DD - Earnings call transcript Q4 2024 | DuPont de Nemours, Inc.

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Operator

Thank you for standing by, and welcome to the DuPont Fourth Quarter 2024 Earnings Conference Call. [Operator Instructions]

I'd now like to turn the call over to Chris Mecray.

You may begin.

Christopher Mecray

Good morning, and thank you for joining us for DuPont's Fourth Quarter and Full Year 2024 Financial Results Conference Call.

Ed Antonella Chairman; Franzen, are Executive Koch, today and Officer; Chief me Breen, Lori Executive Chief Joining Financial Officer.

slides website Relations the slides. prepared posted the forward-looking webcast have to contained remarks, read our We in disclaimer which link. on Please DuPont's and under tab Investor statement the through the supplement are

involve our on During we'll statements forward-looking about performance make this and current may from predictions statements assumptions Because differ uncertainties, future. our these regarding the risks factors and results forward-looking that call, actual are our based and expectations materially or statements.

XX-K by differences. are exclude continuing operations uncertainties as which Our financial otherwise and significant Form and discussion on a items. such cause historical updated today Unless periodic detailed reports, presented and includes may risks basis specified, current principal of all our measures

We to will Relations in materials the DuPont's posted A most measures reconciliation press to comparable measures. that release to non-GAAP included GAAP and presentation financial been our also directly other have website. refer Investor

I'll the on begin Lori, Slide to now who call X. turn will over

Lori Koch

consecutive sales XXX of expanded return prior organic year. Earlier million X%, XX.X% increased the and highlighted year everyone, W&T call. growth strong Operating fourth of $X.XX points of EBITDA margin grew in as EPS quarter a quarterly we to Fourth of close of operating $XXX from reported joining organic operating XX% a X%. and We growth leverage solid performance. XX% in quarter our showed E&I morning, thanks EBITDA results adjusted year-over-year. another strong double-digit for including to Good quarter by today, of out grew and basis

continued the Further transition a grew return view, nodes at rates. related medical to ongoing driven within both double-digit technologies. to biopharma care market Electronics, our demand which packaging end in strong an AI-enabling for products, resulted growth volume fourth and both health advanced and quarter in markets improvement saw From by

quarter, the sales and Water see acceleration lift increase. to growth continue with we an X% XX% in in Additionally, year-over-year sequential

of the was to results. Looking year an grew reduced growth back quarter. share Working free full adjusted as growth the improvement. cash Coupling capital to at for actions, financial segment earnings X% transaction-adjusted XX% thank another in to to like which X% drive and with and went conversion This, margin the of hard combined accommodating strong strong been resulted led discipline volume year robust growth entire has incrementals for earnings key and for our I'd a EPS. was fourth DuPont growth their the a achieve improved solid team count generation optimization, XXX%. and key operating in dedication these team of operational the with productivity helped flow and with cash performance, benefit priority work all on,

X. cover and management. for I Turning with the priorities Starting growth, will our key portfolio line. to XXXX, organic Slide operational execution top

we volume we mentioned, As improvement as saw year. both E&I through W&T progress this and in past growth

recently and across all initiatives, and this, execution To we expect our for consistent targeting excellence which enable each Chief commercial marketing on sales investment opportunities drive within well hired continued to effectiveness success, continue strategic as total Officer in will as including ensure organic innovation mid-single-digit into activities. Commercial we of growth, driving businesses. a further sales XXXX, company. growth growth we Looking both focusing the our acceleration optimizing To includes volume business,

driving excellence. focus our businesses Additionally, continue to operational on

will in continued performance. benefit profitability with year steady continues expanded driving lead to We financial standard enhanced from OpEx, disciplined improvement are the to across an framework Coupling on entering tools and digital our our fourth rollout toolkit our and investments of the organization. focus in OpEx

of electronics about spin-off pure-play company. business, remain of sizable Xst month portfolio We XX excited are announced the of months. we the this from XX frame regarding that we November intended a nicely targeting accelerated which to the Electronics management, year leading the value time initial shareholder is from last creating opportunity Finally, for creation

to establishing able and the continue boards members make the future executive track to leadership well new remain of and on announce Electronics for the end to progress by company We as as first towards be electronics future Board for DuPont quarter. the

the the I and and updating coming see in to months. externally, continue We you forward excitement to internally look building

the in turn outlook With detail. to that, financial results I'll cover Antonella over it to and

