Solstice Advanced Materials Reports Second Quarter 2026 Results
Rhea-AI Summary
Solstice Advanced Materials (Nasdaq: SOLS) reported second quarter 2026 net sales of $1,148 million, up 11% year over year, with double‑digit growth in Nuclear, Electronic Materials, Refrigerants and Healthcare Packaging. Net income attributable to Solstice was $119 million versus $97 million, and diluted EPS was $0.75 with adjusted diluted EPS of $0.88. Adjusted EBITDA was $290 million, up 2%, while the adjusted EBITDA margin declined 218 bps to 25.3%.
For the first half, operating cash flow reached $461 million and free cash flow was $248 million. Solstice reported net leverage of ~1.3x and total liquidity of about $1.75 billion. The company raised full‑year 2026 guidance to net sales of $4,125–$4,185 million, adjusted EBITDA of $1,035–$1,055 million and adjusted diluted EPS of $2.75–$2.95, and announced a quarterly dividend of $0.075 per share. Solstice also entered a definitive agreement to acquire Element Solutions in a cash‑and‑stock transaction expected to close in the first half of 2027, subject to approvals.
Positive
- Net sales +11% YoY to $1,148 million in Q2 2026
- Net income attributable +23% YoY to $119 million; diluted EPS $0.75
- Electronic & Specialty Materials EBITDA +24% with margin up 280 bps to 21.6%
- Strong segment growth: Nuclear +27%, Healthcare Packaging +24%, Electronic Materials +15% YoY
- Raised 2026 guidance to $4,125–$4,185 million net sales and $1,035–$1,055 million adjusted EBITDA
- Robust cash generation: $461 million operating cash flow and $248 million free cash flow in first half 2026
- Conservative balance sheet: net leverage about 1.3x and total liquidity around $1.75 billion
Negative
- Adjusted EBITDA margin down 218 bps YoY to 25.3% in Q2 2026
- RAS segment Adjusted EBITDA -6% YoY and margin down 648 bps to 32.9%
- Six‑month net income attributable down to $204 million from $231 million year over year
- Corporate expenses up to $54 million from $46 million due to standalone public company costs
- Interest expense sharply higher: $23 million in Q2 2026 versus $2 million in Q2 2025
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 06 | First-quarter earnings | Positive | -1.9% | Q1 results reported sales growth and reaffirmed guidance; shares declined 1.85% afterward. |
| Feb 11 | Fourth-quarter earnings | Positive | +17.5% | Results included full-year guidance and dividend announcement; shares rose 17.48% afterward. |
| Nov 06 | Third-quarter earnings | Negative | -6.8% | Post-spin-off results included a net loss and margin decline; shares fell 6.85% afterward. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings reactions were mixed: two historical events aligned with the reported direction and one diverged.
Key Terms
adjusted ebitda financial
adjusted diluted eps financial
free cash flow financial
net leverage ratio financial
organic net sales financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
- Net Sales of
$1,148 million 11% YoY reflecting double-digit growth in Nuclear, Electronic Materials, Refrigerants, and Healthcare Packaging - Net Income attributable to Solstice Advanced Materials of
$119 million $0.75 $0.88 - Adjusted EBITDA 1 of
$290 million 25.3% - Operating Cash Flow for the six months ended June 30, 2026 of
$461 million $248 million - Company raises Full-Year 2026 Guidance; now expects Net Sales of
$4,125 $4,185 million $1,035 $1,055 million $2.75 $2.95
"Solstice delivered strong second-quarter results with double-digit growth across four of our seven reported businesses," said David Sewell, President and Chief Executive Officer. "We are executing well on our organic growth strategy while positioning for the future: our agreement to acquire Element Solutions accelerates our strategy to build a scaled advanced materials platform aligned with the most powerful trends in our markets, including AI, data centers, nuclear energy, and semiconductor manufacturing."
