Solstice Advanced Materials Raises Full-Year Outlook on Sales Growth
The company increased its 2026 adjusted diluted earnings per share guidance to a range of $2.75 to $2.95
Solstice Advanced Materials (SOLS) reported second-quarter net sales of $1,148 million, an 11% increase from the prior year.
The specialty chemicals maker saw an acceleration in growth as organic net sales rose 11% in the second quarter, up from 8% in the first quarter.
Adjusted EBITDA margin for the period was 25.3%, representing a 218 basis point decline year-over-year. This compression was less severe than the 277 basis point drop recorded in the previous quarter.
Performance diverged across business segments. The Refrigerants & Applied Solutions unit saw net sales grow 12% year-over-year to $850 million, though its adjusted EBITDA margin fell 648 basis points to 32.9%. Conversely, the Electronic & Specialty Materials segment reported net sales of $298 million, an 8% increase, while its adjusted EBITDA margin expanded 280 basis points to 21.6%.
Growth was further supported by specific vertical markets. Nuclear revenues grew 27% year-over-year, and healthcare packaging improved 24% over the same period.
Solstice raised its full-year 2026 guidance. The company now expects net sales between $4,125 million and $4,185 million, up from a previous range of $3,900 million to $4,100 million. Adjusted EBITDA guidance was increased to $1,035 million to $1,055 million from $975 million to $1,025 million, and adjusted diluted EPS was raised to a range of $2.75 to $2.95 from $2.45 to $2.75.
Capital expenditures for the first six months of 2026 rose 35% year-over-year to $186 million.
On July 6, 2026, the company entered a definitive agreement to acquire Element Solutions in a cash-and-stock transaction valued at approximately $14.5 billion.