Solstice Advanced Materials Inc. filed a Rule 425 communication on July 30, 2026, containing excerpts from its Earnings Call discussing the proposed Acquisition of Element Solutions Inc. (Commission File No. 001-36272) and first-half 2026 financial highlights.

Key Highlights

  • Acquisition announced July 6: Solstice announced the proposed acquisition of Element Solutions, with the transaction expected to close in the first half of 2027, subject to Shareholder and regulatory approvals.
  • Operating cash of $461 million: Solstice reported $461 million of operating cash generated in the first half, according to CEO David Sewell.
  • Deleveraging target: The company anticipates reducing net Debt to less than 3 times EBITDA within 18 months following the close of the Element Solutions acquisition.
  • Quarterly Dividend of $0.075 per share: A quarterly dividend of $0.075 per share was approved on July 17, payable September 10 to shareholders of record as of August 27.
  • Full-year 2026 guidance raised: The company disclosed it is raising its full-year 2026 guidance, citing strong first-half performance and continued Business momentum.
  • Capital Expenditure forecast: CFO Tina Pierce stated the company is forecasting roughly $60 million per quarter in spending, with plans to evaluate that figure in the context of the Element Solutions integration.

Solstice Earnings Call Details on Element Solutions Deal and Financial Position

According to the filing, Solstice Advanced Materials Inc. President and CEO David Sewell characterized the proposed combination with Element Solutions as "a significant acceleration of our strategy to build an industry-leading advanced materials platform with increased exposure to high-growth electronics, AI infrastructure and other attractive end markets." The transaction was announced on July 6, and Sewell noted it remains subject to shareholder and regulatory approvals and other customary closing conditions, with an expected close in the first half of 2027.

On the financial side, the filing attributes to Sewell the statement that Solstice generated $461 million of operating cash in the first half of 2026, supported by "disciplined Working Capital Management ." The company also disclosed it is raising its full-year 2026 guidance. CFO Tina Pierce confirmed the quarterly dividend of $0.075 per share, approved July 17, in line with the prior quarter, and described the Balance Sheet as structured to "preserve our current Credit rating profile" in connection with financing the Element Solutions transaction.

Regarding Debt Financing for the acquisition, Pierce noted in the call that the company plans to be "very opportunistic" when going to market, citing potential windows in September, October, November, and the first half of the following year. Pierce also stated that quarterly spending is currently forecast at roughly $60 million, but that the company will review that figure in light of the planned integration with Element Solutions. The filing notes that all forward-looking statements in the communication are the company's own and are subject to its cautionary language regarding risks and uncertainties.

What Was Disclosed

Solstice Advanced Materials filed excerpts from its July 30, 2026 earnings call covering the proposed Element Solutions acquisition timeline, first-half operating cash of $461 million, a raised full-year 2026 guidance, a quarterly dividend of $0.075 per share, and a deleveraging target of less than 3 times EBITDA within 18 months of closing.