DuPont, Chemours and Corteva agree to $875 million settlement with New Jersey

DuPont de Nemours, Inc. (NYSE:DD), a $29.27 billion chemical giant with annual revenues of $12.52 billion, along with The Chemours Company (NYSE:CC) and Corteva (NYSE:CTVA) Inc., has agreed to a proposed $875 million settlement with the State of New Jersey to resolve outstanding claims related to historical environmental contamination. According to InvestingPro analysis, DuPont maintains a GOOD overall financial health score, suggesting its ability to manage this settlement while maintaining operational stability. The agreement, reached Sunday, is subject to approval by the Federal District Court of New Jersey following a public notice and comment period.

The settlement addresses claims by New Jersey concerning legacy use of substances such as dense non-aqueous phase liquids, chemical solvents, and PFAS at four former EIDP operating sites—Chambers Works, Parlin, Pompton Lakes, and Repauno. It also covers claims under the New Jersey Industrial Sites Recovery Act, alleged statewide PFAS contamination including from aqueous firefighting foam, claims of fraudulent transfer, and known natural resource damages at the sites.

The $875 million cash payment will be made to the State of New Jersey over 25 years and allocated according to a 2021 memorandum of understanding among the three companies. Of the total, $16.5 million is designated for statewide natural resource damages unrelated to the four sites, with $4.125 million attributed to alleged statewide firefighting foam contamination. DuPont recorded a pre-tax charge of $177 million in the second quarter of 2025, reflecting its estimated share of the payment at net present value. With a current ratio of 1.4 and strong dividend history spanning 55 consecutive years, InvestingPro data indicates DuPont maintains solid financial flexibility to manage this settlement.

The first annual payment is scheduled within 30 days of the court’s entry of the judicial consent order, but not before January 31, 2026. DuPont intends to use $35 million from an existing escrow account for its initial payment.

Under the settlement, the companies will continue remediation efforts at the four sites. DuPont is primarily responsible for the Parlin site and has previously established an accrual for its remediation obligations. The agreement also requires the companies to provide financial assurance for future remediation through a third-party review process and to establish a $475 million reserve fund as additional financial security.

If approved, DuPont and Corteva will purchase Chemours’ interest in future PFAS-related insurance proceeds for $150 million, to be paid into an escrow fund and applied to Chemours’ share of the settlement. The settlement specifies that the companies do not admit liability or wrongdoing.

This information is based on a press release statement included in the company’s SEC filing. Investors watching DuPont’s next moves should note that the company’s next earnings report is scheduled for August 5, 2025. InvestingPro analysis suggests the stock is currently undervalued based on its Fair Value model, with 5 analysts recently revising their earnings estimates upward for the upcoming period. For deeper insights into DuPont’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

In other recent news, DuPont de Nemours, Inc. announced that the State Administration for Market Regulation of China has suspended its antitrust investigation into the company’s Tyvek business. This investigation, which began in April, was focused on potential violations of China’s anti-monopoly law and took place amidst ongoing trade tensions between China and the United States. Meanwhile, UBS has raised its price target for DuPont to $89, maintaining a Buy rating, as the company prepares for the November 1 spin-off of its electronics business, Qnity. This spin-off is significant as Qnity accounts for approximately 45% of DuPont’s EBITDA. Additionally, RBC Capital reiterated an Outperform rating with a price target of $90, citing improving fundamentals that could lead DuPont to exceed its second-quarter and fiscal year 2025 guidance. These developments come as investors closely watch DuPont’s strategic moves and financial performance.

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