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July 30, 2026 Second Quarter 2026 Financial Results © 2026 Solstice Advanced Materials Inc.
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Forward-Looking Statements & Other Disclaimers This presentation contains “forward-looking statements” within the meaning of the federal securities laws made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 about us, our industry and with respect to our proposed acquisition of Element Solutions Inc (“Element Solutions”) that involve substantial risks and uncertainties. These statements can be identified by the fact that they do not relate strictly to historical or current facts, but rather are based on current expectations, estimates, assumptions and projections regarding, among other things, our industry, our business and financial results, the anticipated benefits and timing of the proposed acquisition including expected synergies, expected future financial position, the combined company’s expected Adjusted EBITDA, Adjusted EBITDA margin and FCF conversion, and expected synergies. Forward-looking statements often include words such as “anticipates,” “estimates,” “expects,” “positioned,” “projects,” “forecasts,” “intends,” “plans,” “continues,” “could,” “believes,” “may,” “will,” “would,” “should,” “goals,” and words and terms of similar substance in connection with discussions of the future operating or financial performance of us and the combined company and the proposed acquisition. As with any projection or forecast, forward-looking statements are inherently susceptible to uncertainty and changes in circumstances. Our and the combined company’s actual results may vary materially from those expressed or implied in our forward-looking statements. Accordingly, undue reliance should not be placed on any forward-looking statement made by us or on our behalf. Although we believe that the forward-looking statements contained in this presentation are based on reasonable assumptions, you should be aware that a variety of factors, many of which are difficult to predict and outside of our control, could affect our or the combined company’s actual financial results or results of operations and could cause actual results to differ materially from those in such forward-looking statements, including, but not limited to: risks and uncertainties around the Company’s proposed acquisition of Element Solutions Inc, including the risk that the anticipated benefits and synergies of the transaction may not be realized when expected or at all, that the terms and scope of the expected financing in connection with the transaction may prove to be less favorable than currently expected, that the transaction may not be completed in a timely matter or at all, the risk that disruptions from the proposed transaction will harm our business, including current plans and operations, and the risk of litigation related to the transaction; our limited operating history as an independent, publicly traded company and unreliability of historical consolidated financial information as an indicator of our future results; our ability to successfully develop new technologies and introduce new products; an overall decline in the health of the economy and the industries in which we operate, including as a result of inflation, tariffs and other trade barriers and restrictions, market volatility, geopolitical instability and social unrest, the possibility of an economic downturn or recession or other macroeconomic factors; changes in the price and availability of raw materials that we use to produce our products, including due to factors such as supply chain disruptions, including due to increased energy prices, and the impact of inflation; our ability to comply with complex government regulations and the impact of changes in such regulations; global climate change and related regulations and changes in customer demand; the public and political perceptions of nuclear energy and radioactive materials; economic, political, regulatory, foreign exchange and other risks of international operations; the impact of tariffs or other restrictions on foreign imports; our ability to borrow funds and access capital markets and any limitations in the terms of our indebtedness; our ability to compete successfully in the markets in which we operate; the effect on our revenue and cash flow from seasonal fluctuations and cyclical market conditions; concentrations of our credit, counterparty and market risk; our ability to successfully execute or effectively integrate potential acquisitions, including the proposed acquisition of Element Solutions, or complete potential divestitures; our joint ventures and strategic co-development partnerships; our ability to recruit and retain qualified personnel; potential material environmental liabilities; the hazardous nature of chemical manufacturing; decommissioning and remediation expenses and regulatory requirements; potential material litigation matters, including disputes related to the spin-off (“the Spin-off”) from Honeywell International Inc. (“Honeywell”); the impact of potential cybersecurity attacks, data privacy breaches and other operational disruptions; increasing stakeholder interest in public company performance, disclosure, and goal-setting with respect to sustainability matters; failure to maintain, protect and enforce our intellectual property or to be successful in