Solstice Advanced Materials, Inc (SOLS) AI Stock Analysis

Solstice Advanced Materials, Inc. operates as a specialty chemicals and advanced materials company in the United States and internationally. It operates through two segments: Refrigerants & Applied Solutions (RAS) and Electronic & Specialty Materials (ESM). The RAS segment manufactures low global warming potential refrigerants, blowing agents, aerosol propellants, and pharmaceutical packaging materials under brands like Solstice, Genetron, and Aclar. The ESM segment supplies electronic materials, sputtering targets, lightweight high-strength fibers, and high-purity life science solutions under the Spectra, Fluka, and Hydranal brands for semiconductor, defense, pharmaceutical, and construction markets.

Solstice Advanced Materials grew annual revenue from $3.59B in FY2022 to $3.89B in FY2025, representing a 3-year revenue CAGR of 2.7%. During this period, gross margin declined from 39.1% to 32.2%, and operating margin narrowed from 27.0% to 18.8%. Annual net income decreased from $718.0M in FY2022 to $237.0M in FY2025, resulting in FY2025 net margin of 6.1% and diluted EPS of $1.53. In the latest quarter ended June 30, 2026, performance rebounded with quarterly revenue growth of 11.1% year-over-year and quarterly earnings growth of 22.8% year-over-year, lifting trailing twelve month revenue to $4.10B.

As of June 30, 2026, Solstice Advanced Materials held $750.0M in cash and short-term investments against total debt of $2.41B, resulting in net debt of $1.66B. Shareholders' equity was $1.59B, yielding a debt-to-equity ratio of 1.52, while the current ratio stood at 1.46. In FY2025, operating cash flow reached $455.0M and free cash flow was $103.0M. Cash deployment during FY2025 included $352.0M in capital expenditures and $1.50B paid in dividends.

Solstice Advanced Materials trades at a trailing P/E of 44.9x and a forward P/E of 17.1x, compared to the median of its US-listed Basic Materials peers of 19.7x and 13.4x, respectively. Its enterprise value to EBITDA ratio is 12.7x, above the peer median of 10.5x, while its price-to-sales ratio is 2.3x versus the peer median of 1.8x. Year-to-date, SOLS shares have returned 22.4%, outperforming the S&P 500 (SPY) 1-year return of 16.8%, though the stock sits 14.8% below its 200-day average at a closing price of $59.25.

Solstice Advanced Materials pays a forward annual dividend of $0.30 per share, which equates to a dividend yield of 0.51%. The payout ratio is 9.7%, with distributions made on a quarterly schedule. The company's last ex-dividend date was August 27, 2026.

Wall Street analysts hold 7 Strong Buy, 2 Buy, and 1 Hold ratings on Solstice Advanced Materials, with 0 Sell or Strong Sell ratings. The mean price target is $78.60, representing a 32.7% premium over the closing price of $59.25. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $4.17B and EPS of $2.90, reflecting 94.5% EPS growth. The company has beat EPS estimates in 3 of the last 4 quarters. The next earnings date is November 4, 2026.

This page is an AI-written research summary of Solstice Advanced Materials, Inc (SOLS). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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