Solstice Advanced Materials, Inc. research snapshot
SOLS AI stock analysis currently reads Solstice Advanced Materials as a specialty materials company with useful positions in low-global-warming-potential refrigerants, electronic materials, nuclear conversion services, healthcare packaging, and protective fibers. Q2 2026 net sales rose 11% year over year to $1,148 million, net income attributable to Solstice rose 23% to $119 million, and adjusted diluted EPS was $0.88, ahead of the roughly $0.77 consensus. The company raised full-year 2026 guidance to net sales of $4,125 million to $4,185 million, adjusted EBITDA of $1,035 million to $1,055 million, and adjusted diluted EPS of $2.75 to $2.95. At the August 3, 2026 data cutoff, SOLS closed at $60.17 on July 31 with a market capitalization of about $9.56 billion. The proposed cash and stock acquisition of Element Solutions remains the central swing factor, with the deal expected to close in the first half of 2027 and leave Element shareholders with about 44% of the combined company. This page is informational research, not investment advice.
Current price
$60.17 close on July 31, 2026
Market cap
About $9.56 billion by $60.17 x 158.85 million shares
AI score
54 / 100
Rating
Cautious watch: improving standalone results and raised guidance, but the pending Element Solutions acquisition still dominates the risk profile
Trend status
Below the 20-day, 50-day, and 100-day moving averages after the post-deal decline, with early stabilization signs
Data cutoff (updated monthly)
August 4, 2026
Informational use only. This page is not investment advice.
| Dimension | Conclusion | Confidence |
|---|---|---|
| Business quality | Solstice sells mission-critical materials and services to refrigerant, semiconductor, data-center cooling, nuclear, healthcare, and industrial customers. Q2 2026 delivered double-digit growth in four of seven reported businesses and organic net sales rose 11%. | High |
| Moat | The moat is based on formulation know-how, patents, regulatory qualifications, customer co-development, production scale, and brands such as Solstice, Genetron, Aclar, and Spectra. Network effects are limited and many products still face technical and price competition. | Medium |
| Management | CEO David Sewell leads a team with long specialty-chemicals experience. Q2 execution, raised guidance, and dividend continuity support credibility, but the proposed Element Solutions purchase is a major capital-allocation test that adds financing, integration, dilution, and execution demands. | Medium |
| Financial trend | 2025 revenue reached $3.886 billion versus $3.770 billion in 2024 and $3.649 billion in 2023, while 2025 net income fell sharply from the prior year. Q2 2026 revenue grew 11%, adjusted EPS beat consensus, and full-year guidance was raised. | High |
| Valuation | At $60.17, the stock was about 46x trailing earnings, 2.33x sales, and 49x trailing free cash flow by financial_rigor.py inputs. The 2026 adjusted EPS guidance midpoint of $2.85 implies about 21x forward EPS before considering merger dilution and financing effects. | Medium-high |
| Technical trend | The July 31 close of $60.17 was below the 20-day, 50-day, and 100-day moving averages, with RSI near 40.9 and a flattening MACD. The price has stabilized above the late July low of $53.87, but a full trend reversal is not confirmed. | High |
| Risk level | Risk is high because the proposed deal could raise net leverage to about 3.5x at close, Element shareholders would own about 44% of the combined company, and the businesses face cyclical demand, regulatory, environmental, foreign-exchange, and integration risks. | High |
| AI confidence | Confidence is strongest for filed historical results, Q2 2026 data, the raised guidance, current quote and technical snapshots, and the signed transaction terms. It is lower for three-year earnings and synergy outcomes. | Medium-high |
| Investment certainty | Investment certainty is medium-low because the stock price still reflects a proposed transformation whose financing, approvals, dilution, and integration outcomes are not yet known. | Medium-low |
SOLS AI stock forecast
The SOLS AI stock forecast uses ranges rather than a single target. An auditable three-year illustration used the midpoint of raised 2026 adjusted EPS guidance, $2.85, with 15%, 8%, and 0% annual growth and 24x, 18x, and 12x terminal multiples. financial_rigor.py returned $104.00, $64.60, and $34.20. The wider page ranges reflect uncertainty around the Element Solutions transaction, share issuance, debt financing, synergies, and cyclical demand.
$85 to $105
More likely if Solstice closes the Element Solutions transaction on the first-half 2027 timetable, reaches more than $180 million of stated net synergies by year three, sustains Q2 growth across refrigerants, nuclear, electronics, and healthcare packaging, and reduces leverage below 3x adjusted EBITDA within 18 months of closing.
$55 to $75
More likely if raised 2026 guidance is delivered, the transaction closes with partial synergy capture, revenue grows at a mid-single-digit rate, and leverage declines slowly while the market keeps a moderate multiple on specialty materials earnings.
$35 to $50
More likely if the deal is delayed, repriced, or blocked, financing costs or dilution are larger than expected, synergies fail to offset integration costs, LGWP refrigerant mix pressure persists, or semiconductor, construction, and nuclear demand weaken together.
