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. Q1 2026 net sales rose 10% year over year to $991 million and free cash flow was $124 million, but adjusted EBITDA margin fell to 25.1% as the company carried higher standalone costs, R&D spending, and refrigerant mix pressure. At the July 12, 2026 data cutoff, SOLS closed at $61.30 with a market capitalization of about $9.73 billion. The most important new fact is the July 6 agreement to acquire Element Solutions for approximately $14.5 billion including assumed net debt, a transaction expected to close in the first half of 2027 and to leave Element shareholders with about 44% of the combined company. This page is informational research, not investment advice.
Current price
$61.30 close on July 10, 2026
Market cap
About $9.73 billion by $61.30 x 158.80 million shares
AI score
52 / 100
Rating
Cautious watch: strong specialty-material assets, but the proposed Element Solutions acquisition changes the risk profile
Trend status
Bearish event-driven trend below the 20-day, 50-day, 100-day, and 200-day moving averages
Data cutoff (updated weekly)
July 12, 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. Its products are qualified in customer processes, but demand remains partly cyclical. | Medium-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. The proposed Element Solutions purchase is a major capital-allocation test because it adds financing, integration, dilution, and execution demands before Solstice has a long public-company record. | 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. Q1 2026 revenue grew 10%, but adjusted EBITDA margin declined to 25.1%. | High |
| Valuation | At $61.30, the stock was about 52x LTM earnings, 2.45x LTM sales, and 67x LTM free cash flow by financial_rigor.py inputs. The 2026 adjusted EPS guidance midpoint implies about 23.6x forward EPS before considering merger dilution and financing effects. | Medium-high |
| Technical trend | The July 10 close was below the 20-day, 50-day, 100-day, and 200-day moving averages, with RSI near 34.7 and negative MACD. Oversold readings can support a bounce, but they do not reverse the event-driven downtrend by themselves. | 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, Q1 2026 data, 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 now 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 2026 adjusted EPS guidance, $2.60, with 15%, 8%, and 0% annual growth and 24x, 18x, and 12x terminal multiples. financial_rigor.py returned $94.90, $59.00, and $31.20. The wider page ranges reflect uncertainty around the Element Solutions transaction, share issuance, debt financing, synergies, and cyclical demand.
$80 to $105
More likely if Solstice closes the Element Solutions transaction in the planned first half of 2027, reaches more than $180 million of stated net synergies by year three, converts the combined electronics platform into sustained growth, and reduces leverage below 3x adjusted EBITDA within 18 months of closing.
$45 to $75
More likely if standalone 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.
$25 to $45
More likely if the deal is delayed, 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 10, 2026 close and technical snapshots checked by July 12. Price was below every listed daily moving average, while RSI was weak but not a complete reversal signal. The July 6 acquisition announcement created 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 | $61.30 | StockAnalysis listed the July 10, 2026 close at $61.30. The day range was $61.06 to $62.70. |
| Near support | $60.74 to $61.25 | Investing.com daily pivot calculations placed lower support between $60.74 and $61.25. A close below this area would show that the immediate post-deal floor is not holding. |
| Near resistance | $61.76 to $62.27 | Investing.com daily pivot levels placed nearby resistance from $61.76 to $62.27. A break above the zone needs volume and follow-through to matter. |
| 20-day moving average | $61.75 simple, $62.71 exponential | Investing.com reported both short moving averages above the July 10 close, keeping the short-term bias negative. |
| 50-day moving average | $69.22 simple, $67.94 exponential | A reclaim of this zone would be an early trend-repair signal, but it would not resolve merger leverage or dilution risk. |
| 100-day and 200-day averages | $77.45 and $80.51 simple | Both longer averages were above price on the July 11 Investing.com snapshot. They define larger overhead supply after the deal-related decline. |
| Momentum | RSI(14) 34.68; MACD -2.36 | Investing.com classified RSI and MACD as sell signals. Stochastic readings were oversold, which can produce a bounce without proving a new uptrend. |
| Volume | 3.23 million shares; 20-day average 3.62 million | StockAnalysis listed the July 10 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 $0.98 | The wide 52-week range shows substantial repricing risk. The ATR snapshot is a short-term average and can understate gap risk from corporate events. |
| Invalidation | Daily close below $60, then the $40.43 52-week low | A close below the immediate support zone 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 negotiating 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 $67.94 to $69.22 50-day average zone, then look for follow-through toward $77.45 and $80.51. A move that occurs only on an acquisition headline is weaker than one confirmed by earnings, volume, and stable financing assumptions.
