WILMINGTON — DuPont will no longer be spinning off its water solutions division, but it is forging ahead with plans to spin off its electronics division by November this year.
The decision comes as DuPont enjoys continued success from its electronics and industrial segment, recording a 10% growth over the third quarter of 2024. In reports in November, the multi-national company is enjoying returning demand for products like semiconductors and artificial intelligence-driven technology ramps.
Now, DuPont has accelerated its plans to turn this division into a publicly traded company by late 2025 – the company anticipated the spin-offs would be done by 2026 at the latest.
“We remain confident in the opportunity to create significant shareholder value through the separation of the electronics business,” DuPont Chairman Ed Breen said in a prepared statement. “Achieving an independent electronics company as soon as possible is the right decision for our shareholders.”
In comparison, the water division saw net sales drop 2% in the third quarter, although the sales volume was flat. DuPont plans to release its fourth quarter and 2025 annual results on Feb. 11.
In May 2024, DuPont stunned the Delaware business community and the stock market by announcing that it would spin off its electronics and water divisions into two publicly traded companies. At the time, DuPont valued the cost of the separation at $700 million and promised there would be no immediate change to the employment base.
The water solutions portfolio includes water filtration and purification solutions featuring products that focus on reverse osmosis, ion exchange and ultrafiltration.
Products include critical components and systems that generate clean water for many markets such as industrial water and energy, as well as life sciences and residential and commercial use. DuPont reported $1.3 billion in generated sales for this division in the third quarter of 2024.
Rumors swirled in late 2024 that DuPont would sell its water protection division to competitors Xylem and Verlato, however representatives told the Delaware Business Times at the time there was no comment.
“We remain excited about the value creation opportunity for DuPont following the Electronics separation,” DuPont CEO Lori Koch said in a prepared statement on Wednesday evening. “The decision for Water to remain with DuPont provides the new organization with greater strategic flexibility over time and another high growth business alongside health care [segment].”
In addition to the water division, DuPont manufactures iconic brands like Tyvek, a lightweight product that ranges in use from protective gear to industrial packaging, as well as bullet and knife-resistant Kevlar. The company also holds a strong foothold in biopharma consumables, medical devices and medical packaging.
“We continue to have conviction in the attractive outlook for Water and expect 2025 to be a strong year for the business,” Koch added.
Meanwhile, DuPont will continue with plans to separate from the electronics division which includes materials and its rising semiconductor chip business that it has invested heavily in over the years. Other key end markers for this division include devices to connect to Wi-Fi or Bluetooth. The electronics division reported $1.5 billion in revenue in the third quarter of 2024.
Investors greeted the news of DuPont’s now two-way breakup – DuPont’s stock rose by 0.6% and landed at $76.66 on Thursday evening.