SOLS AI technical analysis
SOLS AI technical analysis uses the July 31, 2026 close and daily snapshots checked by August 3. Price closed at $60.17, below the 20-day, 50-day, and 100-day moving averages, while RSI was neutral near 40.9 and the MACD histogram was flattening. The stock stabilized above the late July low of $53.87, but the pending acquisition announcement still creates event risk, so chart levels can change quickly if financing, approval, or integration news changes the market view.
| Level | Value | Why it matters |
|---|---|---|
| Current price | $60.17 | StockAnalysis listed the July 31, 2026 close at $60.17, up 4.84% on the day. The day range was $57.86 to $60.86. |
| Near support | $53.87 to $57.26 | The July 29 intraday low of $53.87 and the July 30 session low of $57.26 define the recent consolidation floor. A close below $53.87 would show the post-deal bottom is not holding. |
| Deeper support | $40.43 | The 52-week low near $40.43 is the larger downside reference. It represents the lowest traded price since the spin-off and would matter only if the transaction or end markets deteriorate sharply. |
| Near resistance | $60.35 to $62.52 | The 20-day moving average sits near $60.35, with overhead supply toward the $62.52 July 24 high. A break above the zone needs volume and follow-through to matter. |
| 50-day moving average | $74.42 simple | StockAnalysis reported the 50-day average near $74.42. A reclaim of this zone would be an early trend-repair signal, but it would not resolve merger leverage or dilution risk. |
| 100-day moving average | $76.61 simple | The 100-day average is above the 50-day average and defines larger overhead supply after the deal-related decline. The 200-day average is not available because trading history is shorter than 200 sessions. |
| Momentum | RSI(14) 40.85; MACD -4.84 | RSI is neutral rather than oversold, and the MACD histogram flattened from the mid-July extreme. These are stabilization signals, not confirmation of a new uptrend. |
| Volume | 3.97 million shares; 20-day average 5.23 million | StockAnalysis listed the July 31 volume and 20-day average. Volume should be checked again around merger filings and earnings because event volume can distort the baseline. |
| Volatility | 52-week range $40.43 to $90.80; ATR(14) about $3.87 | The wide 52-week range shows substantial repricing risk around the deal announcement. The ATR snapshot is a short-term average and can understate gap risk from corporate events. |
| Invalidation | Daily close below $53.87, then the $40.43 52-week low | A close below the recent consolidation floor weakens a bounce setup. A move toward or through the 52-week low would invalidate a constructive technical thesis unless new fundamental evidence changes the case. |
SOLS AI trading strategy
The SOLS AI trading strategy is a rules-based research framework, not personalized advice. Because the company is pursuing a large cash-and-stock acquisition, every setup should include position sizing, gap risk, merger-calendar review, and a predefined maximum loss.
Wait for SOLS to reclaim and hold the $60.35 20-day average zone, then look for follow-through toward the $62.52 July high and the $74.42 50-day average. A move confirmed by earnings, volume, and stable financing assumptions is stronger than one driven only by an acquisition headline.
Treat a failed reclaim and a close back below $57.26 as an early invalidation signal, with $53.87 as the next floor. Do not treat the moving average cross as a guarantee of a sustained trend.
If price holds the $53.87 to $57.26 support area while the raised 2026 guidance still stands, compare any bounce with RSI recovery, volume, and the next earnings release rather than buying solely because the price has fallen.
Define the maximum loss before entry and account for overnight merger headlines. A support break is a reason to reassess, not an automatic reason to average down.
Track Q3 and full-year 2026 sales, adjusted EBITDA margin recovery toward the mid-30% range in RAS, capex of $420 million to $440 million, free cash flow, the Form S-4 and shareholder votes, bridge-financing replacement, the 3.5x closing leverage estimate, synergy updates, and regulatory conditions for the Element Solutions deal.
Lower confidence if revenue growth depends on the deal before it closes, cash conversion weakens, debt rises without a clear path below 3x leverage, or refrigerant mix pressure and standalone costs persist.
Investment research summary
Customers pay Solstice for materials and conversion services that help refrigerate buildings and data centers, manufacture semiconductors, operate nuclear facilities, package medicines, and protect industrial products. In Q2 2026, RAS generated $850 million of sales and ESM generated $298 million. RAS is the larger and more profitable segment, while ESM electronic materials grew 15% in Q2 2026.
The strongest moat elements are application know-how, customer qualification, regulatory experience, manufacturing scale, and intellectual property. Solstice reports more than 5,700 patents and pending applications, over 3,000 customers, and a presence in more than 120 countries. The moat is narrower than a network-effect business because customers can qualify alternatives and specialty chemicals can face price pressure.
The thesis fails if Solstice buys growth at a price that makes leverage and integration more important than organic cash generation. Other failure paths include delayed or blocked approvals, financing cost increases, share dilution, weak synergy capture, customer qualification delays, LGWP refrigerant margin pressure, semiconductor or construction cycles, environmental liabilities, and a loss of public support for nuclear expansion.
