Q4 2025 Solstice Advanced Materials Inc Earnings Call

February 11, 2026

Mike Leithead: Greetings, and welcome to the Solstice Advanced Materials' Q4 2025 Earnings Conference Call and Webcast. At this time, all participants are in your listen-only mode. A question-and-answer session will follow the formal presentation. You may be placed into question queue at any time by pressing star 1 on your telephone keypad, and we ask that you please limit yourselves to one question and one follow-up, then return to the queue. As a reminder, this conference is being recorded. If anyone should require operator assistance, please press star 0. It's now my pleasure to turn the call over to your host, Mike Leithead, Vice President of Investor Relations. Mike, please go ahead.

Speaker #1: Greetings and welcome to the Solstice Advanced Materials Inc. fourth quarter 2020 Earnings Conference Call and Webcast . At this time , all participants are in listen only mode .

Speaker #1: A question and answer session will the formal presentation . You may be placed question Q at any into time by pressing star one on your telephone keypad , and we ask that you please limit yourself to one question up , and one follow return to the then Q .

Speaker #1: As a reminder , this conference is being recorded . If anyone should require operator assistance , please press Star Zero . It's now my pleasure to turn the call over to your host , Mike Leithead , President , Vice Investor Relations .

Tina Pierce: Thank you, and good morning, everyone. Welcome to Solstice's Q4 2025 Earnings Call. We released our Q4 2025 financial results earlier this morning. Today's presentation, including non-GAAP reconciliations and our earnings press release, are available on the Investor Relations portion of Solstice's website at investor.solstice.com. Our discussion today will include forward-looking statements that are based on our best view of the world and our businesses as we see them today, and are subject to risks and uncertainties, including the ones described in our SEC filings. Joining me today are David Sewell, our President and CEO, and Tina Pierce, our CFO. David will open today's call with highlights of our Q4 results. Tina will then review our segment performance and financial outlook before turning the call back to David for closing remarks. We will then be happy to take your questions.

Mike Leithead: Thank you, and good morning, everyone. Welcome to Solstice's Q4 2025 Earnings Call. We released our Q4 2025 financial results earlier this morning. Today's presentation, including non-GAAP reconciliations and our earnings press release, are available on the Investor Relations portion of Solstice's website at investor.solstice.com. Our discussion today will include forward-looking statements that are based on our best view of the world and our businesses as we see them today, and are subject to risks and uncertainties, including the ones described in our SEC filings. Joining me today are David Sewell, our President and CEO, and Tina Pierce, our CFO. David will open today's call with highlights of our Q4 results. Tina will then review our segment performance and financial outlook before turning the call back to David for closing remarks. We will then be happy to take your questions.

Speaker #1: Mike , please go .

Speaker #2: Thank you , and good morning , everyone . Welcome to Solstice's fourth quarter 2020 earnings Call . We released our fourth quarter 2020 financial results earlier this morning .

Speaker #2: Today's presentation , including non-GAAP reconciliations and our earnings press release , are available on the Investor Relations portion of Solstice's website at investor .

Speaker #2: Our discussion today will include forward-looking statements that are based on our best view of the company and our world businesses as we see them subject to today, and are risks and uncertainties, including the ones described in our SEC filings.

Speaker #2: Joining me today are Sewell , David our president and CEO , and Tina Pearce , our CFO . David will open today's call with highlights of our fourth quarter results .

Speaker #2: Tina will then review our segment performance and financial outlook, turning the call back to David for closing remarks. We will then be happy to take your questions.

Tina Pierce: With that, I'll now turn the call over to David.

Mike Leithead: With that, I'll now turn the call over to David.

Mike Leithead: Thank you, Mike, and thank you, everyone, for joining us today. During the fourth quarter, Solstice Advanced Materials continued to deliver strong financial and operational results as we transitioned to an independent public company following the completion of our spinoff from Honeywell on 30 October. I would like to take a moment to thank our entire Solstice team who continued to deliver for our customers throughout this transition. Across the business, we are seeing increasing momentum driven by secular growth trends in areas such as nuclear energy, AI, and data centers that are well aligned with our differentiated technology platforms. This momentum was evidenced in our fourth quarter results surpassing our expectations. Not only does this reflect continued strong demand for our solutions, but it also speaks to our strong operational execution as we transition to operating as a standalone company and execute our strategy to drive long-term growth.

David Sewell: Thank you, Mike, and thank you, everyone, for joining us today. During the fourth quarter, Solstice Advanced Materials continued to deliver strong financial and operational results as we transitioned to an independent public company following the completion of our spinoff from Honeywell on 30 October. I would like to take a moment to thank our entire Solstice team who continued to deliver for our customers throughout this transition. Across the business, we are seeing increasing momentum driven by secular growth trends in areas such as nuclear energy, AI, and data centers that are well aligned with our differentiated technology platforms. This momentum was evidenced in our fourth quarter results surpassing our expectations.

Speaker #2: With that , I'll now turn the call over to David . Thank you , Mike , and thank you , everyone for joining us today .

Speaker #2: During the fourth quarter, Solstice Advanced Materials continued to deliver strong financial and operational results as we transitioned to an independent company.

Speaker #2: Following the completion of our spinoff from Honeywell on October 30th , I would like to take a moment to thank our entire solstice team , who continued to deliver for our customers throughout this transition across the business .

