Solstice Advanced Materials Reports Fourth Quarter 2025 Results

Core Insights - Solstice Advanced Materials reported strong fourth quarter results for 2025, with net sales of $987 million, an 8% increase year-over-year, driven by growth in Nuclear, Electronic Materials, and Refrigerants [1][2] - The company expects full-year 2026 net sales to be between $3.9 billion and $4.1 billion, with adjusted EBITDA projected at $975 million to $1,025 million [1][2] Financial Highlights - For Q4 2025, net income attributable to Solstice was $41 million, a decrease of 69% from $133 million in Q4 2024, primarily due to higher operating costs and net interest expenses [1][2] - Adjusted standalone EBITDA for Q4 2025 was $189 million, down 20% from $235 million in Q4 2024, with a margin decrease of 662 basis points to 19.1% [1][2] - For the full year 2025, net sales were $3.9 billion, a 3% increase from 2024, while net income dropped 60% to $237 million [1][2] Segment Performance - In the Refrigerants & Applied Solutions segment, Q4 2025 net sales reached $710 million, a 10% increase year-over-year, with Refrigerants sales up 20% [2] - The Electronic & Specialty Materials segment saw Q4 2025 net sales of $277 million, a 4% increase, driven by a 19% rise in Electronic Materials [2] - Adjusted EBITDA for the Refrigerants & Applied Solutions segment decreased 25% in Q4 2025, while the Electronic & Specialty Materials segment's adjusted EBITDA fell 11% [2] Capital Expenditures and Financial Position - Capital expenditures for 2025 were $408 million, a 38% increase compared to the previous year, aimed at driving long-term growth [1][2] - As of December 31, 2025, total long-term debt was $2.0 billion, with cash and cash equivalents of approximately $534 million, resulting in a net leverage ratio of approximately 1.5x [1][2] 2026 Financial Outlook - For full-year 2026, Solstice anticipates capital expenditures between $400 million and $425 million, with adjusted diluted EPS expected to range from $2.45 to $2.75 [2] - The company is confident in its operational excellence and growth strategy as it moves into 2026 [2]