Solstice Advanced Materials Inc.SOLS
Solstice Advanced Materials Inc. Segments Disclosure
Segment Financial Data
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The Company globally manages its business operations through two reportable business segments. Segment information is consistent with how the President and Chief Executive Officer of Solstice Advanced Materials, who
is the Chief Operating Decision Maker (“CODM”), and management reviews the businesses, makes investing and resource allocation decisions, and assesses operating performance.
Refrigerants & Applied Solutions – A global provider of specialty solutions across the value chain of refrigerant and blowing agent materials for various end markets, such as cooling, air conditioning and refrigeration, automotive, energy, building and appliance insulation, and healthcare. Refrigeration & Applied Solution offerings include (i) Refrigerants, (ii) Building Solutions and Intermediates, (iii) Nuclear (AES), and (iv) Healthcare Packaging. Refrigerants includes refrigerants for both stationary and automotive applications. Building Solutions and Intermediates supplies low global warming potential blowing agents for foam and appliance insulation, cleaning solvents, and lower emissions medical aerosols. Nuclear (AES) provides low carbon energy services in the form of uranium hexafluoride conversion and related services and products to utilities operating nuclear power plants. Healthcare Packaging includes specialty packaging materials characterized by a high moisture barrier and high clarity.
Electronic & Specialty Materials – A global provider of electronic materials, industrial-grade fibers, and laboratory life science materials for a diverse set of end markets, such as semiconductors, defense, pharmaceutical, and construction. Electronic & Specialty Materials offerings include (i) Research and Performance Chemicals, (ii) Electronic Materials, and (iii) Safety and Defense Solutions business units. Research and Performance Chemicals includes research chemicals, fine chemicals, and specialty additives. Electronic Materials is a provider of sputtering targets, electronic polymers, thermal solutions, and high purity etchants and wash solvents used in semiconductor manufacturing. Safety and Defense Solutions provides ultra-high molecular weight polyethylene materials which are specialty fibers primarily for armor as well as medical and industrial applications.
The CODM evaluates segment performance based on segment adjusted EBITDA, by comparing budget-to-actual and period-over-period results. Segment Adjusted EBITDA is defined as segment net income excluding income taxes, general corporate unallocated expense, depreciation, amortization, interest and other financial charges, remeasurement of foreign currencies, stock-based compensation expense, pension and other postretirement expense (income), transaction-related costs, repositioning charges, asset retirement obligations accretion, asset impairment charges, litigation costs and insurance settlements (net of recoveries), gains and losses on disposal of assets, and certain other items that are otherwise of an unusual or non-recurring nature.
The below table summarizes information about significant segment expenses and other segment items, for each historical period:
Years Ended December 31, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||
Refrigerants & Applied Solutions | Electronic & Specialty Materials | Refrigerants & Applied Solutions | Electronic & Specialty Materials | Refrigerants & Applied Solutions | Electronic & Specialty Materials | ||||||||||||||||||||||||||||||
Net sales | |||||||||||||||||||||||||||||||||||
Products | $ | 2,490 | $ | 1,097 | $ | 2,404 | $ | 1,049 | $ | 2,404 | $ | 1,020 | |||||||||||||||||||||||
Services | 299 | — | 317 | — | 225 | — | |||||||||||||||||||||||||||||
Total Net sales | 2,789 | 1,097 | 2,721 | 1,049 | 2,629 | 1,020 | |||||||||||||||||||||||||||||
Less | |||||||||||||||||||||||||||||||||||
Cost of products and services sold1 | 1,792 | 842 | 1,678 | 784 | 1,591 | 773 | |||||||||||||||||||||||||||||
Selling, general and administrative expenses2 | 133 | 74 | 124 | 77 | 126 | 77 | |||||||||||||||||||||||||||||
| Research & development expenses | 60 | 36 | 48 | 33 | 49 | 31 | |||||||||||||||||||||||||||||
Other segment items3 | (10) | (8) | (12) | (7) | (13) | (4) | |||||||||||||||||||||||||||||
Add | |||||||||||||||||||||||||||||||||||
Depreciation | 143 | 47 | 137 | 37 | 116 | 49 | |||||||||||||||||||||||||||||
Amortization | 23 | 4 | 38 | 2 | 47 | 3 | |||||||||||||||||||||||||||||
Segment Adjusted EBITDA | $ | 981 | $ | 203 | $ | 1,058 | $ | 201 | $ | 1,039 | $ | 195 | |||||||||||||||||||||||
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1.Amounts exclude ARO accretion, repositioning charges, and other non-recurring items.
