Solstice Advanced Materials Reports First Quarter 2026 Results

Solstice Advanced Materials Reports First Quarter 2026 Results MORRIS PLAINS, N.J., May 6, 2026 /PRNewswire/ -- Solstice Advanced Materials (Nasdaq: SOLS) ("Solstice" or "the Company"), a global leader in high-performance specialty materials, today reported financial results for the first quarter of 2026.

"Solstice delivered a strong start to 2026, with results ahead of our first-quarter outlook and continued momentum in our highest-growth platforms," said David Sewell, President and Chief Executive Officer. "Demand in Nuclear, Electronic Materials and Refrigerants remains robust, reinforcing our confidence in the secular growth trends driving our business including artificial intelligence, data centers, semiconductor manufacturing and nuclear energy. We are investing behind these opportunities with discipline, while maintaining balance sheet flexibility and returning cash to shareholders through our dividend. Although we continue to manage near-term refrigerant mix dynamics and an uncertain macroeconomic backdrop, our first-quarter execution gives us confidence in our ability to deliver our full-year commitments."

Consolidated Financial Highlights

For The Three Months Ended March 31,

(Dollars in millions, except per share amounts)

2026

2025

% Change

Net Sales

$ 991

$ 897

10 %

Net Income attributable to Solstice Advanced

Materials

$ 85

$ 134

(37) %

Diluted EPS

$ 0.53

$ 0.85

(37) %

Adjusted diluted EPS 1

$ 0.63

N/A

Adjusted EBITDA 1,2

$ 249

$ 250

— %

Adjusted EBITDA Margin 1,2

25.1 %

27.9 %

(277) bps

Net Sales in the first quarter of 2026 were $991 million, a 10% increase compared to the first quarter of 2025, reflecting a 12% increase in Net Sales in the Refrigerants & Applied Solutions segment and a 7% increase in Net Sales in the Electronic & Specialty Materials segment. Organic Net Sales 1 increased by 8% in the first quarter of 2026 driven by both volume growth and favorable pricing.

Net Income attributable to Solstice Advanced Materials in the first quarter of 2026 was $85 million, compared to Net Income attributable to Solstice Advanced Materials of $134 million in the first quarter of 2025. The decline was primarily driven by higher standalone company operating costs, R&D investments, net interest expense, and non-controlling interest, partially offset by higher Net Sales.

Adjusted EBITDA 1,2 for the first quarter of 2026 was $249 million relatively unchanged compared to the first quarter of 2025. Adjusted EBITDA Margin 1,2 for the first quarter of 2026 decreased 277 basis points to 25.1%. The decrease was primarily driven by previously communicated factors including the near-term margin impact of the ongoing transition to low global warming potential ("LGWP") refrigerants and higher R&D spend, partially offset by volume growth and favorable pricing.

Financial Position

Operating Cash Flow for the first quarter of 2026 was $199 million. Capital Expenditures 3 for the first quarter of 2026 were $82 million, a 32% increase compared to the prior-year period due to planned increases in capital spending intended to drive long-term growth. Free Cash Flow 1 for the first quarter of 2026 was $124 million.

As of March 31, 2026, the Company's Total Long-Term Debt was $2.0 billion and Cash and Cash Equivalents were approximately $642 million. As a result, the Company's Net Leverage ratio was approximately 1.4x based on a trailing twelve-month Adjusted EBITDA 1. Total liquidity was approximately $1.6 billion, including Cash and Cash Equivalents and $1.0 billion of availability through the Company's revolving credit facility.

Capital Deployment

The Company announced on April 27, 2026, that the Solstice Board of Directors approved a quarterly cash dividend of $0.075 per share. The dividend is expected to be paid on June 10, 2026 to shareowners of record as of May 27, 2026.

Segment Highlights

Refrigerants & Applied Solutions (RAS)

For The Three Months Ended March 31,

(Dollars in millions)

2026

2025

% Change

Net Sales

Refrigerants

$ 389

$ 326

19 %

Building Solutions & Intermediates

167

183

(8) %

Nuclear

107

27 %

Healthcare Packaging

9 %

RAS Segment Net Sales

$ 711

$ 636

12 %

RAS Segment Adjusted EBITDA

$ 242

$ 250

(3) %

RAS Segment Adjusted EBITDA Margin

34.1 %

39.3 %

(522) bps

Net Sales for the Refrigerants & Applied Solutions segment were $711 million in the first quarter of 2026, up 12% compared to the first quarter of 2025. Net Sales in Refrigerants increased 19% in the first quarter of 2026 compared to the first quarter of 2025, reflecting strong volume and pricing across the business' product offerings. Nuclear revenues increased 27% in the first quarter of 2026 compared to the first quarter of 2025, reflecting both favorable pricing and increased volumes. Net Sales in Healthcare Packaging improved 9%, as customer demand patterns recovered following destocking in the second half of 2025. These increases were partially offset by an 8% decline in Building Solutions & Intermediates.