Treat a failed reclaim and a close back below $60.74 as an invalidation signal. Do not treat the moving average cross as a guarantee of a sustained trend.
If price holds the $60.74 to $61.25 support area while the latest filings still support 2026 guidance, compare any bounce with RSI recovery, volume, and the next earnings release rather than buying solely because RSI is weak.
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 Q2 and full-year 2026 sales, adjusted EBITDA margin, capex, free cash flow, the Form S-4 and shareholder votes, bridge-financing replacement, the 3.5x closing leverage estimate, synergy updates, and any 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 2025, RAS generated $2.789 billion of sales and ESM generated $1.097 billion. RAS is the larger and more profitable segment, while ESM electronic materials grew 21% in Q1 2026.
The strongest moat elements are application know-how, customer qualification, regulatory experience, manufacturing scale, and intellectual property. Solstice reported 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 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 about 25 years of average relevant experience. Management has built a standalone company, launched a dividend, reaffirmed 2026 guidance, and proposed a large acquisition. That record supports execution credibility, but the Element Solutions 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 $9.73 billion of equity value and $11.53 billion of enterprise value, the stock was priced at roughly 52x LTM earnings, 2.45x LTM sales, and 67x LTM free cash flow. The 2026 adjusted EPS guidance midpoint 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 | $61.30 close on July 10, 2026 | StockAnalysis SOLS quote | July 12, 2026 |
| Shares outstanding | 158.80 million; company Q1 filing reported 158.795531 million at March 31, 2026 | Solstice Q1 2026 release and StockAnalysis | July 12, 2026 |
| Market capitalization and enterprise value | About $9.73 billion market cap and $11.53 billion enterprise value; market-cap math variance 0.04% | StockAnalysis and financial_rigor.py | July 12, 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 | July 12, 2026 |
| LTM revenue and net income | $3.980B revenue and $188M net income attributable to Solstice, independently matched by the Q1 release and StockAnalysis | Solstice Q1 2026 release and StockAnalysis | July 12, 2026 |
| Q1 2026 operating results | $991M net sales, $85M attributable GAAP net income, $249M adjusted EBITDA, and 25.1% adjusted EBITDA margin | Solstice Q1 2026 results release | July 12, 2026 |
| Q1 2026 segment growth | RAS sales $711M, up 12%; ESM sales $281M, up 7%; electronic materials sales rose 21% and nuclear sales rose 27% | Solstice Q1 2026 results release | July 12, 2026 |
| Cash, debt, and free cash flow | March 31 cash $642M, total debt $1.971B, net debt $1.329B, net leverage 1.4x, and Q1 free cash flow $124M | Solstice Q1 2026 results release and StockAnalysis | July 12, 2026 |
| 2026 company guidance | $3.9B to $4.1B sales, $975M to $1.025B adjusted EBITDA, $2.45 to $2.75 adjusted diluted EPS, and $400M to $425M capex | Solstice Q1 2026 results release | July 12, 2026 |
| Valuation snapshot | Financial_rigor.py calculated about 52.39x PE, 2.45x PS, 6.55x PB, 67.36x P/FCF, and 0.49% dividend yield from stated inputs | StockAnalysis and financial_rigor.py | July 12, 2026 |
| Element Solutions transaction | Proposed cash-and-stock acquisition valued at about $14.5B including net debt; Element holders would own about 44%, with $4.7B bridge financing and expected close in H1 2027 | Solstice transaction release and SEC Form 8-K | July 12, 2026 |
| Transaction targets | More than $180M net synergies by year three, about 3.5x net leverage at close, and below 3x adjusted EBITDA within 18 months according to management targets | Solstice transaction release | July 12, 2026 |
| Technical snapshot | 20-day SMA $61.75, 50-day SMA $69.22, 100-day SMA $77.45, 200-day SMA $80.51, RSI 34.68, MACD -2.36, and 52-week range $40.43 to $90.80 | Investing.com and StockAnalysis technical snapshots | July 12, 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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