litigation related to our intellectual property or the intellectual property of others, or competitors developing similar or superior intellectual property or technology; unforeseen U.S. federal income tax and foreign tax liabilities and our ability to achieve anticipated tax treatments in connection with the Spin-off; U.S. federal income tax reform; our ability to operate as an independent, publicly traded company without certain benefits available to us as a part of Honeywell prior to the Spin-off, including managing the costs of operating as an independent company following the Spin-off; our ability to achieve some or all of the benefits that we expect to achieve from the Spin-off; our inability to maintain intellectual property agreements; potential timing, declaration, amount and payment of the Company’s dividend program; potential cash contributions to defined benefit pension plans; and our ability to maintain proper and effective internal controls. These and other factors are more fully discussed in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections included in our Form 10-K for the fiscal year ended December 31, 2025, filed with the SEC on February 19, 2026, our Quarterly Reports on Form 10-Q and other documents we may file from time to time with the SEC. These risks could cause actual results to differ materially from those implied by forward-looking statements in this presentation. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Solstice assumes no obligation and do not intend to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, except as otherwise required by securities or other applicable law. We give no assurance that we will achieve our expectations. Even if our results of operations, financial condition and liquidity and the development of the industry in which we operate are consistent with the forward-looking statements contained in this presentation, those results or developments may not be indicative of results or developments in subsequent periods. Non-GAAP Financial Measures This presentation contains financial measures presented on a non-GAAP basis. The non-GAAP financial measures used in this presentation are as follows: Adjusted EBITDA, on a total company basis; Adjusted EBITDA margin, on a total company basis; Adjusted Standalone EBITDA; Adjusted Standalone EBITDA Margin; combined adjusted EBITDA; combined adjusted EBITDA margin; combined revenues; synergies; integration benefits; Adjusted Net Income attributable to Solstice; Adjusted Diluted EPS; Free Cash Flow; Organic sales percentage; Net debt; Total leverage ratio; and Net leverage ratio. Management believes that, when considered together with comparable GAAP measures, these non-GAAP measures are useful to investors and management in understanding our ongoing operations and in the analysis of ongoing operating trends. These measures should be considered in addition to, and not as replacements for, the most comparable GAAP measure. Refer to the appendix attached to this presentation for historical reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures. The Company does not provide a reconciliation of forward-looking Adjusted EBITDA (non-GAAP) or Adjusted diluted Earnings per Share to GAAP net income (loss) attributable to Solstice Advanced Materials, due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. Because deductions (such as repositioning charges, impairment charges, and litigation and other matters) used to calculate projected net income (loss) vary based on actual events, the Company is not able to forecast on a GAAP basis with reasonable certainty all deductions needed in order to provide a GAAP calculation of projected net income (loss) at this time. The amount of these deductions may be material and, therefore, could result in projected GAAP net income (loss) being materially less than projected Adjusted EBITDA (non-GAAP) or Adjusted Net Income attributable to Solstice (non-GAAP). These statements represent forward-looking information and a projected financial outlook, and actual results may vary. Please see the risks and assumptions referred to in the “Forward-Looking Statements & Other Disclaimers” section of this presentation. The guidance in this presentation is only effective as of the date it is given and will not be updated or affirmed unless and until the Company publicly announces updated or affirmed guidance. Illustrative Combined Company Financial Information This presentation contains illustrative financial information for the combined businesses of Solstice and Element Solutions which is based on management's estimates, assumptions and projections and has not been prepared in conformance with the applicable requirements of Regulation S-X relating to pro forma financial information, and the required pro forma adjustments have not been applied and are not reflected therein. This information is provided for illustrative purposes only and should not be considered in isolation from, or as a substitute for, the historical financial statements of Solstice and Element Solutions. These measures are provided for illustrative purposes and are based on an arithmetic sum of the relevant historical financial measures of Solstice and Element Solutions. Combined Revenue is the arithmetic sum of Solstice’s revenue and Element Solutions’ revenue. Combined Adjusted EBITDA is the arithmetic sum of Solstice’s Adjusted Standalone EBITDA and Element Solutions’ Pro Forma Adjusted EBITDA, inclusive of expected synergies. Combined Adjusted EBITDA Margin is inclusive of expected synergies. These measures do not reflect what the combined company's financial condition or results of operations would have been had the proposed transaction occurred on or prior to the dates indicated. Such illustrative information may differ materially from pro forma information included in SEC filings. Various factors could cause actual future results to differ materially from those currently estimated by management, including, but not limited to, the risks described above and in each of Solstice’s and Element Solutions’ respective filings with the SEC. For a definition of Element Solutions’ adjusted EBITDA and a reconciliation of Solstice’s adjusted standalone EBITDA, please see Solstice’s Current Report on Form 8-K furnished with the SEC on February 11, 2026, and a reconciliation of adjusted EBITDA to the most comparable GAAP financial measure for 2025, please see Element Solutions’ Current Report on Form8-K furnished with the SEC on February 17, 2026 and Element Solutions’ 2026 Investor Day presentation at its website at https://www.elementsolutions.com (information included on or accessible through Element Solutions’ website is not incorporated by reference into this presentation). Element Solutions’ pro forma Adjusted EBITDA for fiscal year 2025 is from Element Solutions’ 2026 Investor Day presentation and is Element Solutions’ Adjusted EBITDA inclusive of a pro forma adjustment of $61 million from the impact of the acquisitions of Micromax and EFC Gases. Combined Adjusted EBITDA and Combined Adjusted EBITDA margin includes expected synergies. No Offer or Solicitation This communication is not intended to and shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended (the “Securities Act”), and/or offered pursuant to an exemption from the registration requirements of the Securities Act, and otherwise in accordance with applicable law. Important Information and Where to Find It In connection with the proposed transaction with Element Solutions Inc, Solstice intends to file with the SEC a registration statement on Form S-4 (the “Registration Statement”), which will include a prospectus with respect to the shares of Solstice’s common stock to be issued in the proposed transaction and a joint proxy statement for Solstice’s and Element Solutions’ respective stockholders (the “Joint Proxy Statement/Prospectus”). The definitive Joint Proxy Statement/Prospectus (if and when available) will be mailed to stockholders of Solstice and Element Solutions after it is declared effective. Each of Solstice and Element Solutions may also file with or furnish to the SEC other relevant documents regarding the proposed transaction. This communication is not a substitute for the Registration Statement, the Joint Proxy Statement/Prospectus or any other document that Solstice or Element Solutions may mail to their respective stockholders in connection with the proposed transaction. INVESTORS AND SECURITY HOLDERS OF SOLSTICE AND ELEMENT SOLUTIONS ARE URGED TO READ THE REGISTRATION STA TEMENT AND THE JOINT PROXY STATEMENT/PROSPECTUS INCLUDED WITHIN THE REGISTRATION STATEMENT CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE, AS WELL AS ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED TRANSACTION OR INCORPORATED BY REFERENCE INTO THE REGIS TRATION STATEMENT AND THE JOINT PROXY STATEMENT/PROSPECTUS (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO), BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION REGARDING SOLSTICE, ELEMENT SOLUTIONS, THE PROPOSED TRANSACTION AND RELATED MATTERS. Investors and security holders may obtain free copies of the Joint Proxy Statement/Prospectus and other documents filed with the SEC by Solstice or Element Solutions through the website maintained by the SEC at http://www.sec.gov or from Solstice at its website, https://www.solstice.com, or from Element Solutions at its website, https://www.elementsolutionsinc.com (information included on or accessible through the SEC website or either of Solstice’s or Element Solutions’ website is not incorporated by reference into this communication). Participants in Solicitation Solstice and Element Solutions and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from the stockholders of Solstice and Element Solutions in connection with the proposed transaction. Information about the interests of the directors and executive officers of Solstice and Element Solutions and other persons who may be deemed to be participants in the solicitation of stockholders of Solstice and Element Solutions in connection with the proposed transaction and a description of their direct and indirect interests, by security holdings or otherwise, will be included in the Joint Proxy Statement/Prospectus, which will be filed with the SEC. Information about Solstice’s directors and executive officers and their ownership of Solstice’s common stock is set forth in Solstice’s proxy statement for its 2026 Annual Meeting of Stockholders on Schedule 14A filed with the SEC on April 2, 2026 under the headings “Director Compensation,” “Compensation Discussion and Analysis,” “Executive Compensation Tables“ and “Stock Ownership Information.” To the extent that holdings of Solstice’s securities have changed since the amounts printed in Solstice’s proxy statement, such changes have been or will be reflected on