Antonella Franzen

Thanks, everyone. good morning, and Lori,

primary volumes finish are throughout our with well strong continued and of a We performance. our both have on recovery announced been growth and teams our cost operational year the excellence driver accelerated pleased solid sales enhanced initiatives, and previously also financial to actions. the have improved to the earnings including market and productivity execute of End XXXX

I'll forward I the continued are we carrying first, our cover in look quarter X. further XXXX, Slide to momentum fourth that detail, into beginning on highlights but financial

both in Solutions. digits. Solutions, Solutions a Further with and to versus up increased Higher was in ago period increase gains by Currency Water flat. X% billion in as continued end was volume Safety both markets strong offset acceleration an X% double sales return in slightly X% volume by decrease Solutions volume portfolio yielding and demand a Electronics $X.X Semi year both Industrial Interconnect Net were the led price. year-over-year of and growth double-digit and in

sales Europe. in markets quarter and organic where Water. and another to XX% up On in X%, delivered a organic Pacific sales X% Organic a including sales From in strong regional North perspective, Organic also period. increased X% growth due year X% and and the sales corporate E&I ago grew XX% in America XX% organic segment China, in continued W&P Asia were up sales declined view, acceleration strength year-over-year, Electronics versus respectively. in

increased of operating quarter Fourth offset savings XX.X% of as from higher EBITDA production by actions during basis the Operating variable million of year rates EBITDA points volume XXX were the increased XX% year-over-year. higher versus restructuring period benefit $XXX gains, the margin quarter compensation. ago and partially

discipline a in million continuing On and transaction flow million payments XX%. businesses. conversion across working cash generation cost operations free was Fourth related million of of flow cash quarter transaction-adjusted $XXX a separation-related basis, CapEx million, $XXX operations cash resulted of of strong, the reflecting $XXX from and continued capital of $XX

earlier, related Lori billion was mentioned flow of of a $X.X XXX%. cash conversion and cash with year strong free performance, for XXXX transaction-adjusted As

from the increase. to as and Turning lower for well Slide of from $X.XX per combination X. share benefits Adjusted EPS ago in XX% year $X.XX count, totaling earnings the increased tax of Higher share year-over-year foreign drove losses of the segment quarter as $X.XX exchange $X.XX rate a below-the-line period.

with $X.X price. Organic billion year net of increased period of decrease Slide XX% segment to of a on results, reflecting versus on reflects the E&I of in XX% quarter Turning favorable beginning E&I growth sales X% XX% and increase the ago growth volume, acquisition. sales by an X. impact organic in slightly Donatelle X%, portfolio fourth sales offset XX%

sales notably the low quarter. XX% continues level, with organic for were business in strong AI the on recovery of applications. Semi demand Semi year-over-year teens to At continued demand semiconductor the during line growth by about China be up technology driven of

X% flat we though Semi Given China expected elevated be in year. to currently throughout up for X% organic for overall full Semi anticipate in sales is the of growth levels XXXX, to relatively growth XXXX,

ramps. digits and continued sales AI-driven with strong of share end quarter benefits results double another posted volume from Solutions low up technology gains organic broad-based reflecting market Interconnect additional strength,

organic up for returned digits continued improved to quarter, to biopharma organic care the Solutions printing growth and strength within Industrial sales mid-single due in with applications. packaging in health demand and

benefit gains, year [ Operating the gain period. was a XX.X%, versus during $XX XX% partially related EBITDA versus of higher XXX technology period. the restructuring $XXX variable from quarter million a was offset guidance. savings ] the million of in up basis license higher points Operating On EBITDA to ago compensation. actions is for E&I agreement, volume was year production contemplated rates, up our The increase which the year-over-year and ago margin by

net E&I $X.X billion increased of sales growth. year, full XX% the X% organic with For sales

For year, prior EBITDA EBITDA of of the billion XXX increased basis XX%, margin up $X.X from full points with XX% the year. operating operating

the sales to Slide to fourth price. partially by year in net an decrease Turning increased X% volume, a increase due W&P period X% ago offset X% quarter of in billion versus $X.X X.

