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CORNING INC /NY

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Business Summary

Corning Incorporated operates in markets including optical communications, display, mobile consumer electronics, automotive, life sciences, semiconductors and solar. The company applies expertise in glass science, ceramic science and optical physics, along with deep manufacturing and engineering capabilities, to develop category-defining products. Corning manufactures products in 14 countries and operates in five reportable segments: Optical Communications, Display, Specialty Materials, Automotive and Life Sciences. The company's markets are served by industry-leading products such as damage-resistant cover materials for mobile devices, precision glass for advanced displays, optical fiber cable and connectivity solutions for advanced communications networks enabling artificial intelligence, trusted products to accelerate drug discovery and delivery, and clean-air technologies and technical glass for cars and trucks.

Corning maintains a leadership position in the Optical Communications segment's principal product groups, which include carrier and enterprise networks. The company is the largest worldwide producer of glass substrates for flat panel displays. In the Automotive segment, Corning maintains a strong market position with automotive ceramic substrate and filter products and technical glass solutions. Principal competitors named in the filing include Amphenol, Fujikura, Sumitomo and Prysmian Group S.p.A. for Optical Communications; AGC Inc. and Nippon Electric Glass Co., Ltd. for Display; Schott AG, AGC Inc., Nippon Electric Glass Co., Ltd., Heraeus and JENOPTIK Industrial Metrology Germany GmbH for Specialty Materials; NGK Insulators, Ltd., Ibiden Co., Ltd., AGC Inc. and LENS for Automotive; and Thermo Fisher Scientific Inc., Avantor, Inc., Greiner AG, Eppendorf SE, Sarstedt AG & Co. KG and Danaher Corporation for Life Sciences. The company's competitive advantage lies in its commitment to research and development, deep customer relationships, reliability of supply, product quality, superior customer service and technical specification of its products.

Corning generates revenue through the manufacture and sale of products across five reportable segments: Optical Communications, Display, Specialty Materials, Automotive and Life Sciences, as well as Hemlock and Emerging Growth Businesses. The company's revenue is primarily transactional, generated by delivery of products to customers and recognized at a point in time when the customer obtains control. Most of the company's revenue is generated by delivery of products to customers and recognized at a point in time based on evaluation of when the customer obtains control of the products. A relatively small number of end customers account for a high percentage of net sales in each business segment, with the Display segment having 3 combined end customers accounting for 59% of total segment net sales in 2025, the Automotive segment having 3 combined end customers accounting for 61%, and the Specialty Materials segment having 2 combined end customers accounting for 43%.

The Optical Communications segment represented 38% of Corning's total segment net sales in 2025. This segment is divided into carrier network and enterprise network product groupings. The carrier network group consists primarily of products for optical-based communications infrastructure for services such as video, data and voice communications, including Vascade optical fibers for submarine networks, LEAF optical fiber for long-haul networks, SMF-28e ULL and TXF fiber, ClearCurve ultra-bendable single-mode fiber, and cable products including the RocketRibbon and miniXtend portfolios. The enterprise network group consists primarily of optical-based communication networks sold to businesses, governments and individuals, leveraging ClearCurve ultra-bendable multimode fiber for data centers and the Edge8 platform for high-density pre-connectorized cabling solutions. The Display segment represented 23% of Corning's total segment net sales in 2025 and manufactures glass substrates for flat panel displays including LCDs and OLEDs used primarily in televisions, notebook computers, desktop monitors, tablets and handheld devices, utilizing a proprietary fusion manufacturing process. The Specialty Materials segment represented 13% of Corning's total segment net sales in 2025 and manufactures products that provide more than 150 material formulations for glass, glass ceramics and crystals, as well as precision optics, components and metrology instruments, including Corning Gorilla Glass for mobile consumer electronic devices, semiconductor optics including HPFS Fused Silica and ULE Ultra-Low Expansion Glass, and Corning EXTREME ULE Glass introduced in 2024. The Automotive segment represented 11% of Corning's total segment net sales in 2025 and manufactures ceramic substrates and filter products for emissions control as well as technical glass and optic products for vehicle interiors and exteriors, including AutoGrade Gorilla Glass, 3D ColdForm Technology and Fusion5 Glass. The Life Sciences segment represented 6% of Corning's total segment net sales in 2025 and provides consumables such as plastic vessels, liquid handling plastics, specialty surfaces, cell culture media and serum, as well as general labware, glassware and equipment under the Corning, Falcon, PYREX and Axygen brands. Hemlock and Emerging Growth Businesses represented 9% of Corning's total segment net sales in 2025 and is primarily comprised of the results of Hemlock Semiconductor Group, a leading provider of high-purity polysilicon products for the solar power and electronics industries, as well as businesses that transform polysilicon into solar wafers and solar modules, pharmaceutical technologies business, and the emerging innovations group.

