Solstice Advanced Materials Inc. (SOLS)

Solstice Advanced Materials reported third-quarter 2026 net sales of $1,046 million on 4 November, up 8 percent from a year earlier 1. Net income attributable to the company was $80 million, against a loss of $35 million in the third quarter of 2025 1.

The release credits electronic materials, where sales rose 31 percent to $135 million on demand for sputtering targets and thermal solutions in memory and AI-related uses 1. The company raised its full-year 2026 outlook to net sales of $4,195 million to $4,220 million and adjusted EBITDA, a profit measure it adjusts itself, of $1,050 million to $1,060 million 1.

The board declared a quarterly dividend of $0.075 per share, payable on 10 December 2026 to shareowners of record on 25 November 2.

The open question is what the company does with its cash after the roughly $14 billion Element Solutions merger, signed in July, was ended by mutual agreement on 27 August 2026 53. The company returned $112 million to shareowners in the third quarter, including $100 million of share repurchases 1. It intends to substantially complete its $500 million repurchase authorization by the end of the first quarter of 2027 1.

Solstice is the former Advanced Materials business of Honeywell International Inc. 6. Honeywell announced on 8 October 2024 that it would spin the business off as its own publicly traded company 6. The spin-off was completed on 30 October 2025, when each Honeywell shareowner received one Solstice share for every four Honeywell shares held, and trading as SOLS on Nasdaq began that day 6.

The Metropolis, Illinois, plant that turns uranium concentrate into a gas called uranium hexafluoride was built in the 1950s to meet military needs, and began supplying civilian use in the late 1960s 9. World Nuclear News reported that its nameplate capacity was cut from 15,000 tonnes a year to 7,000 in 2017, and that Honeywell suspended production in November 2017 amid worldwide oversupply 9. The plant restarted in July 2023 9.

Net sales were $3,649 million in 2023, $3,770 million in 2024 and $3,886 million in 2025 6. Capital spending was $299 million in 2023, $296 million in 2024 and $408 million in 2025 6.

In 2025, net sales rose $116 million, or 3 percent, led by pricing and volume in refrigerants of $195 million and demand-driven electronic materials volume of $39 million 6. Lower nuclear services volume of $112 million, because large 2024 sales did not recur, and lower healthcare packaging volume of $43 million offset part of the gain 6.

In 2025 gross profit, revenue minus production costs, was $1,250 million against $1,306 million a year earlier 6. Net income attributable to Solstice was $237 million against $594 million, after income tax expense rose by $170 million on frictional taxes tied to the separation from Honeywell 6.

On 30 September 2025 the company issued $1.0 billion of 5.625 percent senior notes due 30 September 2033, and it carried a $1,000 million term loan due 2032 7.

On 6 July 2026 it agreed to acquire Element Solutions Inc, with Element shareholders to receive $10.00 in cash and 0.500 of a Solstice share for each of their shares 7. On 24 July 2026 it amended its credit agreement to allow $4.685 billion of bridge financing for the deal 8.

According to Advanced Manufacturing, the deal faced strong investor criticism, and after talks with shareholders both boards ended it with no termination fees 5. The company filed on 27 August 2026 that neither side owes the other a payment, and its board approved a repurchase program of up to $500 million, its first 34.

Refrigerants

Refrigerants are the cooling gases inside air conditioners, supermarket freezers and car air conditioning, and Solstice calls itself a leading maker of low global warming potential versions 6. Refrigerants sales were $1,511 million in 2025, up from $1,302 million in 2024 6.

In the third quarter of 2026 they were $433 million, up 8 percent, on demand from automotive and data center uses 1. The 10-K names Arkema, Chemours, Daikin and Orbia as the segment's main rivals 6.

Building Solutions and Intermediates

This business makes blowing agents, the gases that puff up insulating foam in homes and appliances, plus cleaning solvents 6. Its 2025 sales were $719 million, against $738 million in 2024 6. Third-quarter 2026 sales fell 5 percent to $167 million as construction-related end markets stayed soft 1.

Nuclear conversion

Conversion turns uranium concentrate into a gas before the fuel is enriched 9. Solstice does this at Metropolis Works, and the 10-K says that with its joint venture partner General Atomics it is the only provider of these services in the U.S. 6. Each partner holds 50 percent of the venture, ConverDyn 6.

Nuclear sales were $356 million in 2025, down from $446 million in 2024 6. The company put the nuclear backlog at $2.6 billion in its third-quarter 2026 release 1.

Healthcare Packaging

Aclar is a clear plastic film with a very high moisture barrier, used in blister packs that protect medicines 6. The business also supplies lower emissions propellants for inhalers, including Solstice Air, which the 10-K calls in clinical development 6.

Sales were $204 million in 2025, down from $235 million in 2024 6. They rose 24 percent to $61 million in the third quarter of 2026, after destocking in the second half of 2025 1.

