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Solstice Advanced Materials, Inc.
(NASDAQ:SOLS)
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Rating:52Neutral
Price Target:
$56.00
▼(-10.47% Downside)
Action:Reiterated
Date:07/31/26
The score is held back primarily by weakened financial quality (higher leverage and sharply lower free cash flow) and a clear technical downtrend (price below major moving averages). Offsetting factors include constructive earnings-call signals (raised 2026 guidance and strong H1 cash generation) and a supportive dividend yield, though the elevated P/E tempers the valuation contribution.
Positive Factors
Raised FY2026 guidance & sustained sales growth
Management raised FY2026 sales and EBITDA targets after consecutive strong quarters, signaling durable demand and execution. Higher guidance supports multi-quarter planning, underpins reinvestment and margin recovery assumptions, and reduces uncertainty about near-term organic growth trajectories.
Negative Factors
Material increase in leverage
Leverage jumped sharply in 2025, shifting the balance sheet from conservative to highly levered. Higher debt levels reduce financial flexibility, increase interest obligations and raise sensitivity to macro shocks, making multi-quarter deleveraging and cash generation essential to avoid credit stress.
Read all positive and negative factors
Positive Factors
Negative Factors
Raised FY2026 guidance & sustained sales growth
Management raised FY2026 sales and EBITDA targets after consecutive strong quarters, signaling durable demand and execution. Higher guidance supports multi-quarter planning, underpins reinvestment and margin recovery assumptions, and reduces uncertainty about near-term organic growth trajectories.
Read all positive factors
Solstice Advanced Materials, Inc. (SOLS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.94B
Dividend Yield0.25%
Average Volume (3M)3.60M
Price to Earnings (P/E)47.0
Beta (1Y)-0.03
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees4,100
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)1.33
Shares Outstanding158,847,370
10 Day Avg. Volume3,653,493
30 Day Avg. Volume3,599,306
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$79.33Price Target Upside26.83% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)2.89
Revenue Forecast (FY)$4.08B
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:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The earnings call conveyed strong top-line growth, robust cash generation, targeted high-return reinvestment and strategic M&A that together drove management to raise full-year guidance. Key pockets of strength included refrigerants (HFO transition and data center exposure), electronic materials (15% growth and capacity expansions) and nuclear (27% growth and new supply agreements). However, the quarter experienced margin pressure—primarily in Refrigerants & Applied Solutions—due to plant turnarounds and timing of incentive credits, along with higher growth CapEx and a modest H2 revenue headwind from nuclear product loan returns. On balance, highlights substantially outweigh challenges and management provided clear actions and guidance to restore and expand margins in H2.Positive Updates
Revenue Growth Exceeds Guidance
Consolidated net sales of $1.148 billion in Q2 2026, up 11% year-over-year and above the top end of quarterly guidance; organic net sales growth ~11% (volume and pricing) with a 0.5 point FX tailwind.
Negative Updates
Segment Margin Compression in RAS
RAS adjusted EBITDA of $280 million, down 6% year-over-year with adjusted EBITDA margin of 32.9%, a decline of 648 basis points YoY driven by the timing of plant turnarounds and fewer prior-year production incentive credits.
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Q2-2026 Updates
Positive
Negative
Revenue Growth Exceeds Guidance
Consolidated net sales of $1.148 billion in Q2 2026, up 11% year-over-year and above the top end of quarterly guidance; organic net sales growth ~11% (volume and pricing) with a 0.5 point FX tailwind.