Segment Adjusted EBITDA for the Refrigerants & Applied Solutions segment decreased 3% in the first quarter of 2026 compared to the first quarter of 2025. Segment Adjusted EBITDA Margin for the segment decreased 522 basis points compared to the first quarter of 2025. The decrease was primarily driven by previously communicated changes in refrigerant mix as a result of the near-term impact of the ongoing transition to LGWP refrigerants, as well as higher R&D spend as we advance next-generation molecules. These decreases were partially offset by volume growth and favorable pricing.

Electronic & Specialty Materials (ESM)

For The Three Months Ended March 31,

(Dollars in millions)

2026

2025

% Change

Net Sales

Research & Performance Chemicals

$ 121

— %

Electronic Materials

109

21 %

Safety & Defense Solutions

— %

ESM Segment Net Sales

$ 281

$ 261

7 %

ESM Segment Adjusted EBITDA

$ 58

$ 53

10 %

ESM Segment Adjusted EBITDA Margin

20.8 %

20.3 %

52 bps

Net Sales for the Electronic & Specialty Materials segment were $281 million in the first quarter of 2026, up 7% compared to the first quarter of 2025. Growth was primarily driven by a 21% increase in Electronic Materials reflecting volume growth on robust customer demand for deposition and thermal solutions in leading-edge applications. Safety & Defense sales were comparable to the prior year period due primarily to order timing. Research and Performance Chemicals revenues were unchanged reflecting growth in personal care, offset by ongoing end-market softness in construction markets.

Segment Adjusted EBITDA for the Electronic & Specialty Materials segment increased 10% in the first quarter of 2026 compared to the first quarter of 2025, primarily driven by volume growth in Electronic Materials. Segment Adjusted EBITDA Margin for the segment increased 52 basis points compared to the first quarter of 2025.

Corporate Expenses

Corporate Expenses totaled $52 million in the first quarter of 2026, compared to $32 million in the first quarter of 2025 due to incremental ongoing costs necessary to operate as an independent public company. There were no standalone cost adjustments in the first quarter of 2026, compared to $21 million in the first quarter of 2025, which was prior to the separation from Honeywell on October 30, 2025.

Income Tax Expense

Income Tax Expense was $31 million in the first quarter of 2026, a decrease of $16 million compared to the first quarter of 2025 due to lower pre-tax income, reflecting an adjusted effective tax rate of 23%.

2026 Financial Outlook

Solstice is reaffirming full-year 2026 financial guidance and providing guidance for the second quarter of 2026.

For full-year 2026, Solstice expects the following:

For the second quarter 2026, Solstice expects the following:

"While the macroeconomic outlook remains uncertain, we are confident in our ability to deliver on our full-year 2026 targets," said David Sewell, President and Chief Executive Officer. "We remain focused on driving shareholder value as we execute our strategy and position Solstice for continued long-term success."

2026 Nuclear Business Informational Webinar

The Company plans to host an informational webinar on its Nuclear business on Thursday, June 4, 2026. A live webcast of the investor call as well as related presentation materials on the Investor Relations section of the Company's website, investor.solstice.com. Dial-in details will be made available closer to the event.

A replay of the webcast will be available shortly after the event concludes and will be available for 30 days following the presentation.

The Company does not provide a reconciliation of forward-looking Adjusted EBITDA (non-GAAP) or Adjusted diluted Earnings per Share to GAAP net income (loss) attributable to Solstice Advanced Materials, due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. Because deductions (such as repositioning charges, impairment charges, and litigation and other matters) used to calculate projected net income (loss) vary based on actual events, the Company is not able to forecast on a GAAP basis with reasonable certainty all deductions needed in order to provide a GAAP calculation of projected net income (loss) at this time. The amount of these deductions may be material and, therefore, could result in projected GAAP net income (loss) being materially less than projected Adjusted EBITDA (non-GAAP) or Adjusted Net Income attributable to Solstice (non-GAAP). These statements represent forward-looking information and a projected financial outlook, and actual results may vary. Please see the risks and assumptions referred to in the "Forward-Looking Statements" section of this news release. The guidance in this news release is only effective as of the date it is given and will not be updated or affirmed unless and until the Company publicly announces updated or affirmed guidance.

