Solstice Advanced Materials, Inc. (SOLS)
NASDAQ:SOLS
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Solstice Advanced Materials, Inc.
(NASDAQ:SOLS)
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Rating:69Neutral
Price Target:
$66.00
▼(-11.94% Downside)
Action:ReiteratedDate:01/16/26
The score is driven primarily by solid financial quality (strong cash generation and low leverage) but moderated by declining profitability margins. Technically, the trend is strong, yet overbought indicators raise near-term risk. Valuation confidence is limited due to missing P/E and dividend yield data, and the latest earnings-call read-through is mixed given spin-off impacts and margin/cash-flow pressures despite improved guidance and strong orders.
Positive Factors
Strong cash conversion & FCF growth
High operating cash flow relative to net income and double-digit free cash flow growth indicate durable cash-generation capacity. This strengthens the company's ability to fund R&D, capex, debt servicing and strategic investments without relying on external financing, improving long-term resilience.
Negative Factors
Declining profitability margins
Sustained margin compression reduces internal funding for growth and weakens returns on invested capital. If driven by structural cost or pricing pressures, the decline limits ability to rebuild margins and could force trade-offs between pricing, investment and margin restoration over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash conversion & FCF growth
High operating cash flow relative to net income and double-digit free cash flow growth indicate durable cash-generation capacity. This strengthens the company's ability to fund R&D, capex, debt servicing and strategic investments without relying on external financing, improving long-term resilience.
Read all positive factors
Solstice Advanced Materials, Inc. (SOLS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.13B
Dividend YieldN/A
Average Volume (3M)3.32M
Price to Earnings (P/E)32.6
Beta (1Y)0.17
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees102,000
SectorTechnology
Sector Strength88
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.26
Shares Outstanding158,747,540
10 Day Avg. Volume4,741,954
30 Day Avg. Volume3,319,300
Financial Highlights & Ratios
PEG Ratio-0.74
Price to Book (P/B)5.48
Price to Sales (P/S)1.99
P/FCF Ratio0.00
Enterprise Value/Market Cap1.16
Enterprise Value/Revenue3.61
Enterprise Value/Gross Profit11.22
Enterprise Value/Ebitda14.78
Forecast
1Y Price Target
$84.00Price Target Upside12.07% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)2.8
Revenue Forecast (FY)$4.02B
Solstice Advanced Materials, Inc. Business Overview & Revenue Model
Company Description
Solstice Advanced Materials, Inc. operates as a specialty materials company. Its solutions enable industries and applications, including refrigerants, semiconductor manufacturing, data center cooling, alternative energy, protective fibers, healthc...
How the Company Makes Money
Solstice Advanced Materials generates revenue through multiple streams, including the sale of advanced materials to various industries, contract manufacturing services, and licensing of its proprietary technologies. The company typically engages i...
Solstice Advanced Materials, Inc. Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call presents a mix of near-term headwinds—most notably margin pressure from transitory costs, refrigerant product-mix shifts, plant downtime, and a one-time nuclear loan repayment—alongside strong top-line momentum, a robust backlog (> $2B), targeted capacity investments across nuclear, electronic materials, and defense, and conservative but constructive 2026 guidance that targets margin recovery to ~25%. Balance sheet strength (net leverage ~1.5x, ~$1.5B liquidity), initiation of a dividend, and prioritized high-return capital deployment support a positive medium-term outlook despite near-term profitability compression.Positive Updates
Revenue Growth — Full Year and Quarter
Full year 2025 net sales of $3.9 billion, up 3% year-over-year (would be +6% ex-opportunistic 2024 nuclear sales). Fourth quarter 2025 net sales of $987 million, up 8% year-over-year.
Negative Updates
Profitability Compression — Q4 and FY EBITDA Declines
Full-year adjusted standalone EBITDA $957 million, down 4% YoY (margin 24.6%). Q4 adjusted standalone EBITDA $189 million, down 20% YoY with margin of 19.1% (significant quarter-on-quarter margin compression).