In April 2025, the Company acquired 100% of the equity interests in a U.S. solar module manufacturing facility. The total fair value of purchase consideration was $278 million , consisting of $17 million in cash paid at closing, $111 million in notes payable due within 2025, and $150 million in potential contingent consideration. Of the $111 million in notes payable, payments of $33 million and $42 million were made in the third quarter and fourth quarter, respectively. The contingent consideration is comprised of annual earn-out payments with a final payment due in the sixth post-closing year, with the final payment being the lesser of $98 million or an amount based on the net liquidation value of the acquired entity. Fair value at the acquisition date was $104 million for the annual earn-out payments and $46 million for the final payment. As of December 31, 2025, the fair value of the contingent consideration was $136 million . During the year ended December 31, 2025, the Company received $490 million relating to new customer contracts. In 2019, the Board authorized the repurchase of up to $5.0 billion of additional common stock, and as of December 31, 2025, approximately $3.0 billion remains available under this authorization. During the year ended December 31, 2025, the Company purchased $163 million of common stock for treasury. The Company paid dividends of $971 million during the year ended December 31, 2025. Capital expenditures were $1.3 billion during the year ended December 31, 2025.

For the year ended December 31, 2025, net sales increased by $2.5 billion , or 19% , when compared to the same period in 2024. Gross margin increased by $1.3 billion , or 31% , and gross margin as a percentage of net sales increased by 3 percentage points when compared to 2024. Income before income taxes increased $1.2 billion as compared to 2024. Net income attributable to Corning Incorporated was $1.596 billion for the year ended December 31, 2025, compared to $506 million for the year ended December 31, 2024. Diluted earnings per share was $1.83 for 2025 compared to $0.58 for 2024. Core net sales were $16.408 billion for the year ended December 31, 2025, compared to $14.469 billion for the year ended December 31, 2024. Core net income was $2.199 billion for 2025 compared to $1.699 billion for 2024. Core earnings per share was $2.52 for 2025 compared to $1.96 for 2024.

Business Outlook

For the first quarter of 2026, management expects core net sales in the range of approximately $4.2 billion to $4.3 billion .

In the third quarter of 2023, Corning introduced its Springboard plan to grow sales and enhance profitability, communicating a high-confidence plan to add $3 billion in incremental annualized core sales by the end of 2026, and in March 2025 upgraded this high-confidence plan to $4 billion . The company also set a core operating margin target of 20% by the end of 2026. As of the fourth quarter of 2025, the company achieved both its growth and profitability targets a full year ahead of plan. The company sees remarkable demand for its innovations and manufacturing capabilities, which it believes will lead to additional growth opportunities through 2026 and beyond, and therefore expects to increase both its capacity and technology capabilities as required to achieve its goals.

The Optical Communications segment's growth is driven by continued growth in the Enterprise business driven by strong demand for Generative AI products, and in the Carrier business, driven by demand for datacenter interconnect products and fiber-to-the-home products. The Specialty Materials segment's growth is driven by continued strong demand for premium glass for mobile devices and growth in the Gorilla Glass solutions business. Hemlock and Emerging Growth Businesses growth is driven by growth in polysilicon and solar module sales for the solar industry. The company's recent entry into the solar industry faces risks specific to this sector, such as dependence on government manufacturing tax incentives, exposure to policy and regulatory changes, and complexities in sourcing specialized components.

The company achieved a core operating margin target of 20% by the end of 2026 a full year ahead of plan. Gross margin as a percentage of net sales increased by 3 percentage points when compared to 2024 driven by higher volume and the impact of actions taken by management to improve profitability, including raising prices, reducing costs and increasing productivity. Selling, general and administrative expenses decreased as a percentage of net sales by 1 percentage point when compared to 2024. Research, development and engineering expenses decreased as a percentage of net sales by 1 percentage point when compared to 2024.