single organic offset evidenced medical an a for X% improvement were repair in by continued flat to increase high including with Safety quarters, Solutions Solutions from in QX. reflecting on consecutive returned organic up were lift X year-over-year headwinds health markets, sales care growth markets and sales sales demand. packaging construction in as basis America remodel by digits, Shelter North growth

by digits QX. an sales on were Within driven a basis, On broad-based for organic Water quarter Water X% with Solutions sequential Solutions, sales volume straight continued a up third basis, also recovery. low increased up from double sales

volume absence EBITDA XX% margin partially higher of discrete savings quarter year points gains of $XX $XXX actions Operating for EBITDA item year the Operating restructuring million quarter during benefits ago compensation as about million versus offset the basis year. up the W&P reported up period ago the from of were from was was XXX the XX.X%, variable period. the and prior by in during and

points. generated EBITDA XX margin of of Operating increased the W&P operating of EBITDA $X.X basis XX.X% year, For with year $X.X full net sales billion. for billion full the

per and Slide of estimate and of for level first first $X.XXX of share. quarter billion, full million operating guidance the our about expectations. X, $XXX XXXX EBITDA we outlines to consolidated At sales which a EPS Turning net quarter, year $X.XX about adjusted

a and quarter headwind net Our about guidance first currency the XXXX. X.X% mid-single-digit growth of organic of first sales versus quarter assumes

We with second the sequential to into of sales X% first a seasonal lift expect quarter normal a from more X% the progression quarter. about

billion, of of $X.XXX $X.XX consolidated year per $XX.X $X.XXX full to we net adjusted billion $XX.X the estimate and EBITDA XXXX, share. billion operating $X.XX sales For to to of EPS billion

net of mid-single-digit and consolidated sales assumes about X%. growth a currency year full organic headwind guidance Our

below-the-line past related assumed higher from headwind totaling a versus tax year. to $X.XX includes an rate X% this estimate EPS Our items, primarily

of reporting later also highlight the on of in first like the structure would advance plan we year. our intended in separation segment I to this Electronics realigning quarter, that

structure as company We when the ElectronicsCo results. begin new The under quarter will electronics reported segment. we future be the will XXXX comprising this release our businesses reporting first

as that segments. will While the be businesses will with DuPont reported IndustrialsCo remain the

segment providing for are in which call. reflecting presentation today's these find purposes, historical accompanying realignments earnings comparison you We the can information

AI For X% be continued nodes, This assumed previously to as normalized In adoption the new growth range. Interconnect fueled full the to sales growth as by more mentioned. ElectronicsCo within organic and strength advanced expect expected from the year X% well we semi, in transition ongoing impact in sales XXXX driven by is segment, China, as to

by refresh improved expect driven we of support AI consumer growth electronics and Solutions, sentiment continued within in adoption. cycles

full X% continued for stabilization IndustrialsCo the medical acceleration year-over-year, to organic XXXX X% we growth in expect For Within along we expect healthcare range. sales with year growth segment, markets, in devices, new the and medical biopharma year packaging expect within for strong expect business industrial-based markets. remaining lines. continued stable and growth demand a we our we by applications product in In volume served the with markets Water,

it that, to open me to operator are the Q&A. we take pleased questions, your let back With to the turn and

Operator

question [Operator today Instructions] from comes from Your of the first Research. Scott line Melius Davis

Scott Davis

-- you size You Is give referenced times sense you in growth the that talked a kind all? for revenues there can kind guys rates us And you've a of call. -- of of at AI-related there? any what few us seen

Lori Koch

nice this really sales XX%, saw up in up we growth were Scott, now. the million AI-related over about year, $XXX Yes,

that the them so the we of ElectronicsCo to to of we a growth end be expect piece for separate the move to And the key year. continue towards as

Scott Davis

coming got is the perhaps sustainability of in how of helpful. XXXX pretty calculating or Okay. in some think noise But those the back? coming some levels? little historic And then above you, in you incremental XX% bit a so do price think know margins, and do issues? going of -- And an there's kind puts you've here. you price is and Or about some costs I to incrementals costs headwind see was what keep is of there's do strong. front transition to takes the opportunity you But there That's incrementals and be I back

Lori Koch

XXXX, have low you the in mid-XXs them, mentioned, XXXX. mid-XXs, and we the to we as saw had In of incrementals in kind Yes. in

that mentioned that between inflation net assumed had in see XXXX. do about So But price a the on again, X% XXXX that neutral versus very absorption tailwinds, We have we line. strong. headwind bottom we and and

projections margin the about Investor more margins expect see and later really across Day to but to nice Electronics. continue we in driven both lot a share do new DuPont we'll we when fall, So

Operator

Your of line John Capital McNulty BMO from next question comes the from Markets.

