v3.26.1
SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 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, 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 June 30,
20262025
Semiconductor TechnologiesInterconnect SolutionsSemiconductor TechnologiesInterconnect Solutions
(In millions)
Segment net sales$744 $685 $644 $526 
Less 1:
Cost of sales$380 $381 $324 $306 
Selling, general and administrative expenses86 94 69 72 
Research and development expenses62 37 56 31 
Amortization of intangibles & other segment items 2
11 35 13 37 
Add:
Equity in earnings of nonconsolidated affiliates$12 $(1)$13 $— 
Depreciation and amortization 3
36 60 31 57 
Segment Adjusted Operating EBITDA$253 $197 $226 $137 
Segment Net Sales, Significant Segment Expenses and Segment Adjusted Operating EBITDASix Months Ended June 30,
20262025
Semiconductor TechnologiesInterconnect SolutionsSemiconductor TechnologiesInterconnect Solutions
(In millions)
Segment net sales$1,466 $1,278 $1,288 $1,000 
Less 1:
Cost of sales$739 $716 $631 $586 
Selling, general and administrative expenses160 174 133 138 
Research and development expenses122 70 109 62 
Amortization of intangibles & other segment items 2
24 72 26 79 
Add:
Equity in earnings of nonconsolidated affiliates$25 $(1)$24 $(2)
Depreciation and amortization 3
70 121 60 118 
Segment Adjusted Operating EBITDA$516 $366 $473 $251 
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 June 30,Six Months Ended June 30,
In millions2026202520262025
Semiconductor Technologies Segment Adjusted Operating EBITDA$253 $226 $516 $473 
Interconnect Solutions Segment Adjusted Operating EBITDA197 137 366 251 
Total Segment Adjusted Operating EBITDA$450 $363 $882 $724 
+
Corporate Adjusted Operating EBITDA 1
$(19)$(9)$(40)$(15)
-Depreciation and amortization97 92 195 186 
+
Interest income 2, 3
4 — 7 — 
-Interest expense61 — 122 — 
+
Non-operating pension credits 3
1 — 2 — 
+
Foreign exchange (losses) gains - net 3
— (5)(7)(5)
+
Indirect legacy (costs) benefits - net 3
(42)— (45)— 
+Significant items charge(37)(2)(65)(17)
Income before income taxes$199 $255 $417 $501 
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.The six months ended June 30, 2025 excludes accrued interest income earned on employee retention credits.
3.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 June 30, 2026
Semiconductor TechnologiesInterconnect SolutionsCorporateTotal
In millions
Transformation, integration, and other charges 1
$(4)$(3)$(35)$(42)
Gain on sale of assets 2
— — 5 5 
Total$(4)$(3)$(30)$(37)
1. See Note 4 for additional information.
2. The gain on sale of assets was attributable to the sale of land during the three months ended June 30, 2026.
Significant Items by Segment for the Three Months Ended June 30, 2025
Semiconductor TechnologiesInterconnect SolutionsCorporateTotal
In millions
Transformation, integration, and other charges 1
$(1)$— $(1)$(2)
Total$(1)$— $(1)$(2)
1. See Note 4 for additional information.
Significant Items by Segment for the Six Months Ended June 30, 2026
Semiconductor TechnologiesInterconnect SolutionsCorporateTotal
In millions
Transformation, integration, and other charges 1
$(4)$(2)$(64)$(70)
Gain on sale of assets 2
— — 5 5 
Total$(4)$(2)$(59)$(65)
1. See Note 4 for additional information.
2. The gain on sale of assets was attributable to the sale of land during the six months ended June 30, 2026.
Significant Items by Segment for the Six Months Ended June 30, 2025
Semiconductor TechnologiesInterconnect SolutionsCorporateTotal
In millions
Transformation, integration, and other charges 1
$(3)$(4)$(12)$(19)
Employee Retention Credit 2
1 — 1 2 
Total$(2)$(4)$(11)$(17)
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 June 30, 2026
Total Assets$7,194 $5,689 $1,448 $14,331 
Investment in nonconsolidated affiliates$400 $10 $— $410 
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 June 30,Six Months Ended June 30,
In millions2026202520262025
Semiconductor Technologies$76 $33 $125 $57 
Interconnect Solutions27 24 41 44 
Corporate14 5 25 8 
Segment and Corporate Totals$117 $62 $191 $109 
Accrual to cash adjustment 1
(27)(13)21 44 
Total$90 $49 $212 $153 
1.Reflects the incremental cash spent or unpaid on capital expenditures; total capital expenditures are presented on a cash basis.