Solstice Advanced Materials, Inc. (SOLS)
NASDAQ:SOLS
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Solstice Advanced Materials, Inc.
(NASDAQ:SOLS)
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Rating:51Neutral
Price Target:
$83.00
▲(1.27% Upside)
Action:Reiterated
Date:06/14/26
The score is primarily held back by weakened financial quality (margin compression, higher leverage, and materially lower free cash flow). Earnings-call commentary and reaffirmed guidance provide a constructive near-term outlook and liquidity comfort, while technicals are only mildly supportive and valuation remains challenging due to the very high P/E despite the large dividend yield.
Positive Factors
Strong secular demand in priority end-markets
Multiple end markets driving durable revenue growth: refrigerants, nuclear and electronic materials showed double-digit growth and are tied to long-term secular trends (AI/datacenters, semiconductors, nuclear expansion). These structural demand drivers support revenue visibility and capacity utilization over the next several years.
Negative Factors
Sharp increase in leverage
The balance sheet moved from conservative to highly levered within a year, materially reducing financial flexibility. Elevated leverage increases interest expense sensitivity, constrains strategic optionality during downturns, and raises refinancing and covenant risk over a multi-quarter horizon.
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Positive Factors
Negative Factors
Strong secular demand in priority end-markets
Multiple end markets driving durable revenue growth: refrigerants, nuclear and electronic materials showed double-digit growth and are tied to long-term secular trends (AI/datacenters, semiconductors, nuclear expansion). These structural demand drivers support revenue visibility and capacity utilization over the next several years.
Read all positive factors
Solstice Advanced Materials, Inc. (SOLS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.59B
Dividend YieldN/A
Average Volume (3M)1.85M
Price to Earnings (P/E)127.0
Beta (1Y)0.06
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees102,000
SectorTechnology
Sector Strength88
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)1.31
Shares Outstanding158,804,280
10 Day Avg. Volume1,581,349
30 Day Avg. Volume1,853,850
Financial Highlights & Ratios
PEG Ratio-0.74
Price to Book (P/B)5.48
Price to Sales (P/S)1.99
P/FCF Ratio75.02
Enterprise Value/Market Cap1.13
Enterprise Value/Revenue3.84
Enterprise Value/Gross Profit12.32
Enterprise Value/Ebitda17.87
Forecast
1Y Price Target
$91.75Price Target Upside11.94% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)2.68
Revenue Forecast (FY)$4.07B
Solstice Advanced Materials, Inc. Business Overview & Revenue Model
Company Description
Solstice Advanced Materials, Inc. functions as a dedicated provider of specialized materials. Its cutting-edge solutions are instrumental across numerous industries and diverse applications, encompassing refrigerants, semiconductor manufacturing p...
Solstice Advanced Materials, Inc. Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive outlook: strong top‑line growth (10% y/y), robust cash generation ($199M operating cash flow), and standout subsegment performance (Electronic Materials +21%, Nuclear +27%, Refrigerants +19%) combined with reaffirmed full‑year guidance and active high‑return investments (Spokane expansion, ballistic fibers). Headwinds include margin pressure from refrigerant mix and higher R&D, one‑time/stand‑alone costs that weighed on GAAP income, an atypical noncontrolling interest item, some end‑market softness in Building Solutions, and modest geopolitical/input‑cost risks. Management emphasized disciplined capital allocation, conservative leverage (net leverage ~1.4x), and expectation of sequential refrigerant margin improvement, supporting a constructive near‑term outlook.Positive Updates
Revenue Growth Exceeds Guidance
Net sales of $991 million in Q1 2026, up 10% year‑over‑year and exceeding the top end of quarterly guidance.
Negative Updates
Margin Pressure from Refrigerant Mix and R&D
Adjusted EBITDA was flat at $249 million but adjusted EBITDA margin declined year‑over‑year to 25.1; Refrigerants & Applied Solutions adjusted EBITDA fell 3% y/y and margin declined 522 basis points to 34.1%, primarily due to refrigerant mix shifts during the HFO transition and higher R&D spending.
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Q1-2026 Updates
Positive
Negative
Revenue Growth Exceeds Guidance
Net sales of $991 million in Q1 2026, up 10% year‑over‑year and exceeding the top end of quarterly guidance.