John McNulty

that go were are sequential drivers there we we of it just it a there, there about the seeing Water. maybe it as comps seems and So XXXX? question some Obviously, like but about really them be on growth that you're help really basis. even through you us some how continued on easy thinking pushing Can think to should also a that

Lori Koch

really recovery. did see a Yes. nice We

about see overall up it for single-digit in high organic the fourth So mid- organic growth we was and to XX% about quarter, XXXX year-over-year Water. in

lot just secular the is a So the it tailwinds Water really space. around of in

all So the growth clean across access key to see technologies. nice water, we

are opportunities, has PFAS so key We but term that around not space all extraction, the 'XX, incremental player the lithium direct one filtration. longer it well. both within comes also technologies the space battery the when some And then in DLE, there's to necessarily within some as and opportunity X

John McNulty

Got it.

that you in for with growth semi-tech there 'XX. kind -- transitions look rolling half means you of we especially us of node the is what cadence like in it of through for Can then to think as there's Semis, And platform of a second Okay. the regard help XXXX? the about in, to looks number

Lori Koch

Yes.

So for sides X% That's about ElectronicsCo, it organic we overall it. both to even new between growth. mentioned be will X% of had about

then Semi But so again, just double as between year in believe, Electronics the the really digits, favorable comp, I said on. and it on new X% -- for QX, year really So of X% we moderate be XXXX. nice will top highest ICS. overall strong a growth, goes low given the to and the will

Operator

of comes question the from Steve line from JPMorgan. next Our Tusa

C. Stephen Tusa

concerns regards tariffs the kind Did any you administration quarter? or pull fourth in see to of new demand forward with in any around

Antonella Franzen

more couple in prebuy I semi up the fabs year. about during in new Steve, a lot it saw, related space call last would to of of it's that Antonella. we of We've the of course that have quarters talked started the the the

heard bit more to fab of in se, attribute as tariffs new we would coming that per or tariffs but QX. you I have around in start-ups been So the us could about would was We it and it it estimate probably related $XX say little QX QX, talk XXXX in so. that there to million versus would a well. the

C. Stephen Tusa

Electronics Okay. a sure that? the segment. that I'm there was And I then think in How gain big not you flesh was modest out. if

Antonella Franzen

Yes.

guidance the on $XX the we was call. prepared included that and in It So when our it on million, quarter provided in remarks. was third we commented it

Operator

Our Research. line question of Jeff next Sprague from Vertical comes from the

Jeffrey Sprague

about Sorry XX if missed late I getting was on. just minutes I at beginning, also the

And if hard associated update that's the and on Electronics? any of spin on I to lock and now, just the up addressed on I of that. timing Just the the separate with cost kind feel a pretty apologize X. stand November you maybe kind costs stand-alone Again,

Antonella Franzen

Jeff, it's Antonella.

good is timing team done a of in clearly in doing would lot locked yes, We've of accelerate has had So to organization timeline. work lot this. in. I practice a the pretty say the

expected. we things have So good really and in a as place progressing are plan

In terms updates. of a couple of

Water to be given our that remain will So be we expect now as that around we do separation move had a would costs that million. said still less X I be $XXX than that little of a separations. is forward X We whether just that happen, continue separation mindful portfolio. things went But will lot the it into of or kind that was DuPont to would in

In terms $XX initially we that of dissynergies, million. as around quoted

we would Now to be that that, closer $XX would expect million.

Jeffrey Sprague

separate need and when new company sort sort also apart Then on to -- $XX that of after? point that? public million, kind cost put encompass the the of Great. finer ElectronicsCo Could a stranded you that cost? that stranded of that is for sort That from of just you'd would get

Antonella Franzen

Sure.

standing dissynergies, a kind look So when is public our predominantly up X take of companies. you it at

future, expect in costs that versus a bulk There's kind businesses. we to where it. you costs a in where is is of of our compare that big be today little So corporate it corporate are when bit the of the

tell having As very one we've include size. purpose fit doing day you point, terms does be work expect organizations getting we've this their stranded would a kind material. not of and that based said We of at do ready for structure that's not costs, cost in all X for se, upon before, to terms per in it the of that but I that been

Operator

comes question next Chris from Wolf Research. of the Our from line Parkinson

Christopher Parkinson

you well you towards up throughout how remarks, Shelter perspective but across as considerations just kind things to terms key see more water hit back this outperformance? little shaping Safety, market on 'XX be as Water prepared potential end looking of and protection, just the at we should in that of going bit Just of the could us give on you the a your

Lori Koch

Yes.

