Short answer
Qnity Electronics (Q) filed its fiscal 2025 10-K annual report with the SEC on Feb 26, 2026. It reported revenue of $4.8B (+9.7% year over year) and net income of $692M.
- Top risk flagged: China exposure ~33% of net sales FY2025; export control restrictions and U.S.-China trade tensions threaten access to this critical market
FY2025 key financial metrics · XBRL
- Revenue
- $4.8B
- +9.7% YoY
- Net income
- $692M
- −0.1% YoY
- EPS (diluted)
- $3.30
- −0.3% YoY
- ROE
- 9.8%
- +3.2 pp YoY
- Operating cash flow
- $1.3B
- +20.0% YoY
Source: XBRL data from the Qnity Electronics (Q) FY2025 10-K on SEC EDGAR. USD.
Qnity Electronics FY2025 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Spun off from DuPont on Nov 1, 2025 via pro-rata distribution (1 Qnity share per 2 DuPont shares); began NYSE trading as "Q" on Nov 3, 2025
- Two-segment structure: Semiconductor Technologies (CMP, lithography, cleaning, sealants, OLED) and Interconnect Solutions (packaging, thermal mgmt, PCB materials)
- R&D spend $354M in 2025; ~40 manufacturing sites globally; ~7,000 patents/applications with ~70% issued
- Samsung Electronics 11% of net sales, TSMC 8%; top 10 customers combined 34%; avg relationship with top 10 exceeds 30 years
- ~10,000 employees, ~60% Asia Pacific-based; ~70% of raw materials sourced local-for-local, limiting tariff exposure
Management Discussion & Analysis
- Revenue $4,754M in FY2025, up 10% YoY from $4,335M; volume +11% partially offset by price/mix -1%
- Cost of sales flat at 54% of net sales in both 2025 and 2024; gross margin held at 46% vs 43% in 2023
- Best segment: Interconnect Solutions Adjusted Operating EBITDA +20% to $539M; worst: Semiconductor Technologies +7% to $945M (larger base, slower growth)
- Operating cash flow $1,273M vs $1,061M in 2024; capex increased YoY (2024 capex was $200M); total debt rose to $4.0B from zero post-Separation; dividends initiated at $0.06–$0.08/share quarterly
- Key risks: tariff/trade tensions (China exposure), ~$180M one-time stand-alone IT setup costs over two years, and $461M indemnification liabilities owed to DuPont
Risk Factors
- China exposure ~33% of net sales FY2025; export control restrictions and U.S.-China trade tensions threaten access to this critical market
- Spin-Off debt load $4.1B total ([$2.35B term loan + $1.0B secured notes due 2032 + $750M unsecured notes due 2033]), pressuring cash flow from newly independent company
- Asia Pacific ~79% of net sales FY2025; geopolitical risk across China/Japan/South Korea/Taiwan supply chain and customer base highly concentrated regionally
- OBBBA (enacted July 4, 2025) and OECD Pillar Two 15% global minimum tax both actively under evaluation for impact on future effective tax rate
- Top 10 customers only 34% of net sales in 2025, but limited contractual recourse if any large customer reduces or cancels orders with minimal notice
Generated from the filing text; verify against the original. How to read a 10-K
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