Solstice Advanced Materials Inc.

First-quarter 2026 net sales were $991 million, up 10% year over year, with organic net sales growth of 8% including 6% volume and 2% pricing, plus 2.5% foreign currency benefit. Adjusted EBITDA was $249 million, relatively flat year over year, with adjusted EBITDA margin at 25.1%; GAAP net income attributable to Solstice was $85 million and adjusted diluted EPS was $0.63. Free cash flow was $124 million, operating cash flow was $199 million, capital expenditures were $82 million, cash and cash equivalents were $642 million, long-term debt was $2 billion, and net leverage was approximately 1.4x. Segment results included Refrigerants & Applied Solutions sales of $711 million, up 12%, with EBITDA of $242 million and margin of 34.1%; Electronic & Specialty Materials sales of $281 million, up 7%, with EBITDA of $58 million and margin of 20.8%. Full-year 2026 guidance was reaffirmed: net sales of $3.9 billion to $4.1 billion, adjusted EBITDA of $975 million to $1.025 billion, adjusted diluted EPS of $2.45 to $2.75, and capex of $400 million to $425 million. For 2Q 2026, Solstice expects sales of $1.06 billion to $1.1 billion and adjusted EBITDA margin of approximately 25% to 26%, including $10 million of planned downtime-related expense.

David Sewell framed the quarter as strong execution in Solstice’s first full stand-alone period, emphasizing robust demand in nuclear, electronics, and refrigerants. He highlighted the company’s strategy of reinvesting cash flow into high-return growth projects, especially advanced computing, data centers, nuclear, and defense, while also returning capital via the dividend. His tone was confident but measured, repeatedly pointing to disciplined capital allocation, capacity expansion, and a conservative stance around macro and geopolitical uncertainty.

Tina Pierce focused on the mechanics behind the quarter: $991 million of sales, $249 million of adjusted EBITDA, 25.1% margin, and year-over-year growth driven by volume, pricing, and foreign exchange. She noted Refrigerants & Applied Solutions EBITDA margin fell 522 basis points to 34.1% because of refrigerant mix and higher R&D, while Electronic & Specialty Materials margin improved to 20.8% on better volume. On cash and capital, she pointed to $199 million of operating cash flow, $82 million of capex, $642 million of cash, $1 billion of revolver availability, and about $1.6 billion of total liquidity, and she reiterated the $0.075 per share quarterly dividend. She also said noncontrolling interest was unusually high at $20 million in Q1 and is expected to normalize to about $10 million per quarter.

Analysts focused on Nuclear growth, refrigerant pricing and data center demand, Electronics capacity constraints, the post-destocking recovery in healthcare packaging, TSA/legacy costs, and how geopolitics might affect costs and pricing. Management said Nuclear growth reflected both price and volume, debottlenecking is on track for a 25% volume increase versus 2024, and future expansion is being studied with an engineering firm and in discussions with customers and regulators. On refrigerants, they said 19% growth was mostly HFO-driven, with strong double-digit data center growth and a shift from roughly 60% HFO / 40% HFC entering 2026 toward about 70% / 30% exiting 2026 into 2027. On costs, they said Middle East-related inflation is showing up in logistics and some raw materials, but it is manageable, less than 10% of total material spend for the items discussed, and price-cost is expected to be covered through the year.