________________________________________

This is a non-GAAP measure or a non-GAAP ratio. For further information on non-GAAP measures and non-GAAP ratios, please refer to the "Non-GAAP Financial Measures" section of this news release. Please also refer to tables at the end of this news release for a reconciliation of historical non-GAAP measures and ratios to the most directly comparable GAAP measure.

The three months ended March 31, 2025 represents Adjusted Standalone EBITDA (non-GAAP) and Adjusted Standalone EBITDA Margin (non-GAAP).

Capital expenditures represent capital expenditures incurred, whether accrued or paid in the current year.

Conference Call Details

Solstice will discuss its first quarter results during an investor conference call starting at 8:30 a.m. Eastern Time today. A live webcast of the investor call as well as related presentation materials will be available on the Investor Relations section of the Company's website, investor.solstice.com. The teleconference can be accessed by dialing 877-407-8029 (North America toll-free) or +1 201-689-8029 (international).

A replay of the webcast will be available shortly after the call concludes and will be available for 30 days following the presentation.

About Solstice Advanced Materials

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. Solstice is recognized for developing next-generation materials through some of the industry's most renowned brands such as Solstice®, Genetron®, Aclar®, Spectra®, Fluka™ and Hydranal™. Partnering with over 3,000 customers across more than 120 countries and territories and supported by a robust portfolio of over 5,700 patents and pending applications, Solstice's approximately 4,100 employees worldwide drive innovation in materials science. For more information, visit www.Solstice.com.

Forward-Looking Statements

This news release contains forward-looking statements, within the meaning of the federal securities laws made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 about us and our industry that involve substantial risks and uncertainties. These statements can be identified by the fact that they do not relate strictly to historical or current facts, but rather are based on current expectations, estimates, assumptions and projections about our industry and our business and financial results. Forward-looking statements often include words such as "anticipates," "estimates," "expects," "positioned," "projects," "forecasts," "intends," "plans," "continues," "could," "believes," "may," "will," "would," "should," "goals" and words and terms of similar substance in connection with discussions of future operating or financial performance. As with any projection or forecast, forward-looking statements are inherently susceptible to uncertainty and changes in circumstances. Our actual results may vary materially from those expressed or implied in our forward-looking statements. Accordingly, undue reliance should not be placed on any forward-looking statement made by us or on our behalf. Although we believe that the forward-looking statements contained in this report are based on reasonable assumptions, you should be aware that a variety of factors, many of which are difficult to predict and outside of our control, could affect our actual financial results or results of operations and could cause actual results to differ materially from those in such forward-looking statements, including, but not limited to: our limited operating history as an independent, publicly traded company and unreliability of historical consolidated financial information as an indicator of our future results; our ability to successfully develop new technologies and introduce new products; an overall decline in the health of the economy and the industries in which we operate, including as a result of inflation, tariffs and other trade barriers and restrictions, market volatility, geopolitical instability and social unrest, the possibility of an economic downturn or recession or other macroeconomic factors; changes in the price and availability of raw materials that we use to produce our products, including due to factors such as supply chain disruptions, including due to increased energy prices, and the impact of inflation; our ability to comply with complex government regulations and the impact of changes in such regulations; global climate change and related regulations and changes in customer demand; the public and political perceptions of nuclear energy and radioactive materials; economic, political, regulatory, foreign exchange and other risks of international operations; the impact of tariffs or other restrictions on foreign imports; our ability to borrow funds and access capital markets and any limitations in the terms of our indebtedness; our ability to compete successfully in the markets in which we operate; the effect on our revenue and cash flow from seasonal fluctuations and cyclical market conditions; concentrations of our credit, counterparty and market risk; our ability to successfully execute or effectively integrate potential acquisitions or complete potential divestitures; our joint ventures and strategic co-development partnerships; our ability to recruit and retain qualified personnel; potential material environmental liabilities; the hazardous nature of chemical manufacturing; decommissioning and remediation expenses and regulatory requirements; potential material litigation matters, including disputes related to the Spin-off (as defined herein); the impact of potential cybersecurity attacks, data privacy breaches and other operational disruptions; increasing stakeholder interest in public company performance, disclosure, and goal-setting with respect to sustainability matters; failure to maintain, protect and enforce our intellectual property or to be successful in litigation related to our intellectual property or the intellectual property of others, or competitors developing similar or superior intellectual property or technology; unforeseen U.S. federal income tax and foreign tax liabilities and our ability to achieve anticipated tax treatments in connection with the Spin-off; U.S. federal income tax reform; our ability to operate as an independent, publicly traded company without certain benefits available to us as a part of Honeywell International Inc. ("Honeywell") prior to the Spin-off, including managing the costs of operating as an independent company following the Spin-off; our ability to achieve some or all of the benefits that we expect to achieve from the Spin-off; our inability to maintain intellectual property agreements; potential timing, declaration, amount and payment of the Company's dividend program; potential cash contributions to defined benefit pension plans; and our ability to maintain proper and effective internal controls.