So the we're I'll in report given answer going XXXX. in we're new going question that's form, your to how to

of expect Healthcare pieces be to organically the The within mid- XX% in the have high three So will new we nice to the growth portfolio, and DuPont. about Water and single-digit them for XXXX.

the improvement [indiscernible] off coming that XXXX. continued a So we throughout bottom at saw

and with noted nice So exited quarter, every a better we Water. got XXXX, medical from position had really [indiscernible] same we the

So exited Water we early that destocking XXXX, see position, we we complete. and telegraphed the quarter, in improved kind of essentially nice in and had every a

probably portion will growth. low be the remaining the Then portfolio around the of single-digit

would [indiscernible] So picked and that encompass the Solutions the Industrial that then we from the the shelter business, businesses business within up business, electronics.

So nice outsized within X% to and the Water organic, overall, healthcare the X% portion. definitely

Christopher Parkinson

the as it. side. follow-up, a Interconnect just Got just And on quick

any mentioned, the the of differences the on sit key on of tech as could based obviously, kind remainder But AI-driven geography drivers portfolio? You well? benefits. you of And some just

Lori Koch

around business, XXXX and Yes. [indiscernible] layer. to Within had Electronics, to also the we space. within packaging expect that lot upside mentioned a XXXX the the There's on the AI Interconnect of continue

in acquired thermal It's So around a this was the business lot had that management. XXXX. we back

on outperformance the So we're drive us layer lot smaller be [indiscernible] side. to chips as get for and of the a to looking able

be year. growth before, expect key we So it that strong to this to and again was the

Operator

the comes Josh Financial. from Spector from question of next UBS line Your

Joshua Spector

the but first quarter guidance, IndustrialsCo on versus on ask to specifically year. wanted I

it first low like quarter, guiding you're seems your in single-digit for So growth.

did just growth easy quarter in in pretty mid-single-digit comp you first and a You fourth have quarter.

about growth the in higher why So what first be quarter shouldn't I the year? as am missing that relates to it

Lori Koch

Yes.

the piece of within automotive largest DuPont. So is new the portion

from So the them adhesive of still the in well overall, QX for was robust within automotive piece the side within last business. year both as as [indiscernible]

sequentially, what of [indiscernible] you in the going So expected have than year-over-year, Also, comp of comparing at they a XXXX. a one more favorable a but are bit would comp down than what to go to you're in maybe if build, were you're going to you're expected. little year-over-year go look the is be QX it less XXXX QX and you of

So else everything that expectations. X would the quarters. meet Otherwise, the between generally is same the

Joshua Spector

Okay. I just follow could deployment. And on if up cash

You in about stock guys haven't bought quarters X back now.

understanding cash going But with leverage into some low, splits. through opportunity seems be you're to you an Your deploy is the everything for to buybacks.

isn't that we're doing now? something why that So

Antonella Franzen

Yes.

we be we do to related costs in as to there plan doing on share prior more some just [indiscernible] mindful, I buyback calls, separation. cash So the not of lot a are separation. would obviously, mentioned until any

be So that's where our term. near cash in deployed the will

Operator

line Your Cunningham Citi. of from next the comes Patrick question from

Patrick Cunningham

formas I versus seemed margin what for pro to is the profile EBITDA would mean, maybe that maybe levels? normal And IndustrialsCo W&P? the high margin XXs. corporate these long-term teens, business target does low be would it imply The change retained as the you characterize

Lori Koch

Yes.

right. So you're

are coming So the the new that businesses into DuPont.

were margin heritage &M profile E&I overall and that lower incorporated and the businesses a businesses. [indiscernible] than portion businesses the then the that were the in Industrial So

of we acquisition, the that from came high and right, say would you businesses of that we a and so teens, that margins picked that to from you done maybe called XXs. had in, came benchmark that the lot in the business, the kind And the if low look said they Industrial I through were the would [indiscernible] corporate [indiscernible] that, up we [indiscernible]. then other businesses be were level, acquisition the in then piece Spectrum that it

would Day continue in get So companies more we're XX%, [indiscernible] the XXXX mentioned the enrichment. to their and in Investor We'll we'll of XX% at And expect right [indiscernible]. into at sitting productivity earlier call, look of to drive for margin for IndustrialsCo. mix as the for each to new

Patrick Cunningham

any And We business that the a performing? update on we some few if Kalrez? XXXX, sharp apologies underpin some quarters helping is in missed is should in there I this, strong the destocking, How rebound growth Great. there Electronics rates business? of of but had expect

Lori Koch

is the in through XXXX business midyear yet. say we have the gotten would hasn't I portfolio Yes. destock in one that that quite

that to a So get we're midyear growth more to level. XXXX targeting for normal back

