Solstice Advanced Mat (NASDAQ:SOLS) Releases Quarterly Earnings Results, Misses Expectations By $0.14 EPS

Solstice Advanced Mat (NASDAQ:SOLS) issued its quarterly earnings results on Wednesday. The company reported $0.26 earnings per share for the quarter, missing analysts’ consensus estimates of $0.40 by ($0.14), 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:

• 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 Up 16.7%

SOLS stock traded up $10.66 during midday trading on Wednesday, reaching $74.46. The company had a trading volume of 3,164,937 shares, compared to its average volume of 2,620,615. The company has a quick ratio of 0.93, a current ratio of 1.53 and a debt-to-equity ratio of 0.03. The company’s 50 day simple moving average is $54.86. Solstice Advanced Mat has a 1-year low of $40.43 and a 1-year high of $74.90.

Analyst Ratings Changes

A number of analysts recently issued reports on the company. Wall Street Zen cut Solstice Advanced Mat from a “hold” rating to a “sell” rating in a research report on Saturday, December 20th. Weiss Ratings assumed coverage on Solstice Advanced Mat in a research note on Thursday, January 15th. They issued a “sell (d+)” rating for the company. Zacks Research upgraded shares of Solstice Advanced Mat to a “hold” rating in a research note on Friday, January 23rd. Vertical Research raised shares of Solstice Advanced Mat from a “hold” rating to a “buy” rating and set a $58.00 price objective on the stock in a report on Wednesday, January 7th. Finally, Alembic Global Advisors began 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 for the company. Four investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus price target of $59.40.

Institutional Investors Weigh In On Solstice Advanced Mat

A number of institutional investors have recently made changes to their positions in the stock. Bank of New York Mellon Corp acquired a new stake in shares of Solstice Advanced Mat during the 4th quarter worth approximately $55,829,000. TD Asset Management Inc bought a new position in Solstice Advanced Mat in the 4th quarter worth approximately $696,000. J.W. Cole Advisors Inc. bought a new position in shares of Solstice Advanced Mat in the fourth quarter valued at approximately $396,000. Northwestern Mutual Wealth Management Co. purchased a new position in Solstice Advanced Mat during the fourth quarter worth about $199,000. Finally, State of Wyoming purchased a new position in Solstice Advanced Mat in the 4th quarter worth approximately $70,000.

Solstice Advanced Mat Company Profile

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.