Solstice Advanced Mat (NASDAQ:SOLS) Announces Earnings Results, Beats Estimates By $0.03 EPS

Solstice Advanced Mat (NASDAQ:SOLS) announced its earnings results on Wednesday. The company reported $0.63 EPS for the quarter, topping analysts’ consensus estimates of $0.60 by $0.03, Zacks reports. Solstice Advanced Mat updated its FY 2026 guidance to 2.450-2.750 EPS.

Here are the key takeaways from Solstice Advanced Mat’s conference call:

• Beat expectations — Q1 revenue was $991M (+10% YoY), adjusted EBITDA $249M, adjusted EPS $0.63, with strong cash generation (operating cash flow ~$199M; free cash flow ~$124M).
• Electronic materials momentum — electronic materials revenue grew 21% YoY and Solstice is investing $200M to double sputtering‑target capacity in Spokane, targeting a mid‑teens IRR and evaluating further acceleration.
• Refrigerants and nuclear growth — refrigerants sales rose ~19% driven by HFO/R‑454B adoption and data center demand, while nuclear sales were up 27% with de‑bottlenecking underway and engineering studies for major future expansion.
• Margin and cost pressures — adjusted EBITDA was roughly flat and margins declined to 25.1% due to refrigerant mix shifts and higher R&D; GAAP net income fell because of standalone public‑company costs and higher interest, and Q1 non‑controlling interest was an atypical $20M.
• Strong balance sheet and guidance — net debt ~ $1.3B (net leverage ~1.4x), cash ~$642M and ~$1B revolver (~$1.6B liquidity), reaffirmed FY2026 guidance, Q2 revenue guide $1.06–1.10B, and a $0.075 quarterly dividend.

Solstice Advanced Mat Trading Down 4.5%

Shares of Solstice Advanced Mat stock traded down $3.80 during trading hours on Wednesday, reaching $79.76. The stock had a trading volume of 4,220,628 shares, compared to its average volume of 2,824,895. The company’s 50 day simple moving average is $77.33. The stock has a market cap of $12.67 billion and a price-to-earnings ratio of 306.70. Solstice Advanced Mat has a twelve month low of $40.43 and a twelve month high of $84.99. The company has a quick ratio of 0.98, a current ratio of 1.39 and a debt-to-equity ratio of 1.50.

Solstice Advanced Mat Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 10th. Shareholders of record on Wednesday, May 27th will be given a $0.075 dividend. The ex-dividend date is Wednesday, May 27th. This represents a $0.30 dividend on an annualized basis and a dividend yield of 0.4%. Solstice Advanced Mat’s dividend payout ratio is 115.38%.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the stock. Heritage Wealth Advisors acquired a new position in shares of Solstice Advanced Mat during the 4th quarter worth about $26,000. Rexford Capital Inc. purchased a new stake in shares of Solstice Advanced Mat in the 4th quarter valued at approximately $27,000. Gen Wealth Partners Inc purchased a new stake in shares of Solstice Advanced Mat in the 4th quarter valued at approximately $29,000. Bank of Jackson Hole Trust purchased a new position in shares of Solstice Advanced Mat during the 4th quarter worth approximately $30,000. Finally, EFG International AG purchased a new position in shares of Solstice Advanced Mat during the 4th quarter worth approximately $32,000.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on SOLS. Mizuho set a $80.00 price target on Solstice Advanced Mat in a research note on Friday, February 13th. UBS Group lowered Solstice Advanced Mat from a “buy” rating to a “neutral” rating and set a $87.00 price objective for the company. in a research report on Monday, April 13th. Zacks Research upgraded Solstice Advanced Mat to a “hold” rating in a research report on Friday, January 23rd. Royal Bank Of Canada raised shares of Solstice Advanced Mat from a “sector perform” rating to an “outperform” rating in a research note on Tuesday, January 20th. Finally, Wall Street Zen raised shares of Solstice Advanced Mat from a “sell” rating to a “hold” rating in a research note on Sunday. Three equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, Solstice Advanced Mat has a consensus rating of “Hold” and a consensus price target of $67.00.

Key Solstice Advanced Mat News

Here are the key news stories impacting Solstice Advanced Mat this week:

• Positive Sentiment: Q1 beat and cash generation — Net sales rose ~10% to $991M and adjusted diluted EPS was $0.63 (vs. $0.60 consensus); operating cash flow was $199M and free cash flow $124M, showing healthy cash conversion. PR Newswire: Q1 Results
• Positive Sentiment: Institutional support and analyst interest — Large institutions (Vanguard, BlackRock, State Street, etc.) have sizable positions and recent analyst coverage includes multiple buy/outperform ratings, which provides a structural bid under the stock. Quiver: Institutional and Analyst Activity
• Neutral Sentiment: Near‑term revenue guide roughly in line — Company issued Q2 revenue guidance near $1.1B (around Street expectations), so top‑line trajectory appears stable even as mix shifts. PR Newswire: Guidance
• Negative Sentiment: Margin pressure and higher costs — Adjusted EBITDA margin fell to 25.1% from 27.9% as the company ramps lower‑GWP refrigerants, increases R&D and absorbs higher standalone costs after the spin‑off, which weighed on net income (down to $85M). PR Newswire: Margin Commentary
• Negative Sentiment: Full‑year guidance seen as conservative — FY 2026 revenue guidance of $3.9–$4.1B and EPS 2.45–2.75 had a midpoint that many traders viewed as underwhelming versus prior expectations, fueling the sell‑off. Quiver: Market Reaction to Guidance
• Negative Sentiment: Unusual put activity — Traders bought ~15,200 put contracts (a ~638% increase vs. typical daily put volume), indicating elevated short‑term bearish/options hedging pressure.

About Solstice Advanced Mat

Solstice Advanced Materials is a leading global specialty materials company that advances science for smarter outcomes. Solstice offers high-performance solutions that enable critical industries and applications, including refrigerants, semiconductor manufacturing, data center cooling, nuclear power, protective fibers, healthcare packaging and more.