Speaker #2: We are seeing increasing momentum, driven by secular growth trends in areas such as nuclear energy, AI, and data centers that are well aligned with our differentiated technology platforms.

David Sewell: Not only does this reflect continued strong demand for our solutions, but it also speaks to our strong operational execution as we transition to operating as a standalone company and execute our strategy to drive long-term growth.

Speaker #2: This momentum was evidenced in fourth quarter our results , surpassing our expectations . Not only does this reflect continued strong demand for our solutions , but it also speaks to our strong operational execution as we transition to operating as a standalone company and execute our strategy to drive long term growth .

Mike Leithead: Solstice finished 2025 with return on invested capital of approximately 19% and net leverage of 1.5 times EBITDA, which we believe reflects the specialty nature of our portfolio and offers us significant financial flexibility. When combined with the key secular growth trends we are seeing in our core offerings, Solstice has the ability to invest in multiple high-return projects. Over the past few months, we have announced our investment to double sputtering target capacity in Spokane, Washington, to meet accelerating AI demand, our investment to expand production for our Spectra defense fibers, and just last night, we announced our ongoing efforts to expand the capacity of our nuclear conversion business to facilitate the ongoing nuclear renaissance. Guiding our capital deployment is our disciplined capital allocation strategy as we look to balance opportunities that will unleash long-term growth and shareholder returns.

David Sewell: Solstice finished 2025 with return on invested capital of approximately 19% and net leverage of 1.5 times EBITDA, which we believe reflects the specialty nature of our portfolio and offers us significant financial flexibility. When combined with the key secular growth trends we are seeing in our core offerings, Solstice has the ability to invest in multiple high-return projects. Over the past few months, we have announced our investment to double sputtering target capacity in Spokane, Washington, to meet accelerating AI demand, our investment to expand production for our Spectra defense fibers, and just last night, we announced our ongoing efforts to expand the capacity of our nuclear conversion business to facilitate the ongoing nuclear renaissance. Guiding our capital deployment is our disciplined capital allocation strategy as we look to balance opportunities that will unleash long-term growth and shareholder returns.

Speaker #2: Solstice finished 2025 with return on invested capital of approximately 19% and net leverage of 1.5 times EBITDA , which we believe reflects the specialty nature of our portfolio and offers us significant financial flexibility when combined with the key secular growth trends .

Speaker #2: We are seeing in our core offerings . Solstice has the ability to invest in multiple high return projects . Over the past few months , we have announced our investment to double sputtering target capacity in Spokane , Washington to meet accelerating AI demand .

Speaker #2: Our investment to expand production for our spectra Defense Fibers . And last night , we announced our ongoing efforts to expand the capacity of our nuclear conversion business to facilitate the ongoing nuclear renaissance .

Speaker #2: Guiding our capital deployment is our disciplined capital allocation strategy . As we look to balance opportunities that will unleash long term growth and shareholder returns .

Mike Leithead: With that in mind, we are pleased to announce today the initiation of a quarterly dividend of $0.075 per share, marking an important milestone as we begin to return capital to shareholders. As we close out 2025, we are confident that we are well positioned for the year ahead. Consistent with the framework we laid out at our investor day this past October, today we are providing guidance for the full year 2026, representing low single-digit revenue growth and mid-single-digit Adjusted EBITDA growth versus the prior year at the midpoint. In addition to the full year, we are also sharing today our outlook for Q1 2026 in an effort to provide additional color on the momentum we are seeing and the shape of the business in our first full quarter as a standalone entity.

David Sewell: With that in mind, we are pleased to announce today the initiation of a quarterly dividend of $0.075 per share, marking an important milestone as we begin to return capital to shareholders. As we close out 2025, we are confident that we are well positioned for the year ahead. Consistent with the framework we laid out at our investor day this past October, today we are providing guidance for the full year 2026, representing low single-digit revenue growth and mid-single-digit Adjusted EBITDA growth versus the prior year at the midpoint. In addition to the full year, we are also sharing today our outlook for Q1 2026 in an effort to provide additional color on the momentum we are seeing and the shape of the business in our first full quarter as a standalone entity.

Speaker #2: With that in mind , we are pleased to announce today the initiation of a quarterly dividend of seven and a half cents per share , marking an important milestone as we return begin to capital to shareholders .

Speaker #2: As we close out 2025 , we are confident that we are well positioned for the year ahead , consistent with the framework we laid out at our Investor Day this past October .

Speaker #2: Today we are providing guidance for the full year 2026 , low single digit revenue growth and mid-single digit adjusted EBITDA growth versus the prior year at the midpoint in addition to the full year , we are also sharing today our outlook for the first quarter of 2026 .

Speaker #2: In an effort to provide additional color on the momentum we are seeing and the shape of the business, and our first full quarter as a standalone entity.

Mike Leithead: Turning to slide 4, before we dive into our results for the full year and the quarter, I would like to begin by taking a moment to discuss our nuclear business, which we also call Alternative Energy Services. Solstice is a leading participant in the US nuclear supply chain, with our Metropolis Works facility serving as the only UF6 conversion site in the United States, and a 60+-year history as a reliable and trusted partner to our customers leveraging our proprietary expertise. Solstice is highly committed to the exciting future of the nuclear industry, and we anticipate that we will be increasing our production in 2026 by about 20% over our planned capacity in 2024 to support our customers' needs.

