By Pooja Menon
Aug 4 (Reuters) - DuPont narrowed its annual sales forecast on Tuesday, hurt by weakness in its Middle East water business and a lower currency benefit, sending shares down 4.8% despite a quarterly profit beat and higher full-year earnings forecast.
The industrial materials maker now expects 2026 net sales of $7.16 billion to $7.19 billion, compared $7.16 billion to $7.22 billion previously.
It has relied on price increases, productivity gains and capital allocation actions, including
the spin-off of its electronics business, debt reduction and share buybacks, to help offset weak underlying demand across parts of the chemicals market.
DuPont raising prices to pass along cost inflation may weigh on end-market demand growth, particularly in its more cyclical markets such as building technologies, Morningstar analyst Seth Goldstein said.
CFO Antonella Franzen said continued strength in healthcare, industrial water and aerospace end-markets was expected to drive mid-single-digit organic sales growth in the second half of the year.
J.P. Morgan analysts said uncertainty in the water business was likely to persist in the second half, even as the company factors in a ramp-up in organic growth, and expected the stock to trade mixed on Tuesday.
On a post-earnings call, DuPont said it expects improved performance in the Middle East in the second half, with most water-project revenues anticipated in the fourth quarter as large, already-booked projects transition from prior logistics delays into execution.
It raised its 2026 adjusted core profit forecast to between $1.75 billion and $1.77 billion, from $1.73 billion to $1.76 billion previously.
The company now expects adjusted earnings per share of $7.17 to $7.32, compared with a prior forecast of $7.02 to $7.16 - a range that the company has restated to reflect its 1-for-3 reverse stock split, which took effect in June.
The company posted adjusted profit of $1.88 per share for the three months ended June 30, beating analysts' average estimate of $1.76 per share, according to data compiled by LSEG.
(Reporting by Pooja Menon in Bengaluru; Editing by Vijay Kishore and Tasim Zahid)
