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November 4, 2026 Third 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 and our industry 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 about our industry and our business and financial results. 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 future operating or financial performance. As with any projection or forecast, forward-looking statements are inherently susceptible to uncertainty and changes in circumstances. Our 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 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: 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 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; expectations relating to our share repurchase 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 Part I. Item 1A. “Risk Factors” and Part II. Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our Annual Report on Form 10-K for the year ended December 31, 2025, and may be updated from time to time in our Securities and Exchange Commission (“SEC”) filings. These risks could cause actual results to differ materially from those implied by forward-looking statements in this presentation. Even if our results of operations, financial condition and liquidity and the development of the industries 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. Solstice does not undertake to update or revise any of its forward-looking statements, which speak only as of the date they are made, except as may be required by law or regulation. 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; 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 and 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. 2
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Third Quarter 2026 Highlights Organic net sales growth of 8% YoY led by Electronic Materials, Refrigerants, and Healthcare Packaging Focused operational execution delivering on 25% margin commitments Strong ongoing cash generation funding high-return organic reinvestment into the business Increasing return of cash to shareowners; $100 million share repurchase in 3Q and intention to substantially complete remaining $400 million by the end of 1Q’27 Raising full-year 2026 guidance for second consecutive quarter reflecting strong business momentum 3
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Solstice: A Differentiated Advanced Materials Company 4 Market-Leading Positions Across Specialty Products • High value, mission-critical materials at a low component cost relative to overall customer spend • Deeply embedded customer relationships Structurally Attractive Growth Trajectory • GDP+ track record primed to accelerate • Exposure to attractive end-markets across nuclear energy, thermal management, AI, and data centers Operational Excellence • Seamless transition to standalone public company operations • Focus on margin enhancement and free cash flow generation Disciplined Capital Allocation • Prudent investment approach driving peer-leading ROIC • Increasing capital returns through growing dividend and share repurchases ~$3.9bn 2025A Net Sales ~$4.2bn 2026E Net Sales 4.3% 2017A-2025A Sales CAGR ~8% 2025A-2026E Sales Growth ~$957m 2025A Standalone Adj. EBITDA1 ~$1.055bn 2026E Adj. EBITDA1 Spin Year Today 24.6% 2025A Standalone Adj. EBITDA Margin1 ~25.1% 2026E Adj. EBITDA Margin1 1.5x 2025A Net Leverage1 1.3x 3Q’26 Net Leverage1 Solstice is positioned to drive compelling shareowner value creation Note: 2026E estimates taken as midpoint of 3Q 2026 earnings guidance. 1 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.
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Today: ~6% of 2026E Revenue, >50% YoY growth • Refrigerants (~$100m): Data center cooling applications • Electronics (>$150m): TIMs, heat spreaders, sputtering targets, electronic polymers Future Opportunities: • Refrigerants: Two-phase direct-to-chip fluids, potential for immersion cooling • Electronics: Sputtering target expansion, advanced packaging innovation • Nuclear Conversion: Increasing capacity to meet nuclear build-out Built on Solstice Growth Algorithm: • Partnering with customers to solve energy and thermal management needs • Leading with proprietary IP, technical know-how, and established asset base • Reinvesting in both CapEx and R&D to fund future growth potential Solstice Innovation is Solving Data Center Constraints Note: Estimated full-year 2026 data center related revenue represents management's estimate based on customer, product, and end-market information available at the time of reporting. 5
