Qnity Electronics Inc

NYSE:Q

Strong year: Qnity said 2025 was its seventh straight quarter of strong organic growth, with full-year net sales up 10% to $4.75 billion and adjusted operating EBITDA up 11% to $1.4 billion.

2026 outlook: Management guided 2026 net sales to $4.97 billion-$5.17 billion, adjusted operating EBITDA to $1.465 billion-$1.575 billion, and adjusted EPS to $3.55-$3.95.

AI tailwind: The company said AI and high-performance computing are driving demand in advanced nodes, advanced packaging, interconnects and thermal management, with data centers the biggest end market benefit.

Cash use: Qnity generated $706 million of adjusted free cash flow in 2025, ended the year with more than $900 million of cash, and authorized a $500 million share repurchase program.

Transformation plan: Management launched a multiyear plan expected to deliver about $100 million of EBITDA run-rate benefit by the end of 2028, with about $140 million of cost to achieve over the next 2 to 3 years.

Quarterly tone: First-quarter revenue is expected to grow high single digits sequentially, with a similar margin profile to the fourth quarter, and management said demand appears steadier through the year than in past cycles.