Solstice Advanced Materials (SOLS) Q4 2025 earnings summary

Executive summary

• Achieved strong financial and operational results in Q4 2025, surpassing expectations during the transition to an independent public company after the Honeywell spin-off on October 30, 2025.

• Delivered better-than-expected results, driven by strong demand for differentiated products in nuclear, AI, data centers, and refrigerants.

• Initiated a quarterly dividend of $0.075 per share, marking the start of capital returns to shareholders, with the first payment in March 2026.

• Positioned for growth in 2026, with guidance aligned to prior commitments and supported by secular trends.

Financial highlights

• Q4 2025 net sales rose 8% year-over-year to $987 million; full-year 2025 net sales reached $3.9 billion, up 3% year-over-year.

• Adjusted standalone EBITDA for 2025 was $957 million, down 4% year-over-year, with a margin of 24.6%; Q4 adjusted EBITDA was $189 million, down 20% YoY, margin 19.1%.

• Net income attributable for 2025 was $237 million; Q4 net income was $41 million, both down significantly from the prior year.

• Return on invested capital for 2025 was approximately 19%.

• Capital expenditures for 2025 were $408 million, up 38% year-over-year.

Outlook and guidance

• 2026 guidance: net sales of $3.9–$4.1 billion, adjusted EBITDA of $975–$1,025 million, adjusted EPS of $2.45–$2.75.

• Q1 2026 guidance: net sales of $935–$985 million, adjusted EBITDA of $235–$245 million, margin of ~25%.

• Capital expenditures for 2026 projected at $400–$425 million.

• Expects low single-digit revenue growth and mid-single-digit adjusted EBITDA growth for 2026, with margin recovery from Q1 onward.