The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 41 | 52.1x | 20.8x | Around median | |
Growth | 27 | 7.8% | 6.1% | Bottom tier | |
Quality | 32 | 9.9% | 6.6% | Bottom tier | |
Safety | 54 | 1.3x | 0.7x | Around median | |
Capital Return | 60 | 15.61% | 2.02% | Around median | |
Momentum | 64 | — | 4.1% | Around median | |
Sentiment | 63 | 3 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Solstice Advanced Materials Inc. is a specialized advanced materials company operating through two main platforms: Refrigerants & Applied Solutions and Electronic & Specialty Materials. The company generates its revenue from low-global-warming-potential refrigerants such as 454B and from solutions related to data centers, the Nuclear business, and Healthcare Packaging, in addition to electronic materials for semiconductor applications and Safety & Defense Solutions such as Spectra and Research & Performance Chemicals materials. In its first full quarter as an independent company, management focused on investing in advanced computing, semiconductors, thermal cooling for data centers, nuclear energy, and defense, while benefiting from a conservatively leveraged balance sheet and substantial liquidity.
In the first quarter of fiscal 2026, management presented net sales of $991 million, up 10% year over year, including 8% organic growth consisting of 6% from volumes and 2% from pricing, in addition to a positive effect from foreign currency translation of about 2.5%. Adjusted EBITDA was about $249 million, with a margin of 25.1%, while GAAP net income attributable to Solstice was about $85 million, and the company recorded adjusted diluted EPS of $0.63; in the latest EDGAR data for the same quarter, revenue was $897 million, gross profit was $320 million, net income was $134 million, and EPS was $0.85. At the operating mix level in management’s presentation, the Refrigerants & Applied Solutions segment generated sales of $711 million, or about 72% of the net sales reported on the call, with an Adjusted EBITDA margin of 34.1%, while the Electronic & Specialty Materials segment generated sales of $281 million, or about 28%, with an Adjusted EBITDA margin of 20.8%.
In more detail, Refrigerants sales rose 19% to $389 million, supported by the transition to HFO, demand for 454B, and data center orders, and Nuclear sales rose 27% to $107 million due to pricing and volumes. By contrast, Building Solutions and Intermediates sales declined 8% to $167 million because of weakness in the construction market, while Healthcare Packaging rose 9% to $47 million after the end of the destocking wave that appeared in the second half of 2025. In Electronic & Specialty Materials, Electronic Materials grew 21% to $109 million thanks to semiconductor demand, Safety & Defense Solutions remained at $50 million, and Research & Performance Chemicals was stable at $121 million, with growth in fine chemicals offsetting weakness in Specialty Additives.
The stated market capitalization is $10.8 billion, while the context does not provide a usable P/E multiple, as the P/E ratio appears as not available. The analyst consensus is Buy, with an average price target of $94.33 and a target range between $88 and $102, and this average is above the high end of the 52-week range of $90.8. Therefore, the analyst consensus, within the available data and without quoting a live price, suggests that the market values the stock below the average target if it remains within its stated annual range, but the judgment on attractiveness depends on achieving 2026 guidance and restoring refrigerant margins.
Figures in the text are as of 2026-07-06; the live price is shown at the top of the page.
Solstice relies on two main segments: Refrigerants & Applied Solutions and Electronic & Specialty Materials. In the first quarter of 2026, Refrigerants & Applied Solutions generated net sales of $711 million and an Adjusted EBITDA margin of 34.1%, making it the largest source of sales. Electronic & Specialty Materials generated $281 million of net sales and a 20.8% margin, with strong growth in Electronic Materials linked to semiconductors. Within these segments, Refrigerants stood out with sales of $389 million, Nuclear with sales of $107 million, and Electronic Materials with sales of $109 million.
The Spokane project in Washington is important because it targets doubling production capacity for sputtering targets used in advanced semiconductor applications. The company announced a $200 million investment in this site, with the goal of reducing lead times and improving sustainability by increasing recycling and lowering CO2 emissions. Management said on the May 6, 2026 call that it sells everything it can produce at the Spokane facility, indicating that production capacity has become a critical factor. The company expects the project to exceed an internal rate of return threshold in the mid-teens percentage range.
Automated analysis for informational purposes only — not investment advice.
The HFO transition supports growth, but it has pressured margins in the near term because of the change in the refrigerant mix. Refrigerants sales rose 19% to $389 million in the first quarter of 2026, with growth driven largely by HFO products and demand for 454B. At the same time, the Adjusted EBITDA margin in Refrigerants & Applied Solutions fell to 34.1%, down 522 basis points year over year, because of the refrigerant mix and higher research and development. Management said it expects sequential improvement in refrigerant margins from first-quarter levels as the aftermarket develops.
The Nuclear business has become one of the company’s specific growth drivers, as its sales rose 27% year over year to $107 million in the first quarter of 2026. Management explained that growth came from a combination of better pricing and higher volumes, with progress in debottlenecking efforts targeting a 25% volume increase versus 2024 figures. The company is also studying larger expansion options in cooperation with an engineering company, and is speaking with customers, the Department of Energy, and the NRC about demand needs in the 2030s. It also announced that it will hold a virtual seminar on the Nuclear business on June 4 to provide additional details.
Solstice reaffirmed its fiscal 2026 guidance after strong first-quarter results. The company expects net sales between $3.9 billion and $4.1 billion, Adjusted EBITDA between $975 million and $1.025 billion, and adjusted diluted EPS between $2.45 and $2.75. It also expects CapEx between $400 million and $425 million, a level that reflects growth projects in Spokane, Spectra ballistic Fibers, and Nuclear opportunities. For the second quarter of 2026, it expects net sales between $1.06 billion and $1.1 billion and an Adjusted EBITDA margin between 25% and 26%, with about $10 million of planned outage expenses.
In the first quarter of 2026, the company generated $199 million of operating cash flow and $124 million of free cash flow, despite a 32% increase in CapEx to $82 million. On March 31, 2026, long-term debt was $2.0 billion, and cash and cash equivalents were $642 million, producing net debt of about $1.3 billion. Net leverage was about 1.4 times based on Adjusted EBITDA for the last 12 months, with $1 billion available on the revolving credit facility and total liquidity of about $1.6 billion. The company also announced a quarterly dividend of $0.075 per share, consistent with the prior quarter.