UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~September~~March 3031, ~~2025~~2026

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number: 001-42619

QNITY ELECTRONICS, INC.

(Exact name of registrant as specified in its charter)

Delaware

33-3002745

State or other jurisdiction of incorporation or organization

(I.R.S. Employer Identification No.)

974 Centre Road

Building 735

Wilmington

Delaware

19805

(Address of Principal Executive Offices)

(Zip Code)

(302) 294-4651

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	Q	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

¨ Yes ☑ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

☑ Yes ¨ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large ~~Accelerated~~accelerated ~~Filer~~filer ¨ Accelerated filer ¨ Non-accelerated filer ☑ Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☑ No

As of September 30, 2025, there was no established public market for the registrant’s common stock, par value $0.01 per share, and all of the registrant’s then outstanding shares were held by its former parent company. The registrant’s ~~common stock began “regular way” trading on the New York Stock Exchange on November 3, 2025. The registrant~~ had 209,~~463~~339,~~194~~207 shares of common stock, $0.01 par value, outstanding at ~~November~~May 148, ~~2025~~2026.

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Qnity Electronics, Inc.

QUARTERLY REPORT ON FORM 10-Q

For the quarterly period ended ~~September~~March 3031, ~~2025~~2026

TABLE OF CONTENTS

		PAGE
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS		4
PART I - FINANCIAL INFORMATION
Item 1.	~~Combined~~Consolidated Financial Statements (Unaudited)
	Combined Statements of Operations	6
	Consolidated Statements of Operations	6
	Combined Statements of Comprehensive Income (Loss)	7
	Consolidated Statements of Comprehensive Income (Loss)	7
	Condensed Combined Balance Sheets	8
	Condensed Consolidated Balance Sheets	8
	Combined Statements of Cash Flows	9
	Consolidated Statements of Cash Flows	9
	Combined Statements of Changes in Equity	10
	Consolidated Statements of Changes in Equity	10
	Notes to the Combined Financial Statements (Unaudited)	12
	Notes to the Consolidated Financial Statements (Unaudited)	11
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	2927
	Overview	2927
	Results of Operations	3229
	Segment Results	3431
	Changes in Financial Condition	3633
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	3835
Item 4.	Controls and Procedures	3835
PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	3936
Item 1A.	Risk Factors	3936
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	3936
Item 3	Defaults Upon Senior Securities	39
Item 3.	Defaults Upon Senior Securities	36
Item 4.	Mine Safety Disclosures	3936
Item 5.	Other Information	3937
Item 6.	Exhibits	4037
SIGNATURES		4238

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Qnity Electronics, Inc.

EXPLANATORY NOTE

Throughout this Quarterly Report on Form 10-Q, except as otherwise noted by the context, the terms "Qnity" or "Company" used herein mean Qnity Electronics, Inc. and its combined subsidiaries. On November 1, 2025, Qnity became an independent, publicly traded company through the previously announced separation (the “Separation”) of the electronics business of DuPont de Nemours, Inc. (“DuPont” or “Parent”). Beginning on November 3, 2025, the Company's common stock is traded on the New York Stock Exchange under the ticker symbol "Q".

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q (this “Quarterly Report”) contains "forward-looking statements" within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding future events and the future results of Qnity Electronics, Inc. (“Qnity” or the “Company”) and its subsidiaries (collectively, “we,” “us,” and “our”). In this context, forward-looking statements often address expected future business and financial performance and financial condition, and often contain words such as “expect”, “anticipate”, “intend”, “plan”, “believe”, “seek”, “see”, “will”, “would”, “target”, “outlook”, “stabilization”, “confident”, “preliminary”, “initial”, “continue”, “may”, “could”, “project”, “estimate”, “forecast” and similar expressions and variations or negatives of these words, among others, as well as other words or expressions referencing future events, conditions or circumstances. All statements, other than statements of historical fact, are forward-looking statements, including statements that describe or relate to Qnity’s plans, goals, intentions, strategies, financial estimates, ~~Qnity’s expectations regarding the Separation (as defined herein),~~ and statements that do not relate to historical or current fact. Forward-looking statements are based on our current beliefs, expectations and assumptions, which may not prove to be accurate, and involve a number of known and unknown risks and uncertainties, many of which are out of Qnity’s control, that could cause actual results to differ materially from those expressed in any forward-looking statements.

Forward-looking statements are not guarantees of future performance. Some of the important factors that could cause Qnity’s actual outcomes and results to differ materially from those projected in any such forward-looking statements include, but are not limited to: the ability to realize the intended benefits of the Separation and the Distribution (as defined herein), including achievement of the intended tax treatment; contractual allocation to, and assumption by, DuPont de Nemours, Inc. (“DuPont”) of certain liabilities; the possibility of disputes, litigation or unanticipated costs in connection with the Separation and the Distribution; and Qnity’s success in achieving its intended post-Separation capital structure; the failure to realize expected benefits and effectively manage and achieve anticipated synergies and operational efficiencies in connection with the Separation and completed and future, if any, divestitures, mergers, acquisitions, and other portfolio management, productivity and infrastructure actions; the competitive environment in which we operate; the risks from our international operations, including trade restrictions and sanctions laws; our ability to comply with complex and increasing legal and regulatory requirements; interruptions in the operations of our manufacturing facilities; volatility in cost of inputs, including energy and raw materials; our ability to attract and retain talented people; reliance on key customers and suppliers; failure to protect our intellectual property or allegations that we have infringed the intellectual property of others; cybersecurity and privacy considerations; legal proceedings and investigatory risks; the ability to realize the intended benefits of the Separation and the Distribution (as defined herein), including achievement of the anticipated synergies and operational efficiencies in connection with the Separation and completed and future, if any, divestitures, mergers, acquisitions, and other portfolio management, productivity and infrastructure actions; contractual allocation from DuPont de Nemours, Inc. (“DuPont”) of certain liabilities; the possibility of disputes, litigation or unanticipated costs in connection with the Separation and the Distribution and other risk factors set forth under “"Management’s Discussion and Analysis of Financial Condition and Results of Operations” and ~~“Risk~~elsewhere ~~Factors”~~ in this Quarterly Report and the other risk factors set forth under “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” ~~and “Risk Factors”~~ in ~~the~~our ~~Information~~Annual ~~Statement,~~Report ~~dated~~on ~~October~~Form ~~15,~~10-K ~~2025,~~for ~~filed~~the asyear ~~Exhibit~~ended ~~99.1~~December to31, ~~Qnity’s~~2025 ~~Current~~(the "Annual Report"), ~~on Form 8-K~~ filed with the Securities and Exchange Commission (the “SEC”) on ~~October~~February 1526, ~~2025 (the “Information Statement”)~~2026, as well as in our press releases and other filings with the SEC. Qnity may not actually achieve the plans, intentions or expectations disclosed in its forward-looking statements. New risk factors emerge from time to time and it is not possible to predict all such risk factors, nor can Qnity assess the impact of all such risk factors on its business or the extent to which any factor or combination of factors may cause actual results to differ materially from those contained in any forward-looking statements.

For the reasons described above, Qnity cautions you against relying on any forward-looking statements, which should also be read in conjunction with this Quarterly Report and the documents referenced within this Quarterly Report and the other cautionary statements that are included elsewhere in this Quarterly Report and in Qnity’s public filings, including under “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Forward-looking statements, reflect Qnity’s beliefs and opinions on the relevant subject. These statements are based upon information available to Qnity as of the date of this Quarterly Report, and while Qnity believes such information forms a reasonable basis for such statements, such information may be limited or incomplete, and statements should not be read to indicate that Qnity has conducted an exhaustive inquiry into, or review of, all potentially available relevant information. All forward-looking statements attributable to Qnity or persons acting on its behalf are expressly qualified in their entirety by the foregoing cautionary statements. Qnity does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws.

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does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws.

Trademarks

All trademarks, service marks or registered trademarks referred to in this Quarterly Report are trademarks, service marks or registered trademarks of affiliates of the Company. Solely for convenience, the trademarks in this Quarterly Report are referred to without TM, SM or ® symbols, but such references should not be construed as any indicator that the Company or, to the extent applicable, their respective owners, will not assert, to the fullest extent under applicable law, the Company’s or their rights thereto. We do not intend the use or display of other companies’ trademarks to imply a relationship with, or endorsement or sponsorship of us by, any other companies.

Website and Social Media Disclosure

The Company may use its website and/or social media outlets, such as ~~Facebook,~~ LinkedIn and XWeChat, as distribution channels of material company information. Financial and other important information regarding the Company is routinely posted on and accessible through the Company’s website at https://ir.qnityelectronics.com, its LinkedIn page at https://linkedin.com/company/qnityelectronics and its WeChat account at https://mp.weixin.qq.com/s/~~Kc0k2EPhlaxwge3E8Jpmeg~~JV7BeMMNyLIpCmoI5oczRA. In addition, you may automatically receive email alerts and other information about the Company when you enroll your email address by visiting the “Email Alerts” section under the “Resources” section at https://ir.qnityelectronics.com.

The contents of the Company’s website, including those referenced above and elsewhere in this report, are not intended to be incorporated by reference into this Quarterly Report on Form 10-Q or in any other report or document Qnity has or in the future may file, or furnish to, with the SEC, and any references to the Company’s websites are intended to be inactive textual references only.

Table of Contents


PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Qnity Electronics, Inc.

~~Combined~~Consolidated Statements of Operations (Unaudited)

	Three Months Ended September 30,				Nine Months Ended September 30,
	Three Months Ended March 31,
In millions, except per share amounts	~~2025~~2026		~~2024~~2025		~~2025~~		~~2024~~
Net sales	$	1,~~276~~315	$	1,~~148~~118	$	~~3,564~~	$	~~3,234~~
Cost of sales	~~701~~697		~~609~~587		~~1,918~~		~~1,753~~
Research and development expenses	9294		8184		~~264~~		~~230~~
Selling, general and administrative expenses	~~159~~173		~~156~~140		~~453~~		~~461~~
Amortization of intangibles	5152		5755		~~156~~		~~177~~
Restructuring and asset related charges - net	1		4		20		7
Transformation, integration and other charges (Note 4)	28		17
Equity in earnings of nonconsolidated affiliates	1513		109		37		33
Other income (expense) - net	(1)		(1)		(3)		9
Interest expense	61		—
Interest expense	14		—		14		—
Other income (expense) - net	(5)		2
Income before income taxes	$	~~272~~218	$	~~250~~246	$	~~773~~	$	~~648~~
Provision for income taxes	4956		4347		~~153~~		~~145~~
Net income	$	~~223~~162	$	~~207~~199	$	~~620~~	$	~~503~~
Net income attributable to noncontrolling interests	1211		86		28		23
Net income available for Qnity common stockholders	$	~~211~~151	$	~~199~~193	$	~~592~~	$	~~480~~
Per common share data:
Earnings per common share - basic and diluted	$	1.01	$	0.95	$	2.83	$	2.30
Earnings per common share - basic	$	0.72	$	0.92
Weighted-average common shares outstanding - basic and diluted	209		209		209		209
Earnings per common share - diluted	$	0.72	$	0.92
Weighted-average common shares outstanding - basic	209.7		209.4
Weighted-average common shares outstanding - diluted	210.3		209.4

See Notes to the ~~Combined~~Consolidated Financial Statements.

Qnity Electronics, Inc.

~~Combined~~Consolidated Statements of Comprehensive Income (Unaudited)

	Three Months Ended September 30,				Nine Months Ended September 30,
	Three Months Ended March 31,
In millions	~~2025~~2026		~~2024~~2025		~~2025~~		~~2024~~
Net income	$	~~223~~162	$	~~207~~199	$	~~620~~	$	~~503~~
Other comprehensive (loss) income, net of tax
Cumulative translation adjustments	(2952)		~~147~~56		~~203~~		10
Pension benefit plans	(71)		—(2)		~~(8)~~		1
Total other comprehensive (loss) income	$	(3653)	$	~~147~~54	$	~~195~~	$	11
Comprehensive income	$	~~187~~109	$	~~354~~253	$	~~815~~	$	~~514~~
Comprehensive income attributable to noncontrolling interests, net of tax	9		189		33		25
Comprehensive income attributable to Qnity	$	~~178~~100	$	~~336~~244	$	~~782~~	$	~~489~~

See Notes to the ~~Combined~~Consolidated Financial Statements.

Qnity Electronics, Inc.

Condensed ~~Combined~~Consolidated Balance Sheets (Unaudited)

In millions	~~September~~March 3031, ~~2025~~2026		December 31, ~~2024~~2025
Assets
Current Assets
Cash and cash equivalents	$	~~128~~857	$	~~166~~915
Accounts and notes receivable - net	~~802~~1,039		~~682~~992
Inventories	647		597
Inventories - net	696		661
Prepaid and other current assets	4490		3870
Total current assets	$	12,~~621~~682	$	12,~~483~~638
Property, plant and equipment - net of accumulated depreciation (September 30, 2025 - $1,388; December 31, 2024 - $1,121)	1,622		1,548
Property, plant and equipment - net of accumulated depreciation (March 31, 2026 - 1,478; December 31, 2025 - 1,450)	1,692		1,701
Other Assets
Goodwill	7,~~497~~514		7,~~379~~522
Other intangible assets	1,~~160~~061		1,~~286~~111
Investments and noncurrent receivables	~~433~~417		~~394~~402
Deferred income tax assets	4440		42
Deferred charges and other assets	~~135~~657		~~141~~654
Total other assets	$	9,~~269~~689	$	9,~~242~~731
Total Assets	$	1214,~~512~~063	$	1214,~~273~~070
Liabilities and Equity
Current Liabilities
Accounts payable	590		$	528
Short-term borrowings	$	23	$	24
Income taxes payable	154		161
Accounts payable	699		680
Accrued and other current liabilities	166		150
Income taxes payable	162		150
Total current liabilities	$	910	$	839
Accrued and other current liabilities	379		502
Long-Term Debt	1,722		—
Total current liabilities	$	1,263	$	1,356
Long-Term Debt	4,000		4,003
Other Noncurrent Liabilities
Deferred income tax liabilities	~~189~~259		~~259~~273
Pensions - noncurrent	71		65
Pensions and other post-employment benefits - noncurrent	80		80
Other noncurrent obligations	~~233~~1,000		~~214~~992
Total other noncurrent liabilities	$	~~493~~1,339	$	~~538~~1,345
Total Liabilities	$	36,~~125~~602	$	16,~~377~~704
Commitments and contingent liabilities
Commitments and contingent liabilities (Note 13)
Equity
Stockholders' Equity
Parent company net investment	9,347		11,058
Common stock (authorized 1,666,666,667 shares of $0.01 par value each; issued 2026: 209,440,670 shares; 2025: 209,479,173 shares)	2		2
Accumulated other comprehensive loss	(224)		(414)
Preferred stock (authorized 1 share of $1.50 million par value each; issued 2026: 1 share; 2025: 1 share	2		2
Total Qnity equity	$	9,123	$	10,644
Additional paid-in capital	7,276		7,286
Noncontrolling interests	264		252
Retained earnings	170		18
Total equity	$	9,387	$	10,896
Accumulated other comprehensive loss	(264)		(213)
Total Liabilities and Equity	$	12,512	$	12,273
Total Qnity equity	$	7,186	$	7,095
Noncontrolling interests	275		271
Total equity	$	7,461	$	7,366
Total Liabilities and Equity	$	14,063	$	14,070

See Notes to the ~~Combined~~Consolidated Financial Statements.

Qnity Electronics, Inc.

~~Combined~~Consolidated Statements of Cash Flows (Unaudited)

	Nine Months Ended September 30,
	Three Months Ended March 31,
In millions	~~2025~~2026		~~2024~~2025
Operating Activities
Net income	$	~~620~~162	$	~~503~~199
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property, plant and equipment	~~124~~46		~~120~~39
Amortization of definite-lived intangible assets	~~156~~52		~~177~~55
Stock-based compensation	1210		104
Credit for deferred income tax and other tax related items	(611)		(549)
Net gain on sales of assets	(1)		(2)
Restructuring and asset related charges - net	(1)		17
Restructuring and asset related charges - net	20		7
Net periodic pension benefit cost	1		1
Net periodic pension benefit cost	6		4
Periodic benefit plan contributions	(1)		(1)
Periodic benefit plan contributions	(3)		(2)
Earnings of nonconsolidated affiliates less dividends received	(13)		(9)
Earnings of nonconsolidated affiliates less dividends received	(37)		(33)
Other net loss	9		—
Changes in assets and liabilities:
Accounts and notes receivable	(9751)		(874)
Inventories	(3342)		(8435)
Other assets	13(11)		~~(14)~~1
Accounts payable	8172		~~149~~41
Accrued and other current liabilities	(6120)		78(67)
Other noncurrent liabilities	~~(1)~~15		~~(1)~~3
Income tax liabilities	~~(11)~~8		4(28)
Cash provided by operating activities	$	~~782~~135	$	~~775~~207
Investing Activities
Capital expenditures	(~~214~~122)		(~~134~~104)
Other investing activities, net	—(1)		1—
Cash used for investing activities	$	(~~214~~123)	$	(~~133~~104)
Financing Activities
Distributions to noncontrolling interests	(21)		(13)
Repayments on long-term debt	(6)		—
Net transfers (to) from Parent	(2,311)		(611)
Repurchases of common stock	(25)		—
Proceeds from issuance of long-term debt	1,750		$	—
Employee taxes paid for share-based payment arrangements	(5)		—
Payments for debt issuance costs	(34)		—
Distributions to noncontrolling interests	(6)		(5)
Cash used for financing activities	$	(616)	$	(624)
Dividends paid to stockholders	(17)		—
Effect of exchange rate changes on cash and cash equivalents	10		(2)
Net transfers to Parent	—		(104)
(Decrease) increase in cash and cash equivalents	$	(38)	$	16
Cash used for financing activities	$	(59)	$	(109)
Cash and cash equivalents at beginning of period	$	166	$	139
Effect of exchange rate changes on cash and cash equivalents	(11)		2
Cash and cash equivalents at end of period	$	128	$	155
Decrease in cash and cash equivalents	$	(58)	$	(4)
Cash and cash equivalents at beginning of period	$	915	$	166
Cash and cash equivalents at end of period	$	857	$	162

See Notes to the Consolidated Financial Statements.

Qnity Electronics, Inc.

~~Combined~~Consolidated Statements of Changes in Equity (Unaudited)

For the three months ended ~~September~~March 3031, ~~2025~~2026 and ~~2024~~2025

In millions	Common Stock		~~Parent~~Preferred ~~Company Net Investment~~Stock		Additional Paid-in Capital		~~Accumulated~~Retained ~~Other Comprehensive (Loss) Income~~Earnings		~~Total~~Parent ~~Qnity~~Company ~~Electronics~~Net ~~Equity~~Investment		~~Noncontrolling~~Accumulated ~~Interests~~Other Comp (Loss) Income		~~Total~~Non-controlling ~~Equity~~Interests		Total Equity
Balance at June 30, 2024			$	11,173			$	(373)	$	10,800	$	240	$	11,040
Balance at December 31, 2024	$	—	$	—	$	—	$	—	$	11,058	$	(414)	$	252	$	10,896
Net income	—		~~199~~—		—		—		~~199~~193		8—		~~207~~6		199
Other comprehensive income	—		—		—		~~137~~—		~~137~~—		1051		~~147~~3		54
Net transfers (to) from Parent			(313)				—		(313)		—		(313)
Distributions to noncontrolling interests	—		—		—		—		—		—		(5)		(5)
Balance at September 30, 2024			$	11,059			$	(236)	$	10,823	$	258	$	11,081
Net transfers to Parent	—		—		—		—		(105)		—		—		(105)
Balance at June 30, 2025			$	11,121			$	(191)	$	10,930	$	268	$	11,198
Balance at March 31, 2025	$	—	$	—	$	—	$	—	$	11,146	$	(363)	$	256	$	11,039
Net income			211				—		211		12		223
Balance at December 31, 2025	$	2	$	2	$	7,286	$	18	$	—	$	(213)	$	271	$	7,366
Other comprehensive loss			—				(33)		(33)		(3)		(36)
Net income	—		—		—		151		—		—		11		162
Distributions to noncontrolling interests			—				—		—		(13)		(13)
Other comprehensive loss	—		—		—		—		—		(51)		(2)		(53)
Net transfers (to) from Parent			(1,985)				—		(1,985)		—		(1,985)
Stock-based compensation	—		—		5		—		—		—		—		5
Balance at September 30, 2025			$	9,347			$	(224)	$	9,123	$	264	$	9,387
Distributions to noncontrolling interests	—		—		—		—		—		—		(6)		(6)
Common stock repurchased	—		—		(25)		—		—		—		—		(25)
Separation-related adjustments	—		—		10		—		—		—		—		10
Other	—		—		—		1		—		—		1		2
Balance at March 31, 2026	$	2	$	2	$	7,276	$	170	$	—	$	(264)	$	275	$	7,461

See Notes to the ~~Combined~~Consolidated Financial Statements.

Qnity Electronics

Combined Statements of Changes in Equity (Unaudited)

For the nine months ended September 30, 2025 and 2024

In millions	Parent Company Net Investment		Accumulated Other Comprehensive (Loss) Income		Total Qnity Electronics Equity		Noncontrolling Interests		Total Equity
Balance at December 31, 2023	$	11,183	$	(245)	$	10,938	$	246	$	11,184
Net income	480		—		480		23		503
Other comprehensive income	—		9		9		2		11
Distributions to non-controlling interests	—		—		—		(13)		(13)
Net transfers (to) from Parent	(604)		—		(604)		—		(604)
Balance at September 30, 2024	$	11,059	$	(236)	$	10,823	$	258	$	11,081
Balance at December 31, 2024	$	11,058	$	(414)	$	10,644	$	252	$	10,896
Net income	592		—		592		28		620
Other comprehensive income	—		190		190		5		195
Distributions to non-controlling interests	—		—		—		(21)		(21)
Net transfers (to) from Parent	(2,303)		—		(2,303)		—		(2,303)
Balance at September 30, 2025	$	9,347	$	(224)	$	9,123	$	264	$	9,387

See Notes to the Combined Financial Statements.