Read all positive updates
Company Guidance
Solstice raised its full‑year 2026 outlook to net sales of $4.125–4.185 billion, adjusted EBITDA of $1.035–1.055 billion, adjusted diluted EPS of $2.75–$2.95, and capital expenditures of $420–440 million (after H1 CapEx of $186 million); it also provided Q3 sales guidance of $990 million–$1.03 billion with margins “around the low‑25%” range, reiterated Q2 adjusted EBITDA margin of 25.3% and Q2 adjusted EBITDA of $290 million/$0.88 adjusted diluted EPS, and said Refrigerants & Applied Solutions should reach mid‑30% adjusted EBITDA margins in H2 2026; modeling notes include an ~($30) million revenue headwind from final nuclear product loan returns skewed to Q4, H1 operating cash flow of $461 million and H1 free cash flow of $248 million, a quarterly dividend of $0.075 per share, and a balance‑sheet position as of June 30 of ~$2.0 billion total debt, ~$750 million cash (net debt ~$1.25 billion, ~1.3x leverage) with ~$1.0 billion revolver availability (~$1.75 billion total liquidity), while management expects net debt to fall to under 3.0x EBITDA within 18 months after closing the Element Solutions deal.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 | 4.09B | 3.89B | 3.77B | 3.65B |
| Gross Profit | 1.25B | 1.25B | 1.30B | 1.28B |
| EBITDA | 891.00M | 918.00M | 966.00M | 1.05B |
| Net Income | 210.00M | 237.00M | 422.00M | 621.00M |
Balance Sheet | ||||
| Total Assets | 5.92B | 5.67B | 5.00B | 4.66B |
| Cash, Cash Equivalents and Short-Term Investments | 750.00M | 534.00M | 661.00M | 606.00M |
| Total Debt | 2.41B | 2.43B | 416.00M | 229.00M |
| Total Liabilities | 4.33B | 4.30B | 1.82B | 1.63B |
| Stockholders Equity | 1.59B | 1.41B | 3.26B | 3.11B |
Cash Flow | ||||
| Free Cash Flow | 179.00M | 103.00M | 546.00M | 461.00M |
| Operating Cash Flow | 606.00M | 455.00M | 842.00M | 760.00M |
| Investing Cash Flow | -427.00M | -330.00M | -298.00M | -324.00M |
| Financing Cash Flow | -254.00M | -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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $9.60B | 11.92 | 26.95% | 0.01% | 11.74% | 108.91% | |
80 Outperform | $5.56B | 15.46 | 31.02% | 2.67% | 24.01% | 25.97% | |
66 Neutral | $5.10B | 8.59 | 4.80% | 16.08% | 94.72% | -55.36% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
53 Neutral | $5.83B | -6.35 | 156.73% | 3.41% | 51.09% | -150.23% | |
52 Neutral | $9.94B | 47.03 | 10.89% | 0.25% | ― | ― |
* Basic Materials Sector Average
SOLS
Solstice Advanced Materials, Inc.
60.09
11.78
24.38%
AMG
Affiliated Managers
363.57
145.95
67.07%
HLNE
Hamilton Lane
101.10
-46.77
-31.63%
STEP
StepStone Group
48.48
-7.93
-14.06%
OTF
Blue Owl Technology Finance Corp.
11.12
-1.98
-15.13%
Solstice Advanced Materials, Inc. Corporate Events
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Solstice Advanced Materials Secures Bridge Financing for Merger
Positive
Jul 27, 2026
On July 24, 2026, Solstice Advanced Materials Inc. amended its existing credit agreement with JPMorgan Chase Bank and consenting lenders to modify the terms of its credit facilities. The changes include arranging $4.685 billion in bridge financing...
Business Operations and StrategyDividends
Solstice Advanced Materials Declares Regular Quarterly Dividend
Positive
Jul 17, 2026
On July 17, 2026, Solstice Advanced Materials announced that its board had declared a regular quarterly dividend of $0.075 per share on its common stock, reflecting the company’s continued commitment to returning cash to shareholders. The di...
Executive/Board ChangesDelistings and Listing ChangesM&A TransactionsRegulatory Filings and Compliance
Solstice Advanced Materials announces Element Solutions merger deal
Positive
Jul 7, 2026
On July 6, 2026, Solstice Advanced Materials Inc. signed a merger agreement to acquire Element Solutions Inc. via a two-step reorganization, leaving Solstice with a wholly owned subsidiary that will hold Element Solutions’ business. Element ...
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...
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.