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Solstice Advanced Materials, Inc. (SOLS)
NASDAQ:SOLS
US Market

Solstice Advanced Materials, Inc. (SOLS) AI Stock Analysis

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Solstice Advanced Materials, Inc. (SOLS) vs. SPDR S&P 500 ETF (SPY)

Solstice Advanced Materials, Inc. Business Overview & Revenue Model

Company DescriptionSolstice 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, healthcare packaging, and other. The company is based in Morris Plains, New Jersey.
How the Company Makes MoneySolstice 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 in long-term contracts with key clients in sectors like aerospace and automotive, providing a stable revenue base. Additionally, SOLS may collaborate with research institutions and other companies for joint development projects, which can lead to new product offerings and increased market reach. Strategic partnerships with industry leaders also enhance SOLS's credibility and market presence, driving further sales through co-marketing and distribution agreements.

Solstice Advanced Materials, Inc. Earnings Call Summary

Earnings Call Date:Nov 06, 2025
(Q3-2025)
|
Next Earnings Date:Feb 11, 2026
Earnings Call Sentiment Neutral
Honeywell displayed strong order growth and improved guidance, with notable successes in Aerospace and Building Automation. However, challenges remain in Energy and Sustainability Solutions and Industrial Automation margins, alongside the impact of the Solstice spin-off.
Q3-2025 Updates
Positive Updates
Record Order Growth
Orders grew 22% organically to $11.9 billion, driven by broad-based growth across all four segments, with Aerospace and long-cycle energy projects leading the way.
Increased Guidance
Honeywell raised its 2025 EPS guidance for the third time this year despite the impact of the Solstice spin-off, showcasing strong performance and confidence in future growth.
Strong Aerospace Performance
Aerospace Technologies grew 12% organically, led by commercial aftermarket and Defense and Space, with orders showing strong double-digit growth across all markets.
Building Automation Growth
Building Automation delivered high single-digit growth, with organic sales increasing 7% driven by strength in both building solutions and products.
Quantinuum Capital Raise
Quantinuum completed a second capital raise at double the prior valuation, attracting partnerships with major companies like NVIDIA and JPMorgan.
Negative Updates
Energy and Sustainability Solutions Challenges
ESS segment faced a 2% organic decline due to licensing and catalyst delivery delays, with full-year margins expected to contract by roughly 1 point.
Industrial Automation Margin Pressure
Industrial Automation's segment margin declined 150 basis points to 18.8% due to inflationary pressures, despite a return to 1% organic growth.
Free Cash Flow Decline
Third-quarter free cash flow was down 16% from the prior year, influenced by capital expenditures timing and higher working capital requirements.
Impact of Solstice Spin-Off
The impending Solstice spin-off is expected to reduce 2025 sales by $700 million, adjusted EPS by $0.21, and free cash flow by $200 million.
Company Guidance
During the Honeywell Third Quarter 2025 Earnings Conference Call, the company provided guidance for the fourth quarter and updated its full-year 2025 outlook. Honeywell announced a raise in their full-year EPS guidance for the third time this year, despite the impact of the impending spin-off of Solstice Advanced Materials. The company reported that organic sales growth for the year is anticipated to be approximately 6%, with segment margin expected to increase by 30 to 40 basis points. For the fourth quarter, Honeywell projected organic sales growth between 8% and 10%, translating to sales of $10.1 billion to $10.3 billion, with anticipated segment margins ranging from 22.5% to 22.8%. The company also highlighted a 22% organic growth in orders, driven by strong performance across its four segments, which positions them well for future growth. Honeywell plans to reorganize its segments into four business units starting in 2026, as it continues to simplify its portfolio and drive long-term growth and margin expansion.

Solstice Advanced Materials, Inc. Financial Statement Overview

Summary
Solstice Advanced Materials, Inc. shows steady revenue growth and strong cash flow generation. However, declining profitability margins and a decrease in return on equity indicate potential challenges. The company's low leverage and solid equity base provide a cushion against potential risks.
Income Statement
Solstice Advanced Materials, Inc. shows a modest revenue growth rate of 3.32% in the latest year, indicating steady expansion. However, there is a decline in profitability margins, with the net profit margin decreasing from 17.02% to 11.19%. The EBIT and EBITDA margins also show a downward trend, suggesting potential challenges in cost management or operational efficiency.
Balance Sheet
The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.13, indicating prudent financial leverage. The return on equity is healthy at 12.95%, although it has decreased from the previous year's 19.96%. The equity ratio stands at 65.10%, reflecting a solid equity base relative to total assets.
Cash Flow
Solstice Advanced Materials, Inc. demonstrates positive cash flow dynamics with a free cash flow growth rate of 18.44%. The operating cash flow to net income ratio is robust at 0.78, suggesting efficient cash generation relative to earnings. The free cash flow to net income ratio is also strong at 0.65, indicating good cash conversion.
BreakdownTTMDec 2024Dec 2023
Income Statement
Total Revenue1.88B3.77B3.65B
Gross Profit607.00M1.30B1.28B
EBITDA398.00M966.00M1.05B
Net Income-74.00M422.00M621.00M
Balance Sheet
Total Assets5.25B5.00B4.66B
Cash, Cash Equivalents and Short-Term Investments417.00M661.00M606.00M
Total Debt432.00M416.00M229.00M
Total Liabilities2.07B1.82B1.63B
Stockholders Equity3.23B3.26B3.11B
Cash Flow
Free Cash Flow49.00M546.00M461.00M
Operating Cash Flow254.00M842.00M760.00M
Investing Cash Flow-204.00M-298.00M-324.00M
Financing Cash Flow-444.00M-453.00M-378.00M

Solstice Advanced Materials, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$7.17B14.1011.10%3.34%14.48%34.97%
77
Outperform
$8.09B26.5731.85%1.52%13.01%21.96%
74
Outperform
$8.66B18.7615.95%0.01%1.08%8.24%
74
Outperform
$6.58B8.1610.58%5.30%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
45
Neutral
$8.16B-8.88-750.11%2.17%92.02%-1386.34%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SOLS
Solstice Advanced Materials, Inc.
AMG
Affiliated Managers
307.31
130.48
73.79%
HLNE
Hamilton Lane
146.70
9.04
6.57%
JHG
Janus Henderson Group
47.91
8.73
22.28%
STEP
StepStone Group
71.06
14.56
25.77%
OTF
Blue Owl Technology Finance Corp.
14.23
-0.91
-6.01%

Solstice Advanced Materials, Inc. Corporate Events

Honeywell’s Earnings Call: Strong Growth Amid Challenges
Nov 6, 2025

Honeywell’s recent earnings call revealed a generally positive sentiment, marked by robust order growth and an uplifted guidance. The company showcased significant achievements, particularly in its Aerospace and Building Automation sectors, though it continues to face hurdles in Energy and Sustainability Solutions and Industrial Automation margins. The impending Solstice spin-off also presents a notable challenge.

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.Date of analysis: ―