Solstice Advanced Materials Inc. SOLS
Solstice Advanced Materials delivered a solid Q2 2026 beat with net sales of $1,148 million up 11% YoY and raised full-year guidance to $4,125–$4,185 million, signaling that demand in refrigerants, electronic materials, and nuclear is reaccelerating after a punishing FY2025 that saw EPS collapse from $2.66 to $1.49 and total debt surge from $416 million to $2.426 billion. However, a 47.1x trailing PE against a multi-year earnings decline, unresolved securities fraud investigations by Pomerantz LLP and Halper Sadeh LLC, short interest that doubled to 11.3 million shares in July, and a stock still trading below both its 50-day ($69.96) and 200-day ($67.02) moving averages create an asymmetric risk/reward.
The pending Element Solutions acquisition adds further balance-sheet and execution risk on top of already-stretched leverage.
What could go wrong
- Balance sheet leverage. Total debt surged from $416M in FY2024 to $2.426B in FY2025 while stockholders' equity fell from $3.258B to $1.411B; the pending Element Solutions acquisition could further strain leverage and FCF, which already dropped from $546M to $103M.
- Securities fraud investigations. Pomerantz LLP and Halper Sadeh LLC are both investigating potential federal securities law violations on behalf of SOLS investors, creating legal overhang and potential settlement or litigation costs.
- Earnings deterioration trend. Diluted EPS has declined for three consecutive years from $4.52 (FY2022) to $1.49 (FY2025), with gross margin compressing from 39.1% to 32.2%; a 47.1x trailing PE leaves no margin for error if the Q2 recovery does not sustain.
- Rising short interest and technical weakness. Short interest jumped 102.2% in July to 11.3 million shares (7.1% of float), and the stock trades below both its 50-day MA ($69.96) and 200-day MA ($67.02), suggesting bearish momentum despite the Q2 beat.
What would change my mind
Where this comes from: PRNewswire Q2 2026 results press release · FMP annual fundamentals FY2025 vs FY2024 · FMP peer_relative · Defense World via FMP news. Orin's read on SOLS; not advice.
Twelve months actual closes to 2026-09-23 · actual filings
50-day average 200-day average · volume below
On file
All SOLS filings| Form | Filed | What it says | Read |
|---|---|---|---|
| 8-K | 27 Aug | Solstice Advanced Materials (SOLS) and Element Solutions Inc. | read |
| 10-Q | 30 Jul | Net sales for the three months ended June 30, 2026, were $1.148 billion, an increase of 11.2% year-over-year. | read |
| 13G/A | 30 Jul | — | on file |
| 8-K | 30 Jul | Solstice Advanced Materials Inc. | read |
| 8-K | 27 Jul | Solstice Advanced Materials Inc. | read |
| 8-K | 20 Jul | Solstice Advanced Materials Inc. | read |
| 8-K | 17 Jul | Solstice Advanced Materials Inc. | read |
| 8-K/A | 9 Jul | Solstice Advanced Materials Inc. | read |
Largest holders · 13F Q2 2026
Money flow| Filer | Position | Of fund |
|---|---|---|
| Brasada Capital Management | $4.4B | 0.8% of fund |
| Vanguard Portfolio Management | $703.7M | 0.0% of fund |
| Vanguard Capital Management | $635.6M | 0.0% of fund |
| State Street | $448.6M | 0.0% of fund |
| Price T Rowe Associates /Md/ | $313.3M | 0.0% of fund |
| Two Sigma Investments | $297.3M | 0.2% of fund |
102 filers · quarter ended Q2 2026 · positions, not flows
Insiders, last 24 months: 151 Form 4 filings, net −$1.6M. Of the 50 on hand, none was an open-market trade— the rest are grants, option exercises and tax withholding.
Ask Orin about SOLS
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Start 3 free days →Where it trades
| Metric | Now | Own median | Sector |
|---|---|---|---|
| P/E | 43.6× | — | 29.8× |
| EV/EBITDA | 12.2× | — | — |
| P/S | 2.25× | — | — |
| P/B | 5.8× | — | — |
28.3%
free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $0.1B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.
What Wall Street published
$82
$70 – $101 · +43% against today's price
- 4 buy or overweight
- 1 hold
- 0 underweight or sell
The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.
What it has traded at
What its sector has traded at
Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.
Every estimate on one scale
The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.