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Q4-2025 Updates
Positive
Negative
Revenue Growth — Full Year and Quarter
Full year 2025 net sales of $3.9 billion, up 3% year-over-year (would be +6% ex-opportunistic 2024 nuclear sales). Fourth quarter 2025 net sales of $987 million, up 8% year-over-year.
Read all positive updates
Company Guidance
Solstice provided full-year 2026 guidance of net sales $3.9–$4.1 billion, adjusted EBITDA $975–$1,025 million, adjusted diluted EPS $2.45–$2.75 and capital expenditures $400–$425 million (anchored to a midpoint implying low single‑digit revenue growth and mid‑single‑digit adjusted EBITDA growth versus 2025 at the midpoint); it also issued Q1 2026 guidance of net sales $935–$985 million and adjusted EBITDA $235–$245 million (implying an ~25% adjusted EBITDA margin), while noting assumptions that include a ~$30 million revenue headwind from the final nuclear loan return and an ~ $30 million cost impact from TSAs, continued momentum in refrigerants, nuclear and electronic materials, an anticipated roll‑off of certain costs boosting sequential margins, a target to return to ~25% EBITDA margin in 2026 and beyond, expected nuclear production >10 kt in 2026 (≈20% above planned 2024 capacity) and longer‑term double‑digit nuclear EBITDA CAGR to 2030; balance sheet metrics cited include ROIC ≈19%, long‑term debt $2.0 billion, cash $534 million, net debt ≈$1.4 billion, and ~ $1.5 billion total liquidity, and the company initiated a $0.75 per‑share quarterly dividend.Solstice Advanced Materials, Inc. Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
75
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 |
|---|---|---|---|
Income Statement | |||
| Total Revenue | 3.89B | 3.77B | 3.65B |
| Gross Profit | 1.25B | 1.30B | 1.28B |
| EBITDA | 953.33M | 966.00M | 1.05B |
| Net Income | 237.00M | 422.00M | 621.00M |
Balance Sheet | |||
| Total Assets | 5.67B | 5.00B | 4.66B |
| Cash, Cash Equivalents and Short-Term Investments | 534.00M | 661.00M | 606.00M |
| Total Debt | 2.43B | 416.00M | 229.00M |
| Total Liabilities | 4.30B | 1.82B | 1.63B |
| Stockholders Equity | 1.41B | 3.26B | 3.11B |
Cash Flow | |||
| Free Cash Flow | 0.00 | 546.00M | 461.00M |
| Operating Cash Flow | 0.00 | 842.00M | 760.00M |
| Investing Cash Flow | 0.00 | -298.00M | -324.00M |
| Financing Cash Flow | 0.00 | -453.00M | -378.00M |
Solstice Advanced Materials, Inc. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $7.93B | 4.52 | 16.35% | 3.34% | 14.48% | 34.97% | |
73 Outperform | $5.25B | 21.34 | 29.38% | 1.52% | 13.01% | 21.96% | |
72 Outperform | $7.09B | 11.47 | 22.04% | 0.01% | 1.08% | 8.24% | |
69 Neutral | $12.13B | 32.60 | 10.08% | ― | ― | ― | |
65 Neutral | $5.35B | 8.26 | 9.00% | 5.30% | ― | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
51 Neutral | $5.61B | -10.33 | 783.65% | 2.17% | 92.02% | -1386.34% |
* Technology Sector Average
SOLS
Solstice Advanced Materials, Inc.
76.42
28.07
58.05%
AMG
Affiliated Managers
265.51
107.46
67.99%
HLNE
Hamilton Lane
94.19
-44.33
-32.00%
JHG
Janus Henderson Group
51.50
19.70
61.95%
STEP
StepStone Group
47.05
0.57
1.23%
OTF
Blue Owl Technology Finance Corp.
11.49
-3.32
-22.43%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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