These and other factors are more fully discussed in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections included in our Form 10-K for the fiscal year ended December 31, 2025, filed with the SEC on February 19, 2026, and may be updated from time to time in our SEC filings. These risks could cause actual results to differ materially from those implied by forward-looking statements in this release. Even if our results of operations, financial condition and liquidity and the development of the industry in which we operate are consistent with the forward-looking statements contained in this release, those results or developments may not be indicative of results or developments in subsequent periods.

Contacts:

Investor Relations

Media

Mike Leithead

Amy Schneiderman

(973) 370-8188

(201) 218-2302

[email protected]

SOLSTICE ADVANCED MATERIALS INC.

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE AMOUNTS)

For The Three Months Ended

March 31,

2026

2025

Product sales

$ 915

$ 838

Service sales

Net sales

991

897

Costs, expenses and other

Cost of products sold

628

531

Cost of services sold

Total cost of products and services sold

675

577

Research and development expenses

Selling, general and administrative expenses

108

Transaction-related costs

Other expense (income)

(7)

(11)

Interest and other financial charges

Total costs, expenses and other

855

710

Income before taxes

136

188

Income tax expense

Net income

105

140

Less: Net income attributable to noncontrolling interest

Net income attributable to Solstice Advanced Materials

$ 85

$ 134

Basic earnings per share

$ 0.53

$ 0.85

Diluted earnings per share

$ 0.53

$ 0.85

Weighted average number of common shares outstanding - basic

158.8

158.7

Weighted average number of common shares outstanding - diluted

159.3

158.7

SOLSTICE ADVANCED MATERIALS INC.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS)

As of

March 31, 2026

December 31,

2025

ASSETS

Current assets:

Cash and cash equivalents

$ 642

$ 534

Accounts receivable, less allowances of $5 and $10, respectively

632

645

Inventories

704

715

Product loans receivable, current

311

300

Other current assets

146

193

Total current assets

2,436

2,388

Property, plant and equipment – net

2,084

2,055

Goodwill

819

820

Intangible assets – net

Deferred income taxes

Equity method investments

168

162

Other noncurrent assets

188

192

Total assets

$ 5,748

$ 5,673

LIABILITIES

Current liabilities:

Accounts payable

$ 910

$ 909

Current portion of long-term debt

Product loans payable, current

331

320

Finance lease liabilities, current

Accrued and other liabilities, current

444

467

Total current liabilities

1,705

1,713

Long-term debt

1,965

1,968

Deferred income taxes

237

233

Product loans payable, noncurrent

Finance lease liabilities, noncurrent

100

104

Other noncurrent liabilities

254

262

Total liabilities

4,275

4,296

Commitments and Contingencies

EQUITY

Common stock (par value $0.01 per share; 500,000,000 shares authorized; 158,795,531

shares issued and outstanding at March 31, 2026; 158,747,196 shares issued and

outstanding at December 31, 2025)

Additional paid-in capital

1,500

1,495

Accumulated other comprehensive loss

(128)

(127)

Retained earnings

113

Total Solstice Advanced Materials shareowners' equity

1,486

1,411

Noncontrolling interest

(14)

(34)

Total equity

1,473

1,377

Total liabilities and equity

$ 5,748

$ 5,673

SOLSTICE ADVANCED MATERIALS INC.

SUMMARIZED CASH FLOW INFORMATION (UNAUDITED)

(DOLLARS IN MILLIONS)

For The Three Months Ended

March 31,

2026

2025

Net cash provided by operating activities

$ 199

$ 160

Net cash used for investing activities:

Capital expenditures paid

$ (75)

$ (62)

Net cash used for financing activities:

Dividends

$ (12)

$ —

Non-GAAP Financial Measures

The Company uses non-GAAP financial measures to supplement the financial measures prepared in accordance with U.S. GAAP. These include (1) Organic sales percentage, (2) Adjusted EBITDA, (3) Adjusted EBITDA Margin, (4) Adjusted Standalone EBITDA, (5) Adjusted Standalone EBITDA margin, (6) Adjusted Net Income attributable to Solstice, (7) Adjusted diluted EPS, (8) Free cash flow, (9) Net debt, (10) Total leverage ratio, and (11) Net leverage ratio.

