Qnity Electronics, Inc. 10-Q

ITEM 1. FINANCIAL STATEMENTS Qnity Electronics Combined Statements of Operations (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, In millions, except per share amounts 2025 2024 2025 2024 Net sales $ 1,276 $ 1,148 $ 3,564 $ 3,234 Cost of sales 701 609 1,918 1,753 Research and development expenses 92 81 264 230 Selling, general and administrative expenses 159 156 453 461 Amortization of intangibles 51 57 156 177 Restructuring and asset related charges - net 1 4 20 7 Equity in earnings of nonconsolidated affiliates 15 10 37 33 Other income (expense) - net ( 1 ) ( 1 ) ( 3 ) 9 Interest expense 14 — 14 — Income before income taxes $ 272 $ 250 $ 773 $ 648 Provision for income taxes 49 43 153 145 Net income $ 223 $ 207 $ 620 $ 503 Net income attributable to noncontrolling interests 12 8 28 23 Net income available for Qnity common stockholders $ 211 $ 199 $ 592 $ 480 Per common share data: Earnings per common share - basic and diluted $ 1.01 $ 0.95 $ 2.83 $ 2.30 Weighted-average common shares outstanding - basic and diluted 209 209 209 209 See Notes to the Combined Financial Statements. 6 Qnity Electronics Combined Statements of Comprehensive Income (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, In millions 2025 2024 2025 2024 Net income $ 223 $ 207 $ 620 $ 503 Other comprehensive (loss) income, net of tax Cumulative translation adjustments ( 29 ) 147 203 10 Pension benefit plans ( 7 ) — ( 8 ) 1 Total other comprehensive (loss) income $ ( 36 ) $ 147 $ 195 $ 11 Comprehensive income $ 187 $ 354 $ 815 $ 514 Comprehensive income attributable to noncontrolling interests, net of tax 9 18 33 25 Comprehensive income attributable to Qnity $ 178 $ 336 $ 782 $ 489 See Notes to the Combined Financial Statements. 7 Qnity Electronics Condensed Combined Balance Sheets (Unaudited) In millions September 30, 2025 December 31, 2024 Assets Current Assets Cash and cash equivalents $ 128 $ 166 Accounts and notes receivable - net 802 682 Inventories 647 597 Prepaid and other current assets 44 38 Total current assets $ 1,621 $ 1,483 Property, plant and equipment - net of accumulated depreciation (September 30, 2025 - $ 1,388 ; December 31, 2024 - $ 1,121 ) 1,622 1,548 Other Assets Goodwill 7,497 7,379 Other intangible assets 1,160 1,286 Investments and noncurrent receivables 433 394 Deferred income tax assets 44 42 Deferred charges and other assets 135 141 Total other assets $ 9,269 $ 9,242 Total Assets $ 12,512 $ 12,273 Liabilities and Equity Current Liabilities Accounts payable 590 $ 528 Income taxes payable 154 161 Accrued and other current liabilities 166 150 Total current liabilities $ 910 $ 839 Long-Term Debt 1,722 — Other Noncurrent Liabilities Deferred income tax liabilities 189 259 Pensions - noncurrent 71 65 Other noncurrent obligations 233 214 Total other noncurrent liabilities $ 493 $ 538 Total Liabilities $ 3,125 $ 1,377 Commitments and contingent liabilities Equity Parent company net investment 9,347 11,058 Accumulated other comprehensive loss ( 224 ) ( 414 ) Total Qnity equity $ 9,123 $ 10,644 Noncontrolling interests 264 252 Total equity $ 9,387 $ 10,896 Total Liabilities and Equity $ 12,512 $ 12,273 See Notes to the Combined Financial Statements. 8 Qnity Electronics Combined Statements of Cash Flows (Unaudited) Nine Months Ended September 30, In millions 2025 2024 Operating Activities Net income $ 620 $ 503 Adjustments to reconcile net income to net cash provided by (used for) operating activities: Depreciation of property, plant and equipment 124 120 Amortization of definite-lived intangible assets 156 177 Stock-based compensation 12 10 Credit for deferred income tax and other tax related items ( 61 ) ( 54 ) Net gain on sales of assets ( 1 ) ( 2 ) Restructuring and asset related charges - net 20 7 Net periodic pension benefit cost 6 4 Periodic benefit plan contributions ( 3 ) ( 2 ) Earnings of nonconsolidated affiliates less dividends received ( 37 ) ( 33 ) Changes in assets and liabilities: Accounts and notes receivable ( 97 ) ( 87 ) Inventories ( 33 ) ( 84 ) Other assets 13 ( 14 ) Accounts payable 81 149 Accrued and other current liabilities ( 6 ) 78 Other noncurrent liabilities ( 1 ) ( 1 ) Income tax liabilities ( 11 ) 4 Cash provided by operating activities $ 782 $ 775 Investing Activities Capital expenditures ( 214 ) ( 134 ) Other investing activities, net — 1 Cash used for investing activities $ ( 214 ) $ ( 133 ) Financing Activities Distributions to noncontrolling interests ( 21 ) ( 13 ) Net transfers (to) from Parent ( 2,311 ) ( 611 ) Proceeds from issuance of long-term debt 1,750 $ — Payments for debt issuance costs ( 34 ) — Cash used for financing activities $ ( 616 ) $ ( 624 ) Effect of exchange rate changes on cash and cash equivalents 10 ( 2 ) (Decrease) increase in cash and cash equivalents $ ( 38 ) $ 16 Cash and cash equivalents at beginning of period $ 166 $ 139 Cash and cash equivalents at end of period $ 128 $ 155 See Notes to the Combined Financial Statements. 