--- title: "Honeywell spinoff Solstice sees 2026 profit below estimate as margins remain under pressure" description: "Solstice Advanced Materials, spun off from Honeywell, forecasts 2026 earnings below market estimates, projecting adjusted EPS of $2.45 to $2.75 versus the $2.93 expected by analysts. Despite a strong " type: "news" locale: "en" url: "https://longbridge.com/en/news/275596180.md" published_at: "2026-02-11T11:27:21.000Z" --- # Honeywell spinoff Solstice sees 2026 profit below estimate as margins remain under pressure > Solstice Advanced Materials, spun off from Honeywell, forecasts 2026 earnings below market estimates, projecting adjusted EPS of $2.45 to $2.75 versus the $2.93 expected by analysts. Despite a strong fourth quarter with 8% sales growth to $987 million, profitability is pressured by higher operating costs and a shift to low-global-warming refrigerants. The company anticipates annual sales between $3.9 billion and $4.1 billion, indicating modest growth but ongoing margin challenges. CEO David Sewell highlights strong demand in nuclear energy and AI-driven data centers as growth drivers, despite a nearly 20% drop in adjusted EBITDA for Q4. Feb 11 (Reuters) - Solstice Advanced Materials forecast full-year 2026 earnings below market estimates on Wednesday, overshadowing solid fourth-quarter sales growth and continued strength in nuclear and electronic materials. The speciality materials maker that spun off from Honeywell in October expects 2026 adjusted earnings per share of $2.45 to $2.75, below analysts' average estimate of $2.93 per share, according to data compiled by LSEG. Solstice expects annual sales of between $3.9 billion and $4.1 billion, compared with an estimate of $3.96 billion. The revenue forecast signals modest growth from 2025, but continued pressure on profitability as the company absorbs higher operating costs and navigates the transition to low-global-warming-potential refrigerants. The product shift, along with plant downtime and other operational headwinds, has weighed on margins even as demand tied to nuclear energy, data centers and artificial intelligence remains strong. Chief Executive David Sewell told Reuters the company now sees the impact of its strategy as a standalone business focused on secular growth trends. Rapid growth in AI-driven data centers is boosting demand for its thermal management and refrigerant products, while advanced computing is driving growth in semiconductor electronic materials. Rising power needs linked to AI and data center expansion also support its nuclear energy business, he said, citing double-digit fourth-quarter growth across those segments. Fourth-quarter net sales rose 8% to $987 million, driven by double-digit growth in Nuclear (Alternative Energy Services), Electronic Materials and refrigerant products and also beat estimates of $923.3 million. However, adjusted standalone EBITDA for the October-December quarter fell nearly 20% to $189 million, with margin narrowing 662 basis points to 19.1%. (Reporting by Arunima Kumar in Bengaluru; Editing by Tasim Zahid) By Arunima Kumar ### Related Stocks - [HON.UK - Honeywell International Inc.](https://longbridge.com/en/quote/HON.UK.md) - [SOLS.US - Solstice Advanced Materials](https://longbridge.com/en/quote/SOLS.US.md) - [SOLSV.US - Solstice Advanced Materials - WI](https://longbridge.com/en/quote/SOLSV.US.md) - [HON.US - Honeywell](https://longbridge.com/en/quote/HON.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | 16:15 ETHONEYWELL ANNOUNCES QUARTERLY DIVIDEND | Honeywell (NASDAQ: HON) has declared a quarterly dividend of $1.19 per share, payable on March 13, 2026, to shareholders | [Link](https://longbridge.com/en/news/275945041.md) | | The Analyst Verdict: Solstice Advanced Mat In The Eyes Of 4 Experts | Four analysts have recently evaluated Solstice Advanced Mat (NASDAQ:SOLS), showing a mix of bullish to bearish sentiment | [Link](https://longbridge.com/en/news/275767737.md) | | Where will NuScale Power stock be in 5 years? | The small modular reactor (SMR) nuclear energy company is down 70% from its recent peak. | [Link](https://longbridge.com/en/news/276025953.md) | | Global warming forced scientists to change the way they look at El Niño | Global warming has prompted scientists to adopt a new method for detecting El Niño and La Niña events, known as the Rela | [Link](https://longbridge.com/en/news/276113681.md) | | Nigeria's Dangote refinery says crude unit and petrol block running at capacity in tests | Nigeria's Dangote Petroleum Refinery has successfully conducted 72-hour performance tests on its crude distillation unit | [Link](https://longbridge.com/en/news/275719552.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.