Slide 1: First-Quarter 2025 Investor Call
First-Quarter 2025 Investor Call Corning Reports First-Quarter 2025 Financial Results April 29, 2025 1
Slide 2: Forward-Looking and Cautionary Statements
Forward-Looking and Cautionary Statements The statements contained in this presentation and related comments by management that are not historical facts or information and contain words such as “will,” “believe,” “anticipate,” “expect,” “intend,” “plan,” “seek,” “see,” “would,” “target,” “estimate,”
Slide 3: Q1 GAAP Earnings: FX Hedge Accounting and Other Charges
Q1 GAAP EARNINGS FX Hedge Accounting and Other Charges • Recorded realized gains and unrealized, non-cash mark-to-market losses on currency-hedging contracts for a net after-tax loss of $77M – Translation hedges reduce our economic exposure to currency fluctuations, providing higher certainty for ou
Slide 4: First-Quarter 2025 Core Performance
CEO PERSPECTIVE First-Quarter 2025 Core Performance $3.7B Q1 Core Sales “Today, we announced strong first-quarter results that exceeded guidance. 13% Increase YoY Core sales grew 13% year over year and core EPS grew three times faster. In Optical Communications, sales in our Enterprise business were
Slide 5: Tariff Impact and Springboard Delivery Questions
CEO PERSPECTIVE "What is the financial impact of tariffs?" Manufacture products close to our customers Serves as a natural hedge against tariff structures and mitigates financial impact Direct financial impact of existing tariffs Approximately $0.01-$0.02 impact in Q2 Significant U.S. Advanced Manuf
Slide 6: Direct Impact of Tariffs
CEO PERSPECTIVE Direct Impact of Tariffs Manufacture products close to our customers Geographic proximity leads to better innovation Serves as a natural hedge against global trade tensions and tariffs Direct impact of current tariffs is minimal © 2025 Corning Incorporated 11 CEO PERSPECTIVE Direct I
Slide 7: Direct Impact of Tariffs - China and Total
CEO PERSPECTIVE Direct Impact of Tariffs - China Manufacture products close to our customers Serves as a natural hedge against global trade tensions and tariffs Minimal exposure in China 80% of sales in China made in China or processed in customs-approved tax- and duty-free zones Majority of remaini
Slide 8: Springboard – Internal Plan
CEO PERSPECTIVE 34 Advanced Manufacturing Facilities Across 15 States © 2025 Corning Incorporated 15 CEO PERSPECTIVE Springboard – Internal Plan INCREMENTAL ANNUALIZED SALES RUN-RATE VS. Q4’23 $6B $6B internal plan fueled by secular trends Incremental Annualized Sales vs. Q4’23 ($B) Equates to $19B
Slide 9: Springboard – Upgraded Plans
CEO PERSPECTIVE Springboard – Upgraded Plans INCREMENTAL ANNUALIZED SALES RUN-RATE VS. Q4’23 $6B $2B risk adjustment Incremental Annualized Sales vs. Q4’23 ($B) $4B $6B internal plan translated into $4B+ high-confidence plan Equates to $17B annualized sales run-rate by end of 2026 © 2025 Corning Inc
Slide 10: Optical Communications and Solar
CEO PERSPECTIVE Optical Communications Enterprise Networks Upgraded 2023-2027 Enterprise sales CAGR from 25% to 30% Q1 sales up 106% YoY Carrier Networks Data Center Interconnect (DCI); accelerating ramp plans to meet growing demand, driven by Gen AI Conditions in place for Carrier business to sprin
Slide 11: Display and Automotive
CEO PERSPECTIVE Display Increased price in 2H’24 to maintain stable USD net income On track to deliver 2025 net income of $900M-950M and net income margin of 25% Q1 net income margin of 26.9% © 2025 Corning Incorporated 21 CEO PERSPECTIVE Automotive Expect to almost triple sales in automotive glass
Slide 12: Mobile Consumer Electronics and CEO Summary
CEO PERSPECTIVE Mobile Consumer Electronics "More Corning" approach driving growth as customers adopt new higher-value innovations Major innovation streams remain on track Expect new technologies to drive growth entering 2026 © 2025 Corning Incorporated 23 CEO Summary Growth trends remain intact Dir
Slide 13: CFO Perspective: Core Performance and Outlook
CFO PERSPECTIVE First-Quarter 2025 Core Performance $3.7B Q1 Core Sales “In the first quarter, we continued to improve our return profile. Year-over-year, core 13% Increase YoY sales grew 13%, core EPS was up 42%, and we expanded operating margin 250 basis points and core ROIC by 300 basis points. O