Initial Statements of Beneficial Ownership of Securities on Form 3 and Statements of Changes in Beneficial Ownership on Form 4 filed with the SEC. Information about Element Solutions’ directors and executive officers and their ownership of Element Solutions’ common stock is set forth in Element Solutions’ proxy statement for its 2026 Annual Meeting of Stockholders on Schedule 14A filed with the SEC on March 23, 2026 under the headings “Director Compensation,” “Executive Compensation“ and “Security Ownership.” To the extent that holdings of Element Solutions’ securities have changed since the amounts printed in Element Solutions’ proxy statement, such changes have been or will be reflected on Initial Statements of Beneficial Ownership of Securities on Form 3 and Statements of Changes in Beneficial Ownership on Form 4 filed with the SEC. The information regarding the direct and indirect interests of those persons and other persons who may be deemed participants in the proposed transaction may be obtained by reading the Joint Proxy Statement/Prospectus regarding the proposed transaction when it becomes available. Free copies of these documents may be obtained as described above. 2
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Second Quarter 2026 Highlights Strong top and bottom-line results; double-digit sales growth across Refrigerants, Nuclear, Electronic Materials and Healthcare Packaging Sound execution through macroeconomic volatility, plant turnarounds, and TSA exits Solid cash generation with disciplined working capital management Accelerating our growth strategy; executing on high-return organic investments and announced proposed acquisition of Element Solutions Raising full-year 2026 guidance demonstrating our resilient portfolio 3
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Element Solutions Acquisition Expected to Accelerate Our Strategy and Fuel Significant, Sustainable Value Creation 4 1 Cash conversion defined as (Adj. EBITDA – Capex) / Adj. EBITDA. 2 For illustrative purposes. Combined company revenue includes pro forma adjustment for Micromax and EFC acquisitions. 3 Non-GAAP Measure; inclusive of $180m of expected run-rate synergies; Element Solutions' Adj. EBITDA and Adj. EBITDA margin includes pro-forma adjustment of $61m from the impact of the Micromax and EFC acquisitions. 4 Based on Pro Forma for Element Solutions excluding metals. Non-GAAP measure, inclusive of $180m+ of expected synergies by Y3. Uniquely positioned to capture the generational tailwinds of critical AI infrastructure buildout • Unlocks potential of combined electronics platform – differentiated offering in key emerging technologies such as advanced packaging and next-gen semiconductor materials • Complementary strengths in advanced formulation and synthetic chemistry - will position combined company as a "preferred partner" for customers' critical challenges • Expected to accelerate Solstice’s financial engine – anticipated synergies of $180+ million by Year 3; accretive to growth, Adj. EPS, Adj. EBITDA margins, and cash conversion • Expected upside from revenue synergies over time – complementary products, technologies, and services to deliver value-added solutions • Anticipated enhanced cash generation and conservative leverage – enables deleveraging and continued investment in key growth initiatives • Nuclear expected to remain a core growth pillar – $2bn+ backlog, expected double-digit EBITDA CAGR through 2030, and increasing portion of overall business mix • Proven, experienced team in place to successfully execute integration and drive value creation Standalone Solstice Med-Term Growth Combined Solstice Med-Term Growth Expected Medium-Term Combined Revenue CAGR ~75% Expected Med.- Term Combined FCF Conversion 1 HSD – LDD Expected Med.- Term Combined Adj. EBITDA3 CAGR $6.8B 2025 Combined Revenue2 26% 2025 Combined Adj. EBITDA Margin%3 (28% ex-metals4) LSD – MSD MSD – HSD
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Second Quarter 2026 Consolidated Results ($ in millions, except per share amounts) 2Q’26 2Q’25 % Change Net Sales $1,148 $1,033 11% Net Income attributable to Solstice Advanced Materials $119 $97 23% Diluted EPS $0.75 $0.61 23% Adjusted Diluted EPS1 $0.88 N/A N/A Adjusted EBITDA1,2 $290 $283 2% Adjusted EBITDA Margin1,2 25.3% 27.4% (218) bps Key TakeawaysConsolidated Financial Highlights Strong YoY Net Sales growth driven by Nuclear, Electronic Materials, Refrigerants, and Healthcare Packaging RAS Net Sales growth driven by 27% YoY increase in Nuclear and 13% YoY increase in Refrigerants ESM Net Sales growth driven by 15% growth in Electronic Materials reflecting robust customer demand for deposition and thermal solutions Adjusted EBITDA Margin1 impacted by timing of plant turnaround activity and production incentive credits in the prior year Operating Cash Flow for the first half of 2026 of $461m; Free Cash Flow1 of $248m 51 Non-GAAP financial measure. Historical reconciliations of non-GAAP financial measures provided in the appendix of this presentation. Prior period EBITDA has been adjusted to reflect standalone operations as if the Company had been operating independently during that period. Current period EBITDA reflects actual operations and does not include standalone adjustments, as the Company is now operating independently. 2 2Q’25 represents Adjusted Standalone EBITDA (non-GAAP) and Adjusted Standalone EBITDA Margin (non-GAAP).