David Sewell: Turning to slide 4, before we dive into our results for the full year and the quarter, I would like to begin by taking a moment to discuss our nuclear business, which we also call Alternative Energy Services. Solstice is a leading participant in the US nuclear supply chain, with our Metropolis Works facility serving as the only UF6 conversion site in the United States, and a 60+-year history as a reliable and trusted partner to our customers leveraging our proprietary expertise. Solstice is highly committed to the exciting future of the nuclear industry, and we anticipate that we will be increasing our production in 2026 by about 20% over our planned capacity in 2024 to support our customers' needs.

Speaker #2: Turning to slide four . Before we dive into our results for the full year and the quarter , I would like to begin by taking a moment to discuss our nuclear business , which we also call alternative energy services .

Speaker #2: Solstice is a in the participant US nuclear supply with our chain Metropolis Works facility serving as the only US six conversion site in the United States and a 60 plus year history as a reliable and trusted partner to our customers .

Speaker #2: Leveraging our proprietary expertise , solstice is committed to the highly exciting future of the nuclear industry , and we anticipate that we will be increasing our production in 2026 by about 20% over our planned capacity in 2024 to support our customers needs .

Mike Leithead: We are expecting to achieve greater than 10 KT of production here in 2026 due to the disciplined capital investments we have taken, as well as operational improvements to enhance site reliability with higher production backed, in part, by the U.S. Department of Energy. As the world, and particularly the United States, continues to invest in nuclear energy, all stages of the value chain will be needed to support fuel production. Even with our expansion to 10 KT annually, our current facility is largely contracted through 2030 today, as evidenced by our $2 billion-plus backlog. With robust demand from our customers, Solstice is now actively evaluating further ways to expand our UF6 production to meet this demand, and we are having active discussions with customers about ways to remain their trusted supplier long-term.

David Sewell: We are expecting to achieve greater than 10 KT of production here in 2026 due to the disciplined capital investments we have taken, as well as operational improvements to enhance site reliability with higher production backed, in part, by the U.S. Department of Energy. As the world, and particularly the United States, continues to invest in nuclear energy, all stages of the value chain will be needed to support fuel production. Even with our expansion to 10 KT annually, our current facility is largely contracted through 2030 today, as evidenced by our $2 billion-plus backlog. With robust demand from our customers, Solstice is now actively evaluating further ways to expand our UF6 production to meet this demand, and we are having active discussions with customers about ways to remain their trusted supplier long-term.

Speaker #2: We are expecting to achieve greater than 10 kt of production here in 2026 due to the disciplined capital investments we have taken, as well as operational improvements to enhance site reliability, with higher production backed in part by the U.S. Department of Energy.

Speaker #2: As the world particularly the United and States continues to invest in nuclear energy , all stages of the value chain will be needed to support fuel production .

Speaker #2: Even with our expansion to ten kt annually , our current facility is largely contracted through 2030 . Today , as evidenced by our $2 billion plus backlog with robust demand from our customers , solstice is now actively evaluating further ways to expand our Uf6 production .

Speaker #2: To meet this demand , and we're having active discussions with customers about ways to remain their trusted supplier . Long term . Additionally , we have retained a leading engineering , procurement and construction provider to conduct initial engineering analysis and we will provide an update when further progress is made .

Mike Leithead: Additionally, we have retained a leading engineering, procurement, and construction provider to conduct initial engineering analysis, and we will provide an update when further progress is made. It is important for us to reemphasize here that Solstice will maintain its disciplined, high ROIC mindset that underpins any of our potential investments. Finally, we wanted to take a moment to touch on the near and medium-term earnings dynamics for this business. When the Metropolis facility was idled in late 2017 during a much different nuclear environment, this business took on a series of product loans to keep its customer commitments. The last of these loan returns has been scheduled to take place in the second half of 2026 and limits the amount of product we are able to sell into the open market. This is anticipated to impact 2026 revenues by approximately $30 million.

David Sewell: Additionally, we have retained a leading engineering, procurement, and construction provider to conduct initial engineering analysis, and we will provide an update when further progress is made. It is important for us to reemphasize here that Solstice will maintain its disciplined, high ROIC mindset that underpins any of our potential investments. Finally, we wanted to take a moment to touch on the near and medium-term earnings dynamics for this business. When the Metropolis facility was idled in late 2017 during a much different nuclear environment, this business took on a series of product loans to keep its customer commitments.

Speaker #2: It is important for us to re-emphasize that solstice here will maintain its disciplined , high ROIC mindset that underpins any of our potential investments .

Speaker #2: Finally , we wanted to take a moment to touch on the near and medium term earnings dynamics for this business . When the Metropolis facility was idled in late 2017 during a much different nuclear environment .

David Sewell: The last of these loan returns has been scheduled to take place in the second half of 2026 and limits the amount of product we are able to sell into the open market. This is anticipated to impact 2026 revenues by approximately $30 million.

Speaker #2: This business took on a series of product loans to keep its customer commitments . The last of these loan returns has been scheduled to take place in the second half of 2026 .

Speaker #2: And limits the amount of product we are able to sell into the open market . This is anticipated to impact 2026 revenues by approximately $30 million .

Mike Leithead: As we move beyond that period, we have very high visibility to double-digit EBITDA growth CAGR through 2030 based on our current backlog and facility production. With that, I'll now turn it over to Tina Pierce, our CFO, to discuss our financial results for the full year and fourth quarter in more detail.