Electronic Materials

Electronic Materials makes sputtering targets, which chipmakers use to lay thin metal layers on wafers, plus electronic polymers, thermal solutions and high-purity chemicals 6. Sales were $409 million in 2025, up from $381 million in 2024 6.

In the third quarter of 2026 they rose 31 percent to $135 million 1. The segment holding it, Electronic and Specialty Materials, posted record quarterly sales of $320 million 1.

Safety and Defense Solutions

Spectra fiber is an ultra-high molecular weight polyethylene, a light and strong fiber used in armor, ropes and fishing lines 6. Sales were $187 million in 2025, against $186 million in 2024 6. The release gives a 3 percent rise to $54 million in the third quarter of 2026, on improved volumes 1.

Research and Performance Chemicals

This business supplies laboratory reagents under the Fluka and Hydranal brands, fine chemicals and specialty additives 6. Sales were $500 million in 2025, up from $482 million in 2024 6. Third-quarter 2026 sales were $131 million, up 4 percent 1.

Plants, people and rivals

At the end of 2025 the company had approximately 4,100 employees, 20 manufacturing sites and four standalone research and development sites 6. It served over 3,000 customers in approximately 120 countries and territories in 2025 6.

The main research center for refrigerants is in Buffalo, New York 6. For electronic and specialty materials, the 10-K says there is a wide variety of competitors, different for each major product line 6.

David Sewell is president and chief executive and Tina Pierce is senior vice president and chief financial officer 10. Dr Rajeev Gautam is the first non-executive chairman of the board 10. The proxy statement also names Jason Clifford, Jeffrey Dormo and Simon Mawson as named executive officers 10.

Problems

Since 2018 the company has been in legal proceedings over its Metropolis plant, the 10-K says 6. Eight cancer lawsuits were settled in 2024, and the remaining cases include claims of alleged radiation contamination around the plant and a class action alleging property damage 6. The company says it does not anticipate a material adverse effect from them 6.

The company must meet timing requirements on projects partly funded by the Department of Energy or it may owe liquidated damages, though the 10-K says it does not believe that probable 6. Rulings on summary judgment and on class certification are expected in 2026, the filing says 6.

The umbrella, in words

The company sells under Solstice and Genetron for refrigerants, Aclar for packaging film, Spectra for fibers, and Fluka and Hydranal for laboratory chemicals 6.

Exhibit 21.1 to the 10-K lists the subsidiaries, among them Solstice Advanced Materials US, Inc., Honeywell Electronic Materials, Inc. in Washington, Honeywell Specialty Chemicals Seelze GmbH in Germany and ConverDyn, GP in Delaware 11. Several still carry Honeywell in their names 11.

The company owns 49 percent of Asahi-Schwebel (Taiwan), a woven glass fabric joint venture with Asahi Kasei EMD Corporation, and 49 percent of Quimobásicos, a Mexican refrigerant gas joint venture 6. It owns 50 percent of ConverDyn, with General Atomics holding the other 50 percent, and consolidates it as the primary beneficiary 6.

The 10-K counts 45 owned or leased properties: 20 manufacturing sites, four research sites, three parcels of land and 18 corporate sites 6. The Metropolis plant is licensed by the US Nuclear Regulatory Commission until 2060, World Nuclear News reported 9.

The proxy lists The Vanguard Group with 11.6 percent and BlackRock, Inc. with 10.4 percent of the common stock, each as reported in its Schedule 13G 10. Honeywell no longer owns any Solstice shares 6.

The company now expects 2026 net sales of $4,195 million to $4,220 million, adjusted EBITDA of $1,050 million to $1,060 million and adjusted diluted earnings per share of $2.90 to $2.95 1. For the fourth quarter it guides to net sales of $1,010 million to $1,035 million 1. Capital expenditures are unchanged at $420 million to $440 million 1.

On capital returns, the company intends to substantially complete its $500 million repurchase authorization by the end of the first quarter of 2027, and completed $100 million of it in the third quarter of 2026 1. The next dividend of $0.075 per share is payable on 10 December 2026 2.

In nuclear, the company said in February 2026 that Metropolis Works was expected to produce more than 10,000 tonnes of uranium hexafluoride in 2026, about a 20 percent increase from its planned 2024 output 9. It said it was exploring more projects, backed in part by the US Department of Energy, and had retained an engineering, procurement and construction firm for an initial analysis of new capacity 9.

The 10-K says the company currently expects supply and demand for conversion to be balanced in the long term 6. It also says capital spending is expected to stay at or above 10 percent of net sales in the near term, to expand production beyond current capacity 6.

The 10-K lists the company's own goals: to evaluate selective strategic acquisitions, to bring Solstice Air to inhalers and to expand into adjacent products and end markets 6. It also names new phase-change materials for cooling, developed with several customers 6.

The 10-K says rulings are expected in 2026 on summary judgment in the city and county cases over the Metropolis plant, and on class certification in the property damage class action 6.