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1,033 7% 4% 1% 1,148 2Q'25 Net Sales Volume Price FX 2Q'26 Net Sales 283 (18) 12 13 290 2Q'25 Adj. EBITDA RAS ESM Corporate / Standalone Adj. 2Q'26 Adj. EBITDA Net Sales and Adjusted EBITDA 1 Bridges 27.4% 25.3% 61 Non-GAAP financial measure. Historical reconciliations of non-GAAP financial measures provided in the appendix of this presentation. Prior period EBITDA has been adjusted to reflect standalone operations as if the Company had been operating independently during that period. Current period EBITDA reflects actual operations and does not include standalone adjustments, as the Company is now operating independently. 2 2Q’25 represents Adjusted Standalone EBITDA (non-GAAP) and Adjusted Standalone EBITDA Margin (non-GAAP). Change in Net Sales Change in Adjusted EBITDA1,2 and Margin1,2 ($ in millions) ($ in millions) Organic Net Sales growth1 of 11% YoY Timing of plant turnaround activity and production incentive credits in the prior year Volume growth in Electronic Materials, favorable product mix and, productivity
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Second Quarter 2026 Refrigerants & Applied Solutions Results • YoY increase in RAS Net Sales primarily driven by 13% growth in Refrigerants, 27% growth in Nuclear and 24% growth in Healthcare Packaging, while Building Solutions & Intermediates was roughly flat • Refrigerants strength led by continuing 454B demand and accelerating data center orders • YoY increase in Healthcare Packaging as customer demand patterns recovered following destocking in the second half of 2025 • YoY decline in RAS Adjusted EBITDA primarily driven by timing of plant turnaround activity and production incentive credits in the prior year • Expect segment Adjusted EBITDA Margins of mid-30% in the second half of 2026 Key Takeaways Financial Results RAS Net Sales ($ in millions) 2Q’26 2Q’25 % Change Refrigerants $473 $418 13% Nuclear 125 98 27% Building Solutions & Intermediates 180 181 (1)% Healthcare Packaging 73 59 24% RAS Net Sales 850 756 12% RAS Adjusted EBITDA1 280 298 (6)% RAS Adjusted EBITDA Margin1 32.9% 39.4% (648) bps 756 850 55 27 (1) 14 2Q'25 Refrigerants Nuclear Building Solutions & Intermediates Healthcare Packaging 2Q'26 ($ in millions) 7 1 Please refer to the reconciliation provided in the appendix of this presentation.