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NOTES TO THE ~~COMBINED~~CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Table of Contents

Note		Page
1	Basis of Presentation	1312
2	Recent Accounting Guidance	1412
3	Revenue	1513
4	~~Restructuring~~Transformation, Integration and ~~Asset~~Other ~~Related~~ Charges ~~- Net~~	1614
5	~~Related~~Relationship ~~Party~~with ~~Transactions~~DuPont	1615
6	Supplementary Information	1716
7	Income Taxes	1817
8	Earnings Per Share Calculations	1917
9	Inventories - net	1918
10	Nonconsolidated Affiliates	1918
11	Goodwill and Other Intangible Assets	2019
12	Long-Term Debt	2120
13	Commitments and Contingent Liabilities	2320
14	~~Accumulated~~Stockholders' ~~Other Comprehensive Income (Loss)~~Equity	2321
15	Pension Plans	2422
16	~~Segment~~Stock-Based ~~Information~~Compensation	2522
17	~~Subsequent~~Financial ~~Events~~Instruments	2722
18	Fair Value Measurements	23
19	Segment Information	24

1211

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NOTE 1 - BASIS OF PRESENTATION

Organization and Description of Business

The accompanying unaudited interim Combined Financial Statements and notes present the unaudited interim combined results of operations, financial position, and cash flows of the Electronics business (collectively, “Qnity Electronics”, ~~“Qnity” or “the Company”) of DuPont de Nemours,~~ Inc. (~~“DuPont”~~"Qnity" or ~~“Parent”), of which~~ the "Company ~~has historically been a part, and have been prepared in accordance with generally accepted accounting principles in the United States of America (~~"~~U.S. GAAP"~~). Inis ~~the~~one ~~opinion~~ of ~~management,~~ the ~~unaudited~~largest ~~interim~~global ~~Combined~~leaders ~~Financial~~in ~~Statements~~materials ~~reflect~~and ~~all~~solutions ~~adjustments (including normal recurring adjustments) which are considered necessary~~ for the ~~fair~~semiconductor ~~statement~~and ofelectronics ~~the results for the periods presented~~industries. ~~Results~~The ~~from~~Company ~~interim~~empowers ~~periods~~its ~~should~~customers’ ~~not~~technology beroadmaps ~~considered~~to ~~indicative~~enable ofadvancements ~~results for the full year. These unaudited interim Combined Financial Statements should also be read~~ in ~~conjunction~~megatrends ~~with~~such ~~the audited annual Combined Financial Statements and notes thereto for the year ended December 31, 2024, collectively referred to~~ as ~~the~~artificial ~~“2024 Annual Financial Statements” as contained in the Company’s Information Statement~~intelligence, ~~dated~~high-performance ~~October~~computing ~~15,~~and ~~2025,~~advanced ~~as filed as Exhibit 99~~connectivity.1 toQnity ~~our~~partners ~~Current Report on Form 8-K on October 15, 2025~~ with ~~the~~leading ~~U.S.~~semiconductor ~~Securities~~ and ~~Exchange~~advanced ~~Commission~~device ~~(“SEC”)~~manufacturers ~~pursuant~~ to ~~the~~address ~~Securities~~complex ~~Act~~challenges ~~of 1934, as amended. The unaudited interim Combined Financial Statements include the accounts of the Company~~ and ~~all~~develop ofsolutions ~~its~~that ~~subsidiaries~~facilitate innext-generation ~~which~~technological ~~a controlling interest is maintained~~innovations.

OnPrior ~~May~~to 22November 1, ~~2024~~2025, ~~DuPont~~the ~~announced~~Company ~~its~~was ~~plan~~wholly toowned ~~separate~~by ~~Qnity from~~ DuPont ~~into~~de anNemours, ~~independent~~Inc. ~~publicly traded company~~ (~~the~~ “~~Separation~~DuPont” or "Parent"). On November 1, 2025 (the "Separation and Distribution Date"), Qnity was separated from DuPont ~~completed~~into an independent publicly traded company (the "Separation") through a pro-rata distribution of one share of Qnity common stock for every two shares of DuPont common stock held at the close of business on the record date of October 22, 2025 (the "Distribution"). As a result of the Distribution, as of the Separation and Distribution Date, Qnity became an independent, publicly traded company, and Qnity common stock commenced trading on the New York Stock Exchange under the symbol "Q" at the start of trading on November 3, 2025. ~~See Note 17 for more information about the Separation and Distribution.~~

Basis of Presentation

~~Qnity~~Prior ~~has~~to ~~historically~~the Separation on November 1, 2025, Qnity had operated as a part of DuPont; consequently, stand-alone interim financial statements ~~have~~were not historically ~~been~~ prepared for Qnity. ~~The~~For the period subsequent to November 1, 2025, the financial statements are presented on a consolidated basis as the Company became a standalone public company. In the opinion of management, the accompanying unaudited interim ~~Combined~~Consolidated Financial Statements ~~have~~reflect ~~been~~all ~~derived~~adjustments ~~from~~(including ~~DuPont’s~~normal ~~accounting~~recurring ~~records~~adjustments) aswhich ifare ~~Qnity’s~~considered ~~operations~~necessary ~~had~~for ~~been~~the ~~conducted~~fair ~~independently~~statement ~~from~~of ~~those~~the results for the periods presented. The unaudited interim Consolidated Financial Statements include the accounts of ~~DuPont~~the Company and ~~were~~all ~~prepared~~of onits asubsidiaries ~~stand-alone~~in ~~basis~~which ina ~~accordance~~controlling ~~with~~interest ~~U.S.~~is ~~GAAP~~maintained. ~~The~~Results ~~historical~~from ~~results~~interim ofperiods ~~operations,~~should ~~financial~~not ~~position~~be ~~and~~considered ~~cash~~indicative ~~flows~~ of ~~Qnity~~results ~~presented~~for inthe ~~these~~full year. These unaudited interim ~~Combined~~Consolidated Financial Statements ~~may~~should ~~not~~also be ~~indicative~~read ofin ~~what~~conjunction ~~they~~with ~~would~~the ~~have~~audited ~~been~~annual ~~had~~Consolidated ~~Qnity~~Financial ~~actually~~Statements ~~been~~and annotes ~~independent~~thereto ~~stand-alone~~for ~~entity~~the year ended December 31, ~~nor~~2025, ~~are~~collectively ~~they~~referred ~~necessarily~~to ~~indicative~~as ofthe ~~Qnity~~“2025 Annual Financial Statements” as contained in the Company’s ~~future~~Annual ~~results~~Report ofon ~~operations~~Form 10-K (the "Annual Report") filed on February 26, ~~financial~~2026 ~~position~~with the U.S. Securities and ~~cash~~Exchange ~~flows~~Commission (“SEC”) pursuant to the Securities Exchange Act of 1934, as amended.

~~The~~Beginning ~~unaudited~~in ~~interim~~fiscal ~~Combined~~2026, ~~Statements~~the ofCompany ~~Operations~~presents ~~and~~costs ~~Comprehensive~~incurred ~~Income~~in ~~(Loss)~~connection ~~include~~with ~~all~~a ~~revenues~~multi‑year ~~and~~transformation ~~costs~~plan, ~~directly~~designed ~~attributable~~ to ~~Qnity,~~strengthen ~~including~~operational ~~costs for facilities~~productivity, ~~functions~~enhance ~~and~~commercial ~~services used by Qnity. The unaudited interim Combined Statements of Operations~~ and ~~Comprehensive~~innovation ~~Income (Loss) reflect allocations of general corporate expenses from DuPont including~~excellence, ~~but~~and ~~not~~optimize ~~limited~~the ~~to,~~Company’s ~~executive~~presence ~~management,~~in ~~finance,~~key ~~legal~~markets, ~~information~~within ~~technology,~~a ~~employee~~single ~~benefits~~operating ~~administration,~~expense ~~treasury,~~line ~~risk~~titled ~~management~~“Transformation, ~~procurement~~integration and other ~~shared~~charges” ~~services,~~in ~~and any restructuring related to these functions. These allocations were made on~~ the ~~basis~~Consolidated Statements of ~~revenue, expenses, headcount or other relevant measures~~Operations. ~~Management~~The ~~considers~~transformation ~~these~~plan ~~allocations~~does tonot berepresent ana ~~overall~~company‑wide ~~reasonable~~restructuring ~~reflection~~event; ~~of the utilization of services by~~rather, ~~or the benefits provided to, Qnity, in the aggregate. Management does not believe, however, that~~ it isconsists ~~practicable~~of toa ~~estimate~~series ~~what~~of ~~these~~discrete ~~expenses would have been had the Company operated as an independent entity~~initiatives, including ~~any~~IT ~~expenses~~independence ~~associated~~and ~~with~~other ~~obtaining~~separation‑related ~~any~~activities, ofintegration ~~these services from unaffiliated entities. The allocations~~efforts, ~~therefore,~~and ~~may~~productivity ~~not reflect the expenses Qnity would have incurred as a stand-alone company for the periods presented~~programs.

~~The~~Consistent ~~Qnity~~with ~~unaudited~~the ~~interim~~update ~~Condensed~~above, ~~Combined~~we ~~Balance~~combined ~~Sheets~~our ~~include~~historical ~~assets~~“Restructuring and ~~liabilities~~other ~~that~~asset ~~are~~related ~~specifically~~charges” ~~identifiable~~and or“Acquisition, ~~otherwise~~integration ~~attributable~~and toseparation ~~Qnity~~costs” into the expense caption, ~~including~~“Transformation, ~~subsidiaries~~integration and ~~affiliates~~other charges” to simplify our presentation and better reflect how management evaluates these activities. Prior period amounts presented in ~~which~~this ~~Qnity~~Quarterly ~~has~~Report aon ~~controlling~~Form ~~financial~~10-Q ~~interest~~have orbeen isrecast to conform to the ~~primary~~current ~~beneficiary~~period presentation. This change in presentation did not affect total operating expenses, operating income, net income, earnings per share, or cash flows for any period presented.

DuPont used a centralized approach to cash management and financing of its operations and DuPont funded Qnity’s operating and investing activities as needed. Cash transfers to the cash management accounts of DuPont were reflected in the unaudited interim Combined Statements of Cash Flows as “Net transfers (to) from Parent.”

Transactions between Qnity and DuPont and their affiliates and other associated companies are reflected in the unaudited interim Combined Financial Statements and disclosed as related party transactions when material. Related party transactions with DuPont are included in Note 5.

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The unaudited interim Combined Financial Statements include the accounts of Qnity and subsidiaries in which a controlling interest is maintained. For those combined subsidiaries in which Qnity’s ownership is less than 100%, the outside stockholders’ interests are shown as noncontrolling interests.

Intracompany accounts and transactions within Qnity have been eliminated in the preparation of the accompanying unaudited interim Combined Financial Statements. Intercompany transactions with DuPont were deemed to have been paid in the periods the costs were incurred.

Qnity did not file separate tax returns in the U.S. for federal, certain state and local tax purposes, nor in foreign tax jurisdictions, as Qnity was included in the tax grouping of DuPont and its affiliate entities within the respective jurisdictions. The provision for income taxes included in these unaudited interim Combined Financial Statements has been calculated using the separate return basis, as if Qnity filed separate tax returns. Qnity’s Provision for income taxes as presented in the unaudited interim Combined Financial Statements may not be indicative of the income taxes that Qnity will generate in the future. In jurisdictions where Qnity has been included in the tax returns filed by DuPont, any income taxes payable resulting from the related income tax provision are considered settled in cash with DuPont immediately and therefore have been reflected in the balance sheet within “Parent company net investment”.

NOTE 2 - RECENT ACCOUNTING GUIDANCE

Recently Adopted Accounting Guidance

In ~~November~~December 2023, the FASB issued Accounting Standards Update No. 2023-0709, "~~Segment~~Income ~~Reporting~~Taxes (Topic ~~280~~740): Improvements to ~~Reportable~~Income ~~Segment~~Tax Disclosures" ("ASU 2023-0709") to improve ~~disclosure~~transparency ~~requirements about reportable segments~~ and ~~address~~disclosure ~~requests~~requirements ~~from investors~~ for ~~additional, more detailed information about a reportable segment’s expenses. The new guidance requires disclosures of significant segment expenses regularly provided to~~ the ~~Chief~~rate ~~Operating~~reconciliation, ~~Decision~~income ~~Maker~~taxes ~~("CODM")~~paid and ~~included~~other intax ~~reported measures of segment profit and loss. Disclosure of the title and position of the CODM is required. The guidance requires interim and annual~~ disclosures ~~about a reportable segment's profit or loss and assets~~. ~~Additionally, the guidance requires disclosure of other segment items by reportable segment including a description of its composition.~~ The amendments in ASU 2023-0709 are effective for ~~fiscal~~annual ~~years beginning after December 15, 2023, and interim periods within~~ fiscal years beginning after December 15, 2024, on a ~~retrospective~~prospective basis. The disclosures ~~have~~were ~~been~~ implemented as required for the ~~three and nine months~~ year-ended ~~September 30~~December 31, 2025 ~~and~~in ~~2024.~~the ~~See~~Company's ~~Note~~Annual ~~16 for more information~~Report.

In December 2025, the FASB issued Accounting ~~Guidance~~Standards ~~Issued~~Update ~~But~~No. ~~Not~~2025-12, ~~Adopted~~"Codification atImprovements", ~~September 30~~which addresses stakeholders' feedback on the Accounting Standards Codification and makes other incremental improvements to generally accepted accounting principles. Specifically, Issue 10 of ASU 2025-12 added a clarification within ASC 505-30 to provide a policy election to permit the excess of repurchase price over par value in a stock repurchase transaction to be accounted for entirely as a reduction in additional paid-in capital when the repurchased shares are retired. The Company adopted Issue 10 of ASU 2025-12 during the quarter ended March 31, 2026.

In December 2023, the FASB issued Accounting Standards Update No. 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" ("ASU 2023-09") to improve transparency and disclosure requirements for the rate reconciliation, income taxes paid and other tax disclosures. The amendments in ASU 2023-09 are effective for annual fiscal years beginning after December 15, 2024, on a prospective basis. The disclosures will be implemented as required for the year-ended December 31, 2025. The Company is currently evaluating the impact of adopting this guidance.12

In November 2024, the FASB issued Accounting Standards Update No. 2024-03, "Income Statement: Reporting Comprehensive Income (Topic 220): Expense Disaggregation Disclosures" ("ASU 2024-03") to improve disclosures about the nature of expenses within line items on the statements of operations. The amendments in ASU 2024-03 are effective for the Company's 2027 annual report and subsequent interim periods; however, early adoption is permitted. The amendments can be applied prospectively or retrospectively to all periods presented. The Company is currently evaluating the impact of adopting this guidance.

In September 2025, the FASB issued Accounting Standards Update No. 2025-06, “Intangibles—Goodwill and Other—Internal-

Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software” (“ASU 2025-06”) to modernize the accounting for internal-use software costs and improve operability of the guidance across different software development project stages. The amendments in ASU 2025-06 are effective for the Company’s 2028 annual and quarterly reports; however, early adoption is permitted. The amendments can be applied prospectively, retrospectively, or using a modified transition approach. The Company is currently evaluating the impact of adopting this guidance.

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Accounting Guidance Issued But Not Adopted at March 31, 2026

In September 2025, the FASB issued Accounting Standards Update No. 2025-06, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software” (“ASU 2025-06”) to modernize the accounting for internal-use software costs and improve operability of the guidance across different software development project stages. The amendments in ASU 2025-06 are effective for the Company’s 2028 annual and quarterly reports; however, early adoption is permitted. The amendments can be applied prospectively, retrospectively, or using a modified transition approach. The Company is currently evaluating the impact of adopting this guidance.

NOTE 3 - REVENUE

Revenue Recognition

Products

Substantially all of Qnity’s revenue is derived from product sales. Product sales consist of sales of Qnity’s products to supply manufacturers and distributors. Qnity considers purchase orders, which in some cases are governed by master supply agreements, to be a contract with a customer. Contracts with customers are considered to be short-term when the time between order confirmation and satisfaction of the performance obligations is equal to or less than one year.

Net sales to Samsung Electronics Co., Ltd accounted for 11% and 10% of total net sales for each of the three months ended ~~September~~March 3031, ~~2025~~2026 and ~~2024, and 10% and 11% of total net sales for the nine months ended September 30,~~ 2025 ~~and 2024~~, respectively. Additionally, net sales to Taiwan Semiconductor Manufacturing Company Limited (TSMC) accounted for 8% ~~and 7%~~ of total net sales for the three months ended ~~September~~March 3031, ~~2025~~2026 and ~~2024, respectively, and 8% and 7% of total net sales for the nine months ended September 30,~~ 2025 ~~and 2024, respectively~~. The majority of revenues for both customers relate to the Semiconductor Technologies segment. ~~See Note 16 for more information.~~

Disaggregation of Revenue

The Company disaggregates its revenue from contracts with customers by segment and geographic region, as the Company believes it best depicts the nature, amount, timing and uncertainty of its revenue and cash flows.

Net Sales by Segment

Three Months Ended ~~September~~March 3031,

~~Nine Months Ended September 30,~~

In millions

~~2025~~2026

~~2024~~2025

~~2025~~

~~2024~~

Semiconductor Technologies

~~693~~722

~~640~~644

~~1,981~~

~~1,834~~

Interconnect Solutions

~~583~~593

~~508~~474

~~1,583~~

~~1,400~~

Total

1,~~276~~315

1,~~148~~118

~~3,564~~

~~3,234~~

Net Sales by Segment by Geographic Region	Three Months Ended September 30,
	2025						2024
	Semiconductor Technologies		Interconnect Solutions		Total		Semiconductor Technologies		Interconnect Solutions		Total
In millions
Americas:	$	78	$	90	$	168	$	71	$	70	$	141
United States	77		81		158		70		62		132
Other Americas 1	1		9		10		1		8		9
EMEA 2	57		49		106		48		39		87
Asia Pacific:	558		444		1,002		521		399		920
China 3	171		226		397		173		224		397
Rest of Asia Pacific:	387		218		605		348		175		523
South Korea	166		30		196		157		28		185
Taiwan	142		54		196		121		34		155
Other	79		134		213		70		113		183
Total	$	693	$	583	$	1,276	$	640	$	508	$	1,148

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Net Sales by Segment by Geographic Region

~~Nine~~Three Months Ended ~~September~~March 3031,

2025

2024

2026

2025

Semiconductor Technologies

Interconnect Solutions

Total

Semiconductor Technologies

Interconnect Solutions

Total

In millions

Americas:

~~220~~78

~~252~~93

~~472~~171

~~203~~66

~~208~~78

~~411~~144

United States

~~218~~77

~~227~~84

~~445~~161

~~201~~65

~~188~~71

~~389~~136

Other Americas 1

259

2710

207

228

EMEA 2

~~157~~51

~~136~~51

~~293~~102

~~150~~49

~~122~~43

~~272~~92

Asia Pacific:

~~1,604~~593

~~1,195~~449

21,~~799~~042

~~1,481~~529

~~1,070~~353

~~2,551~~882

China 3

545

636

1,181

489

600

1,089

China

205

230

435

205

191

396

Rest of Asia Pacific:

~~1,059~~388

~~559~~219

~~1,618~~607

~~992~~324

~~470~~162

~~1,462~~486

South Korea

~~453~~164

8030

~~533~~194

~~453~~140

7723

~~530~~163

Taiwan

~~397~~151

~~133~~53

~~530~~204

~~340~~121

~~103~~36

~~443~~157

Other

~~209~~73

~~346~~136

~~555~~209

~~199~~63

~~290~~103

~~489~~166

Total

~~1,981~~722

~~1,583~~593

31,~~564~~315

~~1,834~~644

~~1,400~~474

31,~~234~~118

1.Includes Canada and Latin America.

2.Europe, Middle East and Africa.

3.Includes Hong Kong.

Contract Balances

From time to time, the Company enters into arrangements in which it receives payments from customers based upon contractual billing schedules. The Company records accounts receivables when the right to consideration becomes unconditional. Contract liabilities primarily reflect deferred revenue from advance payment for product that the Company has received from customers. The Company classifies deferred revenue as current or noncurrent based on the timing of when the Company expects to recognize revenue.

Revenue recognized from amounts included in contract liabilities at the beginning of the period were insignificant for the three ~~and nine~~ months ended ~~September~~March 3031, ~~2025~~2026 and ~~2024~~2025. The Company did not recognize any asset impairment charges related to contract assets during the periods. ~~Qnity~~The ~~expects~~Company towill ~~recognize~~begin recognizing its ~~noncurrent~~ deferred revenue ~~over~~when athe ~~seven-year~~project ~~period~~associated ~~beginning~~with inthe ~~fiscal~~revenue ~~year~~that was deferred is completed and commercial production begins, currently expected in 2027.

Contract Balances	~~September~~March 3031, ~~2025~~2026		December 31, ~~2024~~2025
In millions
Accounts receivable - trade 1	$	~~688~~702	$	~~580~~656
Deferred revenue - current 2	$	12	$	1
Deferred revenue - noncurrent 3	$	3546	$	3546

1.Included in "Accounts and notes receivable - net" in the interim Condensed ~~Combined~~Consolidated Balance Sheets.

2.Included in "Accrued and other current liabilities" in the interim Condensed ~~Combined~~Consolidated Balance Sheets.

3.Included in "Other noncurrent obligations" in the interim Condensed ~~Combined~~Consolidated Balance Sheets.

