Solstice Advanced Materials Q1 Sales Rise 10% While EPS Drops 37%
Solstice Advanced Materials posted Q1 net sales of $991 million, up 10% year-over-year, driven by 19% refrigerants and 27% nuclear growth, while diluted EPS fell 37% to $0.53 and adjusted EPS reached $0.63. Operating cash flow hit $199 million and the company reaffirmed its full-year 2026 guidance.
1. Q1 Financial Results
Solstice Advanced Materials reported net sales of $991 million, up 10% year-over-year, with net income of $85 million and diluted EPS of $0.53 versus $134 million and $0.85 in Q1 2025. Adjusted diluted EPS was $0.63, while adjusted EBITDA held at $249 million, yielding a 25.1% margin.
2. Segment Performance
The Refrigerants & Applied Solutions segment delivered $711 million in net sales, a 12% increase led by 19% refrigerants growth and 27% nuclear expansion, though its EBITDA margin fell 522 basis points to 34.1%. Electronic & Specialty Materials net sales rose 7% to $281 million, driven by a 21% jump in electronic materials, lifting segment EBITDA by 10%.
3. Cash Flow and Balance Sheet
Operating cash flow reached $199 million and free cash flow was $124 million after $82 million in capital expenditures, a 32% increase over last year. The balance sheet showed $2.0 billion in long-term debt, $642 million in cash, a net leverage ratio of 1.4x, and total liquidity of $1.6 billion.
4. Dividend and Outlook
The board approved a quarterly cash dividend of $0.075 per share payable June 10 to shareholders of record May 27. Management reaffirmed full-year 2026 guidance, citing continued strength in AI, data centers, semiconductor manufacturing and nuclear energy demand.