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.
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 sees third-quarter net sales of $990 million to $1.03 billion, with the midpoint in line with estimates.
Second-quarter results beat estimates
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.
It posted an adjusted profit of 88 cents per share for the three months ended June 30, compared with analysts' estimate of 77 cents, according to data compiled by LSEG.
Solstice was spun off from Honeywell HON.O last year as part of the conglomerate's plan to separate into three independent companies.
Forecast raised on stronger demand and pricing
July 30 (Reuters) - Solstice Advanced Materials SOLS.O raised its full-year adjusted profit and sales forecast on Thursday, driven by strong demand for nuclear, refrigerants and electronic materials, as well as pricing actions.
Shares of the specialty materials maker rose 7.3% in morning trading.
The company is benefiting from growing demand for its thermal management and refrigerant products serving the rapidly expanding AI data center market, alongside an increasing need for advanced semiconductor materials used in next-generation computing and data-intensive applications.
CEO cites first-half performance and business drivers
"Our strong first-half performance gives us confidence to raise our full-year outlook, even against an uncertain macroeconomic backdrop," said CEO David Sewell.
Sewell told Reuters the company had seen a minor cost impact from the Middle East conflict, but said it was immaterial relative to the overall business.
Sewell added the company is already co-innovating with data centers and is engaged in robust discussions with small modular reactor developers through its nuclear business to support growing power demand.
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