David Sewell: As we move beyond that period, we have very high visibility to double-digit EBITDA growth CAGR through 2030 based on our current backlog and facility production. With that, I'll now turn it over to Tina Pierce, our CFO, to discuss our financial results for the full year and fourth quarter in more detail.

Speaker #2: As we move beyond that period , we have very high visibility to double digit EBITDA growth . Kager through 2030 . Based on our current backlog and facility production .

Speaker #2: With I'll now that , turn it over to Tina Peirce , our CFO , to discuss our financial results for the full year and fourth quarter .

Tina Pierce: Thank you, David. Moving to slide 5, I'd like to begin by providing an overview of our full year 2025 consolidated results. For the full year 2025, Solstice recorded $3.9 billion in net sales up 3% year-over-year. If we exclude the opportunistic nuclear sales in the first half of 2024 that we detailed at our investor day, full-year net sales would have been up 6%. As David mentioned, our net sales for the full year exceeded the top end of our previously disclosed guidance range. In our refrigerants and applied solutions segment, we saw 16% year-over-year growth in refrigerant sales driven by strong demand as we continue to capitalize on the HFO transition throughout the year and penetrate new growth markets like data centers. In our electronic and specialty materials segment, we achieved strong 7% sales growth in electronic materials, reflecting robust demand for our differentiated technology platform.

Speaker #2: In more detail .

Speaker #3: Thank you . David . Moving to slide I'd like to five , begin by providing an overview of our full year 2025 consolidated results for the full year 2025 .

Speaker #3: Solstice recorded 3.9 billion in net sales , up 3% year over year . If we exclude the opportunistic nuclear sales in the first half of 2024 that we detailed at our Investor Day .

Speaker #3: Full year net sales would have been up. David mentioned our net sales for the full year exceeded the top end of our previously disclosed guidance range in our Refrigerants and Applied Solutions segment.

Speaker #3: We saw 16% year over year growth in refrigerant sales , driven by strong demand . As we on the capitalize continue to transition HFO throughout the year and penetrate new growth markets like data centers in our electronic and specialty Materials segment , we achieved strong 7% sales growth in electronic materials , reflecting demand robust for our differentiated technology platform .

Tina Pierce: In our electronic and specialty materials segment, we achieved strong 7% sales growth in electronic materials, reflecting robust demand for our differentiated technology platform.

Tina Pierce: Adjusted standalone EBITDA for the full year 2025 was $957 million, reflecting a 4% decrease year-over-year and an adjusted standalone EBITDA margin of 24.6%, consistent with the approximately 25% margin guidance given at our investor day. This year-over-year decline was primarily driven by the ongoing transition to low global warming potential refrigerants, which more than offset favorable pricing. In addition, we delivered Return on Invested Capital of approximately 19%, demonstrating a disciplined and strategic approach as we accelerate investment in high-growth areas of the business. Finally, we reported net income attributable to Solstice of $237 million for the full year 2025. The decrease year-over-year was driven by the impact of higher income tax expense resulting from frictional taxes associated with the spinoff, as well as interest costs we began to accrue on our new debt following separation.

Speaker #3: Adjusted standalone EBITDA for the full year 2025 was 957 million , reflecting a 4% decrease year over year and an adjusted standalone EBITDA margin of 24.6% .

Speaker #3: Consistent with the approximately 25% margin guidance given at our Investor Day this year over year decline was primarily driven by the ongoing transition to low global warming potential refrigerants , which more than offset favorable pricing .

Speaker #3: In addition , we delivered return on invested capital of approximately 19% , demonstrating a disciplined and strategic approach as we accelerate investment in high growth areas of the business .

Speaker #3: we Finally , reported net income attributable to solstice of $237 million for the full year 2025 . The decrease year over year was driven by the impact of higher income tax expense resulting from frictional taxes with the associated spinoff , as well as interest costs .

Tina Pierce: Turning to slide 6, I'd like to discuss our Q4 2025 consolidated results in more detail. In Q4 2025, Solstice recorded $987 million in net sales, up 8% year-over-year. In our refrigerant and applied solutions segment, strong performance in our nuclear business drove top-line growth for the segment, as well as continued strong demand for refrigerants due to the HFO transition that I mentioned on the prior slide. In our electronic and specialty materials segment, similar to our full-year performance, we achieved strong top-line growth in electronic materials driven by robust demand, reflecting continued momentum from the strength in our order book we reported last quarter. Adjusted standalone EBITDA for Q4 2025 was $189 million, reflecting a 20% decrease year-over-year and an adjusted standalone EBITDA margin of 19.1%.

Speaker #3: We began to accrue on our new debt following separation . Turning to slide six . I'd like to discuss our fourth quarter 2025 consolidated results in more detail .

Speaker #3: In the fourth quarter of 2025 . Solstice recorded $987 million in net sales , up 8% year over year . In our refrigerant and Applied Solutions segment .

Speaker #3: Strong performance in our nuclear business drove top line growth for the segment , as well as continued strong demand for refrigerants due to the HFO transition that I mentioned on the prior slide in our and specialty Materials electronic segment .

Speaker #3: our Similar to full year performance , we achieved strong top line growth in electronic materials driven by robust demand , reflecting continued momentum from the strength in our order book , we reported last quarter .

Speaker #3: Adjusted standalone EBITDA for the fourth quarter of 2025 was $189 million , reflecting a 20% decrease year over year and an adjusted standalone EBITDA margin of 19.1% .

