Sollensys Corp. Q1 2026 Earnings Recap

Solstice’s stock declined 6.9% following the quarter, reflecting investor disappointment with margin compression due to refrigerant mix and elevated R&D spending, despite top-line growth and solid cash flow.

Key Takeaways

• Net sales increased 10% year-over-year to $991 million, driven by robust demand in Electronic Materials and Refrigerants & Applied Solutions segments.
• Adjusted EBITDA was flat year-over-year at $249 million, with a 25.1% margin, down primarily due to a mix shift toward lower-margin refrigerants and higher R&D investments.
• GAAP net income declined to $85 million, impacted by higher SG&A and interest expenses as a stand-alone public company.
• Adjusted diluted EPS came in at $0.63 for the first quarter.
• Free cash flow totaled $124 million, despite a significant rise in growth CapEx, including a $200 million investment to expand sputtering target capacity.