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Solstice Sees 2026 Profit Below Estimates Despite Q4 Sales Beat

Guidance trails consensus due to margin compression from cost inflation, plant downtime plus a refrigerant transition.

Overview

  • Solstice forecast 2026 adjusted EPS of $2.45 to $2.75, below the LSEG analyst consensus of $2.93.
  • The company guided 2026 sales to $3.9 billion to $4.1 billion, roughly in line with the $3.96 billion consensus and indicating modest growth.
  • Management pointed to higher operating costs, a shift to low–global-warming-potential refrigerants and recent plant downtime as the key pressures on profitability.
  • For Q4, net sales rose 8% to $987 million, topping estimates of $923.3 million, while adjusted standalone EBITDA fell nearly 20% to $189 million with margins narrowing to 19.1%.
  • Demand tied to nuclear energy, AI-driven data centers and semiconductor materials remains strong, and the company announced a new quarterly dividend of $0.75 per share alongside capacity expansions in key growth areas.