Solstice Advanced Materials Sees PTs Raised to $80–$90 on 20% UF6 Capacity Expansion
Mizuho raised its price target on Solstice Advanced Materials to $80 from $65, while UBS and BMO boosted theirs to $87 and $90, with BMO noting a 20% expansion of UF6 capacity to over 10Kt in 2026. The company posted Q4 revenue of $987M versus $913M, initiating a quarterly dividend.
1. Analyst Price Target Increases
On February 13, Mizuho raised its price target on Solstice Advanced Materials to $80 from $65 and maintained a neutral rating. On February 12, UBS lifted its target to $87 from $75 with a Buy rating citing a stronger-than-expected Q4 beat and faster nuclear capacity ramp, while BMO increased its target to $90 from $72 with an Outperform rating and flagged a 20% UF6 capacity expansion.
2. Q4 Financial Results
Solstice reported fourth-quarter revenue of $987M, up 8.2% from $913M a year earlier, driven by demand in data center cooling, AI infrastructure and nuclear energy segments. Management highlighted momentum in both its Refrigerants & Applied Solutions and Electronic & Specialty Materials divisions and noted in-line guidance was conservative.
3. UF6 Capacity Expansion
The company plans to boost uranium hexafluoride conversion capacity by 20%, raising annual output to over 10 kilotonnes in 2026 to meet surging nuclear fuel demand. This expansion supports anticipated earnings revisions as global utilities accelerate nuclear deployments.
4. Dividend Initiation
Solstice initiated its first quarterly dividend as part of a disciplined capital allocation strategy designed to balance growth investments with shareholder returns. CEO David Sewell emphasized the dividend reflects confidence in cash flow generation while funding expansion projects.