Qnity Electronics, Inc.

CIK:0002058873|SEC Filings

Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Net sales	$ 1,429	$ 1,170	$ 2,744	$ 2,288
Cost of sales	763	630	1,460	1,217
Research and development expenses	98	88	192	172
Selling, general and administrative expenses	200	154	373	294
Amortization of intangibles	50	50	102	105
Transformation, integration and other charges (Note 4)	42	2	70	19
Equity in earnings of nonconsolidated affiliates	11	13	24	22
Interest expense	61	0	122	0
Other income (expense) - net	(27)	(4)	(32)	(2)
Income before income taxes	199	255	417	501
Provision for income taxes	63	57	119	104
Net income	136	198	298	397
Net income attributable to noncontrolling interests	12	10	23	16
Net income available for Qnity common stockholders	$ 124	$ 188	$ 275	$ 381
Per common share data:
Earnings per common share - basic (in usd per share)	$ 0.59	$ 0.90	$ 1.31	$ 1.82
Earnings per common share - diluted (in usd per share)	$ 0.59	$ 0.90	$ 1.31	$ 1.82
Weighted-average common shares outstanding - basic (in shares)	209.5	209.4	209.6	209.4
Weighted-average common shares outstanding - diluted (in shares)	210.2	209.4	210.3	209.4

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Operating Activities
Net income	$ 298	$ 397
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property, plant and equipment	93	81
Amortization of definite-lived intangible assets	102	105
Stock based compensation	25	8
Credit for deferred income tax and other tax related items	(30)	(29)
Net gain on sales of assets	(5)	0
Restructuring and asset related charges - net	0	19
Net periodic pension benefit cost	2	3
Periodic benefit plan contributions	(3)	(2)
Earnings of nonconsolidated affiliates less dividends received	(24)	(22)
Other net loss	14	0
Changes in assets and liabilities:
Accounts and notes receivable	(152)	(28)
Inventories	(77)	(41)
Other assets	(13)	(4)
Accounts payable	134	48
Accrued and other current liabilities	(10)	(28)
Other noncurrent liabilities	44	16
Income tax liabilities	(22)	(43)
Cash provided by operating activities	376	480
Investing Activities
Capital expenditures	(212)	(153)
Proceeds and adjustments to proceeds from sales of property and businesses, net of cash divested	6	0
Other investing activities, net	1	0
Cash used for investing activities	(205)	(153)
Financing Activities
Repayments on long-term debt	(12)	0
Repurchases of common stock	(50)	0
Employee taxes paid for share-based payment arrangements	(7)	0
Distributions to noncontrolling interests	(6)	(8)
Dividends paid to stockholders	(34)	0
Net transfers to Parent	0	(322)
Cash used for financing activities	(109)	(330)
Effect of exchange rate changes on cash and cash equivalents	(16)	16
Increase in cash and cash equivalents	46	13
Cash and cash equivalents at beginning of period	915	166
Cash and cash equivalents at end of period	$ 961	$ 179

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Jun. 30, 2026	Dec. 31, 2025
Current Assets
Cash and cash equivalents	$ 961	$ 915
Accounts and notes receivable - net	1,138	992
Inventories - net	730	661
Prepaid and other current assets	67	70
Total current assets	2,896	2,638
Property, plant and equipment - net of accumulated depreciation (June 30, 2026 - 1,511; December 31, 2025 - 1,450)	1,777	1,701
Other Assets
Goodwill	7,518	7,522
Other intangible assets	1,015	1,111
Investments and noncurrent receivables	427	402
Deferred income tax assets	38	42
Deferred charges and other assets	660	654
Total other assets	9,658	9,731
Total Assets	14,331	14,070
Current Liabilities
Short-term borrowings	23	24
Accounts payable	790	680
Income taxes payable	120	150
Accrued and other current liabilities	509	502
Total current liabilities	1,442	1,356
Long-Term Debt	3,997	4,003
Other Noncurrent Liabilities
Deferred income tax liabilities	228	273
Pensions and other post-employment benefits - noncurrent	80	80
Other noncurrent obligations	1,038	992
Total other noncurrent liabilities	1,346	1,345
Total Liabilities	6,785	6,704
Commitments and contingent liabilities (Note 13)
Stockholders' Equity
Common stock (authorized 1,666,666,667 shares of $0.01 par value each; issued 2026: 209,334,927 shares; 2025: 209,479,173 shares)	2	2
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	7,266	7,286
Retained earnings	260	18
Accumulated other comprehensive loss	(269)	(213)
Total Qnity equity	7,261	7,095
Noncontrolling interests	285	271
Total equity	7,546	7,366
Total Liabilities and Equity	$ 14,331	$ 14,070