Want to see SOLS full AI Analyst Report?
Top Page
Solstice Advanced Materials, Inc.
(NASDAQ:SOLS)
Select Model
Select Model
Rating:54Neutral
Price Target:
$65.00
▲(5.91% Upside)
Action:Reiterated
Date:08/29/26
The score is held back primarily by weakened financial quality in 2025 (margin compression, sharply higher leverage, and a large free-cash-flow decline). Offsetting this, the latest earnings call was constructive with raised guidance and solid cash/liquidity commentary, while technicals remain mixed and valuation is challenged by a high P/E despite a strong stated dividend yield. The post-call corporate update (merger termination and $500M buyback) is a moderate positive.
Positive Factors
Raised 2026 Guidance
Higher full-year targets indicate management sees durable demand and operating momentum across the portfolio. The guidance increase, supported by strong Q2 sales and EBITDA, provides a clearer earnings-growth framework over the next several quarters.
Negative Factors
Sharp Leverage Increase
The rapid shift from a conservative balance sheet to materially higher leverage reduces financial flexibility and increases sensitivity to execution, interest costs and cyclical demand. It may constrain future investment or shareholder returns if cash generation weakens.
Read all positive and negative factors
Positive Factors
Negative Factors
Raised 2026 Guidance
Higher full-year targets indicate management sees durable demand and operating momentum across the portfolio. The guidance increase, supported by strong Q2 sales and EBITDA, provides a clearer earnings-growth framework over the next several quarters.
Read all positive factors
Solstice Advanced Materials, Inc. (SOLS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.13B
Dividend Yield0.35%
Average Volume (3M)3.25M
Price to Earnings (P/E)47.9
Beta (1Y)0.14
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees4,100
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)1.33
Shares Outstanding158,889,430
10 Day Avg. Volume4,196,156
30 Day Avg. Volume3,254,815
Financial Highlights & Ratios
PEG Ratio-0.74
Price to Book (P/B)5.47
Price to Sales (P/S)1.99
P/FCF Ratio74.95
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
$79.29Price Target Upside29.19% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)2.89
Revenue Forecast (FY)$4.17B
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.
Read all updates
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 | 180.00M | 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 |
|---|---|---|---|---|---|---|---|
85 Outperform | $5.69B | 15.54 | 31.02% | 2.15% | 24.01% | 25.97% | |
80 Outperform | $9.57B | 11.88 | 26.95% | 0.01% | 11.74% | 108.91% | |
69 Neutral | $5.21B | 8.75 | 4.80% | 14.06% | 94.72% | -55.36% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
54 Neutral | $10.13B | 47.92 | 10.89% | 0.35% | ― | ― | |
53 Neutral | $6.14B | -6.60 | 156.73% | 3.38% | 51.09% | -150.23% |
* Basic Materials Sector Average
SOLS
Solstice Advanced Materials, Inc.
63.73
15.48
32.09%
AMG
Affiliated Managers
370.22
139.06
60.16%
HLNE
Hamilton Lane
103.06
-42.60
-29.25%
STEP
StepStone Group
50.92
-8.71
-14.61%
OTF
Blue Owl Technology Finance Corp.
11.38
-1.75
-13.32%
Solstice Advanced Materials, Inc. Corporate Events
Business Operations and StrategyStock BuybackFinancial DisclosuresM&A Transactions
Solstice Launches Share Buyback After Ending Element Merger
Positive
Aug 27, 2026
On August 27, 2026, Solstice Advanced Materials and Element Solutions mutually terminated their previously announced merger agreement, with no termination fees payable by either party. The move followed shareholder feedback and board-level discuss...
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 ...
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.