Slide 14: Segment Recap: Optical Communications and Display
SEGMENT RECAP Optical Communications Q1 Results $1.36B • Q1 Sales of $1.36B, up 46% YoY Q1 Net Sales • Q1 Net income of $201M, up 101% YoY – reflecting strong incremental Up 46% YoY profit on higher volume Observations $201M • Q1 growth driven by Enterprise Network business, up 106% YoY Q1 Net Incom
Slide 15: Segment Recap: Specialty Materials and Automotive
SEGMENT RECAP Specialty Materials Q1 Results $501M • Q1 Sales of $501M, up 10% YoY Q1 Net Sales • Q1 Net income of $74M, up 68% YoY Up 10% YoY Observations • Increase in Q1 sales and net income driven by continued strong demand $74M for premium glass for mobile devices Q1 Net Income Up 68% YoY © 202
Slide 16: Segment Recap: Automotive and Life Sciences
SEGMENT RECAP Automotive Q1 Results $440M • Q1 Sales of $440M, down 10% YoY – primarily driven by continued Q1 Net Sales softness in light- and heavy-duty European markets, as expected Down 10% YoY • Q1 Net income of $68M, down 13% YoY Observations $68M • North America Class 8 market continues to la
Slide 17: Hemlock and Emerging Growth Businesses; Cash Flow
SEGMENT RECAP Hemlock and Emerging Growth Businesses Q1 Results $244M • Q1 Sales of $244M, down 11% YoY Q1 Net Sales • Q1 Net loss of $16M Down 11% YoY Observations • Results do not include Automotive Glass Solutions business $(16)M • Results include Solar; continue to ramp production for new solar
Slide 18: Capital Allocation and CFO Summary
CFO PERSPECTIVE Capital Allocation Upgraded Springboard plans include higher sales and higher profit 2024 adjusted free cash flow increased 42% YoY Prioritize investing for organic growth opportunities Growing through innovation creates the most value for shareholders Seek to maintain strong and eff
Slide 19: Q&A Session
Q&A Session Corning’s 2025 Investor Outreach Plans • May 14 – J.P. Morgan 53rd Annual Global Technology, Media and Communications Conference • Management visits to investor offices in select cities © 2025 Corning Incorporated 38 19
Slide 20: 2025 Corporate Metrics
Appendix 2025 Corporate Metrics (as of April 29, 2025)(1)(2) Q2 2025 • Core Sales: ~$3.85B • Other income/expense: (~$70M-$75M) • Non-controlling interest (~$35M) expense • Core EPS: $0.55-$0.59 Full-Year 2025 • SG&A and RD&E: ~$3.0B • Other income/expense: (~$300M) • Gross equity earnings: ~$15M •
Slide 21: Q1 2025 Core Performance and Operating Performance by Segment
Q1 2025 Core Performance Q1 Q4 Q1 $ in millions, except EPS 2025 2024 2024 Core Net Sales $3,679 $3,874 $3,258 Core Gross Margin $1,395 $1,494 $1,200 Gross Margin % 38% 39% 37% Core SG&A $463 $501 $441 % of Sales 13% 13% 14% Core RD&E $271 $276 $255 % of Sales 7% 7% 8% Core Operating Income $661 $71
Slide 22: Solar and Semiconductor; New Automotive Reporting Segment
Solar and Semiconductor Q1 Q2 Q3 Q4 FYQ4 Q1 $ in millions 2024 2024 2024 2024 2024 2025 Net Sales $216 $199 $194 $256 $865 $206 Net Income $36 $34 $31 $46 $147 $27 Results include polycrystalline silicon and solar wafers. Core performance measures are non-GAAP measures. Definitions and reconciliatio
Slide 23: Adjusted Free Cash Flow Reconciliation
Adjusted Free Cash Flow Reconciliation Q1 Q1 $ in millions 2025 2024 Cash flows from operating activities $151 $96 Realized gains on translated earnings contracts and other $56 $94 Adjusted cash flows from operating activities $207 $190 Less: Capital expenditures $208 $252 Adjusted free cash flow $(
Slide 24: Return on Invested Capital
Return on Invested Capital At Corning Return on Invested Capital (ROIC) is calculated based on the Core performance. We define ROIC as follows: Operating Income Tax Adjusted (Return) ROIC = Equity+Debt (Invested Capital) Numerator = Return (Operating Income Denominator = Invested Capital Tax Adjuste
Slide 25: Q1 2024 and 2025 GAAP to Core Reconciliation
Q1 2024 and 2025 GAAP to Core Reconciliation (Earnings Deck) Income Net income Gross Gross Operating Operating Equity before attributable to Tax Rate Q1 2025 Net sales margin margin % SG&A RD&E income margin % earnings income Corning (a) Per Share taxes Incorporated As reported - GAAP $3,452 $1,214
Slide 26: Corning
CORNING 26