MORRIS PLAINS, N.J. – November 04, 2026 -- Solstice Advanced Materials (Nasdaq: SOLS) raised its full-year 2026 outlook for the second consecutive quarter after third-quarter net sales climbed 8% year over year to $1,046 million, ahead of company guidance.
The company now expects 2026 net sales of $4,195-$4,220 million, adjusted EBITDA of $1,050-$1,060 million and adjusted diluted EPS of $2.90-$2.95.
Earnings swing to $80 million profit as margin widens 109 basis points
Net income attributable to Solstice was $80 million, or $0.50 per diluted share, against a $35 million net loss a year earlier. Adjusted diluted EPS was $0.80. The turnaround reflected higher net sales and lower income taxes, partly offset by higher interest expense.
Adjusted EBITDA rose 13% to $265 million. The adjusted EBITDA margin reached 25.3%, up 109 basis points, on sales growth and operational leverage. Organic net sales rose 8%, driven by volume and price.
Income tax expense fell $158 million to $24 million. The prior-year period carried frictional taxes tied to the October 30, 2025 spin-off from Honeywell International Inc. Effective tax rates were 22% versus 105%.
Electronic Materials surges 31% on memory and AI demand
The Electronic & Specialty Materials segment posted record quarterly net sales of $320 million, up 13%. Electronic Materials grew 31% on demand for sputtering targets and thermal solutions in memory and AI-related applications. Safety & Defense Solutions rose 3% and Research & Performance Chemicals 4%.
Segment adjusted EBITDA jumped 44%, and the segment margin expanded 453 basis points.
Refrigerants & Applied Solutions grows 6% as margin slips 82 basis points
The Refrigerants & Applied Solutions segment generated $726 million in net sales, up 6%. Refrigerants rose 8% on automotive and data center demand. Healthcare Packaging gained 24% on higher volume and pricing following destocking in the second half of 2025. Building Solutions & Intermediates fell 5% as construction-related end markets stayed soft. Nuclear revenues increased 4%, and the nuclear conversion backlog stands at $2.6 billion. The company completed about $30 million of previously communicated product loan returns in the quarter.
Segment adjusted EBITDA grew 3%. The margin was 34.5%, down 82 basis points year over year partly on higher R&D investment, but up 160 basis points from the second quarter.
Solstice returns $112 million to shareowners and lifts capex 31%
The company returned $112 million to shareowners in the quarter, including $100 million of buybacks covering 1.7 million shares. It intends to substantially complete its $500 million repurchase authorization, approved August 27, by the end of the first quarter of 2027. The board also declared a quarterly dividend of $0.075 per share, payable December 10 to holders of record as of November 25.
For the nine months ended September 30, operating cash flow was $693 million and capital expenditures were $325 million, up 31% on planned growth investment. Free cash flow was $368 million.
Long-term debt was $2.0 billion against cash of about $714 million, putting net leverage at roughly 1.3x trailing twelve-month adjusted EBITDA. Total liquidity was about $1.7 billion, including $1.0 billion available under the revolving credit facility.
CEO David Sewell said the company is positioned to benefit from secular growth trends including nuclear energy, thermal management, AI and data centers.