v3.26.1
SEGMENT INFORMATION
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
The Company's segments are aligned with the market verticals they serve, while maintaining integration and innovation strengths within strategic value chains. The Company's Chief Executive Officer is its Chief Operating Decision Maker ("CODM"). Effective in the first quarter of 2025, in anticipation of the Separation, DuPont and Qnity realigned their segment structure. As a result of this realignment, Qnity consists of two operating and reportable segments: Semiconductor Technologies (“Semi”) and Interconnect Solutions (“ICS”). All periods presented have been adjusted to conform to the current segment reporting structure. This realignment is consistent with how the CODM now assesses performance. Major products by segment include: Semi (which includes chemical mechanical planarization (“CMP”) pads and slurries, photoresists, functional sub-layers, advanced overcoats, post-CMP cleaners, post-Etch residue removers and emerging cleans) and ICS (which includes copper pillar plating, copper redistribution layer, solder bump plating, under bump metallization, photoresists, packaging dielectrics, gap fillers, phase change, specialty thermal interface materials, thermally conductive insulators, copper plating solutions, dry film photoresists, laminates and polyimide films). The Company operates globally in substantially all of its product lines. Transfers of products between operating segments are generally valued at cost, to the extent such transfers are applicable.
The Company's measure of profit/loss for segment reporting purposes is Adjusted Operating EBITDA as this is the manner in which the CODM assesses performance and allocates resources. The CODM utilizes Adjusted Operating EBITDA to assess financial performance and allocate resources by comparing actual results to historical and previously forecasted results. The Company defines Adjusted Operating EBITDA as earnings (i.e., “Income (loss) before income taxes”) before interest, depreciation, amortization, non-operating pension and other post-employment benefits / charges, and foreign exchange gains / losses, indirect legacy costs, and adjusted for significant items. Reconciliations of these measures are provided on the following pages.
Segment Net Sales, Significant Segment Expenses and Segment Adjusted Operating EBITDAThree Months Ended March 31,
20262025
Semiconductor TechnologiesInterconnect SolutionsSemiconductor TechnologiesInterconnect Solutions
(In millions)
Segment net sales$722 $593 $644 $474 
Less 1:
Cost of sales$359 $335 $307 $280 
Selling, general and administrative expenses74 80 64 66 
Research and development expenses60 33 53 31 
Amortization of intangibles & other segment items 2
13 37 13 42 
Add:
Equity in earnings of nonconsolidated affiliates$13 $— $11 $(2)
Depreciation and amortization 3
34 61 29 61 
Segment Adjusted Operating EBITDA$263 $169 $247 $114 
1.The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
2.Other segment items include immaterial other gains or losses and miscellaneous income and expenses.
3.Depreciation is a reconciling item to Segment Adjusted Operating EBITDA as it is included within "Cost of sales", "Selling, general and administrative expenses" and "Research and development expenses".
Reconciliation of Segment Adjusted Operating EBITDA to Income Before Income TaxesThree Months Ended March 31,
In millions20262025
Semiconductor Technologies Segment Adjusted Operating EBITDA$263 $247 
Interconnect Solutions Segment Adjusted Operating EBITDA169 114 
Total Segment Adjusted Operating EBITDA$432 $361 
+
Corporate Adjusted Operating EBITDA 1
$(21)$(6)
-Depreciation and amortization98 94 
+Interest income 3 — 
-Interest expense61 — 
+
Non-operating pension credits 2
1 — 
+
Foreign exchange (losses) gains - net 2
(7)— 
+
Indirect legacy (costs) benefits - net 2
(3)— 
+Significant items charge(28)(15)
Income before income taxes$218 $246 
1.Corporate includes certain enterprise and governance activities including non-allocated corporate overhead costs and support functions, leveraged services, and other costs not absorbed by reportable segments.
2.Included in "Other income (expense) - net."

The following tables summarize the pre-tax impact of significant items by segment that are excluded from Adjusted Operating EBITDA above:
Significant Items by Segment for the Three Months Ended March 31, 2026
Semiconductor TechnologiesInterconnect SolutionsCorporateTotal
In millions
Transformation, integration, and other charges 1
$— $1 $(29)$(28)
Total$— $1 $(29)$(28)
1. See Note 4 for additional information.

Significant Items by Segment for the Three Months Ended March 31, 2025
Semiconductor TechnologiesInterconnect SolutionsCorporateTotal
In millions
Transformation, integration, and other charges 1
$(2)$(4)$(11)$(17)
Employee Retention Credit 2
1 — 1 2 
Total$(1)$(4)$(10)$(15)
1. See Note 4 for additional information.
2. Reflects the accrued interest earned on employee retention credits and is recorded in “Interest income” within the “Other income (expense) - net” line item in the Company’s unaudited interim Consolidated Statements of Operations
Segment and Corporate InformationSemiconductor TechnologiesInterconnect SolutionsCorporateTotal
In millions
As of March 31, 2026
Total Assets$7,401 $5,613 $1,049 $14,063 
Investment in nonconsolidated affiliates$388 $11 $— $399 
As of December 31, 2025
Total Assets$7,022 $5,594 $1,454 $14,070 
Investment in nonconsolidated affiliates$375 $11 $— $386 
Capital Expenditure Reconciliation to Unaudited Interim Consolidated Financial StatementsThree Months Ended March 31,
In millions20262025
Semiconductor Technologies$49 $24 
Interconnect Solutions14 20 
Corporate11 3 
Segment and Corporate Totals$74 $47 
Accrual to cash adjustment 1
48 57 
Total$122 $104 
1.Reflects the incremental cash spent or unpaid on capital expenditures; total capital expenditures are presented on a cash basis.