The company expects its 2026 capital expenditures to be approximately $1.7 billion . In 2026, the Company anticipates making voluntary cash contributions of $40 million to its domestic defined benefit pension plan and $12 million to the international pension plans. Capital expenditures for pollution control are estimated to be $18.9 million in 2026.

The company expects to increase both its capacity and technology capabilities as required to achieve its goals, while sharing risk appropriately to achieve the returns that underpin its Springboard plan. The company's global pension plans, including unfunded and non-qualified plans, were 85% funded as of December 31, 2025. The largest single pension plan, the U.S. qualified plan, which accounted for 77% of consolidated defined benefit pension plans' projected benefit obligation, was 97% funded as of December 31, 2025.

Inflationary price pressures and uncertain availability of commodities, raw materials, utilities, labor or other inputs used by the company and its suppliers, or instability in logistics and related costs, could negatively impact profitability. The company faces risks related to fluctuations in telecommunication and hyperscale data center capital spending, which may negatively affect the demand for its products. The company has significant exposure to foreign currency movements, with a large portion of sales, costs, profit and cash flows transacted in non-U.S. dollar currencies, primarily the Japanese yen, South Korean won, Chinese yuan, New Taiwan dollar, Mexican peso, and euro. As of December 31, 2025, with respect to open foreign exchange forward, option and cross currency swap contracts and foreign denominated debt with values exposed to exchange rate movements, a 10% adverse movement in quoted foreign currency exchange rates could result in a loss in fair value of these instruments of $1.0 billion . Specific to the Japanese yen, a 10% adverse movement in quoted yen exchange rates could result in a loss in fair value of these instruments of $0.4 billion as of December 31, 2025.

The company faces risks associated with the launch of new businesses, including execution challenges, regulatory compliance, supply chain complexity, and uncertainty in market demand and competitive conditions. In connection with its recent entry into the solar industry, the company faces risks specific to this sector, such as dependence on government manufacturing tax incentives, exposure to policy and regulatory changes, and complexities in sourcing specialized components. The company's Optical Communications and Display segments generate a significant amount of the company's profits and cash flow; any significant decrease in pricing, volume or market share could have a material and negative impact on financial results. The company has a concentrated customer base, with a relatively small number of end customers accounting for a high percentage of net sales in each business segment.

Risk Factors

The company's Optical Communications and Display segments generate a significant amount of the company's profits and cash flow; any significant decrease in pricing, volume or market share could have a material and negative impact on financial results. The company has a concentrated customer base, with 3 combined end customers accounting for 59% of Display segment net sales, 3 combined end customers accounting for 61% of Automotive segment net sales, and 2 combined end customers accounting for 43% of Specialty Materials segment net sales in 2025. The company has significant exposure to foreign currency movements, with a 10% adverse movement in quoted foreign currency exchange rates potentially resulting in a loss in fair value of derivative instruments and foreign denominated debt of $1.0 billion . The company faces risks associated with the launch of new businesses, including its recent entry into the solar industry, which involves dependence on government manufacturing tax incentives and exposure to policy and regulatory changes. The company is subject to strict environmental regulations and as of December 31, 2025 had accrued approximately $89 million for the estimated undiscounted liability for environmental cleanup and related litigation.

Management Priorities

Management's tone is one of strong confidence and achievement, emphasizing that the Springboard plan has been a tremendous success. The company communicated that as of the fourth quarter of 2025, it achieved both its growth and profitability targets a full year ahead of plan, serving as an example of how the company has transformed its financial profile over the last two years. Management stated that the company has established a firm foundation from which to launch future profitable growth. For the first quarter of 2026, management expects core net sales in the range of approximately $4.2 billion to $4.3 billion . The strategic priorities emphasized for the period ahead include increasing both capacity and technology capabilities as required to achieve goals, while sharing risk appropriately to achieve the returns that underpin the Springboard plan.