Consolidated Financial Highlights | For The Three Months Ended June 30, | ||||
(Dollars in millions, except per share amounts) | 2026 | 2025 | % Change | ||
Net Sales | $ 1,148 | $ 1,033 | 11 % | ||
Net Income attributable to Solstice Advanced | $ 119 | $ 97 | 23 % | ||
Diluted EPS | $ 0.75 | $ 0.61 | 23 % | ||
Adjusted diluted EPS1 | $ 0.88 | N/A | N/A | ||
Adjusted EBITDA1,2 | $ 290 | $ 283 | 2 % | ||
Adjusted EBITDA Margin1,2 | 25.3 % | 27.4 % | (218) bps | ||
Net Sales in the second quarter of 2026 were
Net Income attributable to Solstice Advanced Materials in the second quarter of 2026 was
Adjusted EBITDA1,2 for the second quarter of 2026 was
Financial Position
Operating Cash Flow for the six months ended June 30, 2026 was
As of June 30, 2026, the Company's Total Long-Term Debt was
Capital Deployment
The Company announced on July 17, 2026, that the Board of Directors declared a quarterly dividend of
Announced acquisition of Element Solutions
On July 6, 2026, Solstice announced that it had entered into a definitive agreement to acquire Element Solutions in a cash-and-stock transaction. The transaction is subject to shareholder and regulatory approvals and other customary closing conditions and is expected to close in the first half of 2027.
Segment Highlights
Refrigerants & Applied Solutions (RAS)
For The Three Months Ended June 30, | |||||
(Dollars in millions) | 2026 | 2025 | % Change | ||
Net Sales | |||||
Refrigerants | $ 473 | $ 418 | 13 % | ||
Building Solutions & Intermediates | 180 | 181 | (1) % | ||
Nuclear | 125 | 98 | 27 % | ||
Healthcare Packaging | 73 | 59 | 24 % | ||
RAS Segment Net Sales | $ 850 | $ 756 | 12 % | ||
RAS Segment Adjusted EBITDA | $ 280 | $ 298 | (6) % | ||
RAS Segment Adjusted EBITDA Margin | 32.9 % | 39.4 % | (648) bps | ||
Net Sales for the Refrigerants & Applied Solutions segment were
Segment Adjusted EBITDA for the Refrigerants & Applied Solutions segment decreased
Electronic & Specialty Materials (ESM)
For The Three Months Ended June 30, | |||||
(Dollars in millions) | 2026 | 2025 | % Change | ||
Net Sales | |||||
Research & Performance Chemicals | $ 135 | $ 132 | 3 % | ||
Electronic Materials | 119 | 104 | 15 % | ||
Safety & Defense Solutions | 43 | 41 | 7 % | ||
ESM Segment Net Sales | $ 298 | $ 277 | 8 % | ||
ESM Segment Adjusted EBITDA | $ 64 | $ 52 | 24 % | ||
ESM Segment Adjusted EBITDA Margin | 21.6 % | 18.8 % | 280 bps | ||
Net Sales for the Electronic & Specialty Materials segment were
Segment Adjusted EBITDA for the Electronic & Specialty Materials segment increased
Corporate Expenses
Corporate Expenses totaled
Income Tax Expense
Income Tax Expense was
2026 Financial Outlook
(Dollars in millions except per share amounts) | Previous 2026 | Raised 2026 | 3Q 2026 Guidance | ||
Net Sales | |||||
Adjusted EBITDA | |||||
Adjusted Diluted EPS1 | |||||
Capital Expenditures |
"Our strong first-half performance gives us confidence to raise our full-year outlook, even against an uncertain macroeconomic backdrop," said David Sewell, President and Chief Executive Officer. "We remain focused on disciplined execution across our current business and on completing our acquisition of Element Solutions."
The Company does not provide a reconciliation of forward-looking Adjusted EBITDA (non-GAAP) or Adjusted diluted Earnings per Share to GAAP net income (loss) attributable to Solstice Advanced Materials, due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. Because deductions (such as repositioning charges, transaction costs, impairment charges, and litigation and other matters) used to calculate projected net income (loss) vary based on actual events, the Company is not able to forecast on a GAAP basis with reasonable certainty all deductions needed in order to provide a GAAP calculation of projected net income (loss) at this time. The amount of these deductions may be material and, therefore, could result in projected GAAP net income (loss) being materially less than projected Adjusted EBITDA (non-GAAP) or Adjusted Net Income attributable to Solstice (non-GAAP). These statements represent forward-looking information and a projected financial outlook, and actual results may vary. Please see the risks and assumptions referred to in the "Forward-Looking Statements" section of this news release. The guidance in this news release is only effective as of the date it is given and will not be updated or affirmed unless and until the Company publicly announces updated or affirmed guidance.