NOTE 4 - ~~RESTRUCTURING~~TRANSFORMATION, INTEGRATION AND ~~ASSET~~OTHER ~~RELATED~~ CHARGES ~~- NET~~

~~The~~In ~~Company~~February ~~records~~2026, ~~restructuring~~Qnity ~~liabilities~~launched ~~that~~a ~~represent~~multi‑year ~~nonrecurring~~transformation ~~charges in connection with DuPont-approved restructuring programs in order to simplify certain organizational structures and operations~~plan, ~~including~~designed ~~operations related~~ to ~~transformational~~strengthen ~~projects~~operational ~~such as divestitures and acquisitions. Charges for restructuring programs and asset related charges~~productivity, ~~which~~enhance ~~include~~commercial ~~asset impairments, were $1 million~~ and $4innovation ~~million~~excellence ~~for the three months ended September 30, 2025~~ and ~~2024,~~optimize ~~respectively, and $20 million and $7 million for~~ the ~~nine~~Company’s ~~months~~presence ~~ended September 30, 2025 and 2024, respectively. These charges were recorded~~ in ~~"Restructuring~~key ~~and asset related charges - net" in the unaudited interim Combined Statements of Operations~~markets. ~~The~~Costs ~~total~~incurred ~~liability~~under ~~related~~this toplan ~~restructuring~~primarily ~~programs~~comprise ~~was~~external $8consulting ~~million~~ and $3separation ~~million at September 30~~services, ~~2025 and December 31~~severance, ~~2024,~~asset‑related ~~respectively~~charges, ~~recorded in "Accrued~~ and ~~other current liabilities" in the interim Condensed Combined Balance Sheets. Refer to Note 16 for the breakout of restructuring and asset~~ program‑related ~~charges~~operating ~~incurred by segment~~costs.

~~NOTE~~As 5further -discussed ~~RELATED~~in ~~PARTY~~Note ~~TRANSACTIONS~~1, beginning in the first quarter of 2026, the Company combined its historical “Restructuring and asset‑related charges – net” financial‑statement line item with its historical “Acquisition, integration and separation costs” into a single operating expense caption titled “Transformation, integration and other charges.” This change represents a presentation change only, and does not represent a change in accounting principle. Consistent with SEC interim reporting requirements, prior‑period amounts presented herein have been recast to conform to the current‑period presentation. Although restructuring is no longer presented as a separate financial‑statement line item, the Company continues to monitor these charges as a discrete component of the new combined operating expense caption.

Historically, Qnity has been managed and operated in the normal course with other businesses of DuPont. Accordingly, certain shared costs have been allocated to Qnity and reflected as expenses in the stand-alone unaudited interim Combined Financial 14

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~~Statements.~~The ~~Management~~following ~~considers~~table ~~the~~represents ~~allocation~~reclassification ~~methodologies used to be reasonable and appropriate reflections~~ of ~~the~~prior-period ~~historical~~amounts ~~expenses attributable~~ to ~~Qnity~~Transformation, ~~for~~integration ~~purposes~~and ofother the interim stand-alone financial statements. The expenses reflected in the unaudited interim Combined Financial Statements may not be indicative of expenses that would be incurred by Qnity in the future. All related party transactions approximate prices at cost. charges:


Reclassification of Prior-Period Amounts	Three Months Ended March 31, 2025
In millions
Restructuring and asset related charges – net	$	17
Acquisition, integration and separation costs	—
Transformation, integration and other charges (recast)	$	17

The following table presents the components of Transformation, integration and other charges by major cost category. Amounts include costs recognized under ASC 420 (exit and disposal activities), ASC 712 (compensation – nonretirement postemployment benefits), ASC 360 (asset impairments), and other transformation and integration costs.


Transformation, Integration and Other Charges by Cost Category	Three Months Ended March 31,
In millions	2026		2025
Pre-Separation restructuring programs1


Severance	$	(1)	$	17
Asset related charges	—		—
Total Pre-Separation restructuring programs	$	(1)	$	17
Qnity Transformation Plan



IT independence 2	$	24	$	—
Integration and other 2	3		—
Transformation initiative charges2	2		—
Total Qnity Transformation Plan	$	29	$	—
Total transformation, integration and other charges (recast)	$	28	$	17

1. This activity represents charges and credits related to DuPont-approved restructuring programs initiated prior to the Separation.

2. Charges primarily consist of external advisory services, professional fees, program management costs, internal program labor, and other operating expenses that are incremental and directly attributable to the Company’s transformation and separation activities. Internal program labor represents payroll costs for employees predominantly dedicated to the transformation and separation initiatives and reflects costs that are incremental to the Company’s normal operating activities.

There were no actions by the Company resulting in new exit or disposal cost obligations during the three months ended March 31, 2026.

Exit and disposal operations were a credit of $1 million and charges of $17 million for the three months ended March 31, 2026 and 2025, respectively. The entirety of these charges related to DuPont-approved restructuring programs that were initiated prior to the Separation. The total liability related to these programs was $3 million as of March 31, 2026, recorded in "Accrued and other current liabilities" in the interim Condensed Consolidated Balance Sheets.

Refer to Note 19 for the disaggregation of Transformation, integration and other charges incurred by segment. The Company expects the majority of the remaining cash outflows of the program to be incurred in the next two years.

NOTE 5 - RELATIONSHIP WITH DUPONT

Prior to the Separation, Qnity had been managed and operated in the normal course with other businesses of DuPont. Accordingly, certain shared costs had been allocated to Qnity and reflected as expenses in the stand-alone Consolidated Financial Statements. Management considers the allocation methodologies used to be reasonable and appropriate reflections of the pre-Separation expenses attributable to Qnity for purposes of the stand-alone financial statements. The expenses reflected in the Consolidated Financial Statements may not be indicative of expenses that will be incurred by Qnity in the future. All transactions with DuPont prior to the Separation approximate prices at cost.

Corporate Expense Allocations

Qnity’s ~~unaudited~~Consolidated ~~interim Combined~~ Statements of Operations ~~include~~for periods prior to the Separation included general corporate expenses of DuPont for services provided by DuPont for certain support functions that ~~are~~were provided on a centralized basis. ~~These~~prior ~~costs were first attributed~~ to ~~Qnity~~the ~~if specifically identifiable to its businesses~~Separation. IfThese ~~not specifically identifiable to Qnity’s businesses, these~~ costs ~~have~~were ~~been~~ allocated using relevant allocation methods, primarily based on sales metrics~~, consistently for all periods presented~~.

~~Corporate expense allocations were recorded in the unaudited interim Combined Statements of Operations within the following captions:~~15

In millions	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Selling, general and administrative expenses	$	58	$	57	$	168	$	172
Cost of sales	8		10		25		31
Research and development expenses	10		10		29		27
Restructuring	—		6		11		7
Total corporate expense allocations	$	76	$	83	$	233	$	237

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Corporate expense allocations during the three months ended March 31, 2025 were recorded in the unaudited interim Consolidated Statements of Operations within the following captions:


In millions	Three months ended March 31, 2025

Selling, general and administrative expenses	$	53
Cost of sales	8
Research and development expenses	10
Transformation, integration and other charges1	11
Total corporate expense allocations	$	82

1. Refer to Note 4 for additional information.

Parent Company Equity

Net transfers ~~from (~~to) Parent are included within Parent company net investment on the unaudited interim ~~Combined~~Consolidated Statements of Changes in Equity. The components of the net transfers ~~from (~~to) Parent are as follows:

In millions	Three Months Ended ~~September~~March 3031, 2025				~~Nine Months Ended September 30,~~
	2025		2024		2025		2024
Cash pooling and general financing activities	$	33
Cash pooling and general financing activities	$	(1,828)	$	(164)	$	(1,856)	$	(168)
Less: Corporate cost allocations	82
Less: Corporate cost allocations	76		83		233		237
Less: Taxes deemed settled with Parent	56
Less: Taxes deemed settled with Parent	81		66		214		199
Total net transfers to Parent per unaudited interim Consolidated Statements of Changes in Equity	$	(105)
Total net transfers (to) from Parent per unaudited interim Combined Statements of Changes in Equity	(1,985)		(313)		(2,303)		(604)
Stock-based compensation and other noncash transfers (to) from Parent	1
Stock-based compensation and other noncash transfers (to) from Parent	(4)		—		(8)		(7)
Net transfers to Parent per unaudited interim Consolidated Statements of Cash Flows	$	(104)
Net transfers (to) from Parent per unaudited interim Combined Statements of Cash Flows	$	(1,989)	$	(313)	$	(2,311)	$	(611)

Refer to Note 10 for information on related party transactions with Qnity’s equity method investment entities.

NOTE 6 - SUPPLEMENTARY INFORMATION

Other Income (Expense) - Net	Three Months Ended ~~September~~March 3031,				~~Nine Months Ended September 30,~~
In millions	~~2025~~2026		~~2024~~2025		~~2025~~		~~2024~~
Net gain on sales of assets	$	1	$	—	$	1	$	2
Non-operating pension credits	$	1	$	—
Non-operating pension (costs) credits	(2)		1		(2)		1
Interest income	3		2
Interest income	—		—		2		—
Foreign exchange (losses) gains - net	(7)		—
Foreign exchange gains (losses), net	1		(4)		(4)		3
Indirect legacy (costs) benefits - net	(3)		—
Miscellaneous income (expense) - net	(1)		2—		—		3
Other income (expense) - net	$	(1)	$	(1)	$	(3)	$	9
Other (expense) income - net	$	(5)	$	2

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Accrued and Other Current Liabilities

In millions	~~September~~March 3031, ~~2025~~2026		December 31, ~~2024~~2025
Accrued payroll	$	86105	$	93162
Other 1	80		57
Current indemnification liabilities1	168		183
Total accrued and other current liabilities	$	166	$	150
Other 2	106		157
Total accrued and other current liabilities	$	379	$	502

1. No ~~other~~Related ~~component~~to ofcurrent ~~“Accrued~~portion ~~and~~of ~~other~~indemnification ~~current~~ liabilities”, ~~was~~primarily ~~more~~to ~~than~~DuPont. 5%For ofadditional ~~total~~information ~~current~~on ~~liabilities~~these ~~at September 30~~matters, ~~2025~~refer ~~and~~to ~~December~~Note ~~31, 2024~~5.

2. No other component of “Accrued and other current liabilities” was more than 5% of total current liabilities at March 31, 2026 and December 31, 2025.

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Operating Leases

Supplemental balance sheet information related to leases was as follows:

In millions	~~September~~March 3031, ~~2025~~2026		December 31, ~~2024~~2025
Operating Leases
Operating lease right-of-use assets 1	$	~~122~~502	$	~~127~~493
Current operating lease liabilities 2	2844		3043
Noncurrent operating lease liabilities 3	97466		~~100~~455
Total operating lease liabilities	$	~~125~~510	$	~~130~~498

1.Included in "Deferred charges and other assets" in the interim Condensed ~~Combined~~Consolidated Balance Sheets.

2.Included in "Accrued and other current liabilities" in the interim Condensed ~~Combined~~Consolidated Balance Sheets.

3.Included in "Other noncurrent obligations" in the interim Condensed ~~Combined~~Consolidated Balance Sheets.

Separation Costs

In connection with the Separation as further described above, the Company has incurred one-time-Separation costs of approximately $4 million and $6 million for the three and nine months ended September 30, 2025, respectively, recorded in "Selling, general and administrative expenses" within the interim Combined Statements of Operations. Separation costs primarily consist of employee-related costs. There were no costs incurred in connection with the Separation for the three and nine months ended September 30, 2024.

NOTE 7 - INCOME TAXES

During the periods presented in the unaudited interim ~~Combined~~Consolidated Financial Statements prior to the Separation, Qnity did not file separate tax returns in the U.S. for federal, certain state and local tax purposes, nor in foreign tax jurisdictions, as Qnity was included in the tax grouping of DuPont and its affiliate entities within the respective jurisdictions. The provision for income taxes included in these unaudited interim ~~Combined~~Consolidated Financial Statements has been calculated using the separate return basis, as if Qnity filed separate tax returns. ~~Qnity’s~~The ~~Provision~~Company ~~for~~will ~~income~~file ~~taxes~~a asseparate ~~presented~~tax return in ~~the~~these ~~unaudited~~jurisdictions ~~interim~~for ~~Combined Financial Statements may not be indicative of~~ the ~~income~~period ~~taxes~~ended ~~that~~March ~~Qnity~~31, ~~will generate in the future~~2026.

~~The~~Each year, the Company's ~~effective~~files ~~tax~~hundreds ~~rate~~of ~~fluctuates~~tax ~~based~~returns ~~on,~~in ~~among~~the ~~other~~various ~~factors~~national, ~~where~~state, ~~income is earned~~ and ~~the~~local ~~level~~income oftaxing ~~income~~jurisdictions ~~relative~~in towhich ~~attributes~~it operates. ~~The~~These tax ~~provision~~returns ~~for~~are ~~the~~subject ~~nine~~to ~~months~~examination ~~ended~~and ~~September 30,~~possible ~~2025~~challenge ~~resulted~~by inthe ~~an effective~~ tax ~~rate on operations of 19~~authorities.8% onThe ~~pre-tax~~Company ~~income~~has ofongoing ~~$773~~federal, ~~million~~state, ~~compared~~and ~~with~~international anincome ~~effective~~ tax ~~rate~~audits ofin ~~22.4%,~~various onjurisdictions ~~pre-tax~~and ~~income~~evaluates ofuncertain ~~$648~~tax ~~million~~positions ~~for~~that ~~the~~may ~~nine~~be ~~months~~challenged ~~ended~~by ~~September 30,~~local ~~2024~~tax authorities. ~~The~~As ~~lower~~a ~~effective~~result, ~~tax~~there ~~rate~~is ~~for~~an ~~the~~uncertainty ~~first~~in ~~nine~~income ~~months~~taxes ofrecognized ~~2025~~ in ~~comparison to~~ the ~~first~~Company’s ~~nine~~financial ~~months~~statements ofin ~~2024~~accordance ~~resulted~~with ~~from~~accounting afor ~~combination~~income oftaxes ~~certain~~and ~~discrete~~accounting ~~tax~~for ~~expenses~~uncertainty ~~incurred~~ in ~~2024,~~income ~~including~~taxes. ~~the~~The ~~settlement~~ultimate resolution of ansuch ~~international~~uncertainties ~~tax~~is ~~audit,~~not ~~offset~~expected ~~by changes~~ to ~~the~~have ~~geographic~~a ~~mix~~material ofimpact ~~earnings~~on ~~in 2025, including~~ the ~~impacts of the Organisation for Economic Co-Operation and Development~~Company's ~~("OECD")~~interim ~~Global~~results ~~Anti-Base~~of ~~Erosion rules under Pillar Two in jurisdictions in which the Company operates~~operations.

~~Each~~The ~~year~~Company's ~~DuPont,~~effective ~~inclusive~~tax ofrate ~~Qnity,~~fluctuates ~~files~~based ~~hundreds~~on, ofamong ~~tax~~other ~~returns~~factors, inwhere ~~the~~income ~~various~~is ~~national,~~earned ~~state~~ and ~~local~~the ~~income~~level ~~taxing~~of ~~jurisdictions~~income inrelative ~~which~~to itattributes. ~~operates,~~The ~~either~~tax asprovision afor ~~separate~~the ~~taxpayer~~three ormonths asended aMarch 31, ~~member~~2026 ofresulted ~~DuPont’s~~in ~~consolidated~~an ~~income~~effective tax ~~return~~rate on operations of 25.7% ~~These~~on pre-tax ~~returns~~income ~~are~~of ~~subject~~$218 tomillion, ~~examination~~compared ~~and~~with ~~possible~~an ~~challenge~~effective bytax ~~the~~rate ~~tax~~of ~~authorities~~19.1%, ~~Positions~~on ~~challenged~~pre-tax byincome ~~the~~of ~~tax~~$246 ~~authorities~~million ~~may~~for bethe ~~settled~~three ormonths ~~appealed~~ended byMarch 31, ~~Qnity~~2025. The ~~uncertainty~~increase in ~~income~~effective ~~taxes~~tax israte ~~recognized~~ in ~~Qnity's~~2026 ~~interim~~relates ~~financial~~to ~~statements~~a inlimitation ~~accordance~~on ~~with~~the ~~accounting~~deductibility ~~for~~of ~~income~~interest ~~taxes.~~expense ~~The~~and ~~ultimate~~higher ~~resolution~~tax ofcosts ~~such~~on ~~uncertainties~~the isremittance ~~not~~of ~~expected~~foreign toearnings, ~~have~~partially aoffset ~~material~~by ~~impact~~a onreduction ~~Qnity’s~~in ~~interim~~foreign ~~results~~tax ~~of operations~~costs.

18On July 4, 2025, the One Big Beautiful Bill Act (“the Act”) was enacted. The Act includes a broad range of tax reform provisions, including modifications and enhancements to the domestic and international provisions of the Tax Cuts and Jobs Act. Among other changes, the Act allows for immediate expensing of domestic research and development expenditures, revises provisions around foreign-sourced earnings and revises the corporate interest limitation rules. The legislation has multiple effective dates, with certain provisions having become effective in fiscal 2025 and the majority becoming effective in fiscal 2026. The Company has considered the impact of the enacted provisions in its consolidated tax provision as of March 31, 2026. The legislation did not have a material impact on our income tax expense or effective tax rate for this quarter. The Company continues to evaluate the broader effects of the legislation as further guidance is issued.

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On July 4, 2025, the One Big Beautiful Bill Act (“the Act”) was enacted. The Act includes a broad range of tax reform provisions, including modifications and enhancements to the domestic and international provisions of the Tax Cuts and Jobs Act. Among other changes, the Act allows for immediate expensing of domestic research and development expenditures, revises provisions around foreign-sourced earnings and revises the corporate interest limitation rules. The legislation has multiple effective dates, with certain provisions becoming effective in fiscal 2025 and the majority becoming effective in fiscal 2026. The Company has considered the impact of the enacted provisions in its consolidated tax provision as of September 30, 2025. The legislation did not have a material impact on our income tax expense or effective tax rate for this quarter. The Company continues to evaluate the broader effects of the legislation as further guidance is issued.

NOTE 8 - EARNINGS PER SHARE CALCULATIONS

On the Separation and Distribution Date, approximately 209 million shares of the Company's common stock, par value $0.01 per share, were distributed to DuPont shareholders of record as of October 22, 2025. This share amount iswas ~~being~~ utilized for the calculation of basic and diluted earnings per share for all periods presented prior to the Separation as all common stock was owned by DuPont prior to the Separation. For all periods presented prior to the Separation, it is assumed that there are no dilutive equity instruments as there were no equity awards of Qnity outstanding prior to the Separation. Therefore, the calculation of basic and diluted earnings per share is the same. Subsequent to the Separation, actual basic and diluted share counts were utilized for the calculation.

Net Income for Earnings Per Share Calculations - Basic & Diluted	Three Months Ended September 30,				Nine Months Ended September 30,
In millions, except per share amounts	2025		2024		2025		2024
Net income	$	223	$	207	$	620	$	503
Net income attributable to noncontrolling interests	12		8		28		23
Net income attributable to common stockholders	$	211	$	199	$	592	$	480
Weighted-average common shares - basic and diluted	209		209		209		209
Earnings attributable to common stockholders - basic and diluted	$	1.01	$	0.95	$	2.83	$	2.30

~~NOTE~~Table 9of ~~- INVENTORIES~~Contents

In millions	September 30, 2025		December 31, 2024
Net Income for Earnings Per Share Calculations - Basic & Diluted	Three Months Ended March 31,
Finished goods	$	257	$	214
In millions, except per share amounts	2026		2025
Work in process	213		209
Net income	$	162	$	199
Raw materials	149		147
Net income attributable to noncontrolling interests	11		6
Supplies	28		27
Net income attributable to common stockholders	$	151	$	193
Total inventories	$	647	$	597
Earnings attributable to common stockholders - basic	$	0.72	$	0.92
Earnings attributable to common stockholders - diluted	$	0.72	$	0.92


Share Count Information	Three Months Ended March 31,
In millions, except per share amounts	2026	2025
Weighted-average shares of common stock - basic	209.7	209.4
Plus dilutive effect of equity compensation plans	0.6	—

Weighted-average shares of common stock - diluted	210.3	209.4


Stock options, restricted stock units, and performance-based restricted stock units excluded from EPS calculations	0.7	—

NOTE 9 - INVENTORIES - NET


In millions	March 31, 2026		December 31, 2025
Finished goods	$	302	$	292
Work in process	238		221
Raw materials	157		145
Supplies	27		27
Less: Inventory reserves	28		24
Total inventories - net	$	696	$	661

NOTE 10 - NONCONSOLIDATED AFFILIATES

Qnity’s investments in companies accounted for using the equity method (“nonconsolidated affiliates”) are recorded in “Investments and noncurrent receivables” in the interim Condensed ~~Combined~~Consolidated Balance Sheets. Investments in nonconsolidated affiliates were $~~419~~399 million and $~~382~~ 386 million at ~~September~~March 3031, ~~2025~~2026 and December 31, ~~2024~~2025, respectively.

At ~~September~~March 3031, ~~2025~~2026 and December 31, ~~2024~~2025, Qnity had a note payable to Hitachi Chem DuP Microsystems LLC, a nonconsolidated affiliate, (the “Related Party Note Payable”) of $7763 million and $3153 million, respectively. This Related Party Note Payable arises from an arrangement in which ~~DuPont~~Qnity manages the daily domestic cash position resulting from the normal cash operations of Hitachi Chem DuP Microsystems LLC. Under this arrangement, both parties may loan funds to one another based on the cash position of Hitachi Chem DuP Microsystems LLC.

The Related Party Note Payable is short-term in nature and bears an interest rate equal to the average daily rate during the preceding month, plus any applicable commission and fee percentage payable to ~~DuPont~~Qnity for its support of the cash management program. The balance of this Related Party Note Payable and the related interest payable is included within “Accounts Payable” in the interim Condensed ~~Combined~~Consolidated Balance Sheets.