2.Amounts exclude stock compensation expense, transaction costs, pension and other postretirement income (expense), repositioning charges, and other non-recurring items.
3.Other segment items primarily consisted of gains and losses from segment-related equity-method investments.
A reconciliation of Segment adjusted EBITDA to Net income attributable to Solstice Advanced Materials is as follows:
Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
Refrigerants & Applied Solutions | $ | 981 | $ | 1,058 | $ | 1,039 | |||||||||||
Electronic & Specialty Materials | 203 | 201 | 195 | ||||||||||||||
Segment Adjusted EBITDA | $ | 1,184 | $ | 1,259 | $ | 1,234 | |||||||||||
| Corporate and All Other | (184) | (161) | (144) | ||||||||||||||
Adjusted EBITDA | $ | 1,000 | $ | 1,098 | $ | 1,090 | |||||||||||
| Depreciation | (191) | (175) | (170) | ||||||||||||||
| Amortization | (29) | (42) | (51) | ||||||||||||||
Interest and other financial charges | (28) | (13) | (16) | ||||||||||||||
Other adjustments1 | 38 | (28) | (21) | ||||||||||||||
| Stock compensation expense | (27) | (17) | (18) | ||||||||||||||
| Transaction-related costs | (117) | (26) | (1) | ||||||||||||||
Income tax expense | (362) | (192) | (195) | ||||||||||||||
| Net income | $ | 285 | $ | 605 | $ | 619 | |||||||||||
| Less: Net income (loss) attributable to noncontrolling interest | 48 | 11 | (2) | ||||||||||||||
| Net income attributable to Solstice Advanced Materials | $ | 237 | $ | 594 | $ | 621 | |||||||||||
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1.Other adjustments primarily consisted of gains and losses from disposal of long-lived assets, remeasurement of foreign currencies, environmental reserves, asset retirement obligations, pensions expenses, and certain legal costs, net of recoveries.
December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
Total assets reconciliation | |||||||||||
Refrigerants & Applied Solutions | $ | 3,490 | $ | 3,157 | |||||||
Electronic & Specialty Materials | 1,471 | 1,192 | |||||||||
Corporate and All Other | 712 | 655 | |||||||||
Total assets | $ | 5,673 | $ | 5,004 | |||||||
December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
Capital expenditures | |||||||||||||||||
Refrigerants & Applied Solutions | $ | 232 | $ | 228 | $ | 234 | |||||||||||
Electronic & Specialty Materials | 173 | 63 | 61 | ||||||||||||||
Corporate and All Other | 3 | 5 | 4 | ||||||||||||||
Total1 | $ | 408 | $ | 296 | $ | 299 | |||||||||||
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1.Balance inclusive of unpaid capital expenditures of $111 million, $39 million and $54 million as of December 31, 2025, 2024 and 2023, respectively.
Net Sales1 | Long-lived Assets2 | ||||||||||||||||||||||||||||||||||
| Years Ended December 31, | Years Ended December 31, | ||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | ||||||||||||||||||||||||||||||
| United States | $ | 2,234 | $ | 2,285 | $ | 2,205 | $ | 1,756 | $ | 1,564 | $ | 1,454 | |||||||||||||||||||||||
| Europe, Middle East and Africa | 922 | 886 | 859 | 228 | 118 | 117 | |||||||||||||||||||||||||||||
| Other International | 730 | 599 | 585 | 71 | 64 | 67 | |||||||||||||||||||||||||||||
Total | $ | 3,886 | $ | 3,770 | $ | 3,649 | $ | 2,055 | $ | 1,746 | $ | 1,638 | |||||||||||||||||||||||
1.Sales between geographic areas approximate market value and are not significant. Net sales are classified according to their country of origin. Included in United States Net sales are export sales of $544 million, $720 million, and $576 million for the years ended December 31, 2025, 2024, and 2023, respectively.
2.Long-lived assets are comprised of Property, plant and equipment – net.
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About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.