9 Qnity Electronics Combined Statements of Changes in Equity (Unaudited) For the three 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 June 30, 2024 $ 11,173 $ ( 373 ) $ 10,800 $ 240 $ 11,040 Net income 199 — 199 8 207 Other comprehensive income — 137 137 10 147 Net transfers (to) from Parent ( 313 ) — ( 313 ) — ( 313 ) Balance at September 30, 2024 $ 11,059 $ ( 236 ) $ 10,823 $ 258 $ 11,081 Balance at June 30, 2025 $ 11,121 $ ( 191 ) $ 10,930 $ 268 $ 11,198 Net income 211 — 211 12 223 Other comprehensive loss — ( 33 ) ( 33 ) ( 3 ) ( 36 ) Distributions to noncontrolling interests — — — ( 13 ) ( 13 ) Net transfers (to) from Parent ( 1,985 ) — ( 1,985 ) — ( 1,985 ) Balance at September 30, 2025 $ 9,347 $ ( 224 ) $ 9,123 $ 264 $ 9,387 See Notes to the Combined Financial Statements. 10 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. 11 Table of Contents NOTES TO THE COMBINED FINANCIAL STATEMENTS (UNAUDITED) Table of Contents Note Page 1 Basis of Presentation 13 2 Recent Accounting Guidance 14 3 Revenue 15 4 Restructuring and Asset Related Charges - Net 16 5 Related Party Transactions 16 6 Supplementary Information 17 7 Income Taxes 18 8 Earnings Per Share Calculations 19 9 Inventories 19 10 Nonconsolidated Affiliates 19 11 Goodwill and Other Intangible Assets 20 12 Long-Term Debt 21 13 Commitments and Contingent Liabilities 23 14 A ccumulated Other Comprehensive Income (Loss) 23 15 Pension Plans 24 16 Segment Information 25 17 Subsequent Events 27 12 Table of Contents 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” 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"). In the opinion of management, the unaudited interim Combined Financial Statements reflect all adjustments (including normal recurring adjustments) which are considered necessary for the fair statement of the results for the periods presented. Results from interim periods should not be considered indicative of results for the full year. These unaudited interim Combined Financial Statements should also be read in conjunction with the audited annual Combined Financial Statements and notes thereto for the year ended December 31, 2024, collectively referred to as the “2024 Annual Financial Statements” as contained in the Company’s Information Statement, dated October 15, 2025, as filed as Exhibit 99.1 to our Current Report on Form 8-K on October 15, 2025 with the U.S. Securities and Exchange Commission (“SEC”) pursuant to the Securities Act of 1934, as amended. The unaudited interim Combined Financial Statements include the accounts of the Company and all of its subsidiaries in which a controlling interest is maintained. On May 22, 2024, DuPont announced its plan to separate Qnity from DuPont into an independent publicly traded company (the “Separation”). On November 1, 2025 (the "Separation and Distribution Date"), DuPont completed 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 has historically operated as a part of DuPont; consequently, stand-alone interim financial statements have not historically been prepared for Qnity. The unaudited interim Combined Financial Statements have been derived from DuPont’s accounting records as if Qnity’s operations had been conducted independently from those of DuPont and were prepared on a stand-alone basis in accordance with U.S. GAAP. The historical results of operations, financial position and cash flows of Qnity presented in these unaudited interim Combined Financial Statements may not be indicative of what they would have been had Qnity actually been an independent stand-alone entity, nor are they necessarily indicative of Qnity’s future results of operations, financial position and cash flows. The unaudited interim Combined Statements of Operations and Comprehensive Income (Loss) include all revenues