Tina Pierce: This was largely due to anticipated transitory cost, as well as the impact of the previously mentioned HFO transition in refrigerants. Our margin was also negatively impacted by the effects of plant downtime and underabsorption, as we had anticipated what we discussed in our Q3 results. Finally, we reported net income attributable to Solstice of $41 million for the fourth quarter of 2025. The decrease year-over-year was in part due to higher net interest expense and non-controlling interest. Turning to slide 7, I'd like to discuss in more detail the key drivers of our year-over-year net sales and adjusted standalone EBITDA performance in the fourth quarter. Beginning with our net sales of $987 million for the quarter, organic net sales growth was 6%, including approximately 2.5% from volume growth, and 4% due to pricing.

Speaker #3: This was largely due to anticipated transitory costs , as well as the impact of the previously mentioned HFO transition in refrigerants . Our margin was also negatively impacted by the effects of plant downtime , and under absorption , as we had anticipated when we discussed in our three Q results .

Speaker #3: Finally , we reported net income attributable to solstice of $41 million for the fourth quarter of 2025 , the decrease year over year in part was due to higher net interest expense and non-controlling interest .

Speaker #3: Turning to slide seven , I'd like to discuss in more detail the key drivers of our year over year net sales and adjusted standalone EBITDA performance in the fourth quarter .

Speaker #3: Beginning with our net sales of $987 million for the quarter, organic net sales growth was 6%, including approximately 2.5% from volume growth and 4% due to pricing.

Tina Pierce: This primarily reflects volume growth and favorable pricing in both nuclear and refrigerants, as well as volume growth in electronic materials. These increases were partially offset by lower volumes in healthcare packaging, safety and defense solutions, and research and performance chemicals. Our net sales growth also included a 2% increase due to foreign currency translation. Turning to our Adjusted standalone EBITDA of $189 million for the quarter, the decrease year-over-year was driven primarily by previously anticipated factors, including transitory cost, as well as the contemplated plant downtime and underabsorption that we discussed during our Q3 earnings call. Additionally, the shift in refrigerants product mix, including the effect of imported product mix, impacted margin. While this transition results in year-over-year margin decline, we remain confident in our continued leadership in the space and the long-term trajectory of our refrigerants business.

Speaker #3: This primarily reflects volume growth and favorable pricing in both nuclear and refrigerants , as well as volume growth in electronic materials . These increases were partially offset by lower volumes in healthcare packaging , safety and defense solutions , and research and performance chemicals .

Speaker #3: Our net sales growth also included a 2% increase due to foreign currency translation to our . Turning adjusted standalone EBITDA of $189 million for the quarter , the decrease year over year was driven primarily by previously anticipated factors , including transitory cost as well as the contemplated plant downtime and under absorption that we discussed during our third quarter earnings call .

Speaker #3: Additionally , the shift in refrigerants , product mix , including the effect of imported product mix impacted margin . While this transition results in year over year margin decline , we remain confident in our continued leadership in the space and the long term trajectory of our refrigerants business .

Tina Pierce: Specifically, we are encouraged by the significant increase in demand for our low global warming potential refrigerants for stationary applications due to the ongoing regulatory transition towards next-generation HFO solutions, and expect to see long-term margin tailwinds as the aftermarket grows. As we will discuss shortly in the outlook section, we believe most of these near-term impacts are behind us, and we fully expect to return to an approximately 25% EBITDA margin here in Q1 2026 and beyond. Turning to slide 8, I'll now discuss the results in each of our two segments in more detail, beginning with refrigerants and applied solutions. Overall, the segment achieved $710 million in net sales for Q4 2025, reflecting 10% growth year-over-year. This growth is composed of 8% organic net sales growth and 2% increase due to foreign currency translation.

Speaker #3: Specifically , encouraged by this increase in demand for our low global warming potential . Refrigerants for stationary applications due to the ongoing regulatory transition towards next generation HFO solutions , and expect to see long term margin tailwinds as the grows aftermarket as we will discuss shortly in the outlook section , we believe most of these near-term impacts are behind us , and we fully expect to return to an approximately 25% EBITDA margin here in the first quarter of 26 and beyond .

Speaker #3: the slide eight . in discuss each of our results I'll now Turning to two segments in more detail , beginning with refrigerants and applied Solutions .

Speaker #3: Overall , the segment achieved $710 million in net sales quarter fourth 2025 , reflecting 10% growth year over year . This growth is composed of 8% organic net sales growth and 2% increase due to foreign currency translation .

Tina Pierce: The segment posted $190 million in Adjusted EBITDA for the fourth quarter of 2025, down 25% year-over-year, and Adjusted EBITDA margin of 26.8%, down 12.25 basis points year-over-year. As mentioned previously, this decrease was primarily driven by anticipated transitory cost and shifts in stationary refrigerants product mix. Additionally, EBITDA was negatively impacted by plant downtime and underabsorption, including in healthcare packaging due to anticipated customer destocking. These impacts more than offset favorable pricing and volume growth in the segment. Looking at performance for our subsegments, refrigerants net sales increased 20% year-over-year to $367 million, driven by both favorable pricing and volume growth. Our refrigerants business performance is supported by its strong aftermarket presence, as well as the diversity of end markets, including data centers, which continues to see accelerating demands. In nuclear, net sales of $111 million represented growth of 39% year-over-year.

