Solstice Advanced Materials Earnings Fueled by AI Power Boom

Coming into Wednesday trading, Solstice stock was up 27% this year despite a 24% drop over the past six months. (Courtesy Solstice Advanced Materials)

Key Points

Solstice Advanced Materials reported third-quarter EPS of 80 cents on sales of $1.05 billion, beating Wall Street expectations.
Solstice raised its 2026 full-year EPS guidance to about $2.93, up from its prior forecast of about $2.85.
Solstice shares rose in premarket trading following the earnings report.

Solstice Advanced Materials touches the AI trade in several ways. Its refrigerants help cool data centers. It also supplies uranium hexafluoride for nuclear power generation. AI data centers need power, too.

With fears about AI stocks rising, Solstice’s earnings offer a look at how the industry is doing. It’s doing fine.

Wednesday morning, Solstice reported third-quarter earnings per share of 80 cents from sales of $1.05 billion. Wall Street was looking for EPS of 70 cents from sales of $1.01 billion.

Along with the earnings ‘beat,’ management raised guidance. For 2026, Solstice sees EPS of about $2.93 from sales of about $4.2 billion. Prior guidance called for EPS of about $2.85 from sales of less than $4.2 billion.

For the fourth quarter, management expects EPS of about 60 cents from sales of just over $1 billion. Wall Street currently projects EPS of 70 cents from sales of just over $1 billion.

Fourth-quarter earnings are a touch below the Street, even though the full-year number of $2.93 tops Street estimates of $2.90. Investors look fine with the results. Shares were up 6.9% at $66 in premarket trading, while S&P 500 and Dow Jones Industrial Average futures were up 1.1% and 1.5%, respectively.

“Our businesses are well positioned to benefit from key secular growth trends including nuclear energy, thermal management, AI and data centers, and we continue to invest to support that growth,” said CEO David Sewell in a news release. “Our cash generation and balance sheet strength also enable us to return capital to shareowners, including through our $500 million share repurchase authorization, which we intend to substantially complete by the end of the first quarter of 2027.”

Coming into Wednesday trading, Solstice stock was up 27% this year despite a 24% drop over the past six months.

Solstice spun out of Honeywell Technologies in October 2025 at about $50 a share, and the stock traded above $90 around late June. Then investors started to lose confidence in the AI trade, worried that hyperscaler AI spending wouldn’t generate acceptable returns. Next, Solstice announced the major acquisition of Element Solutions in early July. The deal announcement sent Solstice stock down 15%. The companies called off the acquisition in August.

Write to Al Root at allen.root@barrons.com.

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