Operator

question comes from the from Your of next KeyBanc Capital Markets. Yefremov line Aleksey

Aleksey Yefremov

you you Water decided divestments How here? thinking the do see bolt-ons any business? to Any are about Industrial's or now further you that keep interesting portfolio

Lori Koch

look invest would our [indiscernible] say side. we'll new as see I exposure the the care in markets, we there. to high-growth activity Water And the both. business you'll the remainco as health primarily end portfolio continue take to and I at on can portfolio look continue to mean, it's [indiscernible], we to then look Yes. M&A secular outsize and around to DuPont

come for we'll and forward. So and [indiscernible] of out as move to sales in the at look growth about Water and care also both health we XX% M&A

Aleksey Yefremov

follow-up on market growth a or Do you underlying for 'XX? segments and Great. have assumption Interconnect [indiscernible] Semis each a in in these of an for And then Electronics.

Lori Koch

Yes.

respect wafer the And consumption the inventory through levels see around So in and bit starts XXXX, because consumed MSI side. disconnected talked with on digits. again, a of wafer ship that XXXX with we to have mid-single we little were of

at ICS combination view range. XXs high our growth. of of see X% see on MSI of the smartphones, And in we the PCB the We side, fab in in overall mid-single-digit kind So XXXX. utilization the we and see around then

Operator

comes question John Roberts Mizuho. next Your of line from from the

John Ezekiel Roberts

any name a you And to change progress IndustrialCo? of on the good reclassification? on industry Congrats Are quarter. planning

Lori Koch

Yes.

So I'll [indiscernible]. do the

[indiscernible]. the DuPont, So to Franzen IndustrialCo will it turn be Antonella over on I'll and

Antonella Franzen

Yes.

where working as should [indiscernible] the we necessarily are be. made complete, to is reclassification the would industrial our work we before intent to some with from that where be talked that, change is we about intent and but we're The classification to and classification. clearly clearly move be separation need getting not on of we So chemical that an around as doing the the

John Ezekiel Roberts

would the you secondly, you that that's on to separate wanted planning preserve if spin a IndustrialsCo later then keeping within what for And option on Water are do?

Antonella Franzen

So reported think DuPont as Water question I the a new probably will asking. than that segment be you're that's

So be segment, want a water highlight growth health care Water profile. to would [indiscernible] and we'll [indiscernible]

within would the new [indiscernible]. those So be segments

Operator

from Your question Leithead the from Michael Barclays. next comes line of

Michael Leithead

are in a Electronics chance headed Or before there spin we still, XXX% assets here of November? for selling the For these is any or them? merger

Lori Koch

Yes, we're towards headed spin. the

Michael Leithead

And Okay. then missed apologize I if that... I

Edward Breen

[indiscernible] management also full the end this already and announcing with slate quarter, be we're word will of set quarter. announce teams before before of for we'll the Electronics, which end the

Michael Leithead

then apologize Chief but Officer still, I I missed be you stay Commercial and your presume? I will did And Great. with announce if Industrial new this, will they

Lori Koch

joining He His [indiscernible] will week. us SKF is with stay next from IndustrialsCo. name

Operator

next comes line Bank. question from David of Your from Begleiter the Deutsche

David Begleiter

sales referenced you color entire little happening? for in And more in as you just give Semis, China why 'XX. the to business? in Lori, big Can that's semi-tech is flat a how China

Lori Koch

Yes.

growth of versus more it's normalization the volume demand. around the So

we XXXX XX% in Semi, saw China volume for a in So growth.

overall, So I -- we million for about saw $X that probably and activity. mentioned pre-buy

So a a normalizing within [indiscernible] and market, against Chinese the volume about million it producers X/X [indiscernible]. is China semi. are Semi-China Overall, flat the about rest $XXX is spending for that local of

David Begleiter

is basis your of semi-tech much is how China? And

Lori Koch

million. That's the $XXX

So -- about XX% ish.

