Solstice Advanced Materials (SOLS) Q4 2025 earnings summary

Executive summary

• Completed spin-off from Honeywell on October 30, 2025, establishing momentum as an independent public company and surpassing expectations in Q4 2025.

• Achieved strong Q4 and full-year 2025 results, driven by growth in nuclear, AI, data centers, and refrigerants, despite margin pressures from higher costs and product mix shifts.

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

• Maintained disciplined capital allocation, investing in organic growth, selective M&A, and shareholder returns.

• Positioned for growth in 2026, with guidance aligned to prior commitments and capacity expansions underway.

Financial highlights

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

• Q4 2025 net income attributable to shareholders was $41 million; full-year 2025 net income was $237 million, both down significantly year-over-year.

• Q4 2025 adjusted standalone EBITDA was $189 million (down 20% YoY), margin 19.1%; full-year adjusted standalone EBITDA was $957 million (down 4% YoY), margin 24.6%.

• 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 diluted 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 expected between $400–$425 million.

• Expects low single-digit revenue growth and mid-single-digit adjusted EBITDA growth for 2026.

• Guidance assumes stable macroeconomic conditions and continued momentum in key segments.