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Second Quarter 2026 Electronic & Specialty Materials Results • YoY increase in ESM Net Sales primarily driven by 15% growth in Electronic Materials reflecting volume growth on robust customer demand across multiple product categories, which we expect to continue to accelerate • Broad-based strength across Electronic Materials with Deposition and Thermal Solutions both growing in excess of 25% year-over-year with continued success capturing growth opportunities • YoY increase in ESM Adjusted EBITDA primarily driven by volume growth and productivity Key Takeaways Financial Results ESM Net Sales ($ in millions) 2Q’26 2Q’25 % Change Electronic Materials $119 $104 15% Safety & Defense Solutions 43 41 7% Research & Performance Chemicals 135 132 3% Net Sales 298 277 8% ESM Adjusted EBITDA1 64 52 24% ESM Adjusted EBITDA Margin1 21.6% 18.8% 280 bps 277 298 15 3 3 2Q'25 Electronic Materials Safety & Defense Solutions Research & Performance Chemicals 2Q'26 ($ in millions) 8 1 Please refer to the reconciliation provided in the appendix of this presentation. Top supplier award from
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1 Capital expenditures represents capital expenditures incurred, whether or not paid in the current year. 2 Non-GAAP financial measure. Historical reconciliations of non-GAAP financial measures provided in the appendix of this presentation. Balance Sheet and Capital Management Cash Flow Highlights (Six Months Ended June 30, 2026) • Operating Cash Flow of $461 million reflecting strong working capital management • Disciplined focus on inventory optimization • Capital Expenditures of $186 million1 supporting multi- year capacity expansion projects • Electronic Materials • Safety and Defense Solutions • Nuclear • Free Cash Flow2 of $248 million Debt Structure and Liquidity (As of June 30, 2026) Capital Allocation Priorities • Committed to Maintaining Strong Balance Sheet • Uninterrupted Investment for Growth • Opportunistically Return Excess Cash to Shareholders • Portfolio Optimization Total Debt $2 billion Cash and Cash Equivalents $750 million Net Debt2 $1.25 billion Net Leverage Ratio2 1.3x Total Liquidity $1.75 billion 9
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3Q’26 Commentary: Providing 3Q’26E Net Sales guidance of $990 – $1,030m • Continued momentum in Refrigerants and Electronic Materials • More modest Nuclear performance on loan returns, order timing • Consistent margin performance 2026 Commentary: • Assumes stable macroeconomic environment • Negative revenue impact from $30m final Nuclear loan returns skewed modestly towards 4Q Financial Guidance 10 1 Non-GAAP financial measure. Historical reconciliations of non-GAAP financial measures provided in the appendix of this presentation. Raising Full-Year Guidance on Robust YTD Performance RaisedPrevious 2026E Guidance 2026E Guidance Net Sales ($ in millions) $3,900 - $4,100 $4,125 – 4,185 Adjusted EBITDA1 ($ in millions) $975 - $1,025 $1,035 - $1,055 Adjusted Diluted EPS1 $2.45 - $2.75 $2.75 - $2.95 Capital Expenditures ($ in millions) $400 - $425 $420 - $440
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Key Takeaways Raising full-year 2026 guidance on continued strong business performance Well-aligned to strong secular trends such as artificial intelligence, data centers, semiconductor manufacturing, and nuclear energy Rigorous focus on operational execution and delivering on our commitments Solid free cash flow generation enabling investments in our business while supporting deleveraging Accelerating our growth strategy to become a premier advanced materials company 11
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Appendix
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Additional Full Year 2026 Modeling Considerations ($ in millions, unless otherwise noted) 2026E Depreciation and Amortization Expense $220 - $240 Net Interest Expense1 $100 - $105 Effective Tax Rate ~24-26% Noncontrolling Interest ~$60 Other Considerations Strong demand expected to continue in Low-GWP Refrigerants, Electronic Materials, and Nuclear Interest rate sensitive end-markets such as housing / construction not expected to improve Raw material costs expected to be modestly inflationary; expect to fully cover with pricing Working capital expected to be a source of cash 13 Revised 1 Not inclusive of anticipated financing associated with the potential acquisition of Element Solutions
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For The Three Months Ended June 30, ($ in millions, except per share amounts) 2026 2025 Product sales $1,062 $945 Service sales 86 88 Net sales 1,148 1,033 Costs, expenses and other Cost of products sold 715 601 Cost of services sold 63 71 Total cost of products and services sold 778 671 Research and development expenses 25 23 Selling, general and administrative expenses 123 105 Transaction-related costs 25 30 Other expense (income) (2) 2 Interest and other financial charges 23 2 Total costs, expenses and other 972 833 Income before taxes 176 199 Income tax expense 42 101 Net income 134 99 Less: Net income attributable to noncontrolling interest 15 2 Net income attributable to Solstice Advanced Materials 119 97 Basic earnings per share $0.75 $0.61 Diluted earnings per share $0.75 $0.61 Weighted average number of common shares outstanding - basic 158.8 158.7 Weighted average number of common shares outstanding - diluted 159.4 158.7 Consolidated Statement of Operations 14
