Nov 4 (Reuters) – Solstice Advanced Materials raised its full-year adjusted profit and sales forecasts on Wednesday after strong demand from data centers for its nuclear, refrigerant and electronic materials helped it surpass third-quarter estimates.
Shares rose nearly 2% to $62.96 in premarket trading.
Surging investment in AI infrastructure and more complex chips are boosting demand for the specialty material maker’s products used in cooling systems, high-performance computing and nuclear power generation.
CEO David Sewell told Reuters in July that the company was “already co-innovating” with data centers and was engaged in robust discussions with small modular nuclear reactor developers to support growing power demand.
Solstice’s third-quarter net sales rose 8% to $1.05 billion from a year ago and adjusted core profit increased 12.8% to $265 million.
Sales of electronic materials rose over 31% to $135 million from a year earlier. Refrigerant sales increased 8.3% to $433 million, supported by automotive and data center cooling applications, while backlog in its nuclear business is now at $2.6 billion.
Solstice, spun off from Honeywell last year, mutually agreed with peer Element Solutions to shelve their $14.5 billion merger in August, citing feedback from both sets of shareholders that they preferred to retain their independence.
Morris Plains, New Jersey-based Solstice posted adjusted profit of 80 cents per share for the three months ended September 30, compared with analysts’ estimate of 69 cents, according to data compiled by LSEG.
The company raised the lower end of its 2026 adjusted earnings per share forecast range to $2.90 from $2.75, while retaining the upper end at $2.95.
Solstice expects annual net sales between $4.20 billion and $4.22 billion, compared with a prior forecast of $4.13 billion to $4.19 billion.
(Reporting by Pooja Menon in Bengaluru; Editing by Sahal Muhammed)
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