Read all positive updates
Company Guidance
Solstice reaffirmed its full‑year 2026 guidance of net sales $3.9–$4.1 billion, adjusted EBITDA $975 million–$1.025 billion and adjusted diluted EPS $2.45–$2.75, with full‑year capital expenditures of $400–$425 million; for Q2 it expects net sales of $1.06–$1.10 billion and an adjusted EBITDA margin of ~25–26% (including ~$10 million of planned downtime expense) and modest sequential margin expansion, driven by continued momentum in Refrigerants, Nuclear, Electronic Materials and Safety & Defense Solutions. This confidence follows a strong Q1 (net sales $991 million, +10% YoY; adjusted EBITDA $249 million; adj. EBITDA margin 25.1%; adjusted diluted EPS $0.63; operating cash flow $199 million; free cash flow $124 million; Q1 CapEx $82 million) and is supported by a solid balance sheet (long‑term debt $2.0 billion; cash $642 million; net debt ≈ $1.3 billion; net leverage ≈ 1.4x; $1.0 billion revolver availability; total liquidity ≈ $1.6 billion) and a quarterly dividend of $0.075 per share.Solstice Advanced Materials, Inc. Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
39
Negative
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 |
|---|---|---|---|---|
Income Statement | ||||
| Total Revenue | 3.98B | 3.89B | 3.77B | 3.65B |
| Gross Profit | 1.24B | 1.25B | 1.30B | 1.28B |
| EBITDA | 856.00M | 918.00M | 966.00M | 1.05B |
| Net Income | 107.00M | 237.00M | 422.00M | 621.00M |
Balance Sheet | ||||
| Total Assets | 5.75B | 5.67B | 5.00B | 4.66B |
| Cash, Cash Equivalents and Short-Term Investments | 642.00M | 534.00M | 661.00M | 606.00M |
| Total Debt | 2.42B | 2.43B | 416.00M | 229.00M |
| Total Liabilities | 4.28B | 4.30B | 1.82B | 1.63B |
| Stockholders Equity | 1.49B | 1.41B | 3.26B | 3.11B |
Cash Flow | ||||
| Free Cash Flow | 141.00M | 103.00M | 546.00M | 461.00M |
| Operating Cash Flow | 499.00M | 455.00M | 842.00M | 760.00M |
| Investing Cash Flow | -348.00M | -330.00M | -298.00M | -324.00M |
| Financing Cash Flow | -244.00M | -235.00M | -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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $7.99B | 10.08 | 15.40% | 3.34% | 27.93% | 102.14% | |
75 Outperform | $9.32B | 12.53 | 23.38% | 0.01% | 4.59% | 88.44% | |
72 Outperform | $4.57B | 13.78 | 29.51% | 1.52% | 6.46% | 9.92% | |
62 Neutral | $4.93B | 11.72 | 5.33% | 5.30% | 134.47% | -36.39% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | $5.39B | -6.77 | 245.82% | 2.17% | 69.89% | -184.51% | |
51 Neutral | $13.59B | 127.00 | 5.82% | ― | ― | ― |
* Technology Sector Average
SOLS
Solstice Advanced Materials, Inc.
85.57
37.26
77.13%
AMG
Affiliated Managers
352.90
168.39
91.26%
HLNE
Hamilton Lane
82.22
-51.47
-38.50%
JHG
Janus Henderson Group
51.88
15.84
43.95%
STEP
StepStone Group
45.20
-6.60
-12.74%
OTF
Blue Owl Technology Finance Corp.
10.66
-3.54
-24.90%
Solstice Advanced Materials, Inc. Corporate Events
Executive/Board ChangesShareholder Meetings
Solstice Shareowners Reelect Directors and Affirm Governance Practices
Positive
May 22, 2026
At its Annual Meeting of Shareowners held on May 22, 2026, Solstice Advanced Materials Inc. shareowners elected four Class I directors, Peter Gibbons, Rose Lee, William Oplinger, and Patrick Ward, to two-year terms expiring at the 2028 annual meet...
Dividends
Solstice Advanced Materials Declares Regular Quarterly Cash Dividend
Positive
Apr 27, 2026
Solstice Advanced Materials Inc., a global specialty materials producer, supplies high-performance products for critical applications ranging from refrigerants and semiconductor manufacturing to data center cooling, nuclear power, protective fiber...
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.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.