Speaker #3: The segment posted $190 million in adjusted EBITDA for the fourth quarter of 2025 , down 25% year over year , and adjusted EBITDA margin of 26.8% , points down 1225 basis year over year .

Speaker #3: As mentioned this previously , decrease was primarily driven by anticipated transitory cost and shifts in stationary refrigerants . Product mix . Additionally , EBITDA was negatively impacted by plant downtime and under absorption , including in healthcare packaging due to anticipated customer destocking .

Speaker #3: impacts These more than offset favorable pricing and volume growth in the segment . Looking at performance for our subsegments refrigerants , net sales , 20% year increased over year to $367 million , driven by both favorable pricing and volume growth .

Tina Pierce: Our refrigerants business performance is supported by its strong aftermarket presence, as well as the diversity of end markets, including data centers, which continues to see accelerating demands. In nuclear, net sales of $111 million represented growth of 39% year-over-year.

Speaker #3: Our refrigerants business performance is supported by its strong aftermarket presence , as well as the diversity of end markets , including data centers , which continues to see accelerating demand in nuclear net sales of $111 million , represented growth of 39% year over year .

Tina Pierce: This significant year-over-year sales growth was driven by both favorable pricing and increased volumes, while our backlog remains robust. Building solutions and intermediate net sales were $181 million, down 5% year-over-year. Although continued softness in the construction market impacted performance, we remain focused on driving LGWP solutions and on continuing our strong operational execution to ensure we are well-positioned to serve our customers upon a return to more normalized demand in key end markets. Lastly, healthcare packaging had $52 million in net sales, down 25% year-over-year. The decline was driven by anticipated customer destocking during the quarter. We are encouraged by recovering order patterns seen so far in Q1 that we will believe indicates this destocking is largely behind us. Now turning to our electronic and specialty materials segment on slide 9.

Speaker #3: This significant year over year sales growth was both favorable pricing and increased volumes . While our backlog remains robust , building solutions and net intermediate sales were $181 million , down 5% year over year .

Speaker #3: Although continued softness in the construction market impacted performance . We remain focused on driving LRG solutions and on continuing our strong operational execution to ensure we are well positioned to serve our customers .

Speaker #3: Upon a return to more normalized demand in key end markets . Lastly , Healthcare Packaging had $52 million in net sales , down 25% year over year .

Speaker #3: The decline was driven by anticipated customer destocking during the quarter . We are encouraged recovering by order patterns seen so far in one queue that we will believe indicates this destocking is largely behind us now , turning to our electronic and specialty materials segment on slide nine .

Tina Pierce: The segment achieved $277 million in net sales for Q4 2025, reflecting 4% growth year-over-year. This growth is composed of 2% organic net sales and a 2% increase due to foreign currency translation. The segment posted $51 million in Adjusted EBITDA for Q4 2025, down 11% year-over-year, and Adjusted EBITDA margin of 18.4%, down 294 basis points year-over-year. The decrease was primarily driven by the previously mentioned plant downtime and anticipated transitory cost. Looking at the performance of our subsegments, electronic materials net sales increased 19% year-over-year to $112 million due to volume growth driven by strong demand. We continue to invest in capacity expansion for electronic materials to ensure we're well-positioned to capture growth from secular trends for semiconductors, AI, and data centers.

Speaker #3: The segment achieved $277 million in net sales for the fourth quarter of 2025 , reflecting 4% growth year over This composed of 2% organic net sales and a 2% increase due to foreign currency translation .

Speaker #3: The segment posted $51 million in adjusted EBITDA for the fourth quarter of 2025 , down 11% year over year , and adjusted EBITDA margin of 18.4% , down 294 basis points year over year .

Speaker #3: The decrease was primarily driven by the previously mentioned plant downtime and anticipated transitory cost . Looking at the performance of our subsegments electronic materials , sales net increased 19% year over year to $112 million due volume growth , driven by to strong demand .

Speaker #3: We continue to invest in capacity expansion for electronic ensure materials to we're well positioned to capture growth from secular trends for semiconductors , AI and data centers .

Tina Pierce: Safety and defense solutions had $43 million in net sales, down 10% year-over-year. This decrease was due to lower volumes as a result of order timing during the quarter. We continue to anticipate long-term growth in this business, including strong performance in 2026, and we are investing in capacity expansion to support growing market demand for our Spectra line of solutions. Finally, research and performance chemicals net sales declined 3% year-over-year to $121 million. This decline was primarily driven by a softer demand backdrop, particularly in our specialty additives product offerings. Moving to Slide 10 to discuss Solstice's balance sheet and capital management. As David discussed earlier, our strong balance sheet and cash flow generation continue to enable financial flexibility.

Speaker #3: and defense Safety Solutions had $43 million in net sales , down 10% year over year . This decrease was due to lower volumes as a result of order timing during the quarter .

Speaker #3: We continue to anticipate long term growth in this business , including strong performance in 2026 , and we are investing in capacity expansion to support growing market demand for our spectra line of solutions .

Speaker #3: Finally, Research and Performance Chemical net sales declined 3% year over year to $121 million. This decline was driven primarily by a softer demand backdrop, particularly in our Specialty Additives product offerings.

Speaker #3: Moving to slide ten to discuss Solstice's balance sheet and capital management . As David discussed earlier , our strong balance sheet and cash flow generation continue to enable financial flexibility .