1 This is a non-GAAP measure or a non-GAAP ratio. For further information on non-GAAP measures and non-GAAP ratios, please refer to the "Non-GAAP Financial Measures" section of this news release. Please also refer to tables at the end of this news release for a reconciliation of historical non-GAAP measures and ratios to the most directly comparable GAAP measure. | |||||||||||
2 The three months ended June 30, 2025 represents Adjusted Standalone EBITDA (non-GAAP) and Adjusted Standalone EBITDA Margin (non-GAAP). | |||||||||||
3 Capital expenditures represent capital expenditures incurred, whether accrued or paid in the current year. | |||||||||||
Conference Call Details
Solstice will discuss its second quarter results during an investor conference call starting at 8:30 a.m. Eastern Time today. A live webcast of the investor call as well as related presentation materials will be available on the Investor Relations section of the Company's website, investor.solstice.com. The teleconference can be accessed by dialing 877-407-8029 (
A replay of the webcast will be available shortly after the call concludes and will be available for 30 days following the presentation.
About Solstice Advanced Materials
Solstice Advanced Materials is a leading global specialty materials company that advances science for smarter outcomes. Solstice offers high-performance solutions that enable critical industries and applications, including refrigerants, semiconductor manufacturing, data center cooling, nuclear power, protective fibers, healthcare packaging and more. Solstice is recognized for developing next-generation materials through some of the industry's most renowned brands such as Solstice®, Genetron®, Aclar®, Spectra®, Fluka™ and Hydranal™. Partnering with over 3,000 customers across more than 120 countries and territories and supported by a robust portfolio of over 5,700 patents and pending applications, Solstice's approximately 4,100 employees worldwide drive innovation in materials science. For more information, visit www.Solstice.com.
Forward-Looking Statements
This news release contains forward-looking statements, within the meaning of the federal securities laws made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 about us, our industry, and with respect to our proposed acquisition of Element Solutions Inc ("Element Solutions") that involve substantial risks and uncertainties. These statements can be identified by the fact that they do not relate strictly to historical or current facts, but rather are based on current expectations, estimates, assumptions and projections about our industry and our business and financial results. Forward-looking statements often include words such as "anticipates," "estimates," "expects," "positioned," "projects," "forecasts," "intends," "plans," "continues," "could," "believes," "may," "will," "would," "should," "goals" and words and terms of similar substance in connection with discussions of future operating, financial performance, or with respect to the proposed acquisition of Element Solutions. As with any projection or forecast, forward-looking statements are inherently susceptible to uncertainty and changes in circumstances. Our actual results may vary materially from those expressed or implied in our forward-looking statements. Accordingly, undue reliance should not be placed on any forward-looking statement made by us or on our behalf. Although we believe that the forward-looking statements contained in this news release are based on reasonable assumptions, you should be aware that a variety of factors, many of which are difficult to predict and outside of our control, could affect our actual financial results or results of operations and could cause actual results to differ materially from those in such forward-looking statements, including, but not limited to: risks and uncertainties around the Company's proposed acquisition of Element Solutions, including the risk that the anticipated benefits and synergies of the transaction may not be realized when expected or at all, that the terms and scope of the expected financing in connection with the transaction may prove to be less favorable than currently expected, that the transaction may not be completed in a timely matter or at all, the risk that disruptions from the proposed acquisition will harm our business, including current plans and operations, and the risk of litigation related to the transaction; our limited operating history as an independent, publicly traded company and unreliability of historical consolidated financial information as an indicator of our future results; our ability to successfully develop new technologies and introduce new products; an overall decline in the health of the