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Continuing to Advance Our Nuclear Growth Strategy Nuclear demand strengthening, with contracts through 2039 • 3Q’26 backlog increased ~20% year over year to $2.6bn, with contracts extending through 2039 • Supply commitments in place with multiple small modular reactor (SMR) customers • Recent government lending activity and long-term hyperscaler power agreements support industry momentum Metropolis debottlenecking supports additional capacity • Expected 2026 annual production to exceed 10kt; clear path to 1-2 kt incremental capacity through highly capital efficient debottlenecking, supporting medium-term demand • Production increases will align with contracted customer demand and operational readiness • The debottlenecked facility can now address U.S. government requirements for unobligated UF6 Larger-scale expansion subject to investment discipline • Completed initial engineering study; advancing modular pre-FEED at primary and backup sites • Customer discussions on expansion-related offtake agreements continue, with multiple conditional agreements signed or under negotiation • Expansion scale and timing will depend on expected investment returns, additional customer commitments and refined net project cost estimates 6 Longstanding and Trusted Leader in US Nuclear Conversion
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Third Quarter 2026 Consolidated Results ($ in millions, except per share amounts) 3Q’26 3Q’25 % Change Net Sales $1,046 $969 8% Net Income (Loss) attributable to Solstice Advanced Materials $80 $(35) NM Diluted Earnings (Loss) per Share $0.50 $(0.22) NM Adjusted Diluted EPS1 $0.80 N/A N/A Adjusted EBITDA1,2 $265 $235 13% Adjusted EBITDA Margin1,2 25.3% 24.3% 109 bps Key TakeawaysConsolidated Financial Highlights Strong YoY Net Sales growth driven by Refrigerants, Electronic Materials, and Healthcare Packaging RAS Net Sales growth driven by 8% YoY increase in Refrigerants and 24% YoY increase in Healthcare Packaging ESM Net Sales growth driven by 31% YoY growth in Electronic Materials on robust customer demand for deposition and thermal solutions Adjusted EBITDA Margin1 improved YoY reflecting Net Sales growth and operational leverage 71 Non-GAAP financial measure. Historical reconciliations of non-GAAP financial measures provided in the appendix of this presentation. Prior period EBITDA has been adjusted to reflect standalone operations as if the Company had been operating independently during that period. Current period EBITDA reflects actual operations and does not include standalone adjustments, as the Company is now operating independently. 2 3Q’25 represents Adjusted Standalone EBITDA (non-GAAP) and Adjusted Standalone EBITDA Margin (non-GAAP).
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969 6% 2% 0% 1,046 3Q'25 Net Sales Volume Price FX 3Q'26 Net Sales 235 8 21 2 265 3Q'25 Adj. EBITDA RAS ESM Corporate / Standalone Adj. 3Q'26 Adj. EBITDA Net Sales and Adjusted EBITDA 1 Bridges 24.3% 8Note: Totals may not sum due to rounding. 1 Non-GAAP financial measure. Historical reconciliations of non-GAAP financial measures provided in the appendix of this presentation. Prior period EBITDA has been adjusted to reflect standalone operations as if the Company had been operating independently during that period. Current period EBITDA reflects actual operations and does not include standalone adjustments, as the Company is now operating independently. 2 3Q’25 represents Adjusted Standalone EBITDA (non-GAAP) and Adjusted Standalone EBITDA Margin (non-GAAP). Change in Net Sales Change in Adjusted EBITDA1,2 and Margin1,2 ($ in millions) ($ in millions) Organic Net Sales growth1 of 8% YoY 25.3%
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Third Quarter 2026 Refrigerants & Applied Solutions Results • YoY increase in RAS Net Sales primarily driven by volume growth in Refrigerants and Healthcare Packaging as well as improved pricing • Refrigerants benefitting from breadth of portfolio; strong automotive and data center performance mitigating residential soft ness • Nuclear growth of 4% YoY; ~$30 million2 of previously communicated product loan returns completed in the quarter • RAS Adjusted EBITDA Margin of 34.5%, down 82 basis points YoY due in part to higher R&D investment; Adj. EBITDA Margin up 160 basis points sequentially from the second quarter of 2026, consistent with the Company’s previously communicated expectations Key Takeaways Financial Results RAS Net Sales ($ in millions) 3Q’26 3Q’25 % Change Refrigerants $433 $400 8% Nuclear 66 63 4% Building Solutions & Intermediates 167 175 (5)% Healthcare Packaging 61 49 24% RAS Net Sales 726 687 6% RAS Adjusted EBITDA1 251 243 3% RAS Adjusted EBITDA Margin1 34.5% 35.4% (82) bps 687 726 33 3 (8) 12 3Q'25 Refrigerants Nuclear Building Solutions & Intermediates Healthcare Packaging 3Q'26 ($ in millions) 9 Note: Totals may not sum due to rounding. 1 Please refer to the reconciliation provided in the appendix of this presentation. 2 Represents estimated sales value.
