Updated: 2-Solstice raises annual forecast as AI-driven demand boosts quarterly performance above expectations

Update stock price data and add CEO comments in paragraphs 4, 8, and 9

Pooja Menon

Reuters, November 4 - Solstice Advanced Materials (SOLS.O) on Wednesday raised its 2026 performance forecast after strong demand from data centers for its nuclear, refrigerant, and electronic materials businesses, together with higher prices, helped the company beat market estimates for third-quarter performance.

Surging artificial intelligence infrastructure investment and increasingly complex chips are driving demand growth for the specialty materials manufacturer's products in cooling systems, high performance computing, and nuclear power generation.

In the third quarter, sales of electronic materials rose more than 31% to $135 million. Supported by automotive and data center cooling applications, refrigerant sales increased by 8.3% to $433 million, while its nuclear business now has a backlog of $2.6 billion.

CEO David Sewell told Reuters that, although geopolitical tensions have pushed up diesel and sulfur prices, Solstice's limited exposure in the Middle East region and its pricing power have kept the impact on the company minimal.

Solstice—which was spun off from Honeywell (Honeywell, HON.O) last year (link)—in August came to an agreement with peer Element Solutions (ESI.N) to call off a planned $14.5 billion merger ( (link) ), citing that both sets of shareholders preferred to maintain their independence.

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

According to data compiled by London Stock Exchange Group (LSEG), for the three months ended September 30, the company reported adjusted earnings per share of 80 cents, above analysts' expectation of 69 cents.

Sewell also said the company is negotiating with customers about contingent orders related to the expansion of the uranium conversion facility in Illinois. He said this move will address a possible shortage of uranium hexafluoride in the US through 2030.

Shares rose 2.3% in premarket trading.

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

The company expects annual net sales to be between $4.20 billion and $4.22 billion, compared to its previous forecast of $4.13 billion to $4.19 billion.

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