19Sales to nonconsolidated affiliates represented less than 1% of total net sales for each of the three months ended March 31, 2026 and 2025. Purchases from nonconsolidated affiliates represented less than 2% and 1% of "Cost of sales" for the three months ended March 31, 2026 and 2025, respectively. The Company maintained an ownership interest in three nonconsolidated affiliates at March 31, 2026.

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Sales to nonconsolidated affiliates represented less than 1% of total net sales for each of the three and nine months ended September 30, 2025 and 2024. Purchases from nonconsolidated affiliates represented less than 1% of "Cost of sales" for each of the three and nine months ended September 30, 2025 and 2024. The Company maintained an ownership interest in three nonconsolidated affiliates at September 30, 2025.

NOTE 11 - GOODWILL AND OTHER INTANGIBLE ASSETS

The following table summarizes changes in the carrying amount of goodwill during the ~~nine~~three months ended ~~September~~March 3031, ~~2025~~2026.

In millions	Semiconductor Technologies		Interconnect Solutions		Total
Balance at December 31, 2024	$	4,453	$	2,926	$	7,379
Balance at December 31, 2025	$	4,542	$	2,980	$	7,522
Currency translation adjustment	91(2)		27(6)		~~118~~(8)
Balance at September 30, 2025	$	4,544	$	2,953	$	7,497
Balance at March 31, 2026	$	4,540	$	2,974	$	7,514

Qnity tests goodwill for impairment annually during the fourth quarter, or more frequently when events or changes in circumstances indicate that the fair value of a reporting unit is below its carrying value.

Effective in the first quarter of 2025, in anticipation of the Separation, DuPont realigned its segment structure. The realignment of DuPont’s segments served as a triggering event requiring the Company to perform an impairment analysis related to goodwill prior to and subsequent to the realignment. As part of the realignment, the Company assessed and redefined certain reporting units, including reallocation of goodwill on a relative fair value basis, as applicable, to the reporting units impacted. Goodwill impairment analyses were then performed for reporting units impacted and no impairments were identified. The fair value of each reporting unit tested was estimated using a combination of a discounted cash flow model and market approach, with both approaches receiving equal weighting. The Company’s significant assumptions in these analyses include, but are not limited to, projected revenue growth, EBITDA margin, weighted average cost of capital and terminal growth rate and EBITDA market multiples from comparable market transactions for the market approach.

Other Intangible Assets

The gross carrying amounts and accumulated amortization of other intangible assets with finite lives, by major class are as follows:

September 30, 2025

December 31, 2024

March 31, 2026

December 31, 2025

In millions

Gross Carrying Amount

Accumulated Amortization

Net

Gross Carrying Amount

Accumulated Amortization

Net

Other intangible assets:

Developed technology

544

(~~336~~363)

~~208~~181

~~605~~544

(~~357~~349)

~~248~~195

Trademarks/tradenames

(3739)

1816

(3438)

2117

Customer-related

2,~~130~~122

(1,~~196~~258)

~~934~~864

2,~~353~~125

(1,~~336~~226)

~~1,017~~899

Total other intangible assets

2,~~729~~721

(1,~~569~~660)

1,~~160~~061

32,~~013~~724

(1,~~727~~613)

1,~~286~~111

The following table provides the net carrying value of other intangible assets by segment:

Net Other Intangibles by Segment	September 30, 2025		December 31, 2024
Net Other Intangibles	March 31, 2026		December 31, 2025
In millions
Semiconductor Technologies	$	~~276~~250	$	~~314~~264
Interconnect Solutions	~~884~~811		~~972~~847
Total	$	1,~~160~~061	$	1,~~286~~111

20Total estimated amortization expense for the remainder of 2026 and the five succeeding fiscal years is as follows:


Estimated Amortization Expense
In millions
Remainder of 2026	$	149
2027	$	169
2028	$	144
2029	$	109
2030	$	89
2031	$	89

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~~Total~~NOTE ~~estimated~~12 ~~amortization~~- ~~expense~~SHORT-TERM ~~for~~BORROWINGS, ~~the~~LONG-TERM ~~remainder~~DEBT, ofAND ~~2025~~AVAILABLE ~~and~~CREDIT ~~the~~FACILITIES ~~five succeeding fiscal years is as follows:~~

Estimated Amortization Expense
In millions
Remainder of 2025	$	48
2026	$	197
2027	$	166
2028	$	141
2029	$	107
2030	$	88

A summary of Qnity's short-term borrowings, long-term debt and available credit facilities can be found in Note 14 to the Consolidated Financial Statements included in the Company's Annual Report. If applicable, updates have been included in the respective section below.

~~NOTE 12~~ Short-term ~~LONG-TERM DEBT~~ Borrowings

~~Debt~~Long-term ~~Issuance~~debt ~~Costs~~due within one year was $23 million and $24 million at March 31, 2026 and December 31, 2025, respectively. These balances are presented net of current portion of unamortized debt issuance cost and are recorded in "Short-term borrowings" in the interim Condensed Consolidated Balance Sheets.

Debt issuance costs and discounts are presented as a reduction of "Long-term debt" and are amortized and included in "Interest expense" on the Company's unaudited interim Combined Statements of Operations over the term on the related debt using the effective interest method.

Long-Term Debt

Long-term debt at ~~September~~March 3031, 2026 and December 31, 2025 was $14,~~722~~000 million, ~~comprised of the Secured Notes~~ and ~~Unsecured~~$4,003 ~~Notes~~million, asrespectively. ~~more~~The ~~fully~~estimated ~~described~~fair ~~below.~~value ~~There~~of ~~was~~the noCompany's long-term ~~debt~~borrowings ~~due~~was ~~within~~determined ~~one~~using ~~year~~Level at2 ~~September~~inputs ~~30,~~within ~~2025.~~the ~~Long-term~~fair ~~debt~~value ishierarchy. ~~presented~~Based ~~net~~on ofquoted ~~unamortized~~market ~~debt~~prices ~~issuance~~for ~~costs~~the ofsame ~~$28~~or ~~million~~similar ~~and~~issues, isor ~~recorded~~on incurrent ~~"Long-Term~~rates ~~Debt"~~offered into the ~~interim~~Company ~~Condensed~~for ~~Combined~~debt ~~Balance~~of ~~Sheets.~~the ~~There~~same isremaining $6maturities, ~~million~~the ~~recorded~~fair invalue ~~"Deferred~~of ~~charges~~the ~~and~~Company's ~~other~~long-term ~~assets"~~borrowings, inincluding ~~the~~long-term ~~interim~~debt ~~Condensed~~due ~~Combined~~within ~~Balance~~one ~~Sheet~~year, ~~related~~was to$4,099 ~~the~~million ~~Senior~~and ~~Secured~~$4,154 ~~Credit~~million ~~Facilities~~at ~~(as~~March 31, ~~defined~~2026 ~~below)~~and December 31, 2025, respectively. As of ~~which~~March 31, 2026, the ~~debt~~Company was ~~not~~in ~~issued~~compliance ~~prior~~with toall ~~September~~applicable ~~30,~~covenants ~~2025.~~included ~~There~~in ~~was~~the noterms ~~long-term~~of its debt ~~outstanding at December 31, 2024~~arrangements.

~~The~~Committed ~~gross~~Credit ~~proceeds~~Facilities ~~of the Notes~~ and ~~the~~Outstanding ~~pre-funded~~Letters ~~interest deposit were held in escrow and subsequently released through the cash distribution to DuPont on October 31, 2025 in connection with the completion~~ of the Separation on November 1, 2025. The below described financing is considered to be part of DuPont’s centralized approach to cash management in connection with DuPont’s plan to separate its electronics business. Therefore, the proceeds from the Notes are not reflected as an asset of the Company at September 30, 2025 as they were considered immediately transferred to DuPont. Therefore the debt issuance was reflected in the unaudited interim Combined Statement of Cash Flows as Proceeds from Issuance of Long-Term Debt with a corresponding immediate cash outflow within “Net transfers (to) from Parent”. See Note 17 for more information. Credit

The Company's $1,250 million Senior Secured ~~Notes~~Revolving Facility matures October 2030. As of March 31, 2026, there were no drawings on the facility, and outstanding letters of credit under the facility were approximately $12 million.

OnUncommitted ~~August~~Credit ~~15,~~Facilities 2025, Qnity issued $1 billion aggregate principal amount of 5.750% senior secured notes due 2032 (the "Secured Notes"), pursuant to an indenture dated as of August 15, 2025 (the “Secured Notes Indenture”), by and ~~between~~Outstanding ~~Qnity~~Letters ~~and U.S. Bank Trust Company, National Association, as trustee (the "Secured Notes Trustee"), collateral agent and paying agent. The Secured Notes mature on August 15, 2032 and bear interest at a rate~~ of ~~5.750% per year. Interest on the Secured Notes is payable on February 15 and August 15 of each year, beginning on February 15, 2026.~~Credit

~~The~~Unused ~~Secured~~bank ~~Notes~~credit ~~are~~lines ~~jointly and severally and unconditionally guaranteed~~ on auncommitted ~~senior~~credit ~~secured~~facilities ~~basis~~were byapproximately ~~each~~$134 ~~Qnity~~million ~~subsidiary~~at ~~that is a borrower~~March 31, ~~or guarantees indebtedness, under Qnity’s Senior Secured Credit Facilities~~2026. ~~Upon~~These ~~the~~lines ~~consummation~~are ofavailable ~~the~~to ~~Separation~~support ~~(or,~~short-term ~~with~~liquidity ~~respect~~needs toand ~~the~~general ~~foreign~~corporate ~~collateral,~~purposes ~~the~~including ~~day~~letters ~~after the consummation~~ of ~~the~~credit. ~~Separation),~~Outstanding ~~the~~letters ~~Secured~~of ~~Notes~~credit and ~~related~~credit ~~guarantees~~lines ~~were~~under ~~secured,~~these ~~subject~~uncommitted tocredit ~~permitted~~facilities ~~liens~~were ~~and~~approximately ~~certain~~$24 ~~other~~million ~~exceptions~~at March 31, ~~by first priority liens on substantially the same collateral that secure Qnity’s obligations under its Senior Secured Credit Facilities~~2026. ~~The~~These ~~Secured~~letters ~~Notes~~of ~~and~~credit ~~related~~support ~~guarantees~~commitments ~~are~~made ~~secured~~in ~~on a pari passu basis with~~ the ~~Senior~~ordinary ~~Secured~~course ~~Credit~~of ~~Facilities~~business.

At any time prior to August 15, 2028, Qnity may redeem some or all of the Secured Notes at a price equal to 100% of the principal amount thereof to be redeemed, plus a “make-whole” premium plus accrued and unpaid interest, if any, to, but not including, the redemption date. In addition, Qnity may redeem some or all of the Secured Notes at any time on or after August 15, 2028 at specified prices, plus accrued and unpaid interest, if any, to, but not including, the redemption date. Qnity may also redeem up to 40% of the aggregate principal amount of the Secured Notes at any time on or prior to August 15, 2028 using the net proceeds from certain equity offerings at 105.750%, plus accrued and unpaid interest, if any, to, but not including, the redemption date. If Qnity experiences certain kinds of changes in control, Qnity must offer to repurchase the Secured Notes at a price equal to 101% of the principal amount of the Secured Notes, plus accrued and unpaid interest, if any, to, but not including, the repurchase date.

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The Secured Notes Indenture includes certain covenants on the actions of Qnity and its restricted subsidiaries relating to debt incurrence, liens, restricted payments, assets sales and transactions with affiliates, changes in control, and mergers or sales of all or substantially all of Qnity’s assets. The Secured Notes Indenture provides for customary events of default (subject, in certain cases, to customary grace periods), which include nonpayment on the Secured Notes, breach of covenants in the Secured Notes Indenture, payment defaults or acceleration of other indebtedness over a specified threshold, failure to pay certain judgments over a specified threshold and certain events of bankruptcy and insolvency. Generally, if an event of default occurs, the Secured Notes Trustee or holders of at least 30% of the aggregate principal amount of all then outstanding Secured Notes may declare the principal, premium, if any, interest and any other monetary obligations on all of the then outstanding Secured Notes to be due and payable immediately.

The Unsecured Notes

On August 15, 2025, Qnity issued $750 million aggregate principal amount of 6.250% senior unsecured notes due 2033 (the “Unsecured Notes” and, together with the Secured Notes, the “Notes”) pursuant to an indenture dated as of August 15, 2025 (the “Unsecured Notes Indenture”), by and between Qnity and U.S. Bank Trust Company, National Association, as trustee (the “Unsecured Notes Trustee”) and paying agent, dated as of August 15, 2025. The Unsecured Notes mature on August 15, 2033 and bear interest at a rate of 6.250% per year. Interest on the Unsecured Notes is payable on February 15 and August 15 of each year, beginning on February 15, 2026.

The Unsecured Notes are jointly and severally and unconditionally guaranteed on a senior unsecured basis by each Qnity subsidiary that is a borrower, or guarantees indebtedness, under Qnity’s Senior Secured Credit Facilities.

At any time prior to August 15, 2028, Qnity may redeem some or all of the Unsecured Notes at a price equal to 100% of the principal amount thereof to be redeemed, plus a “make-whole” premium plus accrued and unpaid interest, if any, to, but not including, the redemption date. In addition, Qnity may redeem some or all of the Unsecured Notes at any time on or after August 15, 2028 at specified prices, plus accrued and unpaid interest, if any, to, but not including, the redemption date. Qnity may also redeem up to 40% of the aggregate principal amount of the Unsecured Notes at any time on or prior to August 15, 2028 using the net proceeds from certain equity offerings at 106.250%, plus accrued and unpaid interest, if any, to, but not including, the redemption date. If Qnity experiences certain kinds of changes in control, Qnity must offer to repurchase the Unsecured Notes at a price equal to 101% of the principal amount of the Unsecured Notes, plus accrued and unpaid interest, if any, to, but not including, the repurchase date.

The Unsecured Notes Indenture includes certain covenants on the actions of Qnity and its restricted subsidiaries relating to debt incurrence, liens, restricted payments, assets sales, and transactions with affiliates, changes in control, and mergers or sales of all or substantially all of Qnity’s assets. The Unsecured Notes Indenture provides for customary events of default (subject, in certain cases, to customary grace periods), which include nonpayment on the Unsecured Notes, breach of covenants in the Unsecured Notes Indenture, payment defaults or acceleration of other indebtedness over a specified threshold, failure to pay certain judgments over a specified threshold and certain events of bankruptcy and insolvency. Generally, if an event of default occurs, the Unsecured Notes Trustee or holders of at least 30% of the aggregate principal amount of all then outstanding Unsecured Notes may declare the principal, premium, if any, interest and any other monetary obligations on all of the then outstanding Unsecured Notes to be due and payable immediately.

Senior Secured Credit Facilities

Subsequent to the quarter ended September 30, 2025, on October 31, 2025 in connection with the Separation, the Company entered into a credit agreement (the "Credit Agreement") providing for (a) a five-year revolving credit facility in the aggregate committed amount of $1.25 billion (up to $100 million of such revolving facility is available for the issuance of letters of credit) (the "Senior Secured Revolving Facility"), and (b) a seven-year term loan facility in the aggregate principal amount of $2.35 billion (the "Senior Secured Term Loan Facility" and, together with the Senior Secured Revolving Facility, the "Senior Secured Credit Facilities"). The full amount of the Senior Secured Term Loan Facility, $2.35 billion, was funded on October 31, 2025, and paid directly to DuPont in the form of a cash dividend in connection with the Separation.

The borrowings under the Senior Secured Credit Facilities bear interest at a rate per annum equal to either of the following, plus, in each case, an applicable margin: (a) the base rate or (b) term Secured Overnight Financing Rate ("SOFR"). The applicable margin for borrowings under the Senior Secured Revolving Facility ranges from 0.25% to 1.25% with respect to base rate borrowings and 1.25% to 2.25% with respect to term SOFR borrowings, in each case, based on the Company's consolidated first lien net leverage ratio. The applicable margin for borrowings under the Senior Secured Term Loan Facility is 1.00% with respect to base rate borrowings and 2.00% with respect to term SOFR borrowings.

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The Company has scheduled amortization payments under the Senior Secured Term Loan Facility in equal quarterly installments in an annual amount equal to 1.00% of the original principal amount of the term loans payable on the last day of each calendar quarter, with the unpaid balance being due and payable at maturity.

The Credit Agreement contains a number of negative covenants that, among other things and subject to certain exceptions, may restrict Qnity’s ability and the ability of each of our restricted subsidiaries to: incur additional indebtedness (including guarantees thereof); create liens on, sell or otherwise dispose of Qnity assets; enter into mergers, consolidations and other fundamental changes; make certain investments or acquisitions; engage in sale-leaseback transactions; repurchase Qnity common stock, pay dividends or make similar distributions or other restricted payments on Qnity capital stock; repay certain indebtedness; engage in certain affiliate transactions; and enter into agreements that restrict Qnity’s ability to create liens, pay dividends or make loan repayments.

With respect to the Senior Secured Revolving Facility, the related credit agreement requires that Qnity maintain, on a quarterly basis, a consolidated first lien net leverage ratio not to exceed 4.50:1.00, tested at the end of each fiscal quarter, subject to an increase of 0.50:1.00 in connection with the consummation of certain material acquisitions (defined in a customary manner) and applicable to the fiscal quarter in which such acquisition is consummated and the four consecutive full fiscal quarters thereafter.

The Credit Agreement also contains representations and warranties, affirmative covenants and events of default, in each case, usual and customary for facilities and transactions of this type.

NOTE 13 - COMMITMENTS AND CONTINGENT LIABILITIES

Litigation Matters

In the normal course of business, the Company is involved from time to time in various arbitrations, lawsuits, claims and other actions with respect to patent infringement claims, employment claims, including alleged wage and hour violations, and commercial claims.

The Company accrues for such matters where losses are deemed probable and reasonably estimable. There are other matters involving the Company for which a loss is deemed remote or reasonably possible, and, as a result, associated accruals have not been established. It is reasonably possible that some of these matters could result in future payments or costs in excess of the amounts accrued at ~~September 30~~March 31, ~~2025~~2026, but such excess amounts cannot be reasonably estimated. ~~Based~~It ~~upon~~is ~~current~~the ~~information,~~opinion ~~management~~of ~~does~~the ~~not~~Company’s ~~expect~~management ~~any~~that of the ~~matters~~possibility ~~pending~~is ~~against~~remote that the ~~Company~~aggregate atof ~~September~~all ~~30,~~such ~~2025~~claims toand lawsuits will have a material adverse impact on ~~its~~the ~~unaudited~~results ~~interim~~of ~~Combined~~operations, ~~Financial~~financial ~~Statements~~condition and cash flows of the Company.

~~NOTE~~Certain 14Indemnification -Obligations ~~ACCUMULATED~~to ~~OTHER COMPREHENSIVE INCOME (LOSS)~~DuPont

A summary of indemnification obligations to DuPont can be found in Note 15 to the Consolidated Financial Statements included in the Company's Annual Report. If applicable, updates have been included in the respective section below.

As of March 31, 2026, the Company maintains indemnification liabilities related to the legacy liabilities detailed above of $87 million within “Accrued and other current liabilities” and $109 million within “Other noncurrent obligations” within the Condensed Consolidated Balance Sheets. As of December 31, 2025, the Company maintained indemnification liabilities related to these legacy liabilities of $80 million within “Accrued and other current liabilities” and $110 million within “Other noncurrent obligations” within the Condensed Consolidated Balance Sheets. It is reasonably possible that the potential exposure of these indemnifications could range up to $84 million above the amount accrued at March 31, 2026. It is also possible that the Company could incur additional costs or losses that may be material to its financial condition and its cash flows beyond those amounts accrued for or believed to be reasonably possible at this time. Such excess amounts cannot be reasonably estimated.

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Liabilities under the MOU

As of March 31, 2026, DuPont has borne Qualified Spend of approximately $730 million and has recorded an indemnification liability for probable and reasonably estimable future Qualified Spend under the Memorandum of Understanding ("MOU") of $162 million. Qnity maintains an indemnification liability for such probable and reasonably estimable future Qualified Spend of $77 million which represents Applicable Qnity Percentage (the portion for which we have been contractually allocated, and directly pay or indemnify DuPont) of 44% of DuPont's after-tax liability.

New Jersey

On August 3, 2025, DuPont, together with Chemours and Corteva and its subsidiary, EIDP, agreed to a proposed Judicial Consent Order (the “Consent Order”) with the State of New Jersey to resolve outstanding claims by the state pending against the companies related to legacy use of a wide variety of substances of concern for an aggregate cash settlement payment to the state of $875 million, payable over a period of 25 years. As of March 31, 2026, DuPont maintains a pre-tax charge of $177 million related to the proposed Consent Order. The Company maintains an indemnification liability of $66 million for our contractually allocated portion of the recorded pre-tax charge. Additionally, DuPont recorded interest accretion of $9 million to date as of March 31, 2026, resulting in a liability of $186 million as of March 31, 2026. Qnity has recorded $3 million for its contractually allocated portion of this accreted interest. We will share in the ongoing costs of maintaining a reserve fund in the event the remedial funding source for a site has been exhausted and the party responsible is not otherwise performing the required remediation.

Other

DuPont has recorded liabilities related to business and operations, historical activities of DuPont, including environmental liabilities, and its present and former subsidiaries, for which the Company maintains an indemnification liability of $49 million and $46 million for its contractually allocated portion as of March 31, 2026 and December 31, 2025, respectively.

NOTE 14 - STOCKHOLDERS' EQUITY

Share Repurchase Authorization

On February 20, 2026, the Company's Board of Directors approved a share repurchase authorization of up to $500 million of common stock (the "$500M Authorization"). Under the $500M Authorization, repurchases of common stock may be effected from time to time, either on the open market (including pre-set trading plans) or other transactions in accordance with applicable securities laws. The $500M Authorization has no expiration date and will terminate once the authorized amount of shares have been repurchased and retired or when terminated by the Board of Directors. The timing and amount of repurchases under the program will depend on a variety of factors. During the three months ended March 31, 2026, the Company repurchased 219,581 shares under the $500M Authorization for $25 million at an average share price of $113.78 per share. The aggregate amount of common stock available for repurchase under the $500M Authorization as of March 31, 2026 was $475 million.

