Solstice lifts 2026 sales outlook to $4.22 bn

Solstice Advanced Materials reported third-quarter adjusted EPS of $0.80, $0.11 above estimates, and revenue of $1.05 billion, $30 million above estimates, Seeking Alpha earnings-call insights published Nov. 5 said.

Solstice raised its full-year 2026 sales outlook to $4.195 billion to $4.22 billion, from $4.125 billion to $4.185 billion in the prior quarter, and plans to complete most of a remaining $400 million buyback by March 31, 2027.

Chief Executive David Sewell said on the call that demand was strongest in several industrial and technology-linked businesses. "Third quarter net sales increased 8%, exceeding the top end of our guidance range, led by Electronic Materials, Refrigerants and Healthcare Packaging," he said.

Chief Financial Officer Tina Pierce said adjusted EBITDA, a profit measure excluding interest, taxes, depreciation, amortization and certain items, was $265 million in the quarter. The adjusted EBITDA margin was 25.3%, up 109 basis points, or 1.09 percentage points, from a year earlier.

Pierce said the company now expects full-year adjusted EBITDA of $1.05 billion to $1.06 billion and adjusted diluted EPS of $2.90 to $2.95. Its capital expenditure outlook was unchanged at $420 million to $440 million.

The results also recast Solstice as a standalone story after the end of its planned merger with Element Solutions. "Following the mutual termination of our merger with Element Solutions, we have been moving forward with strong conviction in our business and standalone strategy," Sewell said.

Capital returns are part of that reset. Sewell said Solstice completed $100 million of share repurchases in the third quarter and intends to substantially finish the remaining $400 million under the current authorization by the end of the first quarter of 2027.

Growth was uneven across end markets. Refrigerants and Applied Solutions generated $726 million of segment sales, including an 8% increase in refrigerant sales to $433 million, while healthcare packaging sales rose 24% to $61 million. Electronic and Specialty Materials posted $320 million of segment sales and expanded adjusted EBITDA margin by 453 basis points to 21.2%.

Management linked part of the growth to artificial-intelligence and data-center demand. Sewell said businesses serving data-center and AI-related uses represent about 6% of expected 2026 revenue, with sales up more than 50% from last year. He also said Solstice's nuclear backlog reached $2.6 billion in the third quarter, with contracts extending through 2039.

The call also exposed the areas investors are testing. Pierce said Building Solutions and Intermediates sales declined 5%, reflecting softness in construction-related markets. Sewell said there were headwinds in 454B and stationary refrigerants, while analysts asked about electronics capacity limits, pricing visibility and the threshold for a larger nuclear expansion.

On capacity, Sewell said customers were seeking earlier electronics supply and that Solstice was "a little bit constrained right now." He said the company has committed more than $200 million to double the Spokane plant, with some volume additions expected in 2027 and the majority in 2028.

For the fourth quarter, Solstice expects net sales of $1.01 billion to $1.035 billion, adjusted EBITDA of $246 million to $256 million and adjusted EPS of $0.57 to $0.62.

By March 31, 2027, Solstice expects to substantially complete the remaining $400 million under its current share-repurchase authorization.

Sewell said the Metropolis debottlenecking work should produce incremental improvements through 2027, with completion before the end of that year.

Source: Seeking Alpha earnings-call insights, Nov. 5, 2026.