Solstice advanced materials revenue climbs 10% on strong refrigerant and nuclear demand

Solstice Advanced Materials (NASDAQ:SOLS) reported a solid start to 2026, with top-line growth fueled by surging demand across its core specialty chemical portfolios.

Despite the revenue gains, the company’s bottom-line performance reflected the impact of shifting macroeconomic conditions and increased operational expenditures.

Total net sales for the quarter reached $991 million, a 10% increase compared to the $901 million reported in the first quarter of 2025.

The company’s adjusted EBITDA stood at $249 million, representing a healthy 25.1% margin.

However, GAAP net income fell 37% year-over-year to $85 million, resulting in diluted earnings per share of $0.53.

The Refrigerants and Applied Solutions (RAS) segment remained the primary growth driver, with net sales rising 12% to $711 million.

This performance was underpinned by a 19% jump in refrigerant sales and a 27% surge in the nuclear materials business, as utilities and industrial cooling sectors continue to modernize infrastructure.

The Electronic and Specialty Materials (ESM) segment also posted gains, with net sales increasing 7% to $281 million.

Growth in this division was primarily led by a 21% increase in electronic materials, driven by the global expansion of semiconductor manufacturing and high-performance computing hardware.

Solstice maintained a disciplined financial position, reporting operating cash flow of $199 million and free cash flow of $124 million for the quarter.

The company’s balance sheet remains stable with net leverage of approximately 1.4x and total liquidity of approximately $1.6 billion.