Accumulated Other Comprehensive Loss

The following tables summarize the activity related to each component of accumulated other comprehensive ~~income (~~loss) ("~~AOCI" or "~~AOCL") for the three ~~and nine~~ months ended ~~September~~March 3031, ~~2025~~2026 and ~~2024~~2025:

Accumulated Other Comprehensive Loss	Cumulative Translation Adj		Pension		Total
In millions
2024
Balance at June 30, 2024	$	(389)	$	16	$	(373)
Other comprehensive income	137		—		137
Balance at September 30, 2024	$	(252)	$	16	$	(236)
2025
Balance at June 30, 2025	$	(211)	$	20	$	(191)
Balance at January 1, 2025	$	(435)	$	21	$	(414)
Other comprehensive loss before reclasses	(26)		(10)		(36)
Other comprehensive income	53		(2)		51
Amounts reclassified from accumulated other comprehensive income	—		3		3
Balance at March 31, 2025	$	(382)	$	19	$	(363)
Net other comprehensive loss	$	(26)	$	(7)	$	(33)
2026
Balance at September 30, 2025	$	(237)	$	13	$	(224)
Balance at January 1, 2026	$	(221)	$	8	$	(213)
Other comprehensive loss	(50)		(1)		(51)
Balance at March 31, 2026	$	(271)	$	7	$	(264)

23The tax effects on the net activity related to each component of other comprehensive loss were immaterial for each of the three months ended March 31, 2026 and 2025.

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Accumulated Other Comprehensive Loss	Cumulative Translation Adj		Pension		Total
In millions
2024
Balance at January 1, 2024	$	(260)	$	15	$	(245)
Other comprehensive income	8		1		9
Balance at September 30, 2024	$	(252)	$	16	$	(236)
2025
Balance at January 1, 2025	$	(435)	$	21	$	(414)
Other comprehensive income (loss) before reclasses	198		(11)		187
Amounts reclassified from accumulated other comprehensive income	—		3		3
Net other comprehensive income (loss)	$	198	$	(8)	$	190
Balance at September 30, 2025	$	(237)	$	13	$	(224)

The tax effects on the net activity related to each component of other comprehensive loss were immaterial for each of the three and nine months ended September 30, 2025 and 2024.

NOTE 15 - PENSION PLANS

~~Qnity~~A ~~employees~~summary ~~participate,~~of asthe ~~eligible, in Qnity’~~Company's ~~and DuPont’s sponsored~~ pension plans, ~~including defined benefit plans~~ and ~~defined~~other ~~contribution~~post-employment ~~plans.~~benefits ~~Where~~can ~~permitted~~be byfound ~~applicable~~in ~~law,~~Note ~~Qnity~~18 ~~and~~to ~~DuPont reserve~~ the ~~right~~Consolidated toFinancial ~~amend,~~Statements ~~modify,~~included orin ~~discontinue~~ the ~~plans~~Company's atAnnual ~~any time~~Report. ~~The defined benefit pension plans of Qnity are summarized below.~~

Multiemployer Plans

DuPont offers both funded and unfunded contributory and noncontributory defined benefit pension plans in certain non-US jurisdictions that are shared among its businesses, including Qnity, and the participation of its employees and retirees in these plans is reflected as though Qnity participated in multiemployer plans with DuPont. Qnity’s proportionate share of the expense associated with the multiemployer plans is reflected in the unaudited interim Combined Financial Statements, while any assets and liabilities associated with the multiemployer plans are retained by DuPont and recorded on DuPont’s balance sheet.

The benefits under these plans are based primarily on years of service and employees’ pay near retirement.

DuPont’s funding policy is consistent with the funding requirements of federal laws and regulations. Pension coverage for employees of DuPont’s non-U.S. combined subsidiaries is provided, to the extent deemed appropriate, through separate plans. Obligations under such plans are funded by depositing funds with trustees, covered by insurance contracts, or remain unfunded.

Under the multiemployer approach, the amount recognized as expense represents an allocation of net periodic pension cost, which includes non-operating pension costs. The expense allocated to the unaudited interim Combined Financial Statements, which was based on the headcount of participants in the plans, was immaterial for both U.S. and non-U.S. plans for each of the three and nine months ended September 30, 2025 and 2024.

Single Employer Plans

Qnity has 11 non-U.S. pensions that benefit only its employees and retirees, and these plans are considered single-employer plans. The costs and any assets and liabilities associated with the single-employer pension benefit plans are reflected in the unaudited interim Combined Financial Statements.

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The following sets forth the components of the Company's net periodic benefit costs for defined benefit pension plans:

Net Periodic Benefit Costs for All Significant Plans	Three Months Ended ~~September~~March 3031,				~~Nine Months Ended September 30,~~
In millions	~~2025~~2026		~~2024~~2025		~~2025~~		~~2024~~
Service cost	$	—2	$	21	$	2	$	4
Interest cost	14		1		4		4
Expected return on plan assets	(14)		(21)		~~(3)~~		~~(4)~~
Curtailment/settlement	3		—		3		—
Amortization of unrecognized net gain	(1)		—
Net periodic benefit costs - total	$	31	$	1	$	6	$	4

The net periodic benefit costs, other than the service cost component, are included in "Other income (expense) - net" in the unaudited interim ~~Combined~~Consolidated Statements of Operations.

~~Qnity~~NOTE ~~made~~16 ~~$1 million~~- ofSTOCK-BASED periodic benefit plan contributions for the three months ended September 30, 2025 and no periodic benefit plan contributions for the three months ended September 30, 2024. Additionally, Qnity made $3 million and $2 million of periodic benefit plan contributions for the nine months ended September 30, 2025 and 2024, respectively. Qnity does not expect to make any material additional contributions for the remainder of 2025.COMPENSATION

~~NOTE~~A 16summary of the Company's stock-based ~~SEGMENTS~~compensation plans can be found in Note 19 to the Consolidated Financial Statements included in the Company's Annual Report.

~~The~~In ~~Company's~~connection ~~segments are aligned~~ with the ~~market verticals they serve~~Separation, ~~while~~the ~~maintaining integration and innovation strengths within strategic value chains. The~~ Company's ~~Chief~~adopted ~~Executive Officer is its CODM. Effective in~~ the ~~first~~Qnity ~~quarter of 2025~~Electronics, ~~in anticipation of the Separation, DuPont and Qnity realigned their segment structure~~Inc. AsEquity ~~a result of this realignment, Qnity consists of two operating~~ and ~~reportable~~Incentive ~~segments:~~Plan ~~Semiconductor Technologies~~ (~~“Semi”~~"EIP") ~~and Interconnect Solutions (“ICS”)~~. ~~All~~Under ~~periods presented have been adjusted to conform to~~ the ~~current~~EIP, ~~segment reporting structure. This realignment is consistent with how~~ the ~~CODM~~Company ~~now~~may ~~assesses~~grant ~~performance.~~options, ~~Major~~stock ~~products~~appreciation byrights ~~segment include: Semi~~ (~~which includes chemical mechanical planarization (“CMP”~~"SARs") ~~pads and slurries~~, ~~photoresists,~~restricted ~~functional sub-layers~~shares, ~~advanced~~restricted ~~overcoats,~~stock ~~post-CMP~~units ~~cleaners, post-Etch residue removers and emerging cleans) and ICS~~ (~~which includes copper pillar plating~~"RSUs"), ~~copper~~share ~~redistribution layer~~bonuses, ~~solder~~other ~~bump~~share-based ~~plating~~awards, ~~under~~cash ~~bump metallization~~awards, ~~photoresists,~~conversion ~~packaging dielectrics~~awards, ~~gap~~each ~~fillers,~~as ~~phase~~defined ~~change,~~in ~~specialty~~the ~~thermal interface materials~~EIP, ~~thermally~~or ~~conductive~~any ~~insulators,~~combination ~~copper~~of ~~playing~~the ~~solutions,~~foregoing. ~~dry~~Under ~~film~~the ~~photoresists~~EIP, ~~laminates~~a ~~and~~maximum ~~polyimide films). The Company operates globally in substantially all~~ of ~~its~~16 million ~~product~~shares ~~lines. Transfers~~ of ~~products~~common ~~between~~stock ~~operating~~are ~~segments~~available ~~are~~for ~~generally~~award ~~valued~~as atof ~~cost~~March 31, ~~to the extent such transfers are applicable~~2026.

~~The~~Qnity ~~Company's~~recognized ~~measure~~share-based ofcompensation ~~profit/loss~~expense ~~for~~of $10 ~~segment~~million and ~~reporting~~$4 million ~~purposes~~for ~~is Operating EBITDA as this is~~ the ~~manner~~three inmonths ~~which~~ended ~~the~~March 31, ~~CODM~~2026 ~~assesses performance~~ and 2025, ~~allocates resources~~respectively. The ~~CODM~~income ~~utilizes~~tax ~~Operating~~benefits ~~EBITDA~~related to ~~assess~~stock-based ~~financial~~compensation ~~performance~~arrangements ~~and~~were ~~allocate~~$2 million ~~resources by comparing actual results to historical~~ and ~~previously~~$1 ~~forecasted~~million ~~results.~~for ~~The~~the ~~Company~~three ~~defines~~months ~~Operating~~ended ~~EBITDA as earnings (i.e.~~March 31, ~~“Income~~2026 ~~(loss) before income taxes”) before interest, depreciation, amortization, non-operating pension~~ and ~~other post-employment benefits / charges~~2025, ~~and foreign exchange gains / losses, indirect legacy costs, and adjusted for significant items~~respectively. ~~Reconciliations of these measures are provided on the following pages.~~

Segment Net Sales, Significant Segment Expenses and Segment Operating EBITDA	Three Months Ended September 30,
	2025				2024
(In millions)	Semiconductor Technologies		Interconnect Solutions		Semiconductor Technologies		Interconnect Solutions
Segment net sales	$	693	$	583	$	640	$	508
Less 1:
Cost of sales	$	360	$	341	$	315	$	294
Selling, general and administrative expenses	69		77		76		70
Research and development expenses	58		34		50		30
Amortization of intangibles & other segment items 2	11		37		12		42
Add:
Equity in earnings of nonconsolidated affiliates	$	14	$	1	$	10	$	—
Depreciation and amortization 3	31		57		35		63
Segment operating EBITDA	$	240	$	152	$	232	$	135

In the first quarter of 2026, the Company granted 0.3 million RSUs and 0.1 million performance based stock units ("PSUs"). The weighted-average fair values per share associated with the grants were $126.70 per RSU and $191.69 per PSU.

25NOTE 17 - FINANCIAL INSTRUMENTS

The following table summarizes the fair value of financial instruments at March 31, 2026 and December 31, 2025:


Fair Value of Financial Instruments	March 31, 2026								December 31, 2025
In millions	Cost		Gain		Loss		Fair Value		Cost		Gain		Loss		Fair Value
Cash equivalents	$	109	$	—	$	—	$	109	$	143	$	—	$	—	$	143





Derivatives relating to:

Foreign currency 1, 2	—		2		(15)		(13)		—		14		—		14

Total derivatives	$	—	$	2	$	(15)	$	(13)	$	—	$	14	$	—	$	14

1.Classified as "Prepaid and other current assets" and "Accrued and other current liabilities" in the Condensed Consolidated Balance Sheets.

2.Presented net of cash collateral where master netting arrangements allow.

Derivative Instruments

Objectives and Strategies for Holding Derivative Instruments

In the ordinary course of business, the Company may enter into contractual arrangements (derivatives) to reduce its exposure to foreign currency, interest rate and commodity price risks. Derivative programs have procedures and controls and are approved by the Corporate Financial Risk Management Committee, consistent with the Company's financial risk management policies and guidelines. These programs reflect varying levels of exposure coverage and time horizons based on an assessment of risk.

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Segment Net Sales, Significant Segment Expenses and Segment Operating EBITDA	Nine Months Ended September 30,
	2025				2024
(In millions)	Semiconductor Technologies		Interconnect Solutions		Semiconductor Technologies		Interconnect Solutions
Segment net sales	$	1,981	$	1,583	$	1,834	$	1,400
Less 1:
Cost of sales	$	991	$	927	$	918	$	835
Selling, general and administrative expenses	202		215		226		206
Research and development expenses	167		96		144		84
Amortization of intangibles & other segment items 2	37		116		35		136
Add:
Equity in earnings (losses) of nonconsolidated affiliates	$	38	$	(1)	$	34	$	(1)
Depreciation and amortization 3	91		175		93		193
Segment operating EBITDA	$	713	$	403	$	638	$	331

The Company's financial risk management procedures also address counterparty credit approval, limits and routine exposure monitoring and reporting. The counterparties to these contractual arrangements are major financial institutions and major commodity exchanges. The Company is exposed to credit loss in the event of nonperformance by these counterparties. The Company utilizes collateral support annex agreements with certain counterparties to limit its exposure to credit losses. The Company anticipates performance by counterparties to these contracts and therefore no material loss is expected. Market and counterparty credit risks associated with these instruments are regularly reported to management.

The notional amounts of the Company's derivative instruments were as follows:


Notional Amounts	March 31, 2026		December 31, 2025
In millions



Derivatives not designated as hedging instruments:
Foreign currency contracts 1	$	(1,172)	$	(1,046)

1.Presented net of contracts bought and sold.

Derivatives not Designated in Hedging Relationships

Foreign Currency Contracts

The Company routinely uses forward exchange contracts to reduce its net exposure, by currency, related to foreign currency-denominated monetary assets and liabilities of its operations so that exchange gains and losses resulting from exchange rate changes are minimized. The netting of such exposures precludes the use of hedge accounting; however, the required revaluation of the forward contracts and the associated foreign currency-denominated monetary assets and liabilities intends to achieve a minimal earnings impact, after taxes. The Company also uses foreign currency exchange contracts to offset a portion of the Company's exposure to certain foreign currency-denominated revenues so that gains and losses on the contracts offset changes in the USD value of the related foreign currency-denominated revenues.

Foreign currency derivatives not designated as hedges are used to offset foreign exchange gains or losses resulting from the underlying exposures of foreign currency-denominated assets and liabilities. The amount charged on a pre-tax basis related to foreign currency derivatives not designated as hedges, which was included in “Other income (expense) - net” in the interim Consolidated Statements of Operations, were gains of $26 million and zero for the three months ended March 31, 2026 and 2025, respectively.

NOTE 18 - FAIR VALUE MEASUREMENTS

Fair Value Measurements on a Recurring Basis

The following tables summarize the basis used to measure certain assets and liabilities at fair value on a recurring basis:


Basis of Fair Value Measurements on a Recurring Basis of Significant Other Observable Inputs (Level 2)	March 31, 2026		December 31, 2025
In millions
Assets at fair value:
Cash equivalents 1	$	109	$	143

Derivatives relating to: 2


Foreign currency contracts 3	4		16
Total assets at fair value	$	113	$	159
Liabilities at fair value:

Derivatives relating to: 2


Foreign currency contracts 3	17		2
Total liabilities at fair value	$	17	$	2

1. Time deposits included in "Cash and cash equivalents" in the interim Condensed Consolidated Balance Sheets are held at amortized cost, which approximates fair value.

2. See Note 17 for the classification of derivatives in the interim Condensed Consolidated Balance Sheets.

3. Asset and liability derivatives subject to an enforceable master netting arrangement with the same counterparty are presented on a net basis in the interim Condensed Consolidated Balance Sheets. The offsetting counterparty and cash collateral netting amounts for foreign currency contracts were $2 million and zero respectively, for both assets and liabilities as of March 31, 2026. The offsetting counterparty and cash collateral netting amounts were $2 million and zero, respectively, for assets and liabilities as of December 31, 2025.

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For assets and liabilities classified as Level 2 measurements, where the security is frequently traded in less active markets, fair value is based on the closing price at the end of the period; where the security is less frequently traded, fair value is based on the price a dealer would pay for the security or similar securities, adjusted for any terms specific to that asset or liability, or by using observable market data points of similar, more liquid securities to imply the price. For time deposits classified as held-to-maturity investments and reported at amortized cost, fair value is based on an observable interest rate for similar securities. Market inputs are obtained from well-established and recognized vendors of market data and subjected to tolerance and quality checks.

For derivative assets and liabilities, standard industry models are used to calculate the fair value of the various financial instruments based on significant observable market inputs, such as foreign exchange rates, commodity prices, swap rates, interest rates and implied volatility obtained from various market sources. Market inputs are obtained from well-established and recognized vendors of market data and subjected to tolerance/quality checks.

There were no transfers between Levels 1 and 2 during the three months ended March 31, 2026, and 2025.

NOTE 19 - 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 EBITDA	Three Months Ended March 31,
	2026				2025
	Semiconductor Technologies		Interconnect Solutions		Semiconductor Technologies		Interconnect Solutions
(In millions)
Segment net sales	$	722	$	593	$	644	$	474
Less 1:
Cost of sales	$	359	$	335	$	307	$	280
Selling, general and administrative expenses	74		80		64		66
Research and development expenses	60		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 Operating EBITDA to Income Before Income Taxes		Three Months Ended September 30,				Nine Months Ended September 30,
In millions		2025		2024		2025		2024
Semiconductor Technologies segment operating EBITDA		$	240	$	232	$	713	$	638
Interconnect Solutions segment operating EBITDA		152		135		403		331
Total segment operating EBITDA		$	392	$	367	$	1,116	$	969
+	Corporate Operating EBITDA 1	$	(10)	$	(8)	$	(25)	$	(21)
-	Depreciation and amortization	94		102		280		297
-	Interest expense 2	14		—		14		—
+	Non-operating pension benefit (costs) credits 3	(2)		1		(2)		1
+	Foreign exchange gains (losses), net 3	1		(4)		(4)		3
+	Significant items charges	(1)		(4)		(18)		(7)
Income before income taxes		$	272	$	250	$	773	$	648

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Reconciliation of Segment Adjusted Operating EBITDA to Income Before Income Taxes		Three Months Ended March 31,
In millions		2026		2025
Semiconductor Technologies Segment Adjusted Operating EBITDA		$	263	$	247
Interconnect Solutions Segment Adjusted Operating EBITDA		169		114
Total Segment Adjusted Operating EBITDA		$	432	$	361
+	Corporate Adjusted Operating EBITDA 1	$	(21)	$	(6)
-	Depreciation and amortization	98		94
+	Interest income	3		—
-	Interest expense	61		—
+	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.~~Interest~~Included ~~expense~~ in ~~2025~~"Other ~~was~~income ~~driven~~(expense) by- ~~interest associated with the Secured and Unsecured Notes~~net."

~~3.Included~~The infollowing ~~"Other~~tables ~~income~~summarize ~~(expense)~~the pre-tax ~~net."~~impact of significant items by segment that are excluded from Adjusted Operating EBITDA above:

The following tables summarize the pre-tax impact of significant items by segment that are excluded from Operating EBITDA above:


Significant Items by Segment for the Three Months Ended March 31, 2026	Semiconductor Technologies		Interconnect Solutions		Corporate		Total
In millions	Semiconductor Technologies		Interconnect Solutions		Corporate		Total
Transformation, integration, and other charges 1	$	—	$	1	$	(29)	$	(28)
Total	$	—	$	1	$	(29)	$	(28)

Significant Items by Segment for the Three Months Ended September 30, 2025	Semiconductor Technologies		Interconnect Solutions		Corporate		Total
In millions
Restructuring and asset related charges - net 1	$	—	$	—	$	(1)	$	(1)
Total	$	—	$	—	$	(1)	$	(1)

1. See Note 4 for additional information.

1. Includes restructuring actions and asset related charges. See Note 4 for additional information.


Significant Items by Segment for the Three Months Ended March 31, 2025	Semiconductor Technologies		Interconnect Solutions		Corporate		Total
In millions	Semiconductor Technologies		Interconnect Solutions		Corporate		Total
Transformation, integration, and other charges 1	$	(2)	$	(4)	$	(11)	$	(17)
Employee Retention Credit 2	1		—		1		2
Total	$	(1)	$	(4)	$	(10)	$	(15)

Significant Items by Segment for the Three Months Ended September 30, 2024	Semiconductor Technologies		Interconnect Solutions		Corporate		Total
In millions
Restructuring and asset related charges - net 1	$	—	$	(8)	$	4	$	(4)
Total	$	—	$	(8)	$	4	$	(4)

1. See Note 4 for additional information.

12. ~~Includes~~Reflects ~~restructuring~~the ~~actions~~accrued interest earned on employee retention credits and ~~asset~~is ~~related~~recorded ~~charges.~~in ~~See~~“Interest ~~Note~~income” 4within ~~for~~the ~~additional~~“Other ~~information.~~income (expense) - net” line item in the Company’s unaudited interim Consolidated Statements of Operations


Segment and Corporate Information	Semiconductor Technologies		Interconnect Solutions		Corporate		Total
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

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Significant Items by Segment for the Nine Months Ended September 30, 2025	Semiconductor Technologies		Interconnect Solutions		Corporate		Total
Capital Expenditure Reconciliation to Unaudited Interim Consolidated Financial Statements	Three Months Ended March 31,
In millions	2026		2025
Restructuring and asset related charges - net 1	$	(3)	$	(4)	$	(13)	$	(20)
Semiconductor Technologies	$	49	$	24
Employee Retention Credit 2	2		—		—		2
Interconnect Solutions	14		20
Total	$	(1)	$	(4)	$	(13)	$	(18)
Corporate	11		3
Segment and Corporate Totals	$	74	$	47
Accrual to cash adjustment 1	48		57
Total	$	122	$	104

1. Includes restructuring actions and asset related charges. 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 Combined Statements of Operations.