economy and the industries in which we operate, including as a result of inflation, tariffs and other trade barriers and restrictions, market volatility, geopolitical instability and social unrest, the possibility of an economic downturn or recession or other macroeconomic factors; changes in the price and availability of raw materials that we use to produce our products, including due to factors such as supply chain disruptions, including due to increased energy prices, and the impact of inflation; our ability to comply with complex government regulations and the impact of changes in such regulations; global climate change and related regulations and changes in customer demand; the public and political perceptions of nuclear energy and radioactive materials; economic, political, regulatory, foreign exchange and other risks of international operations; the impact of tariffs or other restrictions on foreign imports; our ability to borrow funds and access capital markets and any limitations in the terms of our indebtedness; our ability to compete successfully in the markets in which we operate; the effect on our revenue and cash flow from seasonal fluctuations and cyclical market conditions; concentrations of our credit, counterparty and market risk; our ability to successfully execute or effectively integrate potential acquisitions, including the proposed acquisition of Element Solutions, or complete potential divestitures; our joint ventures and strategic co-development partnerships; our ability to recruit and retain qualified personnel; potential material environmental liabilities; the hazardous nature of chemical manufacturing; decommissioning and remediation expenses and regulatory requirements; potential material litigation matters, including disputes related to the spin off ("the Spin-off") from Honeywell International Inc. ("Honeywell"); the impact of potential cybersecurity attacks, data privacy breaches and other operational disruptions; increasing stakeholder interest in public company performance, disclosure, and goal-setting with respect to sustainability matters; failure to maintain, protect and enforce our intellectual property or to be successful in litigation related to our intellectual property or the intellectual property of others, or competitors developing similar or superior intellectual property or technology; unforeseen
These and other factors are more fully discussed in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections included in our Form 10-K for the fiscal year ended December 31, 2025, filed with the SEC on February 19, 2026, our Quarterly Reports on Form 10-Q, and other documents we may file from time to time with the SEC. These risks could cause actual results to differ materially from those implied by forward-looking statements in this release. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and we assume no obligation and do not intend to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, except as otherwise required by securities or other applicable law. We give no assurance that we will achieve our expectations. Even if our results of operations, financial condition and liquidity and the development of the industry in which we operate are consistent with the forward-looking statements contained in this release, those results or developments may not be indicative of results or developments in subsequent periods.
Contacts: | |
Investor Relations | Media |
Mike Leithead | Phil Terrigno |
(973) 370-8188 | (973) 768-8868 |
Michael.Leithead@solstice.com | Phil.Terrigno@solstice.com |
SOLSTICE ADVANCED MATERIALS INC. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (AMOUNTS IN MILLIONS, EXCEPT PER SHARE AMOUNTS) | |||||||
For The Three Months Ended | For The Six Months Ended June | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Product sales | $ 1,062 | $ 945 | $ 1,977 | $ 1,783 | |||
Service sales | 86 | 88 | 163 | 147 | |||
Net sales | 1,148 | 1,033 | 2,139 | 1,930 | |||
Costs, expenses and other | |||||||
Cost of products sold | 715 | 601 | 1,343 | 1,132 | |||
Cost of services sold | 63 | 71 | 110 | 116 | |||
Total cost of products and services sold | 778 | 671 | 1,453 | 1,248 | |||
Research and development expenses | 25 | 23 | 53 | 45 | |||
Selling, general and administrative expenses | 123 | 105 | 230 | 198 | |||
Transaction-related costs | 25 | 30 | 47 | 58 | |||
Other expense (income) | (2) | 2 | (9) | (9) | |||
Interest and other financial charges | 23 | 2 | 53 | 3 | |||
Total costs, expenses and other | 972 | 833 | 1,827 | 1,543 | |||
Income before taxes | 176 | 199 | 312 | 387 | |||
Income tax expense | 42 | 101 | 73 | 148 | |||
Net income | 134 | 99 | 239 | 239 | |||
Less: Net income attributable to noncontrolling interest | 15 | 2 | 35 | 8 | |||
