Equity in every forecasted period."
- "Capex as a % of revenue should remain between 4.5% and 5.5%."
- "Long-term debt should start 2026 at approximately $3.13 billion."
Key Assumptions (Default Values)
| Assumption | Default Value | Unit | Rationale |
|---|---|---|---|
| Healthcare & Water Organic Growth | 5.0 | % | Blended rate of strong medical packaging demand and municipal water upgrades, slightly below 2025 peak of 7% [1]. |
| Diversified Industrials Organic Growth | 1.5 | % | Assumes mild recovery in construction markets offsetting aerospace normalisation [1]. |
| Healthcare & Water EBITDA Margin | 30.1 | % | Held flat to actual 2025 reported segment margin [1]. |
| Diversified Industrials EBITDA Margin | 22.1 | % | Held flat to actual 2025 reported segment margin [1]. |
| Corporate Unallocated Costs | 140 | $M | Estimated annual run-rate for corporate overhead post-spin [1]. |
| Capex as % of Revenue | 4.9 | % | In line with 2025 actuals ($333M on $6.85B revenue) [1]. |
| Effective Tax Rate (Adjusted) | 22.0 | % | Standard corporate tax rate assumption for DuPont's global mix [2]. |
| Share Repurchases (2026) | 1,000 | $M | Assumes half of the $2.0B authorisation is executed in the first year [1]. |
| Dividend Payout Ratio | 40.0 | % | In line with historical target payout of adjusted net income [2]. |
| Weighted Average Interest Rate | 4.5 | % | Based on the yield of remaining senior unsecured notes [2]. |
| WACC | 8.5 | % | Standard discount rate for a diversified specialty chemicals business. |
| Terminal Growth Rate | 2.0 | % | Long-term GDP-aligned growth rate for valuation. |
Data Sources & Benchmarks
- SEC Filings: DuPont de Nemours, Inc. Investor Relations page and SEC EDGAR database (specifically the 2025 Form 10-K filed in February 2026).
- Key Peers: 3M Company (MMM), Celanese Corporation (CE), Eastman Chemical Company (EMN), and Danaher Corporation (DHR) for the water/life sciences components.
- Industry Data: American Chemistry Council (ACC) reports for industrial material demand, and global construction indices for Diversified Industrials benchmarking.
- Consensus Estimates: FactSet or Bloomberg for validating 2026 and 2027 revenue and EPS estimates.
Sources
Do more with the DuPont model
Frequently asked
What does DuPont (DD) do after its recent business transformations?+
Following a significant portfolio realignment and spin-offs, DuPont now operates as a focused industrial and specialty materials manufacturer. The company primarily serves regulated and performance-critical industries through its Healthcare & Water Technologies and Diversified Industrials segments.
What are the primary revenue drivers for DuPont's (DD) business segments?+
DuPont's revenue is driven by demand for medical packaging, biopharma components, and water filtration technologies within its Healthcare & Water Technologies segment. The Diversified Industrials segment contributes through engineered materials and safety solutions for aerospace, construction, and printing markets.
What is the assumed capital expenditure as a percentage of revenue in the DuPont (DD) financial model?+
The financial model for DuPont assumes capital expenditure as 8.53% of revenue. This capex is roughly evenly split between maintenance and growth, with growth investments focused on water filtration capacity and medical packaging lines.
How does the DuPont (DD) financial model account for net working capital in its valuation?+
The financial model for DuPont assumes net working capital as 80% of revenue. Given its positive nature, net working capital represents a use of cash during periods of company growth.
Where can I download the financial model for DuPont (DD) and what is its forecast horizon?+
A comprehensive equity valuation and scenario planning tool for DuPont is available for download. This model provides forecasts for the standalone cash generation of the company from fiscal year 2026 through fiscal year 2030.
What are the key profitability assumptions, such as COGS and R&D, in the DuPont (DD) financial model?+
In the DuPont financial model, the Cost of Goods Sold (COGS) is assumed to be 64.71% of revenue. Research and Development (R&D) expenses are modeled at 4.20% of revenue, reflecting the company's focus on intellectual property and proprietary processes.
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