New York, August 31, 2026, 06:20 EDT — Solstice stock climbed 12.8% following the company’s move to launch a $500 million share buyback programme, which comes as the firm opts not to proceed with its previously planned $14.5 billion merger.
- Solstice stock ended Friday at $63.53, rising 12.76%.
- The company called off its $14.5 billion merger with Element Solutions and will not pay a termination fee.
- Solstice’s new $500 million share repurchase represents about 5% of the company’s market capitalization.
- The updated 2026 EPS outlook suggests a midpoint earnings multiple of approximately 22.3 times.
Solstice Advanced Materials (NASDAQ: SOLS) shares surged 12.8% as investors turned down a $14.5 billion buyout, and the company’s management announced a $500 million share buyback in its place.
The shares finished Friday at $63.53, gaining $7.19. Following the announcement of the decision, the stock jumped 15% in after-hours trading Reuters.
Solstice and Element Solutions (NYSE: ESI) have called off their proposed merger following input from shareholders. There will be no termination fee for either company.
The new capital replacement proposal is narrower in scope and more streamlined. The approved buyback amounts to approximately 5% of Solstice’s equity value, which totals around $10 billion.
Management confirmed the newly increased 2026 outlook. Adjusted earnings per share are projected between $2.75 and $2.95 Solstice results.
| Measure | Q2 2026 | Year-on-year |
|---|---|---|
| Net sales | $1.148 billion | up 11% |
| Adjusted EBITDA | $290 million | up 2% |
| Adjusted EBITDA margin | 25.3% | down 218 bp |
| Adjusted EPS | $0.88 | Beats $0.85 estimate |
The rally pushed the valuation higher. As of Friday’s close, shares traded at 22.3 times the $2.85 midpoint for adjusted EPS guidance.
The average price target from seven analysts is about $79.43, implying a potential 25% gain. Current analyst estimates fall between $70 and $85 analyst consensus.
Operations help drive that premium. Sales of Refrigerants and Applied Solutions increased by 12% to $850 million, and Electronic and Specialty Materials advanced 8% to $298 million.
Sales of electronic materials grew 15%, driven by demand for semiconductors. Nuclear revenue climbed 27%, providing a second growth driver alongside refrigerants.
Margins continue to act as a counterbalance. Adjusted EBITDA rose just 2% as plant turnarounds and production credits from the previous year weighed on conversion.
Corporate expenses increased to $54 million, up from $46 million. These costs represent Solstice’s first complete year operating as a standalone entity after separating from Honeywell (NASDAQ: HON).
Risks: The buyback may bolster the share price, though it might not enhance operating margins. Cash conversion could also face challenges from refrigerant prices, semiconductor demand, and significant plant investments.
The upcoming challenge is execution. Solstice needs to convert an investor-led deal reversal into per-share gains that outpace the 2% increase in EBITDA.
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