David Begleiter

or on signs either American And in construction, of North Got it. just commercial? resi progress any

Antonella Franzen

environment we're that if business, -- actually we well is, in. in our shelter the at would pretty say we've what you actually I look If again fared would

resi the growth go nonresi the business low And bit for we growth would by in we little both side in and on and say, kind remodel. single-digit a as about of did softness see fourth as are some we currently talked being repair quarter, XXXX. I forward, anticipating, that in we of So offset

Operator

from comes from question next Andrews Morgan of Stanley. Vincent Our line the

Vincent Andrews

assigned wanted with follow where have get assing on window out you done X, the can to [indiscernible] have I'm a up to between presumably I staying liabilities don't on divestitures November And of them? X, there business that? just November the would having they do wondering is really spin without now some discussion. you within to before thereafter get if and And to assets the is hard now pro-rata liabilities date Water IndustrialsCo, that

Lori Koch

Yes.

stay the do and a letter you the the now getting technically, with DuPont. Electronic that's and and then out point, therefore, comply $X.X with So Electronics the and assigned pro obviously between separation X focused [indiscernible]. to distribute on agreement could November November above fully divestiture size billion new on and threshold We're [indiscernible] that [indiscernible] we'll And X. rata at of side between

Vincent Andrews

Okay. And XXXX. free you're be going then performance. of spin cash are on sort that for clouding have Obviously, to and things just to underlying the other going costs flow

excellent you [indiscernible] give think year? us could like? of So a sense had conversion this might What look you XXXX

Antonella Franzen

[indiscernible] of our of we conversion, cash XX%, that kind would place helped lot than [indiscernible] flow working be were number to a benefit a free to in XXXX greater in related is that [indiscernible] really the focusing capital practices the this it year. nice which expect have we've XXX%. us moving of year. been We on. conversion this did good had to We've

and as capital we side, the the then And good the the feel have we transaction usage. expecting both all conversion, which will of we'll costs, above side we've IndustrialsCo be go working of flow cash that the excluding some quarters. couple XX% clearly we we're year been kind last again, is next growth the over free ElectronicsCo reporting But and into how our that

Operator

Mike Your from the of Sison next question line from Wells Fargo. comes

Michael Sison

to chemical first companies in where be the pretty fourth quarter, in So relative pretty in growth traditional the as differentiated negative. outlook appears your quarter as organic to growth well seems IndustrialsCo

just you of more I why what that than this a other on But of multi-industrial of chemical So metrics a expect helps maybe business? capital or our sort remind can cause that getting us margins, change. the designation be case in returns should business make

Lori Koch

commodity chemical margin growth with to and may in is the Yes. the we you our side you could expected chemical don't obviously, utilization profile significantly levels I what respect see [indiscernible] see even than the the pricing and on side the No. swings like then different that well. mean, have just will XXXX even volatility, as in

So endeavor we profile We'll the -- any the helpful similar strong in multi industrials fundamental can a to do target leverage [indiscernible] would we and we growth to company. both that support really margin similar new profile because from be believe very really are [indiscernible] we'll similar it's our the [indiscernible], very have trajectory. to is get how other

Edward Breen

[indiscernible] a was business portfolio. which [indiscernible] divested, last the of big really the piece the vestige within we chemical

the [indiscernible] to get chemical avidly years we for it's more now multi-industrial company part a So and work X to in now of space.

hopefully, So good luck [indiscernible].

Michael Sison

follow-up. just Sounds quick good. And then a

about you think advanced I for guess, and subset AI-related past, semi-tech which I talked you will Can Interconnect what in are percent big, nodes of remind that then how be the rate advanced nodes in as growth the Electronics, I 'XX? for includes and sales. now us assume a maybe

Lori Koch

Yes.

about for [indiscernible] X earlier Semi mentioned we Their of we is in would AI obviously call, growth business. said average the XX% X be had the the the semi the higher than portfolio. So XX% exposures, within growth that to we have that saw specific

you outperformance more versus advances the in the a So nice would [indiscernible]. expect

Operator

Fermium comes Your of from the next question line Research. Mitsch from Frank

Frank Mitsch

let congrats echo on the me And the quarter.

of from EPS the terms guidance November. in and trifecta you what the on hit early sales, exceeding basically of EBITDA provided part in You

went or what I'm what expectations So right your curious November exceeded and in December? to as

Lori Koch

Yes.