and costs directly attributable to Qnity, including costs for facilities, functions and services used by Qnity. The unaudited interim Combined Statements of Operations and Comprehensive Income (Loss) reflect allocations of general corporate expenses from DuPont including, but not limited to, executive management, finance, legal, information technology, employee benefits administration, treasury, risk management, procurement and other shared services, and any restructuring related to these functions. These allocations were made on the basis of revenue, expenses, headcount or other relevant measures. Management considers these allocations to be an overall reasonable reflection of the utilization of services by, or the benefits provided to, Qnity, in the aggregate. Management does not believe, however, that it is practicable to estimate what these expenses would have been had the Company operated as an independent entity, including any expenses associated with obtaining any of these services from unaffiliated entities. The allocations, therefore, may not reflect the expenses Qnity would have incurred as a stand-alone company for the periods presented. The Qnity unaudited interim Condensed Combined Balance Sheets include assets and liabilities that are specifically identifiable or otherwise attributable to Qnity, including subsidiaries and affiliates in which Qnity has a controlling financial interest or is the primary beneficiary. 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. 13 Table of Contents 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 2023, the FASB issued Accounting Standards Update No. 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures" ("ASU 2023-07") to improve disclosure requirements about reportable segments and address requests 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 Operating Decision Maker ("CODM") and included in 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 2023-07 are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, on a retrospective basis. The disclosures have been implemented as required for the three and nine months ended September 30, 2025 and 2024. See Note 16 for more information. Accounting Guidance Issued But Not Adopted at September 30, 2025 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. 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. 14 Table of Contents 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 % of total net sales for each of the three months ended September 30, 2025 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 30, 2025 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 30, Nine Months Ended September 30, In millions 2025 2024 2025 2024 Semiconductor Technologies $ 693 $ 640 $ 1,981 $ 1,834 Interconnect Solutions 583 508 1,583 1,400 Total $ 1,276 $ 1,148 $ 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 15 Table of Contents Net Sales by Segment by Geographic Region Nine Months Ended September 30, 2025 2024 Semiconductor Technologies Interconnect Solutions Total Semiconductor Technologies Interconnect Solutions Total In millions Americas: $ 220 $ 252 $ 472 $ 203 $ 208 $ 411 United States 218 227 445 201 188 389 Other Americas 1 2 25 27 2 20 22 EMEA 2 157 136 293 150 122 272 Asia Pacific: 1,604 1,195 2,799 1,481 1,070 2,551 China 3 545 636 1,181 489 600 1,089 Rest of Asia Pacific: 1,059 559 1,618 992 470 1,462 South Korea 453 80 533 453 77 530 Taiwan 397 133 530 340 103 443 Other 209 346 555 199 290 489 Total $ 1,981 $ 1,583 $ 3,564 $ 1,834 $ 1,400 $ 3,234 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 30, 2025 and 2024. The Company did not recognize any asset impairment charges related to contract assets during the periods. Qnity expects to recognize its noncurrent deferred revenue over a seven-year period beginning in fiscal year 2027. Contract Balances September 30, 2025 December 31, 2024 In millions Accounts receivable - trade 1 $ 688 $ 580 Deferred revenue - current 2 $ 1 $ 1 Deferred revenue - noncurrent 3 $ 35 $ 35 1. Included in "Accounts and notes receivable - net" in the interim Condensed Combined Balance Sheets. 2. Included in "Accrued and other current liabilities" in the interim Condensed Combined Balance Sheets. 