Significant Items by Segment for the Nine Months Ended September 30, 2024	Semiconductor Technologies		Interconnect Solutions		Corporate		Total
In millions
Restructuring and asset related charges - net 1	$	(1)	$	(10)	$	4	$	(7)
Total	$	(1)	$	(10)	$	4	$	(7)

1. Includes restructuring actions and asset related charges. See Note 4 for additional information.

Segment and Corporate Information	Semiconductor Technologies		Interconnect Solutions		Corporate		Total
In millions
As of September 30, 2025
Total Assets	$	6,736	$	5,313	$	463	$	12,512
Investment in nonconsolidated affiliates	407		12		—		419
As of December 31, 2024
Total Assets	$	6,520	$	5,270	$	483	$	12,273
Investment in nonconsolidated affiliates	370		12		—		382

Capital Expenditure Reconciliation to Unaudited Interim Combined Financial Statements	Three Months Ended September 30,				Nine Months Ended September 30,
In millions	2025		2024		2025		2024
Semiconductor Technologies	$	37	$	18	$	94	$	49
Interconnect Solutions	25		23		69		53
Corporate	6		5		14		15
Segment totals	$	68	$	46	$	177	$	117
Accrual to cash adjustment 1	(7)		(17)		37		17
Total	$	61	$	29	$	214	$	134

1.Reflects the incremental cash spent or unpaid on capital expenditures; total capital expenditures are presented on a cash basis.

~~NOTE 17 - SUBSEQUENT EVENTS~~26

Separation

On the Separation and Distribution Date, DuPont completed the Separation of the Company through the Distribution. After the Distribution, the Company began publicly trading on the New York Stock Exchange, under the ticker "Q", on November 3, 2025. As part of the Separation, the Company underwent an internal reorganization that resulted in it becoming the holder, directly or through its subsidiaries, of the ElectronicsCo business held by DuPont prior to the Separation and Distribution Date.

On the Separation and Distribution Date, the net proceeds from the Secured and Unsecured Notes issuance and borrowings under the Senior Secured Term Loan Facility, as well as cash on hand were used to fund the distribution to DuPont on the Separation and Distribution Date in the amount of $4,122 million, inclusive of $1,000 million and $750 million net proceeds from the Secured and Unsecured Notes, respectively, $2,350 million net proceeds from the Senior Secured Term Loan Facility and $22 million of costs related to the Secured and Unsecured Notes. In addition, the Company distributed pre-funded interest on the Notes through March 31, 2026 of $66 million (and investment returns on amounts held in escrow in respect of the Secured and Unsecured Notes issuance of $15 million).

See Note 12 to the unaudited interim Combined Financial Statements for additional information on the Secured and Unsecured Notes issuances and borrowings under the Senior Secured Term Loan Facility.

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Separation Agreements

In connection with the Separation, DuPont and the Company entered into a certain agreements that will effect separation, the allocation of assets and liabilities to DuPont and the Company and provide a framework for the relationship following the Separation and Distribution. Effective on the Separation and Distribution Date, the following agreements were executed:

•the Separation and Distribution Agreement;

•the Tax Matters Agreement;

•the Employee Matters Agreement;

•the Transition Services Agreements;

•the ESL Cost Sharing Agreement; and

•other agreements governing aspects of the Company’s relationship with DuPont following the Separation including the Intellectual Property Cross-License Agreement and Legacy Liabilities Assignment Agreement, among others.

In connection with the Separation, certain assets and liabilities have been or will be contractually allocated to the Company from DuPont, including legacy liabilities and indemnifications as outlined within the agreements noted above. These amounts are expected to be material and will be reflective of operations through the Separation and Distribution Date. The amounts are being finalized and will be reflected as liabilities in the Company's December 31, 2025 balance sheet.

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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis provides information that management believes is relevant to an assessment and understanding of ~~Qnity’s~~the financial condition and results of operations of Qnity Electronics, Inc. ("Qnity," the "Company," "we," "our" and "us"). Management’s discussion and analysis of financial condition and results of operations is provided as a supplement to, and should be read in conjunction with, the unaudited interim ~~Combined~~Consolidated Financial Statements and related notes thereto included elsewhere in this Quarterly Report on Form 10-Q (the "Quarterly Report") and the audited Financial Statements and related notes thereto included in the ~~Information Statement, dated October 15, 2025, filed as Exhibit 99.1 to Qnity’~~Company's ~~Current~~Annual Report on Form 810-K ~~filed~~for ~~with~~ the ~~Securities~~year ~~and~~ended ~~Exchange~~December ~~Commission~~31, (2025, filed with the “SEC”) on ~~October~~February 1526, ~~2025~~2026 (the ~~“Information~~"Annual ~~Statement”~~Report") to enhance the understanding of the Company’s operations and present business environment. Certain amounts may not foot due to rounding. This discussion and analysis contains forward-looking statements and involves numerous risks and uncertainties, including, but not limited to, those discussed in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” ~~and “Risk Factors” in this Quarterly Report,~~ as well as in “Risk Factors” in the ~~Information~~Annual ~~Statement~~Report. Carefully read the information under “Cautionary Note Regarding Forward-Looking Statements” in this Quarterly Report. Qnity assumes no obligation to update any of these forward-looking statements except as required by law. Actual results may differ materially from those contained in any forward-looking statements.

OVERVIEW

We are a global leader in materials and solutions for semiconductor and electronics industries. We empower our customers’ technology roadmaps to enable advancements in megatrends such as artificial intelligence ("AI"), advanced computing and advanced connectivity. We partner with leading semiconductor and advanced device manufacturers to address complex challenges and develop solutions that facilitate next-generation technological innovations. With over 50 years of experience in systems engineering and material science, a global manufacturing footprint, and major application labs across the world, we are well-positioned to capitalize on emerging opportunities across various sectors including transportation, data centers, consumer and personal electronics and aerospace and defense.

We are organized into two operating segments:

•Semiconductor Technologies: Our Semiconductor Technologies segment provides a portfolio of innovative materials and solutions utilized across multiple stages of the semiconductor manufacturing process. These advanced materials are qualified into customers’ roadmaps, designed to improve chip performance, enhance yield, and enable leading-edge node technology.

•Interconnect Solutions: Our Interconnect Solutions segment offers a comprehensive range of best-in-class material solutions that address the evolving complexities of signal integrity, thermal and power management and advanced packaging. These solutions are integral for advanced electronics hardware, including complex printed circuit boards and advanced semiconductor packaging.

Our broad portfolio of solutions and materials across both Semiconductor Technologies and Interconnect Solutions segments positions us as a comprehensive solutions provider for our customers. We are often the partner of choice due to our strong innovation capabilities and extensive materials and engineering expertise. In a fast-paced electronics industry, our customers’ needs are highly performance-driven and our long-standing relationships and strong renewal rates demonstrate our commitment to delivering excellence in a demanding market.

Macroeconomic Environment

Recent and ~~continuing~~ongoing developments in U.S. and foreign policy, ~~related~~including tothe ~~trade,~~conflict ~~such~~in as the ~~imposition~~Middle ofEast ~~new~~and oruncertainty ~~increased~~regarding tariffs on product imports, ~~from certain countries~~ have heightened global trade tensions and ~~sparked~~increased ~~significant uncertainty in~~ macroeconomic and geopolitical ~~environments, particularly with respect to China~~uncertainty. The global nature of our ~~global~~ business exposes us and our customers to risks ~~associated~~arising ~~with~~from ~~trade~~these ~~conflicts~~conditions, ~~between~~including disruptions in the ~~U.S.~~availability and ~~its~~pricing ~~trading~~of ~~partners~~raw materials, ~~including~~shipping ~~about~~logistics ~~the~~challenges, ~~ultimate~~disruptions ~~extent~~in ~~and~~global ~~duration~~energy ofmarkets, ~~the~~fuel ~~tariffs~~price increases, ~~responsive~~potential retaliatory actions ~~from~~by other countries, and ~~the~~broader ~~resulting~~ impacts, ~~including~~ on ~~general~~ economic conditions, ~~and~~which oncould affect our financial condition, liquidity, or results of operations. AsThese afactors ~~result, we~~ may ~~face~~reduce ~~a reduction in the~~ demand for, ~~and in the competitiveness of,~~ our products, impair our competitiveness—particularly ~~from~~relative ~~local~~to locally or domestically sourced ~~competition,~~ alternatives—harm tocustomer ~~our~~ relationships, ~~with~~reduce ~~our~~demand ~~customers~~for out products, and/or ~~decreased~~decrease profitability, ~~which~~any ~~have~~of ~~the~~which ~~potential~~could to adversely affect our business, financial condition, and results of operations. While we have meaningful exposure to global trade dynamics, our local‑for‑local sourcing of raw materials helps limit our exposure to tariff‑related risks and shipping logistics. However, these actions may not fully mitigate the impact of prolonged or escalating geopolitical or trade disruptions.

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Recent Developments

~~Transition~~Share toRepurchase ~~Stand-Alone Company~~ Authorization

On ~~May~~February 2220, ~~2024~~2026, ~~DuPont~~our deBoard ~~Nemours,~~of ~~Inc.~~Directors approved a share repurchase authorization of up to $500 million of common stock (~~“DuPont”~~the or"$500M ~~“Parent”~~Authorization"). Under the $500M Authorization, repurchases of ~~which~~common westock ~~have~~may ~~historically~~be ~~been~~effected afrom ~~part~~time to time, ~~announced~~either ~~its~~on ~~plan~~the toopen ~~separate~~market ~~its~~(including ~~Electronics~~pre-set ~~business,~~trading ~~which~~plans) ~~included~~or ~~its~~other ~~semiconductor~~transactions ~~technologies~~in ~~and~~accordance ~~interconnect~~with ~~solutions~~applicable ~~businesses,~~securities ~~from~~laws. The $500M Authorization has no expiration date and will terminate once the ~~other~~authorized ~~businesses~~amount of ~~DuPont~~shares (have been repurchased and retired or when terminated by our Board of Directors. The timing and amount of repurchases under the ~~“Separation")~~program will depend on a variety of factors. OnDuring ~~November~~the 1three months ended March 31, ~~2025~~2026, (we repurchased 219,581 shares under the ~~“Separation~~$500M ~~and~~Authorization ~~Distribution~~for ~~Date”)~~$25 million at an average share price of $113.78 per share. As of March 31, 2026, the aggregate amount of common stock remaining for repurchase under the $500M Authorization was $475 million.

29Transformation Plan

In February 2026, we launched a multi‑year transformation plan, designed to strengthen operational productivity, enhance commercial and innovation excellence and optimize our presence in key markets. Costs incurred under this plan primarily comprise external consulting and separation services, severance, asset‑related charges, and program‑related operating costs. The transformation plan does not represent a company‑wide restructuring event; rather, it consists of a series of discrete initiatives, including separation‑related activities, integration efforts, and productivity programs.

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Separation was completed through a tax-free pro rata distribution of all of the then issued and outstanding shares of our common stock to DuPont stockholders at a ratio of one share of our common stock for every two shares of DuPont’s common stock held at the close of business on the record date of October 22, 2025 (the “Distribution”).

Relationship with DuPont

Historically, we have relied on DuPont to manage certain aspects of our operations and provide us with certain services, the costs of which have historically been either allocated or directly billed to us. Historical costs for such services may not necessarily reflect the actual expenses we would have incurred, or will incur, as an independent company. In connection with the Separation, we and/or certain of our subsidiaries entered into the Separation Agreement and certain other agreements with DuPont and/or certain of its subsidiaries as of the Separation and Distribution Date, including, but not limited to, the Tax Matters Agreement, the Employee Matters Agreement, the Transition Services Agreement (as defined below), the Intellectual Property Cross-License Agreement, the Transitional House Marks Trademark License Agreement, the Ex-Station Lease ("ESL") Cost Sharing Agreement (as defined below) and certain other intellectual property-related, real estate-related, confidentiality-related, regulatory-related and commercial agreements. DuPont will not provide us with ongoing assistance other than the transition and other services described in these agreements. These services do not include every service that we have received from DuPont in the past, and DuPont is only obligated to provide the transition services for limited periods following the Separation. Following the cessation of the Transition Services Agreement, we will need to provide internally or obtain from unaffiliated third parties the services we will no longer receive from DuPont. The cost of replacing such services may vary from the historical costs directly allocated to us.

Stand-Alone Company Expenses

As a result of the Separation, we are required to operate as an independent company. Under the Transition Services Agreement with DuPont, dated as of the Separation and Distribution Date (the "Transition Services Agreement"), we are receiving certain services, including informational technology services, from DuPont. As we transition from those services, we will incur additional expenditures. We currently estimate it will cost approximately $180 million in one-time costs, incurred over two years, to establish stand-alone informational technology systems, not including the cost of maintenance or employee-related expenditures.

In addition, we are incurring costs related to expanding, internally or through third parties, our functional capabilities such as information technology, finance, human resources, legal, tax, facilities, branding, government relations and insurance. We are subject to the requirements of the federal and state securities laws and stock exchange requirements and have established, or are in the process of establishing, additional procedures and practices as a stand-alone public company. As a result, we will incur incremental costs including, but not limited to, costs relating to external reporting, internal audit, treasury, investor relations, board of directors and officers and stock administration.

Cost Sharing Arrangements

Under the ESL Cost Sharing Agreement, dated as of August 28, 2025, by and between FCC Acquisition Corporation, a Delaware corporation, and DuPont (the "ESL Cost Sharing Agreement"), DuPont and Qnity will be responsible for 60% and 40%, respectively, of certain costs and expenses that exceed the net revenues received by DuPont from certain third parties at the Experimental Station facility ("Experimental Station"). As a result, we may have to pay certain additional costs, including in the event that certain portions of Experimental Station not occupied by us, DuPont or their respective subsidiaries as of the Separation become vacant and DuPont does not lease such portions to a new tenant for rental rates that are at least equal to the current rental rates. Because DuPont will operate the Experimental Station following the Separation, such costs will be beyond our control, and our obligation to bear such costs may negatively impact our business, results of operations, financial condition and cash flows.

Certain Indemnification Obligations to DuPont

In connection with the Separation, we have been contractually allocated, and will directly pay or indemnify DuPont for, the Applicable Qnity Percentage of certain liabilities, including funding obligations of DuPont under the Memorandum of Understanding ("MOU"), legacy PFAS liabilities and liabilities related to businesses and operations of DuPont that were previously discontinued or divested. The Applicable Qnity Percentage is equal to the trailing twelve month Pro Forma Operating EBITDA attributable to the Qnity business and assets (measured at the time of the distribution, but prior to giving effect to the distribution) divided by the trailing twelve month Pro Forma Operating EBITDA (measured at the time of the distribution, but prior to giving effect to the distribution) of DuPont, multiplied by 100. For purposes of the following discussion, we have assumed the Applicable Qnity Percentage is 44% and determined all amounts in accordance with the applicable provisions of the Separation Agreement (including adjustments therein related to estimated income tax benefits arising from the liabilities allocated to us).

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Liabilities under the Memorandum of Understanding

As of September 30, 2025, DuPont has borne Qualified Spend of approximately $665 million and has recorded an indemnification liability for probable and reasonably estimable future Qualified Spend of $216 million. Accordingly, we expect to record an indemnification liability for such probable and reasonably estimable future Qualified Spend of $75 million.

We will directly contribute or indemnify DuPont for, the Applicable Qnity Percentage of DuPont’s funding obligations in respect of an MOU Escrow Account established by DuPont, Corteva, Inc. ("Corteva") and The Chemours Company ("Chemours") to support and manage potential future eligible PFAS costs.

New Jersey

On August 3, 2025, DuPont, together with Chemours and Corteva and its subsidiary EIDP Inc. (formerly known as E. I. du Pont de Nemours and Company) (“EIDP”), agreed to a proposed Judicial Consent Order (the “Consent Order”) with the State of New Jersey to resolve outstanding claims by the State of New Jersey pending against the companies related to legacy use of a wide variety of substances of concern for an aggregate cash payment to the State of New Jersey of $875 million, payable over a period of 25 years. The first of the scheduled annual payments will be due within 30 days of the date the Judicial Consent Order is entered by the Court, but no earlier than January 31, 2026.

Contingent upon the Settlement being approved by the Court, DuPont and Corteva will purchase Chemours’ interest in future, if any, insurance proceeds related to PFAS claims. DuPont and Corteva will make the purchase by contributing a total of $150 million into an escrow fund (the “NJ Insurance Escrow”) to be applied to Chemours’ share of the Settlement. In exchange, Chemours shall assign to DuPont and Corteva its rights to $150 million of PFAS-related insurance proceeds plus a fee equal to the lesser of (a) $35 million, or (b) $3 million plus interest (at prime minus 2%) on the unrecovered fraction of $150 million, until Chemours’ share of insurance recoveries fully recoups the purchase price.

The obligations of DuPont set forth in this section relating to the Settlement, including the cash payments, any remediation obligations (and related liabilities), and the establishment and maintenance of the reserve fund, and the purchase of Chemours’ interest in future insurance proceeds related to PFAS claims, in each case constitute, liabilities contractually allocated between us and DuPont based their respective Applicable Percentage. Accordingly, we will indemnify DuPont, or remit directly to the relevant third party, the amount owed in respect of our share of such liabilities.

As of September 30, 2025, DuPont recorded a pre-tax charge of $177 million related to the proposed Consent Order, we estimate our contractually allocated portion of the recorded pre-tax charge will be approximately $66 million. Additionally, DuPont recorded interest accretion of $4 million during the three and nine months ended September 30, 2025, resulting in a liability of $181 million as of September 30, 2025. We estimate our contractually allocated portion of this accreted interest will be approximately $2 million. We will share in the ongoing costs of maintaining a reserve fund in the event the remedial funding source for a site has been exhausted and the party responsible is not otherwise performing the required remediation.

We estimate our contractually allocated cash contribution in respect of the NJ Insurance Escrow will be $47 million. We will also receive the Applicable Qnity Percentage of any insurance proceeds related to PFAS claims recovered.

Other

As of September 30, 2025, DuPont has recorded liabilities related to business and operations, historical activities of DuPont, including environmental liabilities, and its present and former subsidiaries, for which we estimate our contractually allocated portion to be $38 million.

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RESULTS OF OPERATIONS

Summary of Sales Results

Three Months Ended ~~September~~March 3031,

~~Nine Months Ended September 30,~~

In millions

~~2025~~2026

~~2024~~2025

~~2025~~

~~2024~~

Net sales

1,~~276~~315

1,~~148~~118

~~3,564~~

~~3,234~~

The following table summarizes sales variances by segment and geographic region from the prior year:

Sales Variances by Segment and Geographic Region
Percentage change from prior year	Three Months Ended ~~September~~March 3031, ~~2025~~2026										~~Nine Months Ended September 30, 2025~~
	Local Price & Product Mix		Currency		Volume		Portfolio & Other		Total		~~Local Price & Product Mix~~		~~Currency~~		~~Volume~~		~~Portfolio & Other~~		~~Total~~
Semiconductor Technologies	~~(1)~~—	%	—	%	912	%	—	%	812	%	~~(1)~~	%	—	%	9	%	—	%	8	%
Interconnect Solutions	(1)		13		1523		—		1525		~~(2)~~		—		15		—		13
Total	~~(1)~~—	%	1	%	1117	%	—	%	1118	%	~~(2)~~	%	—	%	12	%	—	%	10	%
Americas	(21)	%	—	%	2120	%	—	%	19	%	~~(1)~~	%	—	%	16	%	—	%	15	%
EMEA 1	1(2)		36		187		—		2211		—		1		7		—		8
Asia Pacific	~~(1)~~—		1		917		—		918		~~(1)~~		—		11		—		10
Total	~~(1)~~—	%	1	%	1117	%	—	%	1118	%	~~(2)~~	%	—	%	12	%	—	%	10	%

1.Europe, Middle East and Africa ("EMEA").

We reported net sales for the three months ended ~~September~~March 3031, ~~2025~~2026 of $1.3 billion, up 1118% from $1.1 billion for the three months ended ~~September~~March 3031, ~~2024~~2025, due to ana 1117% increase in volume and a 1% favorable currency impact ~~partially offset by a 1% decrease in local price and product mix~~. The volume increase was attributable to both Interconnect Solutions (up 1523%) and Semiconductor Technologies (up 912%). ~~Contributing to the volume increase was an approximate $40 million benefit from order timing related to system cut-over activities in advance of the Separation.~~ The favorable currency impact was primarily attributable to ~~Interconnect~~EMEA ~~Solutions (~~up 16%~~) while the currency impact of Semiconductor Technologies remained flat~~. ~~Local price and product mix declined in both Interconnect Solutions (down 1%) and Semiconductor Technologies (down 1%).~~

Net sales for the nine months ended September 30, 2025 were $3.6 billion, up 10% from $3.2 billion for the nine months ended September 30, 2024, due to a 12% increase in volume partially offset by a 2% decrease in local price and product mix. The increase in volume was attributable to both Interconnect Solutions (up 15%) and Semiconductor Technologies (up 9%). Contributing to the volume increase was an approximate $40 million benefit from order timing related to system cut-over activities in advance of the Separation. Local price and product mix declined in both Interconnect Solutions (down 2%) and Semiconductor Technologies (down 1%).

Cost of Sales

Cost of sales were $~~701~~697 million for the three months ended ~~September~~March 3031, ~~2025~~2026, up 1519% from $~~609~~587 million for the three months ended ~~September~~March 3031, ~~2024~~2025 primarily ~~due~~attributable to ~~increased~~a ~~volume of 10~~14% asincrease ~~well~~in asvolume ~~increases~~ in ~~input~~addition ~~costs~~to ~~of 4~~3% and ~~unfavorable~~2% ~~currency~~increases ~~impacts~~attributable ofto 1%material costs and currency, respectively.

Cost of sales as a percentage of net sales ~~for the three months ended September 30, 2025~~ was ~~55%~~flat asat ~~compared to~~ 53% for both the three months ended ~~September~~March 3031, ~~2024~~2026 and 2025.