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Third Quarter 2026 Electronic & Specialty Materials Results • Record Net Sales with YoY increases in all three ESM businesses, led by volume growth in Electronic Materials • Electronic Materials reflects increased demand for sputtering targets and thermal solutions for memory and AI-related applications, including benefits from Solstice’s ongoing sputtering targets expansion • YoY increase in ESM Adjusted EBITDA primarily driven by net sales growth and strong operating leverage Key Takeaways Financial Results ESM Net Sales ($ in millions) 3Q’26 3Q’25 % Change Electronic Materials $135 $103 31% Safety & Defense Solutions 54 53 3% Research & Performance Chemicals 131 126 4% Net Sales 320 282 13% ESM Adjusted EBITDA1 68 47 44% ESM Adjusted EBITDA Margin1 21.2% 16.7% 453 bps 282 320 32 1 5 3Q'25 Electronic Materials Safety & Defense Solutions Research & Performance Chemicals 3Q'26 ($ in millions) 10 Note: Totals may not sum due to rounding. 1 Please refer to the reconciliation provided in the appendix of this presentation.
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1 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 (Nine Months Ended September 30, 2026) • Operating Cash Flow of $693 million reflecting strong working capital management • Disciplined focus on inventory optimization • Capital Expenditures of $325 million supporting multi-year capacity expansion projects • Electronic Materials • Safety and Defense Solutions • Nuclear • Free Cash Flow1 of $368 million • Cash balance has increased >$250 million since Spin-Off after returning $136 million to shareowners Debt Structure and Liquidity (As of September 30, 2026) Return of Cash to Shareowners • Quarterly Dividend of $0.075 per share • $500 million share repurchase program authorization: $100 million completed in 3Q’26, with remaining $400 million intended to be substantially complete by the end of 1Q’27 Total Debt $2 billion Cash and Cash Equivalents $714 million Net Debt1 $1.25 billion Net Leverage Ratio1 1.3x Total Liquidity $1.7 billion 11
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Disciplined Capital Allocation and Return Invest Optimize Return • Invest in robust pipeline of high-return organic growth projects • Key opportunities include Nuclear and Sputtering Targets expansion • Drive innovation of next generation refrigerant molecules • Disciplined capital allocation toward highest return opportunities • Continuously assessing / optimizing portfolio around core business • Selective bolt-on M&A that delivers accretive value in high growth markets • $500 million share repurchase authorization • Disciplined return of excess capital Growing Annual Dividend … while committed to: Maintaining Current Credit Rating Sustaining Maintenance Capex Solstice is deploying capital to the following priorities… 12
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Previous 2026E Guidance 2026E Guidance 4Q’26 Guidance Net Sales ($ in millions) $4,125 – 4,185 $4,195 – 4,220 $1,010 – 1,035 Adjusted EBITDA1 ($ in millions) $1,035 - 1,055 $1,050 - 1,060 $246 - 256 Adjusted Diluted EPS1 $2.75 - $2.95 $2.90 - $2.95 $0.57 - $0.62 Capital Expenditures ($ in millions) $420 - 440 Unchanged 4Q’26 Commentary: • Assumes stable macroeconomic environment • Refrigerants benefitting from breadth of portfolio mitigating residential softness • Continued momentum in Electronic Materials on robust demand across products • Nuclear revenue expected to be down slightly YoY in 4Q on shipment timing • 2026 Nuclear Revenue anticipated to be up 10-15% YoY (inclusive of ~$30 million loan returns2) vs. previous up LSD-MSD% commentary Financial Guidance 13 1 Non-GAAP financial measure. Historical reconciliations of non-GAAP financial measures provided in the appendix of this presentation. 2 Represents estimated sales value. Raising Full-Year Guidance on Robust YTD Performance Raised