David Sewell is president and CEO, and the 10-K describes a leadership team with long relevant experience. Management delivered a strong Q2, raised full-year guidance, continued the dividend, and proposed the Element Solutions acquisition. That record supports execution credibility, but the transaction is the decisive capital-allocation test and insider ownership is limited in third-party data.
Low-global-warming-potential refrigerants, semiconductor materials, AI data-center cooling, and nuclear services have long-duration demand drivers. The industry is still cyclical and regulated. The proposed Element Solutions combination would add electronics process chemistry and technical services, but it also increases exposure to integration, antitrust review, financing, and end-market execution.
At about $9.56 billion of equity value and $11.23 billion of enterprise value, the stock was priced at roughly 46x trailing earnings, 2.33x trailing sales, and 49x trailing free cash flow. The raised 2026 adjusted EPS guidance makes the standalone forward multiple more manageable, but that is not a margin of safety if the acquisition adds debt, new shares, integration costs, or weaker cash conversion.
Source-backed data
Every metric below includes a source and last verification date.
| Metric | Value | Source | Last verified |
|---|---|---|---|
| Reference price | $60.17 close on July 31, 2026 | StockAnalysis SOLS quote | August 2, 2026 |
| Shares outstanding | 158.85 million shares; company Q2 2026 filing reported 158.842224 million at June 30, 2026 | Solstice Q2 2026 release and StockAnalysis | August 2, 2026 |
| Market capitalization and enterprise value | About $9.56 billion market cap and $11.23 billion enterprise value; market-cap math variance 0.02% | StockAnalysis and financial_rigor.py | August 2, 2026 |
| Historical revenue trend | 2023 $3.649B, 2024 $3.770B, and 2025 $3.886B; pre-spin-off periods use standalone allocations | Solstice 2025 Form 10-K and StockAnalysis | August 2, 2026 |
| Q2 2026 operating results | $1,148M net sales, $119M attributable GAAP net income, $0.75 diluted EPS, $0.88 adjusted diluted EPS, $290M adjusted EBITDA, and 25.3% adjusted EBITDA margin | Solstice Q2 2026 results release | August 2, 2026 |
| Q2 2026 segment growth | RAS sales $850M, up 12%; ESM sales $298M, up 8%; refrigerants up 13%, nuclear up 27%, healthcare packaging up 24%, and electronic materials up 15% | Solstice Q2 2026 results release | August 2, 2026 |
| H1 2026 cash flow and balance sheet | H1 operating cash flow $461M, capital expenditures $186M incurred, free cash flow $248M; June 30 cash $750M, total long-term debt about $2.0B, net leverage about 1.3x, total liquidity about $1.75B | Solstice Q2 2026 results release | August 2, 2026 |
| Raised 2026 company guidance | $4,125M to $4,185M sales, $1,035M to $1,055M adjusted EBITDA, $2.75 to $2.95 adjusted diluted EPS, and $420M to $440M capex | Solstice Q2 2026 results release | August 2, 2026 |
| Trailing financials | TTM revenue $4.095B, TTM net income $210M, TTM EBITDA $868M, TTM operating cash flow $606M, and TTM free cash flow $195M per StockAnalysis | StockAnalysis financials | August 2, 2026 |
| Valuation snapshot | financial_rigor.py calculated about 45.93x trailing PE, 2.33x PS, 6.03x PB, 48.92x trailing P/FCF, and 0.50% dividend yield from stated inputs | StockAnalysis and financial_rigor.py | August 2, 2026 |
| Analyst consensus | Seven analysts rate SOLS a Buy with an average price target of $80.43, a range of $70 to $95, and about 34% upside from the July 31 close | StockAnalysis forecast | July 31, 2026 |
| Element Solutions transaction | Definitive cash-and-stock agreement valued at about $14.5B including assumed net debt; each ESI share receives $10.00 cash plus 0.500 SOLS shares; Element holders would own about 44%, with a $4.7B bridge commitment and expected close in H1 2027 | Solstice transaction release | August 2, 2026 |
| Transaction targets | More than $180M net synergies by year three, about 3.5x net leverage at close, below 3x adjusted EBITDA within 18 months, and accretive to adjusted EPS in year one according to management targets | Solstice transaction release | August 2, 2026 |
| Technical snapshot | 20-day SMA $60.35, 50-day SMA $74.42, 100-day SMA $76.61, RSI 40.85, MACD -4.84, ATR(14) about $3.87, and 52-week range $40.43 to $90.80 | StockAnalysis statistics and daily history | August 2, 2026 |
This SOLS AI stock analysis page is an informational research tool only. It is not investment advice, financial advice, a recommendation, or a promise of future performance. Forecast scenarios use available public data as of the stated cutoff date and can be wrong if filings, prices, financial guidance, merger terms, market conditions, or technical signals change.
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