Solstice Advanced Materials has posted a strong second-quarter performance, fueled by double-digit sales growth across key businesses as the company advances its strategy to build a larger advanced materials platform targeting high-growth markets.

 

The specialty materials company reported second-quarter 2026 net sales of $1.15 billion, up 11% from the same period last year, driven by higher volumes and favorable pricing. Growth was led by its Refrigerants & Applied Solutions segment, which increased sales by 12%, and its Electronic & Specialty Materials segment, which rose 8%.

 

"Solstice delivered strong second-quarter results with double-digit growth across four of our seven reported businesses," said David Sewell, President and Chief Executive Officer. "We are executing well on our organic growth strategy while positioning for the future: our agreement to acquire Element Solutions accelerates our strategy to build a scaled advanced materials platform aligned with the most powerful trends in our markets, including AI, data centers, nuclear energy, and semiconductor manufacturing."

 

Solstice reported net income of $119 million for the quarter, compared with $97 million in the second quarter of 2025. The improvement was driven primarily by stronger sales and lower income taxes, partially offset by increased standalone operating costs and higher net interest expense.

 

Adjusted EBITDA reached $290 million, marking a 2% increase year over year. Adjusted EBITDA margin stood at 25.3%, down 218 basis points from the prior-year period due to the timing of plant turnaround activity and production incentive credits in the previous year, partially offset by volume growth and pricing benefits.

 

Solstice generated $461 million in operating cash flow during the first six months of 2026 and invested $186 million in capital expenditures, a 35% increase compared with the prior-year period as the company boosted spending to support long-term growth.

 

Free cash flow totaled $248 million for the six-month period ended June 30, 2026.

 

The company ended the quarter with $750 million in cash and cash equivalents, $2 billion in total long-term debt, and approximately $1.75 billion in total liquidity. Its net leverage ratio was approximately 1.3x based on trailing twelve-month Adjusted EBITDA.

 

Solstice announced that its Board of Directors declared a quarterly dividend of $0.075 per share, payable on September 10, 2026, to shareholders of record as of August 27, 2026.

 

The company is also moving forward with its planned acquisition of Element Solutions, announced on July 6, 2026. The all-cash and stock transaction is designed to accelerate Solstice’s expansion into advanced materials markets, including artificial intelligence infrastructure, data centers, nuclear energy, and semiconductor manufacturing.

 

The acquisition remains subject to shareholder and regulatory approvals, along with other customary closing conditions, and is expected to close in the first half of 2027.

 

Solstice’s latest results highlight continued momentum as the company positions itself for growth in some of the world’s fastest-expanding technology and industrial markets.