Qnity Electronics Annual Report, Year Ended Dec 31, 2025
Qnity Electronics, Inc. (NYSE: Q) completed its separation from DuPont de Nemours, Inc. on November 1, 2025, through a pro-rata distribution of one Qnity share for every two DuPont shares, and began trading independently on November 3, 2025. For fiscal 2025, net sales rose to $4.75 billion from $4.34 billion, driven by an 11% increase in sales volume, with the Semiconductor Technologies segment at $2.64 billion and the Interconnect Solutions segment at $2.11 billion. Net income was $729 million, and net income available to common stockholders was $692 million, or $3.30 per diluted share, compared with $3.31 in 2024. Adjusted Operating EBITDA was $945 million for Semiconductor Technologies and $539 million for Interconnect Solutions.
The balance sheet reflects the spin-off financing. Total debt was $4.0 billion at December 31, 2025, up from zero a year earlier, following $1.0 billion of 5.750% senior secured notes due 2032, $750 million of 6.250% senior unsecured notes due 2033, and a $2.35 billion senior secured term loan. Cash and cash equivalents were $915 million. Operating cash flow was $1.27 billion. The company also carries significant indemnification obligations to DuPont, with an Applicable Qnity Percentage of 44%, and recorded indemnification liabilities of $461 million and indemnification assets of $323 million. Management reported that the disclosure controls were effective, and that the Company is transitioning to Section 404 internal control reporting in its second 10-K.
On February 20, 2026, the Board approved a share repurchase authorization of up to $500 million, and the Board declared a quarterly dividend of $0.08 per share payable March 16, 2026. The filing notes that approximately 60% of employees are in Asia Pacific, that China represents approximately 33% of net sales, and that Samsung Electronics and TSMC accounted for 11% and 8% of 2025 net sales, respectively.