Solstice Advanced Mat (NASDAQ:SOLS) Posts Earnings Results

Key Points

• Q1 beat and strong cash generation — Solstice reported adjusted EPS of $0.63 (vs. $0.60 consensus) and revenue of $991M (+10% YoY), with operating cash flow of ~$199M and free cash flow of ~$124M, and updated FY2026 EPS guidance to 2.45–2.75.
• Margin and market reaction — Adjusted EBITDA margin fell to 25.1% (from 27.9%) due to refrigerant mix shifts, higher R&D and standalone costs, GAAP net income declined, and the stock slid about 4.5% amid unusual put buying and investor concern the full‑year outlook is conservative.
• Growth investments and end‑market momentum — Electronic materials revenue rose 21% YoY and the company is investing $200M to double sputtering‑target capacity, while refrigerants (+19%) and nuclear (+27%) showed strong demand with de‑bottlenecking and expansion plans underway.

Solstice Advanced Mat (NASDAQ:SOLS - Get Free Report) posted its earnings results on Wednesday. The company reported $0.63 earnings per share for the quarter, topping analysts' consensus estimates of $0.60 by $0.03, Zacks reports. Solstice Advanced Mat updated its FY 2026 guidance to 2.450-2.750 EPS.

Here are the key takeaways from Solstice Advanced Mat's conference call:

• Beat expectations — Q1 revenue was $991M (+10% YoY), adjusted EBITDA $249M, adjusted EPS $0.63, with strong cash generation (operating cash flow ~$199M; free cash flow ~$124M).
• Electronic materials momentum — electronic materials revenue grew 21% YoY and Solstice is investing $200M to double sputtering‑target capacity in Spokane, targeting a mid‑teens IRR and evaluating further acceleration.
• Refrigerants and nuclear growth — refrigerants sales rose ~19% driven by HFO/R‑454B adoption and data center demand, while nuclear sales were up 27% with de‑bottlenecking underway and engineering studies for major future expansion.
• Margin and cost pressures — adjusted EBITDA was roughly flat and margins declined to 25.1% due to refrigerant mix shifts and higher R&D; GAAP net income fell because of standalone public‑company costs and higher interest, and Q1 non‑controlling interest was an atypical $20M.
• Strong balance sheet and guidance — net debt ~ $1.3B (net leverage ~1.4x), cash ~$642M and ~$1B revolver (~$1.6B liquidity), reaffirmed FY2026 guidance, Q2 revenue guide $1.06–1.10B, and a $0.075 quarterly dividend.

Solstice Advanced Mat Trading Down 4.5%

SOLS stock traded down $3.80 during midday trading on Wednesday, hitting $79.76. The company's stock had a trading volume of 4,220,628 shares, compared to its average volume of 2,824,895. The stock has a market capitalization of $12.67 billion and a P/E ratio of 306.70. Solstice Advanced Mat has a 12 month low of $40.43 and a 12 month high of $84.99. The company has a debt-to-equity ratio of 1.50, a quick ratio of 0.98 and a current ratio of 1.39. The business has a 50-day simple moving average of $77.33.

Solstice Advanced Mat Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, June 10th. Stockholders of record on Wednesday, May 27th will be given a $0.075 dividend. This represents a $0.30 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date of this dividend is Wednesday, May 27th. Solstice Advanced Mat's payout ratio is currently 115.38%.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on the company. Weiss Ratings upgraded Solstice Advanced Mat from a "sell (d+)" rating to a "hold (c)" rating in a report on Monday, February 23rd. Royal Bank Of Canada upgraded Solstice Advanced Mat from a "sector perform" rating to an "outperform" rating in a report on Tuesday, January 20th. Wall Street Zen raised Solstice Advanced Mat from a "sell" rating to a "hold" rating in a research report on Sunday. Zacks Research raised Solstice Advanced Mat to a "hold" rating in a research report on Friday, January 23rd. Finally, UBS Group cut Solstice Advanced Mat from a "buy" rating to a "neutral" rating and set a $87.00 price target on the stock. in a research report on Monday, April 13th. Three analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $67.00.

Key Solstice Advanced Mat News

Here are the key news stories impacting Solstice Advanced Mat this week:

• Positive Sentiment: Q1 beat and cash generation — Net sales rose ~10% to $991M and adjusted diluted EPS was $0.63 (vs. $0.60 consensus); operating cash flow was $199M and free cash flow $124M, showing healthy cash conversion. PR Newswire: Q1 Results
• Positive Sentiment: Institutional support and analyst interest — Large institutions (Vanguard, BlackRock, State Street, etc.) have sizable positions and recent analyst coverage includes multiple buy/outperform ratings, which provides a structural bid under the stock. Quiver: Institutional and Analyst Activity
• Neutral Sentiment: Near‑term revenue guide roughly in line — Company issued Q2 revenue guidance near $1.1B (around Street expectations), so top‑line trajectory appears stable even as mix shifts. PR Newswire: Guidance
• Negative Sentiment: Margin pressure and higher costs — Adjusted EBITDA margin fell to 25.1% from 27.9% as the company ramps lower‑GWP refrigerants, increases R&D and absorbs higher standalone costs after the spin‑off, which weighed on net income (down to $85M). PR Newswire: Margin Commentary
• Negative Sentiment: Full‑year guidance seen as conservative — FY 2026 revenue guidance of $3.9–$4.1B and EPS 2.45–2.75 had a midpoint that many traders viewed as underwhelming versus prior expectations, fueling the sell‑off. Quiver: Market Reaction to Guidance
• Negative Sentiment: Unusual put activity — Traders bought ~15,200 put contracts (a ~638% increase vs. typical daily put volume), indicating elevated short‑term bearish/options hedging pressure.

Hedge Funds Weigh In On Solstice Advanced Mat

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Northwestern Mutual Wealth Management Co. bought a new position in shares of Solstice Advanced Mat during the 4th quarter valued at $199,000. Bank of New York Mellon Corp bought a new position in shares of Solstice Advanced Mat during the 4th quarter valued at $55,829,000. TD Asset Management Inc bought a new position in shares of Solstice Advanced Mat during the 4th quarter valued at $696,000. State of Wyoming bought a new position in shares of Solstice Advanced Mat during the 4th quarter valued at $70,000. Finally, J.W. Cole Advisors Inc. bought a new position in shares of Solstice Advanced Mat during the 4th quarter valued at $396,000.

Solstice Advanced Mat Company Profile

Solstice Advanced Materials is a leading global specialty materials company that advances science for smarter outcomes. Solstice offers high-performance solutions that enable critical industries and applications, including refrigerants, semiconductor manufacturing, data center cooling, nuclear power, protective fibers, healthcare packaging and more.

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