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For The Three Months Ended June 30, 2026 vs. 2025 Total % Change in Net Sales 11.2% Foreign Currency Translation (0.6)% Acquisitions, Divestitures and Other, Net - Organic Sales Percentage 10.6% Reconciliation of Organic Sales Percentage 15
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For The Three Months Ended June 30, For The LTM1 Ended June 30, ($ in millions) 2026 2025 2026 Net income attributable to Solstice Advanced Materials $119 $97 $210 Net income attributable to noncontrolling interest 15 2 74 Net Income (GAAP) 134 99 284 Depreciation 54 55 193 Amortization 3 4 28 Interest and other financial charges 23 2 78 Other adjustments2 2 7 (37) Stock compensation expense 6 6 27 Transaction-related costs 25 30 106 Income tax expense 42 101 287 Adjusted EBITDA (Non-GAAP) 290 304 964 Less - Standalone adjustments - (21) (1) Adjusted Standalone EBITDA (Non-GAAP) 290 283 963 Net Sales 1,148 1,033 4,096 Adjusted EBITDA margin (Non-GAAP) 25.3% 29.5% 23.5% Adjusted Standalone EBITDA Margin (Non-GAAP) 25.3% 27.4% 23.5% Reconciliation of Adjusted EBITDA & Adjusted Standalone EBITDA 16 1 LTM stands for “last twelve months”. 2 Other adjustments primarily consisted of gains and losses from disposal of long-lived assets, remeasurement of foreign currencies, environmental reserves, asset retirement obligations, nonoperating pension expense (income), and certain legal costs, net of recoveries..
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Reconciliation of Adjusted Standalone EBITDA 17 For The Three Months Ended June 30, ($ in millions) 2026 2025 Refrigerants & Applied Solutions (RAS) $850 $756 Electronic & Specialty Materials (ESM) 298 277 Total Net Sales 1,148 1,033 For The Three Months Ended June 30, ($ in millions) 2026 2025 RAS Adjusted EBITDA $280 $298 ESM Adjusted EBITDA 64 52 Segment Adjusted EBITDA 344 350 Less: Corporate and All Other 54 46 Standalone Adjustments - 21 Total Adjusted Standalone EBITDA (Non-GAAP) 290 283
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Reconciliation of Adjusted Net Income Attributable to Solstice and Adjusted Diluted EPS 18 1 Other adjustments primarily consisted of gains and losses from disposal of long-lived assets, remeasurement of foreign currencies, environmental reserves, asset retirement obligations, nonoperating pension expense (income), and certain legal costs, net of recoveries. 2 Excludes amortization of acquired intangible assets. 3 Includes tax effect of adjustments. ($ in millions, except per share amounts) For The Three Months Ended June 30, 2026 Net income attributable to Solstice Advanced Materials (GAAP) $119 Other adjustments1 2 Amortization of acquired intangibles 1 Transaction costs 25 Tax effect of adjusting items (7) Adjusted net income attributable to Solstice (Non-GAAP) 140 Diluted weighted average shares outstanding 159.4 Diluted EPS (GAAP) $0.75 Adjusted diluted EPS (Non-GAAP) $0.88 ($ in millions) For The Three Months Ended June 30, 2026 Adjusted EBITDA (Non-GAAP) $290 Less: Depreciation 54 Amortization2 2 Interest and other financial charges 23 Stock compensation expense 6 Income tax provision plus tax effect on adjusting items3 49 Net income attributable to noncontrolling interest 15 Adjusted net income attributable to Solstice (Non-GAAP) 140
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Reconciliation of Free Cash Flow 19 ($ in millions) For The Six Months Ended June 30, 2026 Net Cash Provided by Operating Activities (GAAP) $461 Less: Capital expenditures paid 213 Free Cash Flow (Non-GAAP) 248
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($ in millions) June 30, 2026 Debt Term Loan B due 2032 $986 Unsecured Senior Notes due 2033 986 Total Debt 1,972 Less: Cash and Cash Equivalents 750 Net Debt (Non-GAAP) 1,222 LTM Adjusted Standalone EBITDA (Non-GAAP) 963 Total Leverage Ratio (Non-GAAP) 2.0 x Net Leverage Ratio (Non-GAAP) 1.3 x Debt Structure 20