Net income attributable to Solstice Advanced Materials | $ 119 | $ 97 | $ 204 | $ 231 | |||
Basic earnings per share | $ 0.75 | $ 0.61 | $ 1.28 | $ 1.46 | |||
Diluted earnings per share | $ 0.75 | $ 0.61 | $ 1.28 | $ 1.46 | |||
Weighted average number of common shares outstanding - basic | 158.8 | 158.7 | 158.8 | 158.7 | |||
Weighted average number of common shares outstanding - diluted | 159.4 | 158.7 | 159.3 | 158.7 | |||
SOLSTICE ADVANCED MATERIALS INC. CONSOLIDATED BALANCE SHEETS (UNAUDITED) (DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS) | |||
As of | |||
June 30, 2026 | December 31, 2025 | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 750 | $ 534 | |
Accounts receivable, less allowances of | 671 | 645 | |
Inventories | 666 | 715 | |
Product loans receivable, current | 314 | 300 | |
Other current assets | 168 | 193 | |
Total current assets | 2,568 | 2,388 | |
Property, plant and equipment – net | 2,126 | 2,055 | |
Goodwill | 817 | 820 | |
Intangible assets – net | 47 | 49 | |
Deferred income taxes | 6 | 6 | |
Equity method investments | 174 | 162 | |
Other noncurrent assets | 182 | 192 | |
Total assets | $ 5,918 | $ 5,673 | |
LIABILITIES | |||
Current liabilities: | |||
Accounts payable | $ 942 | $ 909 | |
Current portion of long-term debt | 6 | 4 | |
Product loans payable, current | 330 | 320 | |
Finance lease liabilities, current | 14 | 14 | |
Accrued and other liabilities, current | 468 | 467 | |
Total current liabilities | 1,760 | 1,713 | |
Long-term debt | 1,966 | 1,968 | |
Deferred income taxes | 245 | 233 | |
Product loans payable, noncurrent | 15 | 16 | |
Finance lease liabilities, noncurrent | 95 | 104 | |
Other noncurrent liabilities | 250 | 262 | |
Total liabilities | 4,330 | 4,296 | |
Commitments and Contingencies | |||
EQUITY | |||
Common stock (par value | 2 | 2 | |
Additional paid-in capital | 1,506 | 1,495 | |
Accumulated other comprehensive loss | (142) | (127) | |
Retained earnings | 220 | 41 | |
Total Solstice Advanced Materials shareowners' equity | 1,586 | 1,411 | |
Noncontrolling interest | 2 | (34) | |
Total equity | 1,588 | 1,377 | |
Total liabilities and equity | $ 5,918 | $ 5,673 | |
SOLSTICE ADVANCED MATERIALS INC. SUMMARIZED CASH FLOW INFORMATION (UNAUDITED) (DOLLARS IN MILLIONS) | |||
For The Six Months Ended June | |||
2026 | 2025 | ||
Net cash provided by operating activities | $ 461 | $ 310 | |
Net cash used for investing activities: | |||
Capital expenditures paid | $ (213) | $ (138) | |
Net cash used for financing activities: | |||
Dividends | $ (24) | $ — | |
Non-GAAP Financial Measures
The Company uses non-GAAP financial measures to supplement the financial measures prepared in accordance with
Below are definitions and reconciliations of certain non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with
- Organic sales percentage: The Company defines organic sales percentage as the year-over-year change in reported sales relative to the comparable period, excluding the impact on sales from foreign currency translation and acquisitions, net of divestitures, for the first 12 months following the transaction date. We believe this measure is useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.
- Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Standalone EBITDA, and Adjusted Standalone EBITDA margin: The Company defines Adjusted EBITDA as net income excluding income taxes, depreciation, amortization, interest and other financial charges, remeasurement of foreign currencies, stock-based compensation expense, nonoperating pension expense (income), transaction-related costs, repositioning charges, asset retirement obligations accretion, asset impairment charges, litigation costs and insurance settlements (net of recoveries), gains and losses on disposal of assets, and certain other items that are otherwise of an unusual or non-recurring nature. The Company defines Adjusted EBITDA margin as Adjusted EBITDA divided by Net sales. The Company defines Adjusted Standalone EBITDA as Adjusted EBITDA less, for fiscal year 2025, estimated recurring and ongoing costs required to operate a new independent public company, and autonomous entity adjustments as well as adjustments for certain other employee compensation expense for employees that have historically been shared with other Honeywell businesses and were transferred to the Company in connection with the spin-off. The Company defines Adjusted Standalone EBITDA Margin as Adjusted Standalone EBITDA divided by Net sales. We believe these measures are useful to investors as they provide greater transparency with respect to supplemental information used by management in its financial and operational decision making, as well as understanding ongoing operating trends.
