Solstice boosts annual forecasts as AI-linked demand drives quarterly beat

Nov 4 : Solstice Advanced Materials raised its 2026 forecasts on Wednesday after strong demand from data centers for its nuclear, refrigerant and electronic materials and higher prices helped it surpass third-quarter estimates.

Surging investment in AI infrastructure and more complex chips are boosting demand for the specialty material maker's products used in cooling systems, high-performance computing and nuclear power generation.

Sales of electronic materials rose over 31 per cent to $135 million in the third quarter. Refrigerant sales increased 8.3 per cent to $433 million, supported by automotive and data center cooling applications, while backlog in its nuclear business is now at $2.6 billion.

CEO David Sewell told Reuters that although geopolitical tensions have increased the cost of diesel and sulfur, the impact on Solstice remained immaterial given its limited exposure to the Middle East and its ability to hike prices.

Solstice, spun off from Honeywell last year, agreed with peer Element Solutions to shelve their $14.5 billion merger in August, citing preference of both sets of shareholders to retain their independence.

The company's third-quarter net sales rose 8 per cent to $1.05 billion.

It posted adjusted profit per share of 80 cents for the three months ended September 30, beating analysts' estimate of 69 cents, according to data compiled by LSEG.

Sewell also said the company was talking to customers about conditional orders tied to the expansion of its uranium conversion plant in Illinois. This would address a potential shortage of uranium hexafluoride in the US through 2030, he said.

Shares were up 2.3 per cent in premarket trading.

Solstice raised the lower end of its 2026 adjusted earnings per share forecast range to $2.90 from $2.75, while retaining the upper end at $2.95.

The company expects annual net sales between $4.20 billion and $4.22 billion, compared with a prior forecast of $4.13 billion to $4.19 billion.