Qnity Electronics Delivers 10% Sales Growth to $4.75B, Raises 2026 Guidance
Qnity Electronics posted full-year net sales of $4.75 billion, up 10%, with adjusted pro forma EBITDA of $1.4 billion (29.5% margin) and EPS of $3.35 (+12%). Management forecasts 2026 net sales of $4.97–$5.17 billion, EBITDA of $1.465–$1.575 billion, and authorized a $500 million buyback.
1. Fourth-Quarter and Full-Year Results
Qnity reported fourth-quarter net sales of $1.2 billion, up 8% year-over-year, with adjusted pro forma operating EBITDA of $349 million and EPS of $0.82. For full year 2025, net sales reached $4.75 billion (up 10%), adjusted pro forma EBITDA was $1.4 billion (29.5% margin), and EPS rose 12% to $3.35.
2. 2026 Financial Guidance
Management guides 2026 net sales of $4.97–$5.17 billion, adjusted EBITDA of $1.465–$1.575 billion, adjusted EPS of $3.55–$3.95 and adjusted free cash flow of $450–$550 million. This outlook reflects expected demand from advanced nodes, packaging and AI-related semiconductor applications.
3. Segment Performance Drivers
The Semiconductor segment generated $2.65 billion in sales (+8% organic) with an adjusted EBITDA margin just above 35%, driven by fab consumables and R&D investments. Interconnect Solutions posted $2.1 billion (+12% organic) with margin expansion to just over 25%, led by advanced packaging, interconnects and thermal management growth.
4. Capital Allocation and Transformation Plan
Qnity ended 2025 with over $900 million in cash and net leverage of approximately 2.2x. The board approved a $500 million share repurchase authorization, declared its first dividend and unveiled a multi-year transformation plan targeting a $100 million EBITDA run-rate benefit by 2028 at ~$140 million implementation cost.