Solstice Advanced Mat (NASDAQ:SOLS) Issues Earnings Results

Solstice Advanced Mat (NASDAQ:SOLS) announced its quarterly earnings results on Wednesday. The company reported $0.26 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.40 by ($0.14), Zacks reports. The business had revenue of $987.00 million for the quarter, compared to the consensus estimate of $938.00 million. 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:

• Solstice exceeded expectations in Q4, finished 2025 with ~19% ROIC and ~1.5x net leverage, and provided 2026 guidance of low single‑digit revenue growth and mid‑single‑digit Adjusted EBITDA growth.
• The Metropolis UF6 conversion facility is the only U.S. converter, management expects >10 KT production in 2026, has a >$2 billion backlog largely contracted through 2030, and is evaluating meaningful capacity expansion with engineering work underway.
• Near‑term headwinds include a scheduled final product loan return that reduces 2026 revenue by ~$30M (roughly a ~$10M EBITDA impact), an estimated ~$30M cost hit from TSAs, and Q4 margin pressure from transitory costs, plant downtime and refrigerant product‑mix shifts that drove a 20% year‑over‑year drop in Q4 Adjusted EBITDA.
• Refrigerants showed momentum (management reports ~60% HFO today and expects ~80/20 HFO/HFC over time) and electronic materials posted strong volume growth driven by AI/semiconductor demand, prompting capacity investments including a Spokane sputtering‑target capacity expansion and Spectra defense fiber scaling.
• Management emphasized a disciplined capital allocation approach, initiated a quarterly dividend of $0.075 per share, plans $400–425M of 2026 CapEx, and enters 2026 with ~$1.5B total liquidity to support growth, M&A optionality, and returns to shareholders.

Solstice Advanced Mat Stock Performance

SOLS opened at $78.03 on Friday. Solstice Advanced Mat has a 12 month low of $40.43 and a 12 month high of $84.44. The company has a 50-day simple moving average of $56.03. The company has a debt-to-equity ratio of 1.50, a current ratio of 1.39 and a quick ratio of 0.93.

Solstice Advanced Mat Dividend Announcement

The firm also recently declared a dividend, which will be paid on Tuesday, March 10th. Shareholders of record on Tuesday, February 24th will be issued a $0.075 dividend. The ex-dividend date is Tuesday, February 24th.

Key Solstice Advanced Mat News

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

• Positive Sentiment: Board declared Solstice’s first quarterly dividend of $0.075/share (record Feb 24; pay Mar 10), a new shareholder-return policy that attracted income-focused and yield-seeking buyers. Dividend Announcement
• Positive Sentiment: Q4 revenue beat: Net sales $987M (+8% YoY) with double‑digit growth in Nuclear, Electronic Materials and Refrigerants — signals demand strength in key end markets. Q4 Results
• Positive Sentiment: Momentum: shares reached an all-time intraday high as investors bought ahead of the first dividend payment, boosting price and volume. All-Time High Story
• Neutral Sentiment: Revenue guidance for FY‑2026 was given as $3.9–$4.1B, roughly in line with consensus — supportive for sales outlook but not a catalyst alone. Guidance Details
• Negative Sentiment: Q4 EPS missed expectations: reported $0.26 vs. consensus ~$0.40, raising near-term profitability concerns despite revenue growth. Earnings Summary
• Negative Sentiment: FY‑2026 EPS guidance (Adjusted EPS $2.45–$2.75) is below consensus (~$2.93), which may limit upside and explains caution among some analysts. Guidance & Outlook
• Negative Sentiment: Mizuho raised its price target to $65 but maintained a “neutral” rating — the target sits well below the current market price, signaling analyst caution and potential downside risk. Analyst Note

Institutional Investors Weigh In On Solstice Advanced Mat

A number of institutional investors have recently bought and sold shares of the stock. Bank of Jackson Hole Trust acquired a new position in Solstice Advanced Mat during the fourth quarter worth approximately $30,000. Front Row Advisors LLC acquired a new stake in shares of Solstice Advanced Mat during the 4th quarter worth $67,000. State of Wyoming purchased a new position in shares of Solstice Advanced Mat in the 4th quarter worth $70,000. Federated Hermes Inc. acquired a new position in Solstice Advanced Mat in the fourth quarter valued at $74,000. Finally, McMillan Office Inc. acquired a new position in Solstice Advanced Mat in the fourth quarter valued at $79,000.

Analyst Ratings Changes

A number of equities research analysts have commented on SOLS shares. Wall Street Zen cut Solstice Advanced Mat from a “hold” rating to a “sell” rating in a report on Saturday, December 20th. Royal Bank Of Canada upgraded Solstice Advanced Mat from a “sector perform” rating to an “outperform” rating in a research report on Tuesday, January 20th. UBS Group reissued a “buy” rating on shares of Solstice Advanced Mat in a research note on Thursday. Alembic Global Advisors started coverage on shares of Solstice Advanced Mat in a research note on Monday, December 1st. They set an “overweight” rating and a $60.00 price target on the stock. Finally, Mizuho lifted their price target on shares of Solstice Advanced Mat from $54.00 to $65.00 and gave the stock a “neutral” rating in a report on Thursday. Four analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, Solstice Advanced Mat currently has a consensus rating of “Hold” and an average price target of $61.60.

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.