At a glance
Solstice Advanced Materials Inc. is worth $10.05B, about 42 times its fiscal 2025 earnings. Revenue grew 3.1% to $3.89B in fiscal 2025, with 6.1% kept as profit. It pays a 0.38% dividend yield, and returned $1.50B to shareholders in dividends and buybacks over FY2023–FY2025.
The business in plain English
Solstice Advanced Materials makes specialty chemicals and materials. It was Honeywell's Advanced Materials business until October 30, 2025, when Honeywell spun it off as an independent company. Solstice earns money by supplying specialized products, often under long-term contracts, to more than 3,000 customers in about 120 countries and territories. No customer made up more than 10% of 2025 net sales, and the average customer relationship has lasted about 10 years.
Refrigerants & Applied Solutions brought in $2.79 billion, or 71.8% of fiscal 2025 revenue of $3.89 billion. It makes refrigerants with low global warming potential, meaning they trap less heat than older cooling gases if released, under brands such as Solstice and Genetron. It also makes blowing agents for insulating foam, solvents, aerosol propellants and Aclar packaging for medicines, and provides conversion services for the nuclear energy industry. Its markets include air conditioning and refrigeration, cars, building insulation and healthcare.
Electronic & Specialty Materials brought in $1.10 billion, or 28.2%. It offers sputtering targets (high-purity materials used to lay thin coatings on computer chips), Spectra lightweight high-strength fibers, and Fluka and Hydranal lab chemicals, mainly for semiconductor, defense, pharmaceutical and construction customers. By region, the United States produced 57.5% of 2025 revenue, Europe, the Middle East and Africa 23.7%, and other countries 18.8%.
Price history
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SOLS — over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By business segment
| Refrigerants & Applied Solutions | $2.79B | 71.8% |
| Electronic & Specialty Materials | $1.10B | 28.2% |
By geography
| U.S. Plan | $2.23B | 57.5% |
| Europe, Middle East and Africa | $922.0M | 23.7% |
| Other International | $730.0M | 18.8% |
Latest results
- In Q2 FY2026 (ended Jun 30, 2026), revenue was $1.15B, up 11.1% from a year earlier, and net income was $119.0M (+22.7%).
- For fiscal 2025, revenue was $3.89B (+3.1% year over year) with a 6.1% net margin.
Financial health check
| Free cash flow margin | 3.1% watch |
|---|---|
| Return on equity (FY2025) | 16.8% good |
| Return on assets (FY2025) | 4.2% watch |
| Net cash (cash minus debt) | $-1.36B weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2023 | $3.65B | $621.0M | $461.0M |
| FY2024 | $3.77B | $594.0M | $546.0M |
| FY2025 | $3.89B | $237.0M | $119.0M |
Valuation snapshot
| Market value | $10.05B |
|---|---|
| P/E ratio | 42.4 |
| Dividend yield | 0.38% |
Rank among 1514 US companies
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| SOLS price data to Oct 28, 2026 | +30.6% | — | — | — | — |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +30.6% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Insider activity
Form 4 filings from 2025-10-31 to 2026-10-31 (25 read): 0 open-market purchases and 0 sales ($0.00).
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 9.4% | Jun 30, 2026 |
| Vanguard Capital Management | 5.36% | Mar 31, 2026 |
| Vanguard Portfolio Management | 4.98% | Sep 30, 2026 |
What could go wrong
- Refrigerant demand depends on climate rules. The refrigerants segment produced 71.8% of fiscal 2025 revenue, and government climate rules shape its demand. Changes to those rules or to customer preferences could force product reformulations or cut sales.
- Nuclear energy is politically sensitive. Solstice provides conversion services to the nuclear power industry. Negative public or political views of nuclear energy and radioactive materials could hurt it and its customers, and regulators may require financial guarantees for site cleanup.
- Short track record as a standalone company. Solstice has traded independently only since October 30, 2025. Its earlier results reflect its time inside Honeywell and may not predict the future, and building its own computer systems could add costs or disruptions.
- Possible tax bill from the spin-off. If the spin-off is ruled taxable, Solstice could in some cases have to reimburse Honeywell for large tax costs. To protect the tax-free treatment, it also faces limits on certain corporate actions.
