MORRIS PLAINS, New Jersey, August 28, 2026, 05:58 (EDT) – Shares in Solstice jumped 17.2% in early trade after the company announced its $14.5 billion merger plan had been scrapped, while unveiling a new $500 million stock buyback program.
- Solstice stock gained 17.2% to reach $66.00 in premarket trading on Friday.
- Solstice and Element called off their planned $14.5 billion merger with no penalties applied.
- Solstice approved its inaugural share buyback program, with a value of up to $500 million.
- Management reiterated its outlook for 2026 sales and adjusted profit.
Solstice Advanced Materials (NASDAQ: SOLS) surged 17.2% to $66.00 ahead of Friday’s session. Premarket trading volume was 64,488 shares at 05:58 EDT, data from StockAnalysis showed.
The surge came after Solstice called off its proposed merger with Element Solutions (NYSE: ESI). The deal would have given the combined entity an enterprise value near $14.5 billion.
The boards of both companies called off the deal after shareholders backed separate paths. There will be no termination fee paid by either party company statement.
Solstice accompanied the cancellation by announcing its inaugural buyback approval. The $500 million limit represents approximately 5.6% of the company’s $8.95 billion value before the market opened.
| Investor measure | Terminated merger plan | Standalone plan |
|---|---|---|
| Capital commitment | $14.5B enterprise-value deal | Share buyback of up to $500M |
| Penalty on termination | None | Not applicable |
| 2026 sales guidance | Integration scenario withdrawn | $4.125B–$4.185B confirmed |
| 2026 adjusted EBITDA | Integration scenario withdrawn | $1.035B–$1.055B confirmed |
| 2026 adjusted EPS | Integration scenario withdrawn | $2.75–$2.95 confirmed |
The change eliminates doubts over financing and integration. It also ensures Solstice’s balance sheet remains centered on organic projects and delivering returns to shareholders.
Management kept its newly increased operating targets unchanged. Third-quarter sales are still projected to range between $990 million and $1.03 billion.
The outlook is getting brighter. For the second quarter, sales climbed 11% to $1.148 billion. Net income totaled $119 million, and adjusted earnings stood at $0.88 per share Solstice results.
Nuclear materials, electronic materials, and refrigerants saw the highest demand, offering direct links to power generation, semiconductors, and data-center cooling sectors.
If fully executed, the buyback has the potential to lower the share count. However, timing is at the company’s discretion, and the authorization does not ensure that any purchases will be made.
Wall Street stays positive. Of the analysts monitored by StockAnalysis, seven rate the stock as Buy with an average price target of $80.43, which is around 22% higher than the premarket price.
The upcoming test is execution. Investors are expected to monitor share buybacks, third-quarter margins, and the rate of capital expenditure.
Risks: The rally reflects expectations for a cleaner strategy and prudent capital allocation. However, refrigerant transitions, outages at plants, commodity costs, and planned capital expenditures of $420 million–$440 million may continue to weigh on cash conversion.
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