Qnity Electronics (Q) Q4 2025 earnings summary

Executive summary

• Achieved 10% organic sales growth and 11% Adjusted Pro Forma Operating EBITDA increase in FY 2025, surpassing financial objectives and driven by AI, high-performance computing, and advanced connectivity demand.

• Completed spin-off from DuPont in November 2025, establishing an independent, publicly traded electronics company.

• Announced a multi-year transformation plan targeting $100 million EBITDA run-rate benefit by 2028, with $140 million in one-time costs over 2026–2027.

• Authorized a $500 million share repurchase program and declared first quarter dividend.

• Positioned as a leading pure-play provider of integrated solutions for the semiconductor value chain, leveraging innovation and local-for-local manufacturing.

Financial highlights

• FY 2025 net sales rose 10% year-over-year to $4.75 billion; Q4 net sales reached $1.19 billion, up 8% year-over-year.

• Adjusted Pro Forma Operating EBITDA for FY 2025 was $1.4 billion, with a margin of 29.5%.

• Adjusted Pro Forma EPS for FY 2025 was $3.35, a 12% increase year-over-year.

• Adjusted Pro Forma Free Cash Flow for FY 2025 was $706 million, 15% of net sales.

• Year-end cash balance exceeded $900 million; net leverage at 2.2x, below long-term target.

Outlook and guidance

• FY 2026 net sales guidance: $4.97 billion–$5.17 billion; Adjusted Operating EBITDA: $1.465 billion–$1.575 billion.

• Adjusted EPS guidance for 2026 is $3.55–$3.95; adjusted free cash flow $450–$550 million.

• Q1 2026 projected to deliver high single-digit sequential net sales growth with similar margins to Q4.

• CapEx to be elevated at 9% of sales in 2026, returning to 6% in future years.

• Three-year objectives through 2028: 6–7% organic sales CAGR, 7–9% Adjusted Operating EBITDA CAGR, and target net debt leverage below 3.0x.