DuPont Enters $455M Multi-Party PFAS Settlement with State of North Carolina

Summary of Material Definitive Agreement

On September 9, 2026, DuPont de Nemours, Inc. (NYSE: DD), together with The Chemours Company and Corteva, Inc. (including its subsidiary EIDP, Inc.), entered into a Settlement Agreement with the State of North Carolina (acting through the North Carolina Attorney General) and several North Carolina political subdivisions (including Bladen, Brunswick, Columbus, Cumberland, New Hanover, Robeson, and Sampson Counties, among other municipalities and authorities).

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Key Terms & Financial Details

1. Settlement Consideration & Payment Terms:

   • Aggregate Amount: $455 million payable over a 15-year schedule.
   • Allocation Among Companies (per 2021 MOU):
     • Chemours: 50.0%
     • DuPont: 35.5%
     • Corteva: 14.5%
   • Initial Payments: An initial installment of $25 million to the State and $77.5 million to the settling state subdivisions.
   • Coverage: Resolves all asserted claims relating to PFAS and other emissions from the Fayetteville Works facility as well as State claims regarding non-facility PFAS/AFFF contamination.

2. DuPont Financial Impact & Accounting Treatment:

   • In Q2 2026, DuPont recorded a probable loss of approximately $125 million within discontinued operations, representing the pre-tax net present value (NPV) of DuPont's share.
   • DuPont notes this is prior to giving effect to Qnity Electronics Inc.'s obligation to reimburse 44% of DuPont's cash payment share.

3. Financial Assurance & Reserve Fund:

   • DuPont and Corteva will establish a $135 million Reserve Fund (to be funded via self-guarantee, surety bond, or line/letter of credit) split 71% DuPont / 29% Corteva.
   • The Reserve Fund acts as financial security accessible only in the event Chemours defaults on its 2019 Consent Order obligations with the NC Department of Environmental Quality (NCDEQ).

4. MOU Escrow Adjustments:

   • Due to aggregate payments from this settlement and the 2025 New Jersey settlement qualifying for withdrawal from the MOU escrow account exceeding future contribution obligations, all future escrow contributions (including the September 2026 contribution) are deemed satisfied.

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Strategic & Market Implications

• Litigation De-risking: Significantly reduces legacy environmental liabilities and legal overhang in North Carolina regarding historical PFAS and Fayetteville Works operations.
• Cash Flow Predictability: The 15-year payout schedule structured across the three companies moderates near-term liquidity pressure.