Solstice (SOLS) Q4 2025 Earnings Call Transcript

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Wednesday, Feb. 11, 2026 astatine 8:30 a.m. ET

• Chief Executive Officer — David Sewell

• Chief Financial Officer — Tina Pierce

• Head of Investor Relations — Michael Leithead

David Sewell: Thank you, Michael Leithead. Thank you, everyone, for joining america today. During the 4th quarter, Solstice Advanced Materials Inc. continued to present beardown fiscal and operational results arsenic we transitioned to an autarkic nationalist institution pursuing the completion of our spin-off from Honeywell connected October 30. I would similar to instrumentality a infinitesimal to convey our full Solstice squad who proceed to present for our customers passim this transition. Across the business, we are seeing expanding momentum driven by secular maturation trends successful areas specified arsenic atomic energy, AI, and information centers that are good aligned with our differentiated exertion platforms. This momentum was evidenced successful our 4th fourth results surpassing our expectations.

Not lone does this bespeak continued beardown request for our solutions, but it besides speaks to our beardown operational execution arsenic we modulation to operating arsenic a standalone institution and execute our strategy to thrust semipermanent growth. Solstice finished 2025 with a instrumentality connected invested superior of astir 19% and nett leverage of 1.5 times EBITDA, which we judge reflects the specialty quality of our portfolio and offers america important fiscal flexibility. When combined with the cardinal secular maturation trends we are seeing successful our halfway offerings, Solstice has the quality to put successful aggregate high-return projects.

Over the past fewer months, we've announced our concern to treble sputtering people capableness successful Spokane, Washington, to conscionable accelerating AI demand, our concern to grow accumulation for our Spectra defence fibers, and conscionable past night, we announced our ongoing efforts to grow the capableness of our atomic conversion concern to facilitate the ongoing atomic renaissance. Guiding our superior deployment is our disciplined superior allocation strategy arsenic we look to equilibrium opportunities that volition unleash semipermanent maturation and shareholder returns. With that successful mind, we are pleased to denote contiguous the initiation of a quarterly dividend of $0.75 per share, marking an important milestone arsenic we statesman to instrumentality superior to shareholders.

As we adjacent retired 2025, we are assured that we are well-positioned for the twelvemonth ahead. Consistent with the model we laid retired astatine our Investor Day this past October, contiguous we are providing guidance for the afloat twelvemonth 2026, representing debased single-digit gross maturation and mid-single-digit adjusted EBITDA maturation versus the anterior twelvemonth astatine the midpoint. In summation to the afloat year, we are besides sharing contiguous our outlook for 2026 successful an effort to supply further colour connected the momentum we are seeing and the signifier of the concern successful our archetypal afloat 4th arsenic a standalone entity.