Solstice raises full-year forecast on strong refrigerants, electronic materials demand

Solstice raised its 2026 adjusted earnings expectations to between $2.75 and $2.95 per share from $2.45 to $2.75 per share it previously forecast.

It now expects annual net sales to be between $4.13 billion and $4.19 billion, up from its prior forecast of $3.9 billion to $4.1 billion.

The company anticipates third-quarter net sales to be between $990 million and $1.03 billion, the midpoint of which is in line with analysts' average estimate, according to data compiled by LSEG.

"Our strong first-half performance gives us confidence to raise our full-year outlook, even against an uncertain macroeconomic backdrop," said CEO David Sewell.

The company's second-quarter net sales rose more than 11% to $1.15 billion from a year ago and adjusted core profit increased 2% to $290 million.

The Morris Plains, New Jersey-based firm posted adjusted profit of 88 cents per share for the three months ended June 30, compared with analysts' estimate of 77 cents.

Solstice, which was spun off from Honeywell HON.O last year as part of the conglomerate's plan to separate into three independent companies, supplies materials and chemicals to industries, including semiconductors, refrigeration, nuclear power and healthcare.

Earlier this month, the company said it will buy specialty chemicals peer Element Solutions ESI.N in a $14.5 billion deal, aiming to capitalize on growing demand for AI data centers and the semiconductor industry.