Solstice Raises 2026 Outlook After EBITDA Margin Recovers

The Tip Desk · November 11, 2026 · 4 min read

Adjusted EBITDA was $265 million and the margin reached 25.3%, reversing two quarters of year-over-year compression.

Solstice Advanced Materials (SOLS), a global specialty-materials company, raised its full-year 2026 outlook for the second consecutive quarter after third-quarter results showed adjusted EBITDA growth accelerating and the adjusted EBITDA margin recovering from two periods of year-over-year compression.

Net sales were $1,046 million, up 8% from a year earlier, after 11% year-over-year growth in the second quarter and 10% in the first. Organic net sales rose 8%, which the company said was driven by both volume and price.

Adjusted EBITDA was $265 million, up 13% from the year-ago quarter, after 2% year-over-year growth in the second quarter and a roughly unchanged result in the first. Adjusted EBITDA margin was 25.3%, up 109 basis points from a year earlier, after a 218-basis-point year-over-year decline in the second quarter and a 277-basis-point decline in the first. The company attributed the margin improvement to net sales growth and operational leverage.

Net income attributable to Solstice was $80 million, or $0.50 a share, compared with a $35 million net loss, or $0.22 a share, a year earlier. Adjusted diluted EPS was $0.80. The company said the swing to profit was primarily driven by higher net sales and lower income taxes, partially offset by higher interest expense. Income tax expense was $24 million, down $158 million from the year-ago quarter because of frictional taxes associated with the October 2025 spin-off from Honeywell International Inc. Effective tax rates were 22% and 105% in the two third quarters.

The Electronic & Specialty Materials segment delivered record quarterly net sales of $320 million, up 13% from a year earlier, after 8% growth in the second quarter and 7% in the first. Electronic Materials sales were $135 million, up 31%, which the company said reflected increased demand for sputtering targets and thermal solutions in memory and AI-related applications. Research & Performance Chemicals sales were $131 million, up 4%, and Safety & Defense Solutions sales were $54 million, up 3%. Segment adjusted EBITDA was $68 million, up 44%, and the segment margin was 21.2%, up 453 basis points, which the company tied to sales growth and improved operating leverage.

Refrigerants & Applied Solutions net sales were $726 million, up 6%, after 12% year-over-year growth in both the second and first quarters. Refrigerants sales were $433 million, up 8%, on demand across automotive and data-center applications. Healthcare Packaging sales were $61 million, up 24%, on higher volume and pricing following destocking in the second half of 2025. Building Solutions & Intermediates sales were $167 million, down 5%, as construction-related end markets remained soft. Nuclear sales were $66 million, up 4%. The company completed about $30 million of previously communicated product loan returns in the quarter and said Nuclear conversion-services backlog was $2.6 billion.

RAS segment adjusted EBITDA was $251 million, up 3%. Segment adjusted EBITDA margin was 34.5%, down 82 basis points from a year earlier, which the company said was due in part to higher R&D investment. The margin improved 160 basis points sequentially from the second quarter, consistent with previously communicated expectations.

The company now expects full-year 2026 net sales of $4,195 million to $4,220 million, adjusted EBITDA of $1,050 million to $1,060 million, and adjusted diluted EPS of $2.90 to $2.95, versus prior guidance of $4,125 million to $4,185 million, $1,035 million to $1,055 million, and $2.75 to $2.95. Fourth-quarter 2026 guidance is net sales of $1,010 million to $1,035 million, adjusted EBITDA of $246 million to $256 million, and adjusted diluted EPS of $0.57 to $0.62. Capital-expenditure guidance of $420 million to $440 million is unchanged. President and Chief Executive Officer David Sewell said year-to-date performance gave the company confidence to raise the full-year outlook for the second consecutive quarter.

On August 27, the board approved a $500 million share-repurchase authorization. In the third quarter the company completed $100 million of the program, repurchasing 1.7 million shares, and said it intends to substantially complete the authorization by the end of the first quarter of 2027. It also declared a quarterly dividend of $0.075 a share, payable December 10. As of September 30, cash and cash equivalents were about $714 million, total long-term debt was $2.0 billion, net leverage was about 1.3 times trailing-twelve-month adjusted EBITDA, and total liquidity was about $1.7 billion.