Cost of sales were $1.9 billion for the nine months ended September 30, 2025, up 9% from $1.8 billion for the nine months ended September 30, 2024 due to increased volume of 9%.

Cost of sales as a percentage of net sales remained flat at 54% for the nine months ended September 30, 2025 and 2024.

Research and Development ("R&D") Expenses

R&D expense was $9294 million for the three months ended ~~September~~March 3031, ~~2025~~2026, up from $8184 million for the three months ended ~~September~~March 3031, ~~2024~~2025. R&D expense as a percentage of net sales ~~was~~decreased ~~consistent~~ period over period atfrom 78% for ~~each of~~ the three months ended ~~September~~March 3031, 2025 ~~and~~to ~~2024~~7% for the three months ended March 31, 2026.

R&D expense was $264 million for the nine months ended September 30, 2025, up from $230 million for the nine months ended September 30, 2024. R&D expense as a percentage of net sales was consistent period over period at 7% for each of the nine months ended September 30, 2025 and 2024.

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Selling, General and Administrative ("SG&A") Expenses

SG&A expenses were $~~159~~173 million in the ~~third~~first quarter of ~~2025~~2026, up ~~slightly~~ from $~~156~~140 million in the ~~third~~first quarter of ~~2024~~2025. SG&A expenses as a percentage of net sales ~~decreased~~remained ~~period~~flat ~~over period~~ at 1213% ~~and 14%~~ for both the three months ended ~~September~~March 3031, ~~2025~~2026 and ~~2024, respectively~~2025.

For the first nine months of 2025, SG&A expenses were $453 million, down from $461 million in the first nine months of 2024. SG&A expenses as a percentage of net sales remained relatively consistent at 13% and 14% for the nine months ended September 30, 2025 and 2024, respectively. The decrease for the nine months ended September 30, 2025 as compared with the same period of the prior year was primarily due to decrease in legal expenses partially offset by higher employee related costs.

Amortization of Intangibles

Amortization of intangibles was $5152 million in the ~~third~~first quarter of ~~2025~~2026, down from $5755 million in the ~~third~~first quarter of ~~2024. In the first nine months of~~ 2025~~, amortization of intangibles was $156 million, down from $177 million in the same period of the prior year~~. The decrease for the three ~~and nine~~ months ended ~~September~~March 3031, ~~2025~~2026 as compared with the same ~~periods~~period of the prior year was primarily due to ~~the~~assets ~~absence~~becoming ~~of amortization from~~ fully amortized ~~assets~~.

~~Restructuring~~Transformation, Integration and ~~Asset~~Other ~~Related~~ Charges ~~- Net~~

~~Restructuring~~Beginning ~~and asset related charges - net were $1 million~~ in ~~the~~fiscal ~~third quarter of 2025~~2026, ~~down~~we ~~from~~present ~~$4 million~~costs ofincurred ~~charges~~ in ~~the~~connection ~~third~~with ~~quarter~~the ofmulti‑year ~~2024.~~transformation Inplan ~~the~~described ~~first~~under ~~nine~~“―Overview―Recent ~~months~~Developments―Transformation ~~of 2025~~Plan,” ~~restructuring~~designed ~~and~~to ~~asset~~strengthen ~~related~~operational ~~charges~~productivity, -enhance ~~net~~commercial ~~were~~and ~~$20~~innovation ~~million,~~excellence upand ~~from~~optimize $7our ~~million~~presence ~~of charges~~ in ~~the~~key ~~same~~markets, ~~period~~within ~~last~~a ~~year.~~single ~~The~~operating ~~activity~~expense ~~for~~line ~~the~~titled ~~three and nine months ended September 30~~“Transformation, ~~2025~~integration and ~~2024 related~~other ~~to nonrecurring~~ charges” in ~~connection with DuPont-approved restructuring programs. See Note 4 to~~ the ~~unaudited~~Consolidated ~~interim Combined Financial~~ Statements ~~for~~of ~~additional information~~Operations.

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Consistent with the update above, we combined our historical “Restructuring and other asset related charges” and “Acquisition, integration and separation costs” into the expense caption, “Transformation, integration and other charges” to simplify our presentation and better reflect how management evaluates these activities. Prior period amounts presented in this Quarterly Report on Form 10-Q have been recast to conform to the current period presentation. This change in presentation did not affect total operating expenses, operating income, net income, earnings per share, or cash flows for any period presented.

Transformation, integration and other charges were $28 million in the first quarter of 2026, up from $17 million of charges in the first quarter of 2025. The activity for the three months ended March 31, 2026 primarily consisted of costs incurred to support our information technology independence initiatives of approximately $24 million, costs related to transformation initiatives of approximately $2 million, and other integration‑related costs of approximately $3 million. The activity for the three months ended March 31, 2025 consisted of charges for severance and related benefits. The entirety of these charges related to DuPont-approved restructuring programs that were initiated prior to our separation from DuPont into an independent publicly traded company.

See Note 4 to the unaudited interim Consolidated Financial Statements for additional information.

Equity in Earnings of Nonconsolidated Affiliates

Our share of the earnings of nonconsolidated affiliates was $1513 million in the ~~third~~first quarter of ~~2025~~2026, up from $109 million in the ~~third~~first quarter of ~~2024~~2025. InThe increase for the first ~~nine~~quarter ~~months~~ of ~~2025,~~2026 ~~our~~as ~~share~~compared ofto ~~earnings of nonconsolidated affiliates was $37 million, up from $33 million in~~ the ~~first~~same ~~nine~~period ~~months~~ of ~~2024. The increase for each of~~ the ~~three~~prior ~~and~~year ~~nine month periods~~ is due to higher earnings in the underlying nonconsolidated affiliates. See Note 10 to the unaudited interim ~~Combined~~Consolidated Financial Statements for additional information.

Other Income (Expense) - Net

Other income (expense) - net includes a variety of income and expense items such as gain or loss on sale of assets and foreign exchange gains or losses. Other income (expense) - net remained flat at $1 million of expense in the three months ended September 30, 2025, and 2024.

In the first nine months of 2025, Other income (expense) - net was an expense of $3 million, as compared to $9 million of income in the first nine months of 2024. The nine months ended September 30, 2025 included $4 million net foreign exchange loss, as compared to $3 million net foreign exchange gain for the nine months ended September 30, 2024. See Note 6 to the unaudited interim Combined Financial Statements for additional information.

Interest Expense

Interest expense was $1461 million for the three ~~and nine~~ months ended ~~September~~March 3031, ~~2025~~2026. There was no interest expense for the three ~~and nine~~ months ended ~~September~~March 3031, ~~2024~~2025. ~~The~~Interest ~~increase in interest~~ expense in ~~2025~~2026 was driven by interest associated with the Secured and Unsecured Notes and the Senior Secured Term Loan Facility (each as defined ~~herein~~in Note 14 to the Consolidated Financial Statements in the Annual Report). See Note 12 to the unaudited interim ~~Combined~~Consolidated Financial Statements in this Quarterly Report for additional information.

Other Income (Expense) - Net

Other income (expense) - net includes a variety of income and expense items such as interest income, indirect legacy (costs) and benefits and foreign exchange gains or losses. Other income (expense) - net was $5 million of expense in the three months ended March 31, 2026, as compared to $2 million of income for the three months ended March 31, 2025. See Note 6 to the unaudited interim Consolidated Financial Statements in this Quarterly Report for additional information.

Provision for Income Taxes

Our effective tax rate fluctuates based, among other factors, on where income is earned and the level of income relative to tax attributes. For the ~~nine~~three months ended ~~September~~March 3031, ~~2025~~2026, the effective tax rate was 1925.87%, compared with 2219.41% for the ~~nine~~three months ended ~~September~~March 3031, ~~2024~~2025. The ~~lower~~increase in effective tax rate ~~for~~in ~~the~~2026 ~~first~~relates ~~nine~~to ~~months~~a oflimitation ~~2025~~on ~~in comparison to~~ the ~~first~~deductibility ~~nine months~~ of ~~2024~~interest ~~resulted~~expense ~~from~~and ahigher ~~combination of certain discrete~~ tax ~~expenses~~costs ~~incurred~~on ~~in 2024, including~~ the ~~settlement~~remittance of anforeign ~~international tax audit~~earnings, partially offset by ~~changes~~a toreduction ~~the geographic mix of earnings~~ in ~~2025,~~foreign ~~including~~tax ~~the impacts of the OECD's Global Anti-Base Erosion rules under Pillar Two in jurisdictions in which we operate~~costs.

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SEGMENT RESULTS

Our measure of profit/loss for segment reporting purposes is Adjusted Operating EBITDA as this is the manner in which our CODM assesses performance and allocates resources. We define Adjusted Operating EBITDA as earnings (i.e., “Income (loss) before income taxes") before interest, depreciation, amortization, non-operating pension / other post-employment benefits (“OPEB”) / charges, and foreign exchange gains / losses, indirect legacy costs, and adjusted for significant items.

SEMICONDUCTOR TECHNOLOGIES

The Semiconductor Technologies segment provides a portfolio of innovative materials and solutions utilized across multiple stages of the semiconductor manufacturing process. These advanced materials are specified into customers’ roadmaps, designed to improve chip performance, enhance yield, and enable leading-edge node technology.


Semiconductor Technologies	Three Months Ended
In millions	March 31, 2026		March 31, 2025
Net sales	$	722	$	644
Adjusted Operating EBITDA	$	263	$	247
Equity in earnings of nonconsolidated affiliates	$	13	$	11

Semiconductor Technologies	Three Months Ended					~~Nine Months Ended~~
In millions	September 30, 2025			September 30, 2024		September 30, 2025		September 30, 2024
Percentage change from prior year	March 31, 2026
Net sales	$	693		$	640	$	1,981	$	1,834
Change in Net Sales from Prior Period due to:
Operating EBITDA	$	240		$	232	$	713	$	638
Local price & product mix	—		%
Equity in earnings of nonconsolidated affiliates	$	14		$	10	$	38	$	34
Currency	—
Volume	12
Portfolio & other	—
Total	12		%

Semiconductor Technologies	Three Months Ended		Nine Months Ended
Percentage change from prior year	September 30, 2025		September 30, 2025
Change in Net Sales from Prior Period due to:
Local price & product mix	(1)	%	(1)	%
Currency	—		—
Volume	9		9
Portfolio & other	—		—
Total	8	%	8	%

Semiconductor Technologies net sales were $722 million for the three months ended March 31, 2026, up 12% as compared to $644 million for the three months ended March 31, 2025. Net sales increased due to a 12% increase in volume. The increase in sales volume was due to ongoing end-market demand strength related to improved customer utilization rates and growth in AI driven applications, particularly in advanced nodes, including advanced packaging and high bandwidth memory.

~~Semiconductor~~Adjusted ~~Technologies~~Operating ~~net~~EBITDA ~~sales~~was ~~were~~ $~~693~~263 million for the three months ended ~~September~~March 3031, ~~2025~~2026, up 86% as compared to $~~640~~247 million for the three months ended ~~September~~March 3031, ~~2024.~~2025, ~~Net sales increased~~ primarily due to ~~a 9% increase in~~ volume ~~slightly~~growth partially offset by aselect 1%growth ~~decrease~~investments inprimarily ~~local~~within ~~price and product mix~~R&D. The increase in sales volume was due to ongoing end-market demand strength due to content gains in advanced nodes, share gains, and improved customer utilization rates including AI driven applications. Additionally, there was an approximate $25 million benefit from order timing related to system cut-over activities in advance of the Separation.

Operating EBITDA was $240 million for the three months ended September 30, 2025, up 3% as compared to $232 million for the three months ended September 30, 2024, primarily due to volume growth partially offset by currency and selective growth investments to improve both R&D and supply chain capabilities.31

Semiconductor Technologies net sales were $1,981 million for the nine months ended September 30, 2025, up 8% as compared to $1,834 million for the nine months ended September 30, 2024. Net sales increased primarily due to a 9% increase in volume slightly offset by a 1% decrease in local price and product mix. The increase in sales volume was due to ongoing end-market demand strength due to content gains in advanced nodes, share gains, and improved customer utilization rates including AI driven applications. Additionally, there was an approximate $25 million benefit from order timing related to system cut-over activities in advance of the Separation.

Operating EBITDA was $713 million for the nine months ended September 30, 2025, up 12% as compared to $638 million for the nine months ended September 30, 2024, primarily due to volume growth partially offset by growth investments.

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INTERCONNECT SOLUTIONS

The Interconnect Solutions segment is a leading provider of materials and solutions that address the evolving complexities of signal integrity, thermal and power management and advanced packaging. These solutions are integral for advanced electronics hardware, including advanced semiconductor packaging. high density and high-layer-count printed circuit boards and high-performance electronics assemblies.


Interconnect Solutions	Three Months Ended
In millions	March 31, 2026		March 31, 2025
Net sales	$	593	$	474
Adjusted Operating EBITDA	$	169	$	114
Equity in earnings (losses) of nonconsolidated affiliates	$	—	$	(2)

Interconnect Solutions	Three Months Ended					~~Nine Months Ended~~
In millions	September 30, 2025			September 30, 2024		September 30, 2025		September 30, 2024
Percentage change from prior year	March 31, 2026
Net sales	$	583		$	508	$	1,583	$	1,400
Change in Net Sales from Prior Period due to:
Operating EBITDA	$	152		$	135	$	403	$	331
Local price & product mix	(1)		%
Equity in earnings (losses) of nonconsolidated affiliates	$	1		$	—	$	(1)	$	(1)
Currency	3
Volume	23
Portfolio & other	—
Total	25		%

Interconnect Solutions	Three Months Ended		Nine Months Ended
Percentage change from prior year	September 30, 2025		September 30, 2025
Change in Net Sales from Prior Period due to:
Local price & product mix	(1)	%	(2)	%
Currency	1		—
Volume	15		15
Portfolio & other	—		—
Total	15	%	13	%

Interconnect Solutions net sales were $593 million for the three months ended March 31, 2026, up 25% from $474 million for the three months ended March 31, 2025. Net sales increased primarily due to a 23% increase in volume and a 3% favorable currency impact slightly offset by a 1% decrease in local price and product mix. The increase in sales volume was due to continued demand strength from AI driven technology ramps and new business gains in advanced packaging, AI PCB and thermal management. The favorable currency impact was primarily driven by the euro.

~~Interconnect~~Adjusted ~~Solutions~~Operating ~~net~~EBITDA ~~sales~~was ~~were~~ $~~583~~169 million for the three months ended ~~September~~March 3031, ~~2025~~2026, up 1548% ~~from~~as compared to $~~508~~114 million for the three months ended ~~September~~March 3031, ~~2024.~~2025, ~~Net sales increased~~ primarily due to aan ~~15%~~ increase in ~~volume and a 1% favorable currency impact slightly offset by a 1% decrease in local price and product mix. The increase in~~ sales volume ~~was due to continued demand strength from AI driven technology ramps in addition to growth from other industrial end-markets such as aerospace~~, ~~defense and automotive. Additionally, there was an approximately $15 million benefit from order timing related to system cut-over activities in advance of the Separation. The~~ favorable ~~currency~~mix ~~impact is primarily driven by the Japanese yen, euro,~~ and ~~Taiwanese~~productivity ~~dollar~~gains.

Operating EBITDA was $152 million for the three months ended September 30, 2025, up 13% as compared to $135 million for the three months ended September 30, 2024, primarily due to an increase in sales volume partially offset by selective growth investments.32

Interconnect Solutions net sales were $1,583 million for the nine months ended September 30, 2025, up 13% from $1,400 million for the nine months ended September 30, 2024. Net sales increased primarily due to a 15% increase in volume slightly offset by a 2% decrease in local price and product mix. The increase in sales volume was due to continued demand strength from AI driven technology ramps in addition to growth from other industrial end-markets such as aerospace, defense and automotive. Additionally, there was an approximately $15 million benefit from order timing related to system cut-over activities in advance of the Separation.

Operating EBITDA was $403 million for the nine months ended September 30, 2025, up 22% compared to $331 million for the nine months ended September 30, 2024, primarily due to an increase in sales volume and productivity partially offset by selective growth investments.

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CHANGES IN FINANCIAL CONDITION

Liquidity & Capital Resources

~~Historically,~~Information ~~the~~related ~~Electronics business, as managed by DuPont, has generated positive cash flows from operations. A majority of such cash flows was transferred~~ to ~~DuPont~~the ~~in connection with our participation in DuPont’~~Company's ~~cash pooling arrangements to manage~~ liquidity and ~~fund~~capital ~~operations,~~resources ~~the~~can ~~effect~~be offound ~~which is presented as net parent investment~~ in ~~our~~the ~~unaudited~~Annual ~~interim~~Report, ~~Combined~~Part ~~Financial~~II, ~~Statements~~Item 7. ~~Our~~"Management's ~~cash~~Discussion and ~~cash~~Analysis ~~equivalents as~~ of ~~September~~Financial ~~30,~~Condition ~~2025~~and ~~reflected~~Results onof ~~the~~Operations—Liquidity ~~unaudited~~and ~~interim~~Capital ~~Combined~~Resources.” ~~Balance~~Discussion ~~Sheets~~below ~~represent~~provides ~~cash~~updates onto ~~hand~~this atinformation ~~certain~~for ~~foreign~~the ~~entities~~three asmonths aended ~~result~~March 31, ~~of local requirements~~2026.

~~Upon~~We ~~Separation,~~continually wereview ~~ceased~~our ~~participation~~sources inof ~~DuPont~~liquidity ~~cash~~and ~~pooling~~debt ~~arrangements~~portfolio and may make adjustments to one or both to ensure adequate liquidity and increase our ~~cash~~optionality and ~~cash~~financing ~~equivalents~~efficiency ~~will~~as beit ~~held~~relates to financing cost and ~~used~~balancing ~~solely~~terms/maturities. ~~for~~Our ~~our~~primary ~~own~~source ~~operations~~of incremental liquidity is cash flows from operating activities. ~~Our~~Management ~~capital~~expects ~~structure,~~the ~~long-term~~generation ~~commitments~~of cash from operations and the ability to access the debt capital markets and other sources of liquidity will ~~change~~continue ~~meaningfully~~to ~~from~~provide sufficient liquidity and financial flexibility to meet the Company’s and our ~~historical~~subsidiaries' ~~practices~~obligations as they come due. However, we are unable to predict the extent of macroeconomic related impacts which depend on uncertain and unpredictable future developments. In light of this uncertainty, we have taken steps to further ensure liquidity and capital resources, as discussed below.

WeOur ~~believe our existing~~ cash and cash ~~flows~~equivalents ~~generated~~at ~~from~~March 31, ~~operations~~2026 and ~~indebtedness~~December 31, ~~incurred~~2025 inwere ~~conjunction~~$857 ~~with~~million ~~the~~and ~~Separation~~$915 ~~discussed~~million, inrespectively. ~~detail~~Cash ~~below~~ and ~~anticipated~~cash ~~domestic~~equivalents ~~cash~~held ~~and~~by ~~cash~~subsidiaries ~~equivalents~~in weforeign ~~will~~countries ~~retain~~were at$703 million ~~the~~and ~~completion~~$640 million as of ~~the~~March 31, ~~Separation~~2026 ~~will~~and beDecember 31, ~~responsive~~2025, torespectively. ~~the~~For ~~needs~~each of ~~our~~its ~~current~~foreign ~~and~~subsidiaries, ~~planned~~we ~~operations~~make ~~for~~an atassertion ~~least~~regarding the ~~next~~amount 12of ~~months.~~earnings Weintended ~~believe~~for wepermanent ~~will~~reinvestment, ~~meet~~with ~~longer-term~~the ~~expected~~balance ~~future~~available ~~cash~~to ~~requirements~~be ~~and~~repatriated ~~obligations~~to ~~through~~the aUnited ~~combination~~States. ofWe ~~our~~held ~~cash~~no ~~flow~~investments ~~from~~in ~~operations~~marketable securities at March 31, ~~indebtedness~~2026 ~~incurred~~and inDecember 31, ~~conjunction~~2025. ~~with~~Refer ~~the~~to ~~Separation~~subsequent ~~and~~paragraphs ~~issuances~~for drivers of ~~equity~~the ~~securities~~change orin ~~debt~~cash ~~offerings,~~and ascash ~~needed~~equivalents.

Cash flows from operating, investing and financing activities are provided in the tables that follow. Individual amounts in the unaudited interim ~~Combined~~Consolidated Statements of Cash Flows exclude the effect of exchange rate impacts on cash and cash equivalents, which are presented separately in the cash flows. Thus, the amounts presented in the following operating, investing and financing activities tables reflect changes in balances from period to period adjusted for these effects.

Summary of Cash Flows

Our cash flows from operating, investing and financing activities, as reflected in the unaudited interim ~~Combined~~Consolidated Statements of Cash Flows, are summarized in the following table.

Cash Flow Summary	~~Nine~~Three Months Ended
In millions	~~September~~March 3031, ~~2025~~2026		~~September~~March 3031, ~~2024~~2025
Cash provided by (used for):
Operating activities	$	~~782~~135	$	~~775~~207
Investing activities	$	(~~214~~123)	$	(~~133~~104)
Financing activities	$	(~~616~~59)	$	(~~624~~109)
Effect of exchange rate changes on cash and cash equivalents	$	10(11)	$	(2)

Cash Flows from Operating Activities

In the first ~~nine~~three months of ~~2025~~2026, cash provided by operating activities was $~~782~~135 million, compared with $~~775~~207 million in the same period last year. The ~~increase~~decrease in cash provided by operating activities is primarily ~~due~~related to ~~higher~~payments ~~earnings,~~of ~~partially~~interest ~~offset~~on byour anlong-term ~~increase~~debt, inwhich ~~net~~was ~~cash~~not ~~used~~outstanding ~~for~~as ~~working~~of ~~capital.~~March ~~Changes in working capital were primarily driven by higher trade receivables from increased sales and higher inventory based on volume growth~~31, ~~partially offset by higher accounts payable resulting from purchases to support higher volumes~~2025.

