Solstice Advanced

Solstice spent $97 million on R&D last year, pays a 0.4% yield, and still trades with 35% upside to $88.

If you own Solstice, you are betting the spin-off grows into its premium price.

sols

materials · specialty chemicals large cap updated feb 20, 2026
$64.66
market cap ~$10B · 52-week range $40–$68
xvary composite: 55 / 100 · below average
our overall rating — combines growth, value, risk, and momentum
Start here if you're new
what it is
Solstice makes specialty chemicals and materials that keep cooling systems running and chip factories supplied.
how it gets paid
Last year Solstice Advanced made $3.9B in revenue. Low-GWP refrigerants was the main engine at $1.75B, or 45% of sales.
why it's growing
Revenue grew 3.1% last year. Q4 revenue near $987M shows demand still moving while spin-off costs keep reported EPS messy.
what just happened
Fourth-quarter sales hit $987 million, up 8% vs. prior year, but the latest reported EPS was still negative.
At a glance
B+ balance sheet — decent shape, but not bulletproof
n/m trailing p/e — recent loss quarters make multiples noisy
0.4% dividend yield — cash in your pocket every quarter
15.0% return on capital — solid when earnings are clean
$2.75 fy2027 eps est
xvary composite: 55/100 — below average
What they do
Solstice makes specialty chemicals and materials that keep cooling systems running and chip factories supplied.
This business sells the boring stuff that is hard to swap out once it is qualified. If your cooling system or manufacturing line is built around a specific chemical, switching means retesting, delays, and risk you do not want. Low-GWP refrigerants are the largest reported line (~45% of sales), with blowing agents, electronic materials, and fibers rounding out the mix.
materials large-cap specialty-materials spin-off industrial-demand
How they make money
$3.9B annual revenue · their business grew +3.1% last year
Low-GWP refrigerants
$1.75B
Blowing agents, solvents, aerosols
$0.98B
Electronic materials
$0.70B
High-strength fibers and life-science chemicals
$0.47B
The products that matter
climate-friendly refrigerants
Low-GWP Refrigerants
$1.75B · ~45% of revenue
This is the headline segment in the revenue bridge. Regulation and customer specs make these products sticky once qualified.
core mix
foams, solvents, aerosols
Blowing Agents & Specialty Fluids
$0.98B · ~25% of revenue
Second-largest bucket in reported sales. Industrial demand here diversifies the story away from a single refrigerant line.
industrial demand
chip and advanced manufacturing inputs
Electronic Materials
$0.70B · ~18% of revenue
Smaller than refrigerants but ties Solstice to semiconductor and display supply chains—execution matters more than headline size.
tech adjacency
Key numbers
+35%
target upside
The stock sits at $64.66 versus an 18-month target of $88. That is the market saying the spin-off still needs proving.
25.0%
operating margin (FY)
Operating margin → profit after running the business → so what: this is a high-margin materials company, not a commodity grinder.
15.0%
return on capital
Return on capital → profit generated from money invested → so what: every $1 put to work produces about $0.15 in operating profit.
$2.0B
long-term debt
Debt is only 16% of capital, but $2.0 billion still means this spin-off owes bondholders before it rewards you.
Financial health
B+
strength
  • balance sheet grade B+ — solid but not elite
  • risk rank 3 — safer than 50% of stocks
  • long-term debt $2.0B (16% of capital)
  • net profit margin 12.0% — keeps 12 cents of every dollar in revenue
  • return on equity 32% — $0.32 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market

Return history isn't available for SOLS right now.

same standard. no invented return math.

source: institutional data · return history unavailable
What just happened
reported a loss
Fourth-quarter sales hit $987 million, up 8% vs. prior year, but the latest reported EPS was still negative.
Annual revenue was $3.9 billion, up 3.1% vs. prior year. The quiet part is simple: sales are growing, but spin-off costs and mix pressure are keeping profit messy — so a negative quarterly EPS can sit next to a strong FY operating margin on the KPI row; they are not the same period or the same line.
$987M
revenue (Q4)
-$0.22
eps (Q · print)
25.0%
operating margin (FY)
the number that mattered
$987 million matters because it shows the business itself is still growing even while the new stand-alone company absorbs setup pain.
source: company earnings report, 2026

Get this snapshot in your inbox

This page, delivered free — plus weekly updates when the numbers change. plain english, no spam.

weekly updates earnings alerts plain english no spam
What could go wrong

The #1 risk here is paying a premium multiple before the standalone record exists.

∘
med
valuation re-rating
SOLS trades at 53.5x earnings versus a 25.3x industry average. That is a premium setup for a company that just guided profit below expectations.
If execution looks merely normal instead of great, the multiple can compress before the business has time to prove itself.
∘
med
customer concentration
Top customers account for 70% of revenue. On a $4B revenue base, that means a lot of your income statement depends on a small number of relationships.
A lost customer is not a nuisance here. It can quickly become a revenue event.
∘
med
margin pressure
Management cited transitory costs, plant downtime, and product-mix shifts. Those are ordinary words that often lead to smaller profits than the market expected.
The bull case needs the 25% operating margin story to hold up. If that slips, the premium multiple gets harder to defend.
∘
med
post-spin execution
The company became independent in oct 2025. Standalone reporting, capital allocation, and operating discipline have barely started building a public track record.
Fresh spin-offs can work well. They can also spend a few quarters discovering where the old parent used to do the hard parts.
At 53.5x earnings with 70% of revenue tied to top customers, a modest operational miss can pressure both earnings and the multiple at the same time.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
next earnings report
Expected may 7, 2026. You want to see whether the softer 2026 profit outlook was a one-quarter reset or the start of a pattern.
margin
operating margin discipline
The page cites a 25% operating margin. If that number starts slipping while the stock stays expensive, the risk-reward changes fast.
customer risk
top-customer dependency
70% revenue concentration is fine until it is not. Any disclosure around contract renewals or customer mix matters more than usual here.
guidance
2026 sales range
Management guided to $3.9B–$4.1B in 2026 sales. That range is the floor of credibility until the company builds a longer standalone history.
Analyst rankings
coverage status
still forming
In human-speak, the Street is still learning how to model this business as a standalone company rather than a Honeywell line item.
quality read
B+
The balance sheet is solid enough to absorb ordinary volatility. It is not so strong that you can ignore execution risk.
valuation read
premium
A 53.5x earnings multiple against a 25.3x industry average tells you analysts do not need to love the stock for it to already look expensive.
source: institutional data
Institutional activity

institutions have been net selling for 3 consecutive quarters — 0 buyers vs. 0 sellers in 3q2025. net selling for 3 quarters.

source: institutional data · 1q2025-3q2025
source: institutional data
Price targets
3-5 year target range
$70 $105
$65 current price
$88 target midpoint · +35% from current · 3-5yr high: $105 (+60% · 14% ann'l return)
source: institutional data · analyst targets

Want the deeper analysis?

The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.

see plans from $5/mo
The deep dive
SOLS
xvary deep dive
sols
the full analysis is in the works.
what you'll get
dcf valuation model
bull / base / bear scenarios
competitive moat breakdown
quarterly earnings tracker
operating model projections
risk matrix with kill criteria
original price target + conviction
updated with every earnings
free · no spam · you'll be first to read it