3. Included in "Other noncurrent obligations" in the interim Condensed Combined Balance Sheets. NOTE 4 - RESTRUCTURING AND ASSET RELATED CHARGES - NET The Company records restructuring liabilities that represent nonrecurring charges in connection with DuPont-approved restructuring programs in order to simplify certain organizational structures and operations, including operations related to transformational projects such as divestitures and acquisitions. Charges for restructuring programs and asset related charges, which include asset impairments, were $ 1 million and $ 4 million for the three months ended September 30, 2025 and 2024, respectively, and $ 20 million and $ 7 million for the nine months ended September 30, 2025 and 2024, respectively. These charges were recorded in "Restructuring and asset related charges - net" in the unaudited interim Combined Statements of Operations. The total liability related to restructuring programs was $ 8 million and $ 3 million at September 30, 2025 and December 31, 2024, respectively, 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 related charges incurred by segment. NOTE 5 - RELATED PARTY TRANSACTIONS 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 16 Table of Contents Statements. Management considers the allocation methodologies used to be reasonable and appropriate reflections of the historical expenses attributable to Qnity for purposes of 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. Corporate Expense Allocations Qnity’s unaudited interim Combined Statements of Operations include general corporate expenses of DuPont for services provided by DuPont for certain support functions that are provided on a centralized basis. These costs were first attributed to Qnity if specifically identifiable to its businesses. If not specifically identifiable to Qnity’s businesses, these costs have 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: 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 Parent Company Equity Net transfers from (to) Parent are included within Parent company net investment on the unaudited interim Combined Statements of Changes in Equity. The components of the net transfers from (to) Parent are as follows: In millions Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Cash pooling and general financing activities $ ( 1,828 ) $ ( 164 ) $ ( 1,856 ) $ ( 168 ) Less: Corporate cost allocations 76 83 233 237 Less: Taxes deemed settled with Parent 81 66 214 199 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 ( 4 ) — ( 8 ) ( 7 ) 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 30, Nine Months Ended September 30, In millions 2025 2024 2025 2024 Net gain on sales of assets $ 1 $ — $ 1 $ 2 Non-operating pension (costs) credits ( 2 ) 1 ( 2 ) 1 Interest income — — 2 — Foreign exchange gains (losses), net 1 ( 4 ) ( 4 ) 3 Miscellaneous income (expense) - net ( 1 ) 2 — 3 Other income (expense) - net $ ( 1 ) $ ( 1 ) $ ( 3 ) $ 9 17 Table of Contents Accrued and Other Current Liabilities In millions September 30, 2025 December 31, 2024 Accrued payroll $ 86 $ 93 Other 1 80 57 Total accrued and other current liabilities $ 166 $ 150 1. No other component of “Accrued and other current liabilities” was more than 5% of total current liabilities at September 30, 2025 and December 31, 2024. Operating Leases Supplemental balance sheet information related to leases was as follows: In millions September 30, 2025 December 31, 2024 Operating Leases Operating lease right-of-use assets 1 $ 122 $ 127 Current operating lease liabilities 2 28 30 Noncurrent operating lease liabilities 3 97 100 Total operating lease liabilities $ 125 $ 130 1. Included in "Deferred charges and other assets" in the interim Condensed Combined Balance Sheets. 2. Included in "Accrued and other current liabilities" in the interim Condensed Combined Balance Sheets. 3. Included in "Other noncurrent obligations" in the interim Condensed Combined 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 Financial Statements, 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. The Company's effective tax rate fluctuates based on, among other factors, where income is earned and the level of income relative to attributes. The tax provision for the nine months ended September 30, 2025 resulted in an effective tax rate on operations of 19.8 % on pre-tax income of $ 773 million, compared with an effective tax rate of 22.4 %, on pre-tax income of $ 648 million for the nine months ended September 30, 2024. The lower effective tax rate for the first nine months of 