SOLS

LONG

SOLSTICE ADVANCED MATLS INC

Funds

Score

4.50

vs SPY

-5.6%

Stock return (since Q-end)

+10.7%

SPY return (since Q-end)

+16.3%

Current price

$84.23

News Summary

Neutral

Solstice delivered Q1 2026 revenue and EBITDA beats with 10% YoY sales growth driven by Nuclear, Electronic Materials, and Refrigerants, but stock declined 5.4% post-earnings due to margin compression from elevated R&D spending and public company transition costs ($15M TSA costs in Q1). Nuclear segment shows exceptional momentum with Metropolis Works expanding 20% and a backlog exceeding $2B, though near-term profitability is being pressured by mix shifts and $30M full-year TSA expenses.

Red flags

•EBITDA margin compression despite revenue beat — Adjusted EBITDA flat YoY at $249M despite 10% sales growth signals profitability headwinds
•Building Solutions revenue declined 8% YoY due to sustained construction market softness
•RAS segment margin fell YoY from anticipated mix shifts and elevated R&D spending
•Two analyst downgrades in May (UBS to Neutral, Vertical Research to Hold) citing valuation concerns after strong move
•$30M full-year TSA transition costs creating near-term earnings drag

Funds Buying (3)

Fund	Manager	Shares Held	∆ Shares	Position Value	QoQ	Status
Coatue Management	Philippe Laffont	1.7M	+1.7M	$126.0B	—	NEW
Point72	Steve Cohen	1.2M	+1.2M	$94.3B	—	NEW
Duquesne Family Office	Stanley Druckenmiller	63K	+63K	$5M	—	NEW

Shares Held and Position Value reflect total quarter-end holdings. ∆ Shares is the change from the prior quarter.