Key Highlights

  • Third quarter net sales rose 8% to USD 1.046 billion, topping the USD 1.02 billion estimate.
  • Adjusted EPS of USD 0.80 compares with a USD 0.70 estimate, while GAAP diluted EPS was USD 0.50.
  • Adjusted EBITDA climbed 13% to USD 265 million, lifting Margin 109 basis points to 25.3%.
  • Management raised full year net sales guidance to USD 4.195 billion to USD 4.220 billion.

Solstice Advanced Materials (NASDAQ:SOLS) reported third quarter net sales of USD 1.046 billion, up 8% from USD 969 million a year earlier and above the USD 1.02 billion estimate. Adjusted diluted EPS of USD 0.80 exceeded the USD 0.70 estimate. Net Income attributable to the company was USD 80 million, or USD 0.50 per diluted share, against a net loss of USD 35 million a year ago, which included heavy spin-off related taxes.

Segment Performance

Organic net sales also rose 8%, driven by both Volume and price. Refrigerants & Applied Solutions generated USD 726 million, up 6%. Within it, refrigerants grew 8% to USD 433 million on Demand from automotive and Data Center applications, and healthcare packaging rose 24% to USD 61 million after destocking in the second half of 2025. Building solutions and intermediates fell 5% to USD 167 million as construction end markets stayed soft, and nuclear rose 4% to USD 66 million. The nuclear conversion Backlog now stands at USD 2.6 billion.

Electronic & Specialty Materials posted record quarterly net sales of USD 320 million, up 13%. Electronic materials surged 31% to USD 135 million on demand for sputtering targets and thermal solutions tied to memory and AI applications. Segment adjusted EBITDA rose 44% to USD 68 million, and its margin widened 453 basis points to 21.2%. Chief executive David Sewell said the portfolio is positioned for growth in nuclear energy, thermal management, AI and data centers.

Margins, Cash and Capital Returns

Consolidated adjusted EBITDA reached USD 265 million, a margin of 25.3% versus 24.3% a year earlier. The refrigerants segment margin eased to 34.5% from 35.4% on higher Research and Development spending, though it improved 160 basis points from the second quarter.

Operating cash flow for the first nine months was USD 693 million, and capital expenditures were USD 325 million, up 31%, leaving free cash flow of USD 368 million. Long-term Debt was USD 2.0 billion against about USD 714 million of cash, for net Leverage near 1.3 times trailing adjusted EBITDA. Total Liquidity was about USD 1.7 billion.

The company returned USD 112 million to shareholders in the quarter, including USD 100 million of repurchases covering 1.7 million shares under a USD 500 million authorization announced August 27. It targets substantial completion of that program by the end of the first quarter of 2027. The board also declared a quarterly Dividend of USD 0.075 per share, payable December 10 to holders of record on November 25.

Raised Guidance

Management raised its full year outlook for the second consecutive quarter. Net sales are now guided to USD 4.195 billion to USD 4.220 billion, from USD 4.125 billion to USD 4.185 billion. Adjusted EBITDA is guided to USD 1.050 billion to USD 1.060 billion, from USD 1.035 billion to USD 1.055 billion. Adjusted EPS is guided to USD 2.90 to USD 2.95, with the low end lifted from USD 2.75.

The fourth quarter guide calls for net sales of USD 1.010 billion to USD 1.035 billion, adjusted EBITDA of USD 246 million to USD 256 million and adjusted EPS of USD 0.57 to USD 0.62.

Guidance Versus Reported Results

Third quarter adjusted EPS of USD 0.80 compares with the fourth quarter guide of USD 0.57 to USD 0.62 and the full year range of USD 2.90 to USD 2.95. Third quarter adjusted EBITDA of USD 265 million compares with a fourth quarter guide of USD 246 million to USD 256 million. Net sales of USD 1.046 billion compare with USD 1.010 billion to USD 1.035 billion guided for the fourth quarter.