2025 in comparison to the first nine months of 2024 resulted from a combination of certain discrete tax expenses incurred in 2024, including the settlement of an international tax audit, offset by changes to the geographic mix of earnings in 2025, including the impacts of the Organisation for Economic Co-Operation and Development's ("OECD") Global Anti-Base Erosion rules under Pillar Two in jurisdictions in which the Company operates. Each year DuPont, inclusive of Qnity, files hundreds of tax returns in the various national, state and local income taxing jurisdictions in which it operates, either as a separate taxpayer or as a member of DuPont’s consolidated income tax return. These tax returns are subject to examination and possible challenge by the tax authorities. Positions challenged by the tax authorities may be settled or appealed by Qnity. The uncertainty in income taxes is recognized in Qnity's interim financial statements in accordance with accounting for income taxes. The ultimate resolution of such uncertainties is not expected to have a material impact on Qnity’s interim results of operations. 18 Table of Contents 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, 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 is 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, 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. 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 9 - INVENTORIES In millions September 30, 2025 December 31, 2024 Finished goods $ 257 $ 214 Work in process 213 209 Raw materials 149 147 Supplies 28 27 Total inventories $ 647 $ 597 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 Balance Sheets. Investments in nonconsolidated affiliates were $ 419 million and $ 382 million at September 30, 2025 and December 31, 2024, respectively. At September 30, 2025 and December 31, 2024, Qnity had a note payable to Hitachi Chem DuP Microsystems LLC, a nonconsolidated affiliate, (the “Related Party Note Payable”) of $ 77 million and $ 31 million, respectively. This Related Party Note Payable arises from an arrangement in which DuPont 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 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 Balance Sheets. 19 Table of Contents 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 months ended September 30, 2025. In millions Semiconductor Technologies Interconnect Solutions Total Balance at December 31, 2024 $ 4,453 $ 2,926 $ 7,379 Currency translation adjustment 91 27 118 Balance at September 30, 2025 $ 4,544 $ 2,953 $ 7,497 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 In millions Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Other intangible assets: Developed technology $ 544 $ ( 336 ) $ 208 $ 605 $ ( 357 ) $ 248 Trademarks/tradenames 55 ( 37 ) 18 55 ( 34 ) 21 Customer-related 2,130 ( 1,196 ) 934 2,353 ( 1,336 ) 1,017 Total other intangible assets $ 2,729 $ ( 1,569 ) $ 1,160 $ 3,013 $ ( 1,727 ) $ 1,286 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 In millions Semiconductor Technologies $ 276 $ 314 Interconnect Solutions 884 972 Total $ 1,160 $ 1,286 20 Table of Contents Total estimated amortization expense for the remainder of 2025 and the 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 NOTE 12 - LONG-TERM DEBT Debt Issuance Costs 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 30, 2025 was $ 1,722 million, comprised of the Secured Notes and Unsecured Notes, as more fully described below. There was no long-term debt due within one year at September 30, 2025. Long-term debt is presented net of unamortized debt issuance costs of $ 28 million and is recorded in "Long-Term Debt" in the interim Condensed Combined Balance Sheets. There is $ 6 million recorded in "Deferred charges and other assets" in the interim Condensed Combined Balance Sheet related to the Senior Secured Credit Facilities (as defined below), of which the debt was not issued prior to September 30, 2025. There was no long-term debt outstanding at December 31, 2024. The gross proceeds of the Notes and the pre-funded 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. The Secured Notes On August 15, 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 Qnity 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. The Secured Notes are jointly and severally and unconditionally guaranteed on a senior secured basis by each Qnity subsidiary that is a borrower, or guarantees indebtedness, under Qnity’s Senior Secured Credit Facilities. Upon the consummation of the Separation (or, with respect to the foreign collateral, the day after the consummation of the Separation), the Secured Notes and related guarantees were secured, subject to permitted liens and certain other exceptions, by first priority liens on substantially the same collateral that secure Qnity’s obligations under its Senior Secured Credit Facilities. The Secured Notes and related guarantees are secured on a pari passu basis with the Senior Secured Credit Facilities. 