Solstice Advanced Materials Inc.

Results after becoming independent

Solstice separated from Honeywell on October 30, 2025. Its specialty materials serve refrigeration, semiconductor manufacturing, cooling, nuclear power and other industrial markets.

Third quarters ended September 30. Millions of dollars. Sales and attributable net income use GAAP. The EBITDA row compares current adjusted EBITDA with the prior year's adjusted standalone EBITDA.

Measure	2026	2025
Sales	$1,046	$969
Net income attributable to Solstice	$80	-$35
Adjusted EBITDA, with prior standalone comparison	$265	$235

The standalone comparison deducts estimated costs of operating independently from the older results. Adjusted EBITDA removes financing, tax, depreciation, stock compensation, transaction costs and specified other items.

Electronic and Specialty Materials produced $320 million of third-quarter sales and $68 million of adjusted EBITDA, versus $47 million of adjusted EBITDA a year earlier. Refrigerants and Applied Solutions generated $251 million of adjusted EBITDA, up from $243 million, while its margin narrowed.

The reported profit rebound also reflects lower income tax expense, at $24 million versus $182 million. The prior period included taxes associated with the separation.

Cash, investment and debt

First nine months ended September 30. Millions of dollars. GAAP cash-flow figures.

Measure	2026	2025
Operating cash flow	$693	$289
Capital expenditures paid	$325	$248

Current-year free cash flow was $368 million, after capital spending. Higher accrued and other current liabilities contributed $201 million to operating cash flow. Cash and cash equivalents rose to $714 million from $534 million at December 31.

The September leverage reconciliation showed $1.968 billion of debt and $1.254 billion of net debt, excluding finance leases. Borrowings included $998 million of term-loan principal due in 2032 and $1 billion of 5.625% senior notes due September 30, 2033. The revolving credit facility was undrawn, with approximately $1 billion available. Solstice reported compliance with its debt covenants.

The company maintained its $420 million to $440 million capital-spending forecast for 2026. In October it also announced plans to expand its Buffalo research campus, including refrigerant, thermal-management and energy-storage research.

After the abandoned merger

Solstice and Element Solutions mutually terminated their merger agreement on August 27, with neither owing the other a termination fee. Solstice incurred $34 million of merger-financing fee amortization and write-offs in the third quarter. Its cash-flow statement also records $34 million paid for those financing fees in the first nine months, outside operating and free cash flow.

Separate professional fees connected with the proposed merger were $23 million in the quarter and $27 million over nine months. Those amounts are included in the respective transaction-cost totals, and are removed from adjusted earnings.

The $500 million buyback authorization dates to August 27. After spending $100 million in the third quarter, management intends to substantially complete the program by the end of the first quarter of 2027. On November 3 it declared a $0.075 quarterly dividend, payable December 10 to holders of record November 25.

Expectations to check next

Sales of $1.046 billion exceeded the third-quarter forecast of $990 million to $1.030 billion reaffirmed in August. Solstice subsequently raised its full-year sales range to $4.195 billion to $4.220 billion from $4.125 billion to $4.185 billion.

Its annual adjusted EBITDA forecast rose to $1.050 billion to $1.060 billion from $1.035 billion to $1.055 billion. The adjusted earnings-per-share range narrowed upward to $2.90 to $2.95 from $2.75 to $2.95.

Read our analysis: Solstice's merger is off. Its buyback now has a timetable.