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Key Takeaways Raising full-year 2026 guidance on continued strong business performance Solstice’s portfolio is well-aligned to key secular trends such as nuclear energy, thermal management, AI, and data centers Continued focus on operational excellence and delivering on our financial commitments Strong balance sheet and disciplined capital allocation strategy driving both reinvestment into the business and return of cash to shareowners Clear strategic focus to deliver long-term shareowner value 14
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Appendix
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Additional Full Year 2026 Modeling Considerations ($ in millions, unless otherwise noted) 2026E Depreciation and Amortization Expense $225 - 235 Net Interest Expense1 ~$105 Effective Tax Rate ~24% Noncontrolling Interest ~$70 Other Considerations Interest rate sensitive end-markets such as housing / construction not expected to improve Raw material costs expected to be modestly inflationary; expect to fully cover with pricing Working capital expected to be a source of cash for the full year 2026 16 Revised 1 Not inclusive of bridge loan fees related to the terminated acquisition of Element Solutions.
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For The Three Months Ended September 30, ($ in millions, except per share amounts) 2026 2025 Product sales $980 $905 Service sales 66 64 Net sales 1,046 969 Costs, expenses and other Cost of products sold 652 613 Cost of services sold 49 46 Total cost of products and services sold 701 659 Research and development expenses 30 26 Selling, general and administrative expenses 120 113 Transaction-related costs 31 32 Other expense (income) (7) (36) Interest and other financial charges 60 2 Total costs, expenses and other 934 796 Income before taxes 112 173 Income tax expense 24 182 Net (loss) income 88 (9) Less: Net income attributable to noncontrolling interest 8 26 Net income (loss) attributable to Solstice Advanced Materials 80 (35) Basic earnings (loss) per share $0.50 $(0.22) Diluted earnings (loss) per share $0.50 $(0.22) Weighted average number of common shares outstanding - basic 158.7 158.7 Weighted average number of common shares outstanding - diluted 159.0 158.7 Consolidated Statement of Operations 17 Note: Totals may not sum due to rounding.
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For The Three Months Ended September 30, 2026 vs. 2025 Total % Change in Net Sales 7.9% Foreign Currency Translation 0.4% Acquisitions, Divestitures and Other, Net - Organic Sales Percentage 8.3% Reconciliation of Organic Sales Percentage 18
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For The Three Months Ended September 30, For The LTM1 Ended September 30, For The Year Ended December 31, ($ in millions) 2026 2025 2026 2025 Net income (loss) attributable to Solstice Advanced Materials $80 $(35) $324 $237 Net income attributable to noncontrolling interest 8 26 56 48 Net Income (loss) (GAAP) 88 (9) 380 285 Depreciation 54 46 201 191 Amortization 4 4 28 29 Interest and other financial charges2 60 2 135 28 Other adjustments3 (2) (29) (9) (38) Stock compensation expense 6 8 25 27 Transaction-related costs 31 32 105 117 Income tax expense 24 182 129 362 Adjusted EBITDA (Non-GAAP) 265 236 993 1,000 Less - Standalone adjustments - (1) - (43) Adjusted Standalone EBITDA (Non-GAAP) 265 235 993 957 Net Sales 1,046 969 4,172 3,886 Adjusted EBITDA margin (Non-GAAP) 25.3% 24.4% 23.8% 25.7% Adjusted Standalone EBITDA Margin (Non-GAAP) 25.3% 24.3% 23.8% 24.6% Reconciliation of Adjusted EBITDA & Adjusted Standalone EBITDA 19 Note: Totals may not sum due to rounding. 1 LTM stands for “last twelve months”. 2 Includes $34 million of amortization and write-off of fees related to a bridge loan facility and backstop revolving credit facility associated with the terminated merger of Element Solutions Inc for the three months ended September30, 2026. 3 Other adjustments primarily consisted of gains and losses from disposal of long-lived assets, remeasurement of foreign currencies, environmental reserves, asset retirement obligations, nonoperating pension expense (income), and certain legal costs, net of recoveries.