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Non-GAAP Financial Measures The Company uses non-GAAP financial measures to supplement the financial measures prepared in accordance with U.S. GAAP. These include (1) Organic sales percentage, (2) Adjusted EBITDA, (3) Adjusted EBITDA Margin, (4) Adjusted Standalone EBITDA, (5) Adjusted Standalone EBITDA margin, (6) Adjusted Net Income attributable to Solstice, (7) Adjusted diluted EPS, (8) Free Cash Flow, (9) Net debt, (10) Total leverage ratio, and (11) Net leverage ratio. Below are definitions and reconciliations of certain non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP. Management believes that, when considered together with reported amounts, these measures are useful to investors and management in understanding our ongoing operations and in the analysis of ongoing operating trends. Management believes these non-GAAP financial measures provide investors with a meaningful measure of its performance period to period, align the measures to how management evaluates performance internally, and make it easier for investors to compare our performance to peers. These measures should be considered in addition to, and not as replacements for, the most directly comparable US GAAP measure. The non-GAAP financial measures we use are as follows: Organic Sales Percentage The Company defines organic sales percentage as the year-over-year change in reported sales relative to the comparable period, excluding the impact on sales from foreign currency translation and acquisitions, net of divestitures, for the first 12 months following the transaction date. We believe this measure is useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends. Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Standalone EBITDA, and Adjusted Standalone EBITDA Margin The Company defines Adjusted EBITDA as net income excluding income taxes, depreciation, amortization, interest and other financial charges, remeasurement of foreign currencies, stock-based compensation expense, nonoperating pension 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 Company defines Adjusted EBITDA margin as Adjusted EBITDA divided by Net sales. The Company defines Adjusted Standalone EBITDA as Adjusted EBITDA less, for fiscal year 2025, estimated recurring and ongoing costs required to operate a new independent public company, and autonomous entity adjustments as well as adjustments for certain other employee compensation expense for employees that have historically been shared with other Honeywell businesses and were transferred to the Company in connection with the spin-off. The Company defines Adjusted Standalone EBITDA Margin as Adjusted Standalone EBITDA divided by Net sales. We believe these measures are useful to investors as they provide greater transparency with respect to supplemental information used by management in its financial and operational decision making, as well as understanding ongoing operating trends. Adjusted Net Income attributable to Solstice and Adjusted Diluted EPS The Company defines Adjusted net income attributable to Solstice as Net income attributable to Solstice Advanced Materials excluding the after-tax impact - based on the tax rates by jurisdiction, net of discrete items - of amortization of acquired intangibles, remeasurement of foreign currencies, nonoperating pension 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. We believe Adjusted net income attributable to Solstice is useful to investors as it provides greater transparency with respect to supplemental information used by management in its financial and operational decision making, as well as in understanding ongoing operational trends. The Company defines Adjusted diluted EPS as Adjusted net income attributable to Solstice divided by diluted weighted average shares outstanding to reflect shares that are dilutive or anti-dilutive based on the amount of Adjusted net income attributable to Solstice Advanced Materials. The weighted average common shares outstanding used to calculate Adjusted diluted earnings (loss) per share will differ from such shares used to calculate diluted earnings (loss) per share (GAAP) when the inclusion of dilutive shares has an anti-dilutive effect for one calculation but not for the other. We believe Adjusted diluted EPS is useful to investors as it provides greater transparency with respect to supplemental information used by management in its financial and operational decision making, as well as in understanding ongoing operational trends. Free Cash Flow The Company defines free cash flow as net cash provided by operating activities less net capital expenditures. Net capital expenditures include capital expenditures paid less proceeds from the disposals of property, plant, and equipment. We believe this measure is useful to investors and management as a measure of cash generated by operations that can be used to invest in future growth through new business development activities or acquisitions, pay dividends, repurchase stock, or repay debt obligations prior to their maturities. This measure can also be used to evaluate our ability to generate cash flow from operations and the impact that this cash flow has on our liquidity. Net Debt, Total Leverage ratio and Net Leverage ratio The Company defines net debt as total debt less cash. The Company defines total leverage ratio as total debt divided by Adjusted EBITDA. The Company defines net leverage ratio as net debt divided by Adjusted EBITDA. For purposes of showing total leverage ratio and net leverage ratio, we use Adjusted Standalone EBITDA instead of Adjusted EBITDA. We believe these measures are useful to investors and management in understanding our overall financial condition. 21