The table below reflects net working capital:

Net Working Capital	September 30, 2025		December 31, 2024
In millions (except ratio)
Current assets	$	1,621	$	1,483
Current liabilities	910		839
Net working capital	$	711	$	644
Current ratio	1.78:1		1.77:1

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Cash Flows from Investing Activities

In the first ~~nine~~three months of ~~2025~~2026, cash used for investing activities was $~~214~~123 million, compared with $~~133~~104 million in the first ~~nine~~three months of ~~2024~~2025. The increase in cash used for investing activities is attributable to higher capital expenditures.

Cash Flows from Financing Activities

In the first ~~nine~~three months of ~~2025~~2026, cash used for financing activities was $~~616~~59 million compared with $~~624~~109 million in the same period last year. ~~The~~Cash ~~decrease in cash~~ used for financing activities isdecreased primarily attributable to ~~cash~~the ~~proceeds~~absence ~~from~~of ~~the~~net ~~issuance~~transfers ofto ~~long-term~~Parent ~~debt~~compared to the prior period, partially offset by acurrent ~~decrease~~period inpurchases ~~net~~of ~~transfers~~common ~~(to)~~stock ~~from Parent~~ and ~~payments~~payment ~~for~~of ~~debt issuance costs~~dividends.

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Material Cash Requirements

In the normal course of business, we enter into contracts and commitments that oblige us to make payments in the future. Information regarding our obligations under lease, debt, commitments and pensions and ~~are~~is provided in Note 6, Note 12, Note 13 and Note 15, respectively, in the interim unaudited ~~Combined~~Consolidated Financial Statements for the three ~~and nine~~ months ended ~~September 30~~March 31, 2026 and 2025 of this Quarterly Report. We expect the generation of cash from operations and ~~2024~~the ability to access the debt capital markets and other sources of liquidity will continue to provide sufficient liquidity and financial flexibility to meet our obligations, and those of our subsidiaries, as they come due.

As a result of the Separation, as discussed in the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations— Stand-Alone Company Expenses”, we will incur costs related to operating as a stand-alone public company and our costs under the Separation Agreements including certain cost sharing arrangements as well as indemnification obligations. While these costs are expected to be significant and we are not able to predict the full extent or timing of our future obligations, we expect the generation of cash from operations and the ability to access the debt capital markets and other sources of liquidity will continue to provide sufficient liquidity and financial flexibility to meet our obligations, and those of our subsidiaries, as they come due.

Debt

WeTotal ~~have~~debt ~~historically~~at ~~relied~~March 31, ~~via~~2026 ~~DuPont~~and December 31, on2025 ~~cash~~was ~~from~~$4,023 million ~~operating~~and ~~activities~~$4,027 ~~and~~million, ~~access~~respectively. toAs ~~the~~of ~~debt~~March 31, ~~capital~~2026, ~~markets~~we ~~and~~were ~~other~~in ~~sources~~compliance ofwith ~~liquidity~~all toapplicable ~~fund~~covenants included in the terms of our ~~operations.~~debt arrangements.

As of ~~October~~ March 31, ~~2025~~2026, we ~~have~~are ~~incurred~~contractually ~~indebtedness~~obligated into anmake ~~aggregate~~future ~~principal~~cash ~~amount~~payments of $4.1 billion and $1.6 billion Weassociated ~~believe~~with ~~that~~principal ~~our~~and ~~financing~~interest, ~~arrangements~~respectively, ~~future~~on ~~cash~~debt ~~from~~obligations. ~~operations,~~Related ~~and access~~ to ~~capital~~the ~~markets~~principal, $23 million will ~~provide~~be ~~adequate~~due ~~resources~~in tothe ~~fund~~next ~~our~~twelve ~~future~~months ~~cash~~and ~~flow~~the ~~needs.~~remainder Onwill ~~August~~be ~~15,~~due ~~2025,~~subsequent weto ~~issued~~March $12027. ~~billion~~We ~~aggregate~~may address the principal ~~amount~~payment ofwith ~~5.750%~~cash ~~senior~~on ~~secured~~hand, ~~notes~~utilizing ~~due~~existing ~~2032~~credit ~~(the~~facilities, ~~"Senior~~accessing ~~Secured~~the ~~Notes")~~debt ~~and~~capital ~~$750~~markets ~~million~~or ~~aggregate~~a ~~principal~~combination ~~amount~~of any of 6them.~~250%~~ ~~senior~~Related ~~unsecured~~to ~~notes~~interest, $241 million will be due ~~2033~~in (the ~~"Senior~~next ~~Unsecured~~twelve ~~Notes"~~months and, ~~together~~the ~~with~~remainder ~~the~~will ~~Senior~~be ~~Secured~~due ~~Notes,~~subsequent ~~the~~to ~~"Notes").~~March 2027.

OnWe ~~October~~rely ~~31,~~on ~~2025~~cash wefrom ~~entered~~our ~~into~~own ~~(a)~~operating ~~the~~activities, ~~Senior~~borrowings ~~Secured~~available ~~Revolving~~under ~~Facility~~our ~~in the aggregate committed amount of $1.25 billion (up to $100 million of the~~ Senior Secured Revolving Facility ~~will be available for the issuance of letters of credit)~~, and ~~(b)~~access ~~the~~to ~~Senior Secured Term Loan Facility in~~ the ~~aggregate~~capital ~~principal~~markets ~~amount~~to offund ~~$2.35~~our ~~billion~~operations. The ~~Senior~~servicing ~~Secured~~of ~~Revolving~~this ~~Facility~~debt ~~was~~will ~~not~~be ~~utilized~~supported, atin ~~the consummation of the Separation~~part, ~~other~~by ~~than~~cash ~~with~~flows ~~respect~~from toour ~~the~~existing ~~issuance of letters of credit~~operations. The ~~Notes~~cost and ~~the~~availability ~~Senior~~of ~~Secured Credit Facilities include various customary covenants including those relating to~~ debt ~~incurrence,~~financing ~~liens,~~is ~~restricted~~influenced ~~payments,~~by ~~assets~~our ~~sales,~~credit ~~and~~ratings ~~transactions with affiliates, changes in control,~~ and ~~mergers~~market ~~or sales of all or substantially all of our assets~~conditions. ~~See Note 12 to the unaudited interim Combined Financial Statements for additional information.~~

We expect to rely on cash from our own operating activities, borrowings available under our Senior Secured Revolving Facility, and access to the capital markets to fund our operations. The servicing of this debt will be supported, in part, by cash flows from our existing operations. The cost and availability of debt financing will be influenced by our future credit ratings and market conditions.

Dividends

On ~~November~~December 129, 2025, the ~~Company announced that its~~ Board of Directors declared a quarterly dividend of $0.0608 per share ~~payable~~for each share of issued and outstanding common stock of the Company. The dividend was paid on ~~December~~March 1516, ~~2025,~~2026 to stockholders of record on ~~November~~February 2827, ~~2025~~2026.

On April 15, 2026, the Company announced that its Board of Directors declared a quarterly dividend of $0.08 per share payable on June 15, 2026, to stockholders of record on May 29, 2026.

Recently Issued Accounting Pronouncements

For a discussion of recently issued accounting pronouncements, see Note 2 to the unaudited interim ~~Combined~~Consolidated Financial Statements in this Quarterly Report.

Critical Accounting Estimates

There have been no material changes in our critical accounting estimates from those disclosed under the heading "Critical Accounting Estimates" inwithin ~~our~~Part ~~Information Statement~~II, ~~dated~~Item ~~October 15, 2025, filed as Exhibit 99~~7.1 to“Management's ~~our~~Discussion ~~Current~~and ~~Report~~Analysis onof ~~Form~~Financial ~~8-K~~Condition ~~filed~~and ~~with~~Results ~~the~~of ~~SEC~~Operations” onin ~~October~~our ~~15,~~Annual ~~2025~~Report.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

For ~~our~~the Company’s disclosures about market risk, please see ~~the~~“Part II—Item ~~information under the heading "~~7A—Quantitative and Qualitative Disclosures ~~about~~About Market Risk"” in ~~our~~the ~~Information~~Company’s ~~Statement, dated October 15,~~ 2025, ~~filed~~Annual ~~as Exhibit 99.1 to our Current~~ Report ~~on Form 8-K~~ filed with the ~~Securities and Exchange Commission on October 15, 2025~~SEC. There have been no material changes to ~~our~~the ~~disclosure~~Company’s disclosures about market risk in ~~our~~Part II—Item ~~Information~~7A ~~Statement~~of the Company’s 2025 Annual Report.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

As of ~~September~~March 3031, ~~2025~~2026, our Chief Executive Officer ("CEO") and Interim Chief Financial Officer ("Interim CFO"), together with management, conducted an evaluation of the effectiveness of our disclosure controls and procedures (as that term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended). Based on that evaluation, the CEO and Interim CFO concluded that these disclosure controls and procedures ~~are~~were effective ~~and~~at ~~during~~ the ~~three~~reasonable ~~months~~assurance ~~ended~~level ~~September~~as ~~30,~~of ~~2025~~March 31, ~~there were no changes in our internal controls over financial reporting~~2026.

~~Prior~~Changes toin ~~November~~Internal 1,Control ~~2025, we relied on certain material processes and internal controls~~ over ~~financial~~Financial reporting performed by DuPont. As a result of the Separation from DuPont on November 1, 2025, we are in the process of reviewing, revising and adopting policies, as needed, to meet all regulatory requirements applicable to us as an independent, publicly traded company. In addition, in connection with our Separation, we entered into Transition Services Agreements, pursuant to which DuPont will continue to provide certain information technology, administrative and other services on a transitional basis. Reporting

38There were no changes in our internal control over financial reporting during the three months ended March 31, 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Notwithstanding the above, prior to November 1, 2025, we relied on certain material processes and internal controls over financial reporting performed by DuPont. In connection with our Separation, we entered into Transition Services Agreements, pursuant to which DuPont will continue to provide certain information technology, administrative and other services on a transitional basis. During the quarter ended March 31, 2026, we exited certain of the services being provided under the Transition Services Agreements. Management remains responsible for the effectiveness of disclosure controls and procedures and evaluated the information and services provided under these arrangements through oversight and monitoring controls.

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Qnity Electronics, Inc. PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

In the normal course of business, the Company and its subsidiaries are subject to various litigation matters, including, but not limited to, patent infringement claims, employment claims, including alleged wage and hour violations, and commercial claims. It is the opinion of the Company’s management that the possibility is remote that the aggregate of all such claims and lawsuits will have a material adverse impact on the results of operations, financial condition and cash flows of the Company.

ITEM 1A. RISK FACTORS

There have been no material changes into ~~the~~our ~~Company's~~ risk factors ~~from~~as ~~those~~previously disclosed ~~under~~in ~~the~~Part ~~heading~~I, Item 1A, "Risk Factors," inof our ~~Information~~Annual ~~Statement,~~Report ~~dated~~on ~~October~~Form ~~15,~~10-K ~~2025,~~for ~~filed~~the asyear ~~Exhibit~~ended ~~99.1~~December to31, ~~our~~2025, ~~Current Report on Form 8-K~~ filed with the ~~Securities~~SEC ~~and Exchange Commission~~ on ~~October~~February 1526, ~~2025~~2026.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

~~Not~~Issuer ~~applicable.~~Purchases of Equity Securities

On February 20, 2026, the Company's Board of Directors approved a share repurchase authorization of up to $500 million of common stock (the "$500M Authorization"). The $500M Authorization has no expiration date and will terminate upon completion of authorized repurchase or earlier termination by the Board of Directors.

The following table provides information regarding purchases of the Company’s common stock by or on behalf of the Company or any of its "affiliated purchasers" as defined in Rule 10b-18(a)(3) under the Securities Exchange Act of 1934, as amended, during each month during the three months ended March 31, 2026


Period	Total number of shares purchased(1)	Average price paid per share(2)		Total number of shares purchased as part of publicly announced plans or programs(3)	Approximate dollar value of shares that may yet be purchased under the plans or programs (in millions)(4)
January 1 - January 31, 2026	—	$	—	—	$	—
February 1 - February 28, 2026	—	—		—	500
March 1 - March 31, 2026	219,581	113.78		219,581	475
Total	219,581	$	113.78	219,581	$	475

(1) All the shares of common stock purchased recorded in this column were purchased pursuant to the Company’s publicly announced share repurchase authorization.

(2) Average price paid per share of common stock excludes brokerage commissions.

(3) On February 26, 2026, the Company publicly announced the $500M Authorization. Under the $500M Authorization, which has no expiration date, repurchases of common stock may be effected from time to time, either on the open market (including pre-set trading plans) or other transactions in accordance with applicable securities laws. timing and amount of repurchases under the program will depend on a variety of factors. The $500M Authorization may be modified, suspended or discontinued at any time without prior notice.

(4) The dollar amount shown represents, as of the end of each period, the approximate dollar value of shares of the Company’s common stock that may yet be purchased under the $500M Authorization, exclusive of any brokerage commissions.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

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ITEM 5. OTHER INFORMATION

Trading Arrangements

During the three months ended ~~September~~March 3031, ~~2025~~2026, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.

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ITEM 6. EXHIBITS

			EXHIBIT NO.						DESCRIPTION
			2.1+						Separation and Distribution Agreement by and between DuPont de Nemours, Inc. and Qnity Electronics, Inc. (Incorporated by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K (File No. 001-42619) filed with the SEC on November 3, 2025).
			3.1						Amended and Restated Certificate of Incorporation of Qnity Electronics, Inc. (Incorporated by reference to Exhibit 3.2 to the Company’s Current Report on Form 8-K (File No. 001-42619) filed with the SEC on November 3, 2025).
			3.2						Certificate of Designation of Qnity Electronics, Inc. (included in Exhibit 3.2) (Incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K (File No. 001-42619) filed with the SEC on November 3, 2025).
			3.3						Amended and Restated Bylaws of Qnity Electronics, Inc. (Incorporated by reference to Exhibit 3.3 to the Company’s Current Report on Form 8-K (File No. 001-42619) filed with the SEC on November 3, 2025).
			4.1						Indenture, dated as of August 15, 2025, by and between Qnity Electronics, Inc. and U.S. Bank Trust Company, National Association, as trustee and notes collateral agent (incorporated by reference to Exhibit 10.7 to Amendment No. 4 to Qnity Electronics, Inc.’s registration statement on Form 10, filed with the U.S. Securities and Exchange Commission on September 29, 2025).
			31.1*						Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
			4.2						Indenture, dated as of August 15, 2025, by and between Qnity Electronics, Inc. and U.S. Bank Trust Company, National Association, as trustee (incorporated by reference to Exhibit 10.8 to Amendment No. 4 to Qnity Electronics, Inc.’s registration statement on Form 10, filed with the U.S. Securities and Exchange Commission on September 29, 2025).
			31.2*						Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
			4.3						First Supplemental Indenture, dated as of November 1, 2025, by and among Qnity Electronics, Inc., the U.S. Guarantors and U.S. Bank Trust Company, National Association, as trustee and notes collateral agent (Incorporated by reference to Exhibit 4.2 to the Company’s Current Report on Form 8-K (File No. 001-42619) filed with the SEC on November 3, 2025).
			32.1**						Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
			4.4						Second Supplemental Indenture, dated as of November 2, 2025, by and among Qnity Electronics, Inc., the Foreign Guarantors and U.S. Bank Trust Company, National Association, as trustee and notes collateral agent (Incorporated by reference to Exhibit 4.3 to the Company’s Current Report on Form 8-K (File No. 001-42619) filed with the SEC on November 3, 2025).
			32.2**						Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
			4.5						First Supplemental Indenture, dated as of November 1, 2025, by and among Qnity Electronics, Inc., the U.S. Guarantors and U.S. Bank Trust Company, National Association, as trustee (Incorporated by reference to Exhibit 4.5 to the Company’s Current Report on Form 8-K (File No. 001-42619) filed with the SEC on November 3, 2025).
			10.1#						Qnity Electronics, Inc.’s Form of Performance-Based Restricted Stock Unit Award (Incorporated by reference to Exhibit 10.13 to the Company’s Annual Report on Form 10-K (File No. 001-42619) filed with the SEC on February 26, 2026).
			4.6						Second Supplemental Indenture, dated as of November 2, 2025, by and among Qnity Electronics, Inc., the Foreign Guarantors and U.S. Bank Trust Company, National Association, as trustee (Incorporated by reference to Exhibit 4.6 to the Company’s Current Report on Form 8-K (File No. 001-42619) filed with the SEC on November 3, 2025).
			10.2#						Qnity Electronics, Inc.’s Form of Restricted Stock Unit Award (Incorporated by reference to Exhibit 10.14 to the Company’s Annual Report on Form 10-K (File No. 001-42619) filed with the SEC on February 26, 2026).
			10.1						Letter Agreement, dated as of June 1, 2019, by and between DuPont de Nemours, Inc. (f/k/a DowDuPont Inc.) and Corteva, Inc. (Incorporated by reference to Exhibit 10.5 to the Company’s Registration Statement on Form 10, as amended (File No. 001-42619) filed with the SEC on September 29, 2025).
			101.INS						XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
			10.2						Tax Matters Agreement, effective as of November 1, 2025, by and between DuPont de Nemours, Inc. and Qnity Electronics, Inc. (Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K (File No. 001-42619) filed with the SEC on November 3, 2025).
			101.SCH						XBRL Taxonomy Extension Schema Document.
			10.3						Employee Matters Agreement, effective as of November 1, 2025, by and between DuPont de Nemours, Inc. and Qnity Electronics, Inc. (Incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K (File No. 001-42619) filed with the SEC on November 3, 2025).
			101.CAL						XBRL Taxonomy Extension Calculation Linkbase Document.
			10.4						Transition Services Agreement, effective as of November 1, 2025, by and between DuPont Specialty Products USA, LLC and EKC Advanced Electronics USA, LLC (Incorporated by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K (File No. 001-42619) filed with the SEC on November 3, 2025).
			101.DEF						XBRL Taxonomy Extension Definition Linkbase Document.
			10.5						Intellectual Property Cross-License Agreement, effective as of November 1, 2025, by and among DuPont de Nemours, Inc., Qnity Electronics, Inc. and certain of their respective affiliates (Incorporated by reference to Exhibit 10.4 to the Company’s Current Report on Form 8-K (File No. 001-42619) filed with the SEC on November 3, 2025).
			101.LAB						XBRL Taxonomy Extension Label Linkbase Document.
			10.6						Legacy Liabilities Assignment Agreement, effective as of November 1, 2025, by and between DuPont de Nemours, Inc. and Qnity Electronics, Inc. (Incorporated by reference to Exhibit 10.5 to the Company’s Current Report on Form 8-K (File No. 001-42619) filed with the SEC on November 3, 2025).
			101.PRE						XBRL Taxonomy Extension Presentation Linkbase Document.
			10.7						Credit Agreement, effective as of October 31, 2025, by and among Qnity Electronics, Inc., JPMorgan Chase Bank, N.A. and the other parties thereto (Incorporated by reference to Exhibit 10.6 to the Company’s Current Report on Form 8-K (File No. 001-42619) filed with the SEC on November 3, 2025).
			104						Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).
			10.8						Qnity Electronics, Inc.’s Equity and Incentive Plan (Incorporated by reference to Exhibit 4.4 to the Company’s Registration Statement on Form S-8 (File No. 333-291198) filed with the SEC on October 31, 2025).

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			10.9						Electronics, Inc.’s Stock Accumulation and Deferred Compensation Plan for Directors (Incorporated by reference to Exhibit 4.5 to the Company’s Registration Statement on Form S-8 (File No. 333-291198) filed with the SEC on October 31, 2025).
			10.10*						Qnity Electronics, Inc.’s Senior Executive Severance Plan.
			10.11*						Qnity Electronics, Inc.’s Management Deferred Compensation Plan.
			10.12*						Qnity Electronics, Inc.’s Retirement Savings Restoration Plan.
			31.1*						Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
			31.2*						Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
			32.1**						Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
			32.2**						Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
			101.INS						XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
			101.SCH						XBRL Taxonomy Extension Schema Document.
			101.CAL						XBRL Taxonomy Extension Calculation Linkbase Document.
			101.DEF						XBRL Taxonomy Extension Definition Linkbase Document.
			101.LAB						XBRL Taxonomy Extension Label Linkbase Document.
			101.PRE						XBRL Taxonomy Extension Presentation Linkbase Document.
			104						Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

+ Certain schedules or similar attachments have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The registrant agrees to furnish supplemental copies of any of the omitted schedules or attachments upon request by the SEC.

*Filed herewith

** Furnished herewith and not deemed to be “filed” for purposes of Section 18 of the Exchange Act and shall not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act (whether made before or after the date of this Quarterly Report on Form 10-Q), irrespective of any general incorporation language contained in such filing.

~~The~~# ~~agreements~~Indicates ~~and~~a ~~other~~management ~~documents~~contract ~~filed as exhibits to this report are not intended to provide factual information~~ or ~~other~~compensatory ~~disclosure~~plan ~~except for the terms of the agreements~~ or ~~other documents themselves, and you should not rely on them for other than that purpose~~arrangement. In particular, any representations and warranties made by the Company in these agreements or other documents were made solely within the specific context of the relevant agreement or document and do not apply in any other context or at any time other than the date they were made.

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Qnity Electronics, Inc. Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

QNITY ELECTRONICS, INC.

Registrant

Date: ~~November~~May 1812, ~~2025~~2026

By: /s/ ~~Michael~~MICHAEL G. ~~Goss~~GOSS Name: Michael G. Goss Title: ~~Vice~~Interim ~~President~~Chief ~~and~~Financial ~~Controller~~Officer ~~City:~~(Authorized ~~Wilmington~~Signatory, ~~State:~~Principal ~~Delaware~~Financial Officer and Principal Accounting Officer)

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