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Reconciliation of Adjusted Standalone EBITDA 20 For The Three Months Ended September 30, ($ in millions) 2026 2025 Refrigerants & Applied Solutions (RAS) $726 $687 Electronic & Specialty Materials (ESM) 320 282 Total Net Sales 1,046 969 For The Three Months Ended September 30, ($ in millions) 2026 2025 RAS Adjusted EBITDA $251 $243 ESM Adjusted EBITDA 68 47 Segment Adjusted EBITDA 319 290 Less: Corporate and All Other (53) (54) Standalone Adjustments - (1) Total Adjusted Standalone EBITDA (Non-GAAP) 265 235 Note: Totals may not sum due to rounding.
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Reconciliation of Adjusted Net Income Attributable to Solstice and Adjusted Diluted EPS 21 Note: Totals may not sum due to rounding. 1 Represents the amortization and write-off of fees related to a bridge loan facility and backstop revolving credit facility associated with the terminated merger of Element Solutions Inc, which was recorded within Interest and other financial charges in the Consolidated Statements of Operations. 2 Other adjustments primarily consisted of gains and losses from disposal of long-lived assets, remeasurement of foreign currencies, environmental reserves, asset retirement obligations, nonoperating pension expense (income), and certain legal costs, net of recoveries. 3 Excludes amortization of acquired intangible assets. 4 Includes tax effect of adjustments. ($ in millions, except per share amounts) For The Three Months Ended September 30, 2026 Net income attributable to Solstice Advanced Materials (GAAP) $80 Transaction-related costs 31 Amortization of acquired intangible assets 1 Amortization and write-off of bridge loan fees1 34 Other adjustments2 (2) Tax effect of above adjusting items (17) Adjusted net income attributable to Solstice (Non-GAAP) 127 Diluted weighted average shares outstanding 159.0 Diluted EPS (GAAP) $0.50 Adjusted diluted EPS (Non-GAAP) $0.80 ($ in millions) For The Three Months Ended September 30, 2026 Adjusted EBITDA (Non-GAAP) $265 Less: Depreciation (54) Amortization3 (4) Interest and other financial charges (26) Stock compensation expense (6) Income tax provision plus tax effect on adjusting items4 (41) Net income attributable to noncontrolling interest (8) Adjusted net income attributable to Solstice (Non-GAAP) 127
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Reconciliation of Free Cash Flow 22 ($ in millions) For The Nine Months Ended September 30, 2026 Net Cash Provided by Operating Activities (GAAP) $693 Less: Capital expenditures paid (325) Free Cash Flow (Non-GAAP) 368 Note: Totals may not sum due to rounding.
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($ in millions) December 31, 2025 September 30, 2026 Debt Term Loan B due 2032 $986 $983 Unsecured Senior Notes due 2033 986 985 Total Debt 1,972 1,968 Less: Cash and Cash Equivalents (534) (714) Net Debt (Non-GAAP) 1,438 1,254 LTM Adjusted Standalone EBITDA (Non-GAAP) 957 993 Total Leverage Ratio (Non-GAAP) 2.1 x 2.0 x Net Leverage Ratio (Non-GAAP) 1.5 x 1.3 x Debt Structure 23 Note: Totals may not sum due to rounding.
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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, environmental reserves, 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, amortization and write-off of bridge loan fees, remeasurement of foreign currencies, nonoperating pension expense (income), transaction-related costs, repositioning charges, environmental reserves, 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. 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. 24