Below are definitions and reconciliations of certain non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP. Management believes that, when considered together with reported amounts, these measures are useful to investors and management in understanding our ongoing operations and in the analysis of ongoing operating trends. Management believes these non-GAAP financial measures provide investors with a meaningful measure of its performance period to period, align the measures to how management evaluates performance internally, and make it easier for investors to compare our performance to peers. These measures should be considered in addition to, and not as replacements for, the most directly comparable U.S. GAAP measure. The non-GAAP financial measures we use are as follows:

Organic Sales Percentage

For The Three

Months Ended

March 31,

2026 vs. 2025

Total % change in net sales

10.5 %

Foreign currency translation

(2.5) %

Acquisitions, divestitures and other, net

— %

Organic sales percentage

8.0 %

Adjusted EBITDA, Adjusted Standalone EBITDA, Adjusted EBITDA margin and Adjusted Standalone

EBITDA margin

For The Three Months Ended

March 31,

For The LTM (1)

Ended March

31,

(Dollars in millions)

2026

2025

2026

Net income attributable to Solstice Advanced Materials

(GAAP)

$ 85

$ 134

$ 188

Net income attributable to noncontrolling interest

Net income (GAAP)

$ 105

$ 140

$ 249

Depreciation

194

Amortization

Interest and other financial charges

Other adjustments (1)

(2)

(8)

(33)

Stock-based compensation expense

Transaction-related costs

113

Income tax expense

346

Adjusted EBITDA (Non-GAAP)

$ 249

$ 271

$ 978

Less - Standalone adjustments

—

(21)

(22)

Adjusted Standalone EBITDA (Non-GAAP)

$ 249

$ 250

$ 956

Net Sales

$ 991

$ 897

$ 3,980

Adjusted EBITDA Margin (Non-GAAP)

25.1 %

30.2 %

24.6 %

Adjusted Standalone EBITDA Margin (Non-GAAP)

25.1 %

27.9 %

24.0 %

_________________

LTM stands for "last twelve months."

Other adjustments primarily consisted of gains and losses from disposal of long-lived assets, remeasurement of foreign currencies, environmental reserves, asset retirement obligations, nonoperating pension expense (income), and certain legal costs, net of recoveries.

Adjusted net income attributable to Solstice and Adjusted diluted EPS

For The

Three Months

Ended March

31, 2026

Net income attributable to Solstice Advanced Materials (GAAP)

$ 85

Transaction-related costs

Amortization of acquired intangible assets

Other adjustments (1)

(2)

Tax effect of above adjusting items

(5)

Adjusted net income attributable to Solstice (Non-GAAP)

$ 100

Diluted weighted average shares outstanding

159.3

Diluted EPS (GAAP)

$ 0.53

Adjusted diluted EPS (Non-GAAP)

$ 0.63

_________________

Free cash flow

(Dollars in millions)

For The

Three Months

Ended March

31, 2026

Net cash provided by operating activities (GAAP)

$ 199

Less: capital expenditures paid

(75)

Free cash flow (Non-GAAP)

$ 124

Net debt, total leverage ratio and net leverage ratio as of March 31, 2026

(Dollars in millions)

Total Debt

$ 1,971

Less: Cash and Cash Equivalents

(642)

Net Debt (Non-GAAP)

$ 1,329

LTM Adjusted Standalone EBITDA (Non-GAAP)

$ 956

Total Leverage Ratio (Non-GAAP)

2.1x

Net Leverage Ratio (Non-GAAP)

1.4x

Reconciliation of Segment Adjusted EBITDA to Adjusted Standalone EBITDA

For The Three Months Ended

March 31,

(Dollars in millions)

2026

2025

RAS Segment Adjusted EBITDA

$ 242

$ 250

ESM Segment Adjusted EBITDA

Segment Adjusted EBITDA

$ 301

$ 303

Less:

Corporate and All Other

(52)

(32)

Standalone Adjustments

—

(21)

Adjusted Standalone EBITDA (Non-GAAP)

$ 249

$ 250

SOURCE Solstice Advanced Materials US, Inc.