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. 21 Table of Contents 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. 22 Table of Contents 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, 2025, but such excess amounts cannot be reasonably estimated. Based upon current information, management does not expect any of the matters pending against the Company at September 30, 2025 to have a material impact on its unaudited interim Combined Financial Statements. NOTE 14 - ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) 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 30, 2025 and 2024: 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 ) Other comprehensive loss before reclasses ( 26 ) ( 10 ) ( 36 ) Amounts reclassified from accumulated other comprehensive income — 3 3 Net other comprehensive loss $ ( 26 ) $ ( 7 ) $ ( 33 ) Balance at September 30, 2025 $ ( 237 ) $ 13 $ ( 224 ) 23 Table of Contents 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 employees participate, as eligible, in Qnity’s and DuPont’s sponsored pension plans, including defined benefit plans and defined contribution plans. Where permitted by applicable law, Qnity and DuPont reserve the right to amend, modify, or discontinue the plans at any time. 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. 24 Table of Contents 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 30, Nine Months Ended September 30, In millions 2025 2024 2025 2024 Service cost $ — $ 2 $ 2 $ 4 Interest cost 1 1 4 4 Expected return on plan assets ( 1 ) ( 2 ) ( 3 ) ( 4 ) Curtailment/settlement 3 — 3 — Net periodic benefit costs - total $ 3 $ 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 Statements of Operations. Qnity made $ 1 million of 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. NOTE 16 - SEGMENTS 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 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 playing 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 Operating EBITDA as this is the manner in which the CODM assesses performance and allocates resources. The CODM utilizes Operating EBITDA to assess financial performance and allocate resources by comparing actual results to historical and previously forecasted results. The Company defines 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 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 25 Table of Contents 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 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 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 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 expense in 2025 was driven by interest associated with the Secured and Unsecured Notes. 3. Included in "Other income (expense) - net." 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 September 30, 2025 Semiconductor Technologies Interconnect Solutions Corporate Total In millions Restructuring and asset related charges - net 1 $ — $ — $ ( 1 ) $ ( 1 ) Total $ — $ — $ ( 1 ) $ ( 1 ) 1. Includes restructuring actions and asset related charges. See Note 4 for additional information. 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. Includes restructuring actions and asset related charges. See Note 4 for additional information. 26 Table of Contents Significant Items by Segment for the Nine Months Ended September 30, 2025 Semiconductor Technologies Interconnect Solutions Corporate Total In millions Restructuring and asset related charges - net 1 $ ( 3 ) $ ( 4 ) $ ( 13 ) $ ( 20 ) Employee Retention Credit 2 2 — — 2 Total $ ( 1 ) $ ( 4 ) $ ( 13 ) $ ( 18 ) 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 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. 27 Table of Contents 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. 28 Table of Contents