- Chemical accidents and cleanup costs. Chemical manufacturing is hazardous, and an accident could disrupt operations or cause large losses. Solstice could also face environmental liabilities from its own and predecessor companies' operations, plus cleanup costs if it closes a site.
- Debt and heavy expansion spending. As of June 30, 2026, debt of $2.11 billion exceeded cash and investments of $750 million. Planned spending on plants and equipment, at or above 10% of sales, could leave less room for setbacks.
Recent events
- Major agreement signed; Major agreement ended; Investor presentation or announcement; Other company announcement
- Quarterly results released
- Major agreement signed
- Investor presentation or announcement
- Other company announcement
- Major agreement signed; Other company announcement
- Investor presentation or announcement
- Shareholder vote results
- Quarterly results released
- Other company announcement
For income and retirement investors
Solstice pays a small dividend, so it offers little income on its own: the yield (yearly dividends divided by share price) was 0.38% as of October 28, 2026, with no record of increases. Fiscal 2025 dividends paid totaled $1.5 billion, more than six times net income of $237 million and over 12 times free cash flow (cash left after capital spending). Solstice spent most of that year inside Honeywell, so the figure says little about future payouts. Solstice says it will review whether to keep paying dividends, and its debt terms may limit them. It repurchased none of its shares from fiscal 2023 to 2025.
Solstice did not trade during the 2008, 2020 or 2022 downturns. Since listing, the price fell as much as 37.5% from a peak, and its one-year beta of 1.43 means it moved about 1.4 times as much as the market, as of October 28, 2026. Single stocks carry more risk than diversified funds.
Questions investors ask
How does Solstice Advanced Materials make money?
Solstice makes money by supplying specialty chemicals and materials to more than 3,000 customers. Its Refrigerants & Applied Solutions segment produced $2.79 billion, or 71.8%, of fiscal 2025 revenue of $3.89 billion, from products such as low global warming potential refrigerants, foam blowing agents, Aclar medicine packaging and nuclear conversion services. Electronic & Specialty Materials produced the other 28.2%, from chip-making materials, Spectra high-strength fibers and lab chemicals. About 57.5% of revenue came from the United States.
Does Solstice Advanced Materials pay a dividend?
Yes, but it is small. The dividend yield was 0.38% as of October 28, 2026, so the shares provide little income on their own. Solstice has no record of raising its dividend, having traded independently only since October 30, 2025. The company says it will evaluate whether to continue paying cash dividends, and its debt terms may limit the amount. It did not repurchase any of its own shares from fiscal 2023 to 2025.
How did the Honeywell spin-off of Solstice work?
Honeywell handed all Solstice shares to its own shareholders on October 30, 2025. Investors who held Honeywell shares at the close of business on October 17, 2025 received one Solstice share for every four Honeywell shares, 158,727,456 shares in total. Shares began regular trading on Nasdaq under SOLS that day. The distribution was intended to be tax-free for U.S. federal tax purposes, and Honeywell kept no Solstice shares. If the spin-off were ruled taxable, Solstice could in some cases have to reimburse Honeywell for large tax costs.
What is Solstice Advanced Materials' P/E ratio?
It was about 42.4 as of October 28, 2026, based on fiscal 2025 earnings, with a market value of about $10 billion. The price-to-earnings (P/E) ratio compares the share price with profit per share. That ratio uses a down year: fiscal 2025 net income fell 60.1% to $237 million, or $1.49 per share, from $594 million the year before. In the quarter ended June 30, 2026, net income rose 22.7% from a year earlier to $119 million, and revenue rose 11.1% to $1.15 billion.
How much debt does Solstice Advanced Materials have?
Solstice had $2.11 billion of total debt as of June 30, 2026, against $750 million in cash and investments, leaving net debt (debt minus cash) of about $1.36 billion. For scale, free cash flow, the cash left after capital spending, was $119 million in fiscal 2025. The company warns that its level of borrowing could hurt its business and that debt terms may limit dividends. Its annual report also said capital spending is expected to stay at or above 10% of net sales in the near term.