View Source Annual Report on SEC.gov ↗

References

  1. [1] Item 8, Note 3 — Acquisition
  2. [2] Item 8, Note 3 — Acquisition
  3. [3] Item 8, Note 3 — Acquisition
  4. [4] Item 8, Note 3 — Acquisition
  5. [5] Item 8, Note 3 — Acquisition
  6. [6] Item 8, Note 3 — Acquisition
  7. [7] Item 8, Note 3 — Acquisition
  8. [8] Item 8, Note 3 — Acquisition
  9. [9] Item 8, Note 3 — Acquisition
  10. [10] Item 8, Note 3 — Acquisition
  11. [11] Item 8, Note 9 — Other Assets and Other Liabilities
  12. [12] Item 8, Note 4 — Revenue
  13. [13] Item 7, MD&A — Liquidity and Capital Resources
  14. [14] Item 7, MD&A — Liquidity and Capital Resources
  15. [15] Item 8, Consolidated Statements of Cash Flows
  16. [16] Item 8, Consolidated Statements of Changes in Shareholders' Equity
  17. [17] Item 7, MD&A — Liquidity and Capital Resources
  18. [18] Item 7, MD&A — Results of Operations
  19. [19] Item 7, MD&A — Results of Operations
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  21. [21] Item 7, MD&A — Results of Operations
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  23. [23] Item 7, MD&A — Results of Operations
  24. [24] Item 8, Consolidated Statements of Income
  25. [25] Item 8, Consolidated Statements of Income
  26. [26] Item 8, Consolidated Statements of Income
  27. [27] Item 8, Consolidated Statements of Income
  28. [28] Item 7, MD&A — Core Performance Measures
  29. [29] Item 7, MD&A — Core Performance Measures
  30. [30] Item 7, MD&A — Core Performance Measures
  31. [31] Item 7, MD&A — Core Performance Measures
  32. [32] Item 7, MD&A — Core Performance Measures
  33. [33] Item 7, MD&A — Core Performance Measures
  34. [34] Item 7, MD&A — Overview
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  37. [37] Item 7, MD&A — Overview
  38. [38] Item 7, MD&A — Overview
  39. [39] Item 7, MD&A — Results of Operations
  40. [40] Item 7, MD&A — Results of Operations
  41. [41] Item 7, MD&A — Results of Operations
  42. [42] Item 7, MD&A — Liquidity and Capital Resources
  43. [43] Item 7, MD&A — Liquidity and Capital Resources
  44. [44] Item 7, MD&A — Liquidity and Capital Resources
  45. [45] Item 1, Business — Protection of the Environment
  46. [46] Item 7, MD&A — Liquidity and Capital Resources
  47. [47] Item 7, MD&A — Liquidity and Capital Resources
  48. [48] Item 7, MD&A — Liquidity and Capital Resources
  49. [49] Item 7A, Quantitative and Qualitative Disclosures About Market Risks
  50. [50] Item 7A, Quantitative and Qualitative Disclosures About Market Risks
  51. [51] Item 1A, Risk Factors
  52. [52] Item 1A, Risk Factors
  53. [53] Item 1A, Risk Factors
  54. [54] Item 7A, Quantitative and Qualitative Disclosures About Market Risks
  55. [55] Item 3, Legal Proceedings
  56. [56] Item 7, MD&A — Overview
  57. [57] Item 8, Consolidated Statements of Income
  58. [58] Item 8, Consolidated Statements of Income
  59. [59] Item 8, Consolidated Statements of Income
  60. [60] Item 8, Consolidated Statements of Income
  61. [61] Item 8, Consolidated Statements of Income
  62. [62] Item 8, Consolidated Statements of Income
  63. [63] Item 8, Consolidated Statements of Income
  64. [64] Item 8, Consolidated Statements of Income
  65. [65] Item 7, MD&A — Results of Operations
  66. [66] Item 7, MD&A — Results of Operations
  67. [67] Item 8, Consolidated Statements of Income
  68. [68] Item 8, Consolidated Statements of Income
  69. [69] Item 8, Consolidated Statements of Cash Flows
  70. [70] Item 8, Consolidated Statements of Cash Flows
  71. [71] Item 7, MD&A — Liquidity and Capital Resources
  72. [72] Item 7, MD&A — Liquidity and Capital Resources
  73. [73] Item 8, Consolidated Balance Sheets
  74. [74] Item 8, Consolidated Balance Sheets
  75. [75] Item 7, MD&A — Results of Operations
  76. [76] Item 7, MD&A — Results of Operations
  77. [77] Item 8, Note 2 — Restructuring, Impairment and Other Charges and Credits
  78. [78] Item 8, Note 2 — Restructuring, Impairment and Other Charges and Credits
  79. [79] Item 8, Note 2 — Restructuring, Impairment and Other Charges and Credits
  80. [80] Item 7, MD&A — Segment Analysis
  81. [81] Item 7, MD&A — Segment Analysis
  82. [82] Item 7, MD&A — Segment Analysis
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Analysis on 6/9/2026