- Adjusted net income attributable to Solstice and Adjusted diluted EPS: The Company defines Adjusted net income attributable to Solstice as Net income attributable to Solstice Advanced Materials excluding the after-tax impact - based on the tax rates by jurisdiction, net of discrete items - of amortization of acquired intangibles, remeasurement of foreign currencies, nonoperating pension expense (income), transaction-related costs, repositioning charges, asset retirement obligations accretion, asset impairment charges, litigation costs and insurance settlements (net of recoveries), gains and losses on disposal of assets, and certain other items that are otherwise of an unusual or non-recurring nature. We believe Adjusted net income attributable to Solstice is useful to investors as it provides greater transparency with respect to supplemental information used by management in its financial and operational decision making, as well as in understanding ongoing operational trends. The Company defines Adjusted diluted EPS as Adjusted net income attributable to Solstice divided by diluted weighted average shares outstanding to reflect shares that are dilutive or anti-dilutive based on the amount of Adjusted net income attributable to Solstice. The weighted average common shares outstanding used to calculate Adjusted diluted earnings (loss) per share will differ from such shares used to calculate diluted earnings (loss) per share (GAAP) when the inclusion of dilutive shares has an anti-dilutive effect for one calculation but not for the other. We believe Adjusted diluted EPS is useful to investors as it provides greater transparency with respect to supplemental information used by management in its financial and operational decision making, as well as in understanding ongoing operational trends.
- Free cash flow: The Company defines free cash flow as net cash provided by operating activities less net capital expenditures. Net capital expenditures include capital expenditures paid less proceeds from the disposals of property, plant, and equipment. We believe this measure is useful to investors and management as a measure of cash generated by operations that can be used to invest in future growth through new business development activities or acquisitions, pay dividends, repurchase stock, or repay debt obligations prior to their maturities. This measure can also be used to evaluate our ability to generate cash flow from operations and the impact that this cash flow has on our liquidity.
- Net debt, total leverage ratio and net leverage ratio: The Company defines net debt as total debt less cash. The Company defines total leverage ratio as total debt divided by Adjusted EBITDA. The Company defines net leverage ratio as net debt divided by Adjusted EBITDA. For purposes of showing total leverage ratio and net leverage ratio, we use Adjusted Standalone EBITDA instead of Adjusted EBITDA. We believe these measures are useful to investors and management in understanding our overall financial condition.
Organic Sales Percentage | |||
For The Three | For The Six Months Ended | ||
2026 vs. 2025 | 2026 vs. 2025 | ||
Total % change in net sales | 11.2 % | 10.8 % | |
Foreign currency translation | (0.6) % | (1.6) % | |
Acquisitions, divestitures and other, net | — % | — % | |
Organic sales percentage | 10.6 % | 9.2 % | |
Adjusted EBITDA, Adjusted Standalone EBITDA, Adjusted EBITDA margin and Adjusted Standalone | |||||||||
For The Three Months Ended | For The Six Months Ended June | For The LTM(1) | |||||||
(Dollars in millions) | 2026 | 2025 | 2026 | 2025 | 2026 | ||||
Net income attributable to Solstice Advanced Materials (GAAP) | $ 119 | $ 97 | $ 204 | $ 231 | $ 210 | ||||
Net income attributable to noncontrolling interest | 15 | 2 | 35 | 8 | 74 | ||||
Net income (GAAP) | $ 134 | $ 99 | $ 239 | $ 239 | $ 284 | ||||
Depreciation | 54 | 55 | 107 | 105 | 193 | ||||
Amortization | 3 | 4 | 10 | 11 | 28 | ||||
Interest and other financial charges | 23 | 2 | 53 | 3 | 78 | ||||
Other adjustments(2) | 2 | 7 | — | (1) | (37) | ||||
Stock-based compensation expense | 6 | 6 | 11 | 12 | 27 | ||||
Transaction-related costs | 25 | 30 | 47 | 58 | 106 | ||||
Income tax expense | 42 | 101 | 73 | 148 | 287 | ||||
Adjusted EBITDA (Non-GAAP) | $ 290 | $ 304 | $ 539 | $ 575 | $ 964 | ||||
Less - Standalone adjustments | — | (21) | — | (42) | (1) | ||||
Adjusted Standalone EBITDA (Non-GAAP) | $ 290 | $ 283 | $ 539 | $ 533 | $ 963 | ||||
Net Sales | $ 1,148 | $ 1,033 | $ 2,139 | $ 1,930 | $ 4,096 | ||||
Adjusted EBITDA Margin (Non-GAAP) | 25.3 % | 29.5 % | 25.2 % | 29.8 % | 23.5 % | ||||
Adjusted Standalone EBITDA Margin (Non-GAAP) | 25.3 % | 27.4 % | 25.2 % | 27.6 % | 23.5 % | ||||
1. | LTM stands for "last twelve months." | |||||||||
2. | Other adjustments primarily consisted of gains and losses from disposal of long-lived assets, remeasurement of foreign currencies, environmental reserves, asset retirement obligations, nonoperating pension expense (income), and certain legal costs, net of recoveries. | |||||||||
Adjusted net income attributable to Solstice and Adjusted diluted EPS | |||
For The | For The Six | ||
Net income attributable to Solstice Advanced Materials (GAAP) | $ 119 | $ 204 | |
Transaction-related costs | 25 | 47 | |
Amortization of acquired intangible assets | 1 | 1 | |
Other adjustments(1) | 2 | — | |
Tax effect of above adjusting items | (7) | (12) | |
Adjusted net income attributable to Solstice (Non-GAAP) | $ 140 | $ 240 | |
Diluted weighted average shares outstanding | 159.4 | 159.3 | |
Diluted EPS (GAAP) | $ 0.75 | $ 1.28 | |
Adjusted diluted EPS (Non-GAAP) | $ 0.88 | $ 1.51 | |
1. | Other adjustments primarily consisted of gains and losses from disposal of long-lived assets, remeasurement of foreign currencies, environmental reserves, asset retirement obligations, nonoperating pension expense (income), and certain legal costs, net of recoveries. | |||||||||
Free cash flow | |
(Dollars in millions) | For The Six |
Net cash provided by operating activities (GAAP) | $ 461 |
Less: capital expenditures paid | (213) |
Free cash flow (Non-GAAP) | $ 248 |
Net debt, total leverage ratio and net leverage ratio as of June 30, 2026 | |
(Dollars in millions) | |
Total Debt | $ 1,972 |
Less: Cash and Cash Equivalents | (750) |
Net Debt (Non-GAAP) | $ 1,222 |
LTM Adjusted Standalone EBITDA (Non-GAAP) | $ 963 |
Total Leverage Ratio (Non-GAAP) | 2.0x |
Net Leverage Ratio (Non-GAAP) | 1.3x |
Reconciliation of Segment Adjusted EBITDA to Adjusted Standalone EBITDA | |||||||
For The Three Months Ended | For The Six Months Ended | ||||||
(Dollars in millions) | 2026 | 2025 | 2026 | 2025 | |||
RAS Segment Adjusted EBITDA | $ 280 | $ 298 | $ 522 | $ 548 | |||
ESM Segment Adjusted EBITDA | 64 | 52 | 123 | 105 | |||
Segment Adjusted EBITDA | $ 344 | $ 350 | $ 645 | $ 653 | |||
Less: | |||||||
Corporate and All Other | (54) | (46) | (106) | (78) | |||
Standalone Adjustments | — | (21) | — | (42) | |||
Adjusted Standalone EBITDA (Non-GAAP) | $ 290 | $ 283 | $ 539 | $ 533 | |||
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SOURCE Solstice Advanced Materials US, Inc.