Tina Pierce: Our capital expenditures for the full year 2025 were $408 million, a 38% increase compared to the prior year period due to planned increases in capital spending to drive long-term growth. We remain focused on reinvesting in the business to unleash growth in the high-return areas, such as our recent announcement in electronic materials and Spectra. Adjusted standalone EBITDA, less CapEx for the full year 2025, was $549 million, a 21% decrease compared to the prior year, driven by higher capital expenditures and the decline in standalone adjusted EBITDA. Cash conversion finished the year at 57%. Turning to our capital structure, we have maintained a conservative leverage profile and strong liquidity position.

Speaker #3: Our capital expenditures for the full year 2025 were $408 million , up 38% increase compared to the prior year period due to planned increases in capital spending to drive long term growth .

Speaker #3: We remain focused on reinvesting in the business to unleash growth in the high return areas , such as our recent announcement in electronic materials and spectra adjusted standalone EBITDA less CapEx for the full year 2025 was $549 million .

Speaker #3: A 21% decrease compared to the prior year, driven by higher capital and expenditures, and the decline in standalone adjusted EBITDA. Cash conversion finished the year at 57%. Turning to our capital structure, we have maintained a conservative leverage profile and strong liquidity position.

Tina Pierce: As of 31 December 2025, our long-term debt was $2 billion, and we had cash and cash equivalents of $534 million, resulting in net debt of approximately $1.4 billion and a net leverage ratio of approximately 1.5x based on our full year 2025 adjusted standalone EBITDA. As of 31 December 2025, we also had $1 billion of availability under our revolving credit facility. Combined with the cash on our balance sheet, this results in approximately $1.5 billion of total liquidity. Our capital allocation priorities will continue to guide how we deploy capital. As a reminder, these include, first, investing in high-return organic growth projects, maintaining a strong balance sheet and strong liquidity position, accelerating growth through selective M&A, and returning excess capital to shareholders.

Speaker #3: As December 31st , of 2025 . Our long term debt was $2 billion and we had cash and cash equivalents of $534 million , resulting in net debt of approximately 1.4 billion and a net leverage ratio of approximately 1.5 times , based on our full year 2025 adjusted standalone EBITDA .

Speaker #3: As of December 31st , 2025 , we also had 1 billion of availability under our revolving credit facility . Combined with the cash on our balance sheet , this results in approximately 1.5 billion of total liquidity .

Speaker #3: Our capital allocation priorities will guide how we continue to deploy capital . As a reminder , these include . First , investing in high return organic growth projects , maintaining a strong balance sheet , and strong liquidity position , accelerating accelerating growth through selective M&A , and returning excess capital to shareholders .

Tina Pierce: As David mentioned earlier today, we were pleased to announce a quarterly dividend of $0.075 per share, delivering on our commitment to initiate a regular dividend at a conservative level. Turning to slide 11, I'd like to discuss our outlook and financial guidance for both the full year and first quarter of 2026. For the full year 2026, we expect to deliver net sales between $3.9 billion and $4.1 billion, adjusted EBITDA between $975 million and $1.025 billion, and adjusted diluted earnings per share between $2.45 and $2.75. Additionally, we expect capital expenditures between $400 million and $425 million. Our outlook for the full year assumes a stable macroeconomic environment, as well as the estimated $30 million of revenue impact from our final nuclear loan return that David mentioned. Additionally, we expect an approximately $30 million cost impact from TSAs.

Speaker #3: As David mentioned earlier today , we were pleased to announce a quarterly dividend of seven and a half cents per share , delivering on our commitment to initiate a regular dividend at a conservative level .

Speaker #3: Turning to slide 11 , I'd like to discuss our outlook and financial guidance for both the full year and first quarter of 2026 .

Speaker #3: For the full year 2026 , we expect to deliver net sales between 3.9 billion and 4.1 billion . Adjusted EBITDA between 975,000,001 billion 25 and adjusted diluted earnings per share between $2.45 and $2.75 .

Speaker #3: Additionally , we expect capital expenditures between 400 million and 425 million . Our outlook for the full year assumes a stable macroeconomic environment , as well as the estimated $30 million of revenue impact from our final nuclear loan return that David mentioned .

Tina Pierce: You can find additional full year 2026 modeling considerations in the appendix to this presentation. In order to provide additional insight into our first full quarter as a standalone company, we are also today providing guidance for the first quarter of 2026. We expect to deliver net sales between $935 million and $985 million, and Adjusted EBITDA between $235 million and $245 million, which implies an Adjusted EBITDA margin of approximately 25%. Our outlook for the first quarter assumes continued momentum in refrigerants, nuclear, and electronic materials. It also reflects a sequential increase in margin on the roll-off of certain costs. And finally, it assumes a year-over-year margin headwind, primarily due to refrigerants mix, reflecting a continuation of the dynamics discussed today relating to the HFO transition.

Speaker #3: Additionally , we expect an approximately $30 million cost impact from SSAs . You can find additional full year 2026 modeling considerations in the appendix to this presentation .

Speaker #3: to In order provide additional insight into our first full quarter as a standalone company , we are also today providing guidance for the first quarter of 2026 .

Speaker #3: We expect to deliver net sales between 900 and $35 million and $985 million , and adjusted EBITDA between 200 and $35 million and $245 million , which implies an adjusted EBITDA margin of approximately 25% .

Speaker #3: Our outlook for the first quarter assumes continued momentum in refrigerants , nuclear and electronic materials . It also reflects the sequential increase in margin on the roll off of certain costs .

Speaker #3: finally , And it assumes a year over margin year headwind , primarily due to refrigerants , mix , reflecting a continuation of the dynamics discussed today relating to the HFO transition .

Tina Pierce: Finally, given the robust interest and the exciting growth outlook for our nuclear business, we do plan to host a webinar later this year to talk in greater depth about this business. I'd now like to pass it back over to David for some closing remarks.

Speaker #3: Finally , given the robust interest in the exciting growth outlook for our nuclear business , we do plan to host a webinar later this year to talk in greater depth about this business .

David Sewell: Please turn to slide 12. With strong performance in 2025 and accelerating momentum throughout the fourth quarter, we are confident that we are well-positioned to deliver on our full year 2026 guidance. As we have transitioned to a standalone company with an independent strategy and refined operating model, we believe we are in the early days of unlocking Solstice's full growth potential. As we discussed today, Solstice is well-aligned to strong secular growth trends such as nuclear, advanced computing, data centers, and defense spending, and we are prioritizing investments in these compelling areas as part of our differentiated growth strategy. Given our strong financial position, we are able to invest high-return capital in these businesses to capture this growth while also initiating returns of cash to shareholders. Finally, guiding all of these decisions is our rigorous focus on safety, operational excellence, durable margins, and return on capital.

Speaker #3: I'd now like to pass it back over to David for some closing remarks .

Speaker #2: Please turn to slide 12 with strong performance in 2025 and accelerating momentum throughout the fourth quarter , we are confident that we are well positioned to deliver on our full year 2026 guidance as we have transitioned to a standalone company with an independent strategy and refined operating model .

David Sewell: As we discussed today, Solstice is well-aligned to strong secular growth trends such as nuclear, advanced computing, data centers, and defense spending, and we are prioritizing investments in these compelling areas as part of our differentiated growth strategy. Given our strong financial position, we are able to invest high-return capital in these businesses to capture this growth while also initiating returns of cash to shareholders. Finally, guiding all of these decisions is our rigorous focus on safety, operational excellence, durable margins, and return on capital.

Speaker #2: We believe we are in the early days of unlocking Solstice's full growth potential, as we discussed today. Solstice is well aligned to strong secular growth trends such as nuclear, advanced computing, data centers, and defense spending.

Speaker #2: And we are prioritizing investments in these compelling areas as part of our differentiated growth strategy . Given our strong financial position , we are able to invest high return capital in these businesses to capture this growth .

Speaker #2: While also initiating returns of cash to shareholders . Finally , guiding all of these rigorous focus on safety , operational excellence , durable and margins , on return capital .

David Sewell: We are incredibly excited about the significant opportunities for growth ahead, and we are confident that our market leadership and differentiated technology will enable us to deliver meaningful value creation in the months and years ahead. We look forward to sharing additional updates throughout 2026. With that, we are now happy to take your questions.

Speaker #2: We are incredibly excited about the significant opportunities for growth ahead , and we are confident that our market leadership and differentiated technology will enable us to deliver meaningful value creation in the months and years ahead .

Speaker #2: We look forward to sharing additional updates throughout 2026 . With that , we are now happy to take your questions .

Operator: Thank you. And now, to conduct your question and answer session, if you'd like to be placed into the queue, please press star one on your telephone keypad. As a reminder, we ask that you please ask one question and one follow-up, then return to the queue. If you'd like to remove your question from the queue, please press star two. Once again, that's star one to be placed into the queue, and please ask one question and one follow-up, then return to the queue. Our first question today is coming from John McNulty from BMO Capital Markets. Your line is now live.

Speaker #1: Thank you . We'll now be conducting a question and answer session if you'd like to be placed into question queue , please press star one on your telephone keypad .

Speaker #1: As a reminder , we ask that you please ask one question and one follow up and return to the queue . If you'd like to remove your question from the queue , please press star two .

Speaker #1: Once again , that's star one to be placed into question queue . And please ask one question and one follow up . Then return to the queue .

Mike Leithead: Yeah. Good morning. Thanks for taking my question, and congrats on a great start. Looking forward to more going forward. So I guess wanted to start out with a question on the nuclear platform. When we look at kind of what's happened over the past few years in terms of demand, you can see pretty steadily both the spot and the contract prices have gone up in some of the data that's out there, at least. I guess, can you help us to think about how pricing may flow through this business for you, looking out over the next few years?

John McNulty: Yeah. Good morning. Thanks for taking my question, and congrats on a great start. Looking forward to more going forward. So I guess wanted to start out with a question on the nuclear platform. When we look at kind of what's happened over the past few years in terms of demand, you can see pretty steadily both the spot and the contract prices have gone up in some of the data that's out there, at least. I guess, can you help us to think about how pricing may flow through this business for you, looking out over the next few years?

Speaker #1: Our first question today is coming from John McNulty from BMO Capital Markets. Your line is now live.

Speaker #4: Hey good morning . Thanks for taking and my question congrats on a great start . Looking forward to more going . So I guess I wanted to start out with a question on the nuclear platform .

Speaker #4: When we look at kind of what's happened over the past few years in terms of demand, you can see pretty steadily both the spot and the contract.

Speaker #4: Prices have gone up in some of the data that's out there , at least