GET DAILY SIGNALSSolstice Advanced Materials (SOLS) Posts Q3 Beat and Raises Full-Year Guidance
Key Takeaways
- Solstice Advanced Materials (SOLS) reported third-quarter 2026 net sales of $1,046 million, up 8% year over year and above the top end of its own guidance range.
- Adjusted diluted earnings per share (EPS) came in at $0.80, beating the $0.69 consensus estimate by roughly 16%, while revenue topped the $1.01 billion forecast.
- Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) rose 13% to $265 million, with margin expanding 109 basis points to 25.3%.
- The company raised full-year 2026 guidance for a second consecutive quarter, though its fourth-quarter outlook implies a meaningful step-down from third-quarter levels.
- Electronic & Specialty Materials posted a record quarter, but Refrigerants & Applied Solutions showed decelerating growth, narrowing the beat's breadth.
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Why This Report Matters
This quarter stands out because SOLS, which spun off from Honeywell about a year ago, continues to demonstrate it can operate independently as a specialty materials company. I’m watching closely to see whether its exposure to nuclear energy, thermal management, artificial intelligence, and data centers can balance softer areas such as residential refrigerants and construction. The results mark the second straight guidance increase and show progress on moving away from legacy Honeywell systems, with remaining service agreements completed ahead of schedule and under budget. With an activist investor reportedly accumulating shares and the Element Solutions merger now behind it, this print offers a useful checkpoint on the standalone strategy and margin discipline.
Quarterly Results in Detail
SOLS posted third-quarter 2026 net sales of $1,046 million, an 8% rise from the prior year and above the upper end of management guidance. Adjusted diluted EPS reached $0.80, ahead of the $0.69 consensus, while revenue surpassed the $1.01 billion estimate. On a GAAP basis, net income attributable to Solstice was $80 million compared with a $35 million loss last year, and GAAP diluted EPS was $0.50. Adjusted EBITDA climbed 13% to $265 million, lifting the margin by 109 basis points to 25.3%. Refrigerants & Applied Solutions contributed $726 million in sales, up 6%, while Electronic & Specialty Materials achieved a record $320 million, up 13%. Electronic materials sales jumped 31%, and the nuclear backlog stood at $2.6 billion. Guidance for the full year was raised again, although the fourth-quarter outlook of $0.57 to $0.62 in adjusted EPS points to a sequential decline.
Market Reaction and Sentiment
Shares traded near $61 ahead of the release. Despite the beat-and-raise, the stock eased during the session as investors focused on the narrower sources of growth. Electronic materials accelerated, yet refrigerants, nuclear, and overall organic growth all moderated compared with prior quarters, and the fourth-quarter guide signaled a clear step-down. The spread between GAAP EPS of $0.50 and adjusted EPS of $0.80, largely tied to write-offs from the terminated merger and related costs, also drew notice. In my view, sentiment stays constructive on the AI and nuclear themes but remains cautious around capacity limits in the highest-growth segments.
Key Areas to Watch Going Forward
Investors will want to track how SOLS converts its $2.6 billion nuclear backlog, now stretching to 2039, into revenue. Management expects uranium conversion production to exceed 10,000 tons this year, with debottlenecking at the Metropolis facility adding 1,000 to 2,000 tons at modest extra cost. Larger expansion depends on securing customer commitments, so progress there will be telling. In electronics, the Spokane sputtering-target expansion is sold out until new capacity arrives, mostly in 2028, limiting near-term upside. On the refrigerant side, residential destocking is likely to continue into 2027, making stabilization in that market important. The company plans to finish most of its $500 million buyback by the end of the first quarter of 2027, with $100 million already completed, which could provide support. Monitoring guidance updates, margin trends, and cash-flow conversion will help assess the independent growth trajectory.
Refining Analysis with AI Tools
I also checked this using Tickeron’s AI Screener to compare SOLS against peers on fundamentals and technical signals. The platform helps surface comparable setups efficiently when reviewing earnings-driven moves and sector trends.
Disclaimer
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
Momentum Indicator for SOLS turns negative, indicating new downward trend
SOLS saw its Momentum Indicator move below the 0 level on November 02, 2026. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 61 similar instances where the indicator turned negative. In 55 of the 61 cases, the stock moved further down in the following days. The odds of a decline are at 90%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for SOLS moved out of overbought territory on October 22, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 13 similar instances where the indicator moved out of overbought territory. In 8 of the 13 cases, the stock moved lower in the following days. This puts the odds of a move lower at 62%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 21 of 26 cases where SOLS's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 81%.
The Moving Average Convergence Divergence Histogram (MACD) for SOLS turned negative on November 02, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 22 similar instances when the indicator turned negative. In 19 of the 22 cases the stock turned lower in the days that followed. This puts the odds of success at 86%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SOLS declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 84%.
SOLS broke above its upper Bollinger Band on October 21, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
SOLS moved above its 50-day moving average on November 03, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for SOLS crossed bullishly above the 50-day moving average on October 14, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 6 of 7 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 86%.
Following a +4.75% 3-day Advance, the price is estimated to grow further. Considering data from situations where SOLS advanced for three days, in 78 of 98 cases, the price rose further within the following month. The odds of a continued upward trend are 80%.
The Aroon Indicator entered an Uptrend today. In 67 of 77 cases where SOLS Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 87%.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 21 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 82, placing this stock better than average.
The Tickeron PE Growth Rating for this company is 35 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is 56 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 57 (best 1 - 100 worst), indicating fairly steady price growth. SOLS’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 79 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (5.779) is normal, around the industry mean (2.487). P/E Ratio (43.644) is within average values for comparable stocks, (-18.741). Projected Growth (PEG Ratio) (0.493) is also within normal values, averaging (1.548). Dividend Yield (0.005) settles around the average of (0.040) among similar stocks. P/S Ratio (2.268) is also within normal values, averaging (48.960).
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