So again. that I'll take

really space, have some as We talked earlier. Electronics did the at a that's say have as look beat. about you when little that continue in one We we prebuy to strong did there would demand, the So bit well. I the drove

exchange also, during only look other kind to the we them a incremental take mention, as set when you pressure well. covered of at thing of say, exceed currency in foreign QX important think expectations not I we our quarter is rates as would we changes but did I the

we business was stand Water than areas, other so than But about, for better bit business a But the we bit out. the was as better as packaging looks Electronics on talked even [indiscernible] like we well. medical little expected better even actually a sequential that Biopharma expected. little a time basis

was, we I was would much of would that The is only that area in it softer be Water and kind say line. shelter expected pretty

I it. would from operations perspective, So how an characterize that's

lower other anticipated. QX that the rate the had factor look was we a than take in that tax you clearly we the when bit a [indiscernible] total drove Now [indiscernible] at had was

So fourth or probably be did we that's into go rate the a we the of landed this talk than we so year. relative as number as XXXX, about where higher about do in tax And to kind we point the well to quarter. expect

Frank Mitsch

XXXX? Understood. thought so you're And were here today Water here that that doing that in continued part that of at has of better, as we Packaging, sit you et the cetera, seeing i.e., early the pace, the the February, part in that follow-through early segments

Lori Koch

out Yes, expected. it we as is playing

Operator

next line Your Viswanathan . the Capital comes question Arun RBC from of from Markets.

Unknown Analyst

year? first be going on Adam I cash cadence is Are year great for sense is of bit. any when give of And you've costs. about, to I'd costs? going Arun. This to of of quarter other know those you click maybe said double thinking start maybe the avenues? about could advanced? mostly for little a those congratulations deployment equipment the resuming most on quarter to next the Could linger related to Are of into on the cash or we to thinking Just the some quarter. be fourth going us the on like those cash a transaction to

Antonella Franzen

Yes.

So what are about million. transactions we $XXX talked around our

transaction Water $XX I to cash you be perspective, would We retaining this costs year within attached now mindful a release only in from schedules as can that slightly we that that be less expect see our it million. press the are the out to related was cash to the business portfolio.

So sitting is a it in XXXX. bulk all of

mean, there kind That's a those of costs XXXX getting is in of all it will putting in the and all majority transaction us. separation I those well. behind focus costs, addition I costs a majority why would also to be a is some to that bit of they're which as around goes debt XXXX. but be related could the year, into be the following done little trickling of mindful

Unknown Analyst

could back. touch Great. And maybe if quickly we

you targets as Any M&A do for there You forward. color on you assets care [indiscernible]? parameters going maybe additional give mentioned or could health types potentially of assets Water and

Lori Koch

Yes.

to an we to look up would see we'll add [indiscernible] that can active have in pipeline assets we So our continue pick portfolio. and where

up aperture our bulk dynamic expect in done around just Donatelle the some broaden space. what the other Water go med-device would be our into similar beyond space, and the Spectrum we filtration there. able of order to the And acquisitions to Within to in you last areas a we've with and healthcare, would even few exposure within

So bringing our capability toolkit. the to there and adding new capabilities

Operator

next Your from Jefferies. question of comes from the Alexander line Laurence

Laurence Alexander

assuming around the what's And remodeling to activity? outlook. your construction around are for assumption the also, follow wanted What FX? Just on comments you up specifically

Lori Koch

expectation within flat that, year-over-year XXXX remodeling basis. a for go Shelter, we be guidance built our and into is would that as on into what's So our relatively

FX, your Laurence, last for say question? you Did

Laurence Alexander

Yes, currency yes. just effects, yes,

Lori Koch

Yes.

full about and have the So we year. a X% headwind in a about headwind X.X% for QX

Operator

Bank line final Your the Steve from of America. comes from Byrne of question

Steve Byrne

water do component technologies or I any curious of those fourth such revenue the business? in whether water vision as have was help monitoring of component remarks. customers the a reduce in that maintaining treatment industrial the your interest service in mentioned to business service to you your adding Is a in Lori, and/or that you is treatment technologies that your usage? part an business water

Lori Koch

We don't you be look in the to in today to revenue exposure. service have to our able will Water but space any broadly the add portfolio,

areas as within be as So the on would would Water services say, well table. other I the landscape

Steve Byrne

in price your at in price markets trends you end sell into various do them construction, I'm just those trends curious protection. about into personal products How in differ terms of those packaging, Tyvek products? the

Lori Koch

end really Yes, markets all price within there's the deviations Tyvek. different not across material in

lot as the in side packaging got the So medical it's expertise well. from and recovery the continue a benefit a high of to Tyvek on value. overall We've we'll space,

Operator

closing session. over concludes for will our Mecray remarks. I And Chris call turn question-and-answer that the now to back

Christopher Mecray

everybody, joining Thanks, for today.

copy will our a our be reference, posted your For transcript of on website.

Thank concludes this Now call. the you.

Operator

for concludes conference your participation. you Thank today's call. This

You may now disconnect.

DuPont de Nemours (DD) 11 Feb 252024 Q4 Earnings call transcript