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
▼(-19.47% Downside)
Action:Reiterated
Date: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
$13.42B
Dividend YieldN/A
Average Volume (3M)2.15M
Price to Earnings (P/E)35.6
Beta (1Y)-0.09
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. Volume2,827,671
30 Day Avg. Volume2,151,912
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 Cap1.13
Enterprise Value/Revenue3.88
Enterprise Value/Gross Profit12.40
Enterprise Value/Ebitda16.79
Forecast
1Y Price Target
$89.86Price Target Upside9.64% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)2.7
Revenue Forecast (FY)$4.06B
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: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.
Read all updates
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
72
Positive
Balance Sheet
78
Positive
Cash Flow
75
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 |
|---|---|---|---|---|
Income Statement | ||||
| Total Revenue | 3.91B | 3.89B | 3.77B | 3.65B |
| Gross Profit | 1.23B | 1.25B | 1.30B | 1.28B |
| EBITDA | 904.50M | 975.00M | 966.00M | 1.05B |
| Net Income | 206.50M | 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 | 79.00M | 0.00 | 546.00M | 461.00M |
| Operating Cash Flow | 333.00M | 0.00 | 842.00M | 760.00M |
| Investing Cash Flow | -246.00M | 0.00 | -298.00M | -324.00M |
| Financing Cash Flow | -337.00M | 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $7.98B | 21.14 | 15.40% | 3.34% | 27.93% | 102.14% | |
74 Outperform | $7.96B | 16.79 | 23.38% | 0.01% | 4.59% | 88.44% | |
74 Outperform | $4.75B | 21.34 | 29.38% | 1.52% | 10.37% | 4.67% | |
69 Neutral | $13.42B | 35.57 | 11.24% | ― | ― | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $6.20B | -10.33 | 783.65% | 2.17% | 54.12% | -316.77% | |
56 Neutral | $5.05B | -6.54 | 5.33% | 5.30% | 134.47% | -36.39% |
* Technology Sector Average
SOLS
Solstice Advanced Materials, Inc.
84.48
36.13
74.72%
AMG
Affiliated Managers
301.34
125.30
71.17%
HLNE
Hamilton Lane
85.11
-73.89
-46.47%
JHG
Janus Henderson Group
51.80
15.98
44.61%
STEP
StepStone Group
52.00
-2.78
-5.07%
OTF
Blue Owl Technology Finance Corp.
10.92
-3.89
-26.28%
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.