Qnity Electronics, Inc. (NYSE: Q) Q1 2026 Financial Results Summary

WILMINGTON, Del., May 12, 2026 - Qnity Electronics, Inc. (“Qnity”) today reported results for the first quarter ended March 31, 2026. The company showcased a solid performance that exceeded expectations, marking its eighth consecutive quarter of profitable organic growth.

Financial Highlights:

• Net Sales: $1.315 billion
• Increase: 18% year-over-year (Q1 2025: $1.118 billion)
• Organic Sales Increase: 17%
• Gross Profit: $618 million
• Increase: 16% year-over-year (Q1 2025: $531 million)
• GAAP Net Income: $162 million
• Decrease: 19% year-over-year (Q1 2025: $199 million)
• Adjusted Earnings: $226 million
• Increase: 33% year-over-year (Q1 2025: $170 million)
• GAAP Earnings Per Share (EPS): $0.72
• Decrease: 22% year-over-year (Q1 2025: $0.92)
• Adjusted EPS: $1.08
• Increase: 33% year-over-year (Q1 2025: $0.81)
• Adjusted Operating EBITDA: $411 million
• Increase: 22% year-over-year (Q1 2025: $336 million)

Segment Performance:

1. Semiconductor Technologies:
• Net Sales: $722 million
• Increase: 12% year-over-year (Q1 2025: $644 million)
2. Interconnect Solutions:
• Net Sales: $593 million
• Increase: 25% year-over-year (Q1 2025: $474 million)

Financial Guidance for Full Year 2026:

Based on strong first-quarter performance and continued momentum, Qnity has raised its guidance for 2026:

• Net Sales: $5.225 billion - $5.375 billion
• Adjusted Operating EBITDA: $1.535 billion - $1.625 billion
• Adjusted EPS: $3.80 - $4.14
• Adjusted Free Cash Flow: $500 million - $600 million

Key Balance Sheet Metrics:

• Total Assets: $14.063 billion
• Total Liabilities: $6.602 billion
• Total Equity: $7.461 billion

Cash Flow Highlights:

• Cash Provided by Operating Activities: $135 million
• Decrease: 35% year-over-year (Q1 2025: $207 million)
• Capital Expenditures: $122 million
• Increase: 17% year-over-year (Q1 2025: $104 million)
• Repurchases of Common Stock: $25 million
• Dividends Paid to Stockholders: $17 million

Dividend and Share Repurchase Information:

• Qnity declared a quarterly dividend of $0.08 per share.
• The company repurchased $25 million of its common shares during the quarter.

Closing Remarks:

Qnity's CEO, Jon Kemp, emphasized the company's robust growth driven by advanced industry collaborations and strategic investments, reinforcing confidence in long-term shareholder value. The report reflects not only strong financial results but also the substantial potential for continued growth in the semiconductor industry, particularly in AI and emerging technologies.

For further details on Qnity’s results, stakeholders are encouraged to join the conference call scheduled for May 12, 2026, at 8:00 AM ET.

Note: All amounts are in millions.

Consolidated Statements of Operations (Unaudited)

In millions, except per share amounts

2026	2025
Net sales: $1,315	$1,118
Cost of sales: 697	587
Research and development expenses: 94	84
Selling, general and administrative expenses: 173	140
Amortization of intangibles: 52	55
Transformation, integration and other charges: 28	17
Equity in earnings of nonconsolidated affiliates: 13	9
Interest expense: 61	—
Other income (expense) - net: -5	2
Income before income taxes: $218	$246
Provision for income taxes: 56	47
Net income: $162	$199
Net income attributable to noncontrolling interests: 11	6
Net income available for Qnity common stockholders: $151	$193
Earnings per common share - basic: $0.72	$0.92
Earnings per common share - diluted: $0.72	$0.92
Weighted-average common shares outstanding - basic: 209.7	209.4
Weighted-average common shares outstanding - diluted: 210.3	209.4

Consolidated Balance Sheets (Unaudited)

In millions

March 31, 2026	December 31, 2025
Assets
Current Assets
Cash and cash equivalents: $857	$915
Accounts and notes receivable - net: 1,039	992
Inventories - net: 696	661
Prepaid and other current assets: 90	70
Total current assets: $2,682	$2,638
Property, plant and equipment - net of accumulated depreciation: 1,692	1,701
Other Assets
Goodwill: 7,514	7,522
Other intangible assets: 1,061	1,111
Investments and noncurrent receivables: 417	402
Deferred income tax assets: 40	42
Deferred charges and other assets: 657	654
Total other assets: $9,689	$9,731
Total Assets: $14,063	$14,070
Liabilities and Equity
Current Liabilities
Short-term borrowings: $23	$24
Accounts payable: 699	680
Income taxes payable: 162	150
Accrued and other current liabilities: 379	502
Total current liabilities: $1,263	$1,356
Long-Term Debt: 4,000	4,003
Other Noncurrent Liabilities
Deferred income tax liabilities: 259	273
Pensions and other post-employment benefits - noncurrent: 80	80
Other noncurrent obligations: 1,000	992
Total other noncurrent liabilities: $1,339	$1,345
Total Liabilities: $6,602	$6,704
Commitments and contingent liabilities
Stockholders' Equity
Common stock (authorized 1,666,666,667 shares of $0.01 par value each; issued 2026: 209,440,670 shares; 2025: 209,479,173 shares)
Preferred stock (authorized 1 share of $1.50 million par value each; issued 2026: 1 share; 2025: 1 share: 2	2
Additional paid-in capital: 7,276	7,286
Retained earnings: 170	18
Accumulated other comprehensive loss: -264	-213
Total Qnity equity: $7,186	$7,095
Noncontrolling interests: 275	271
Total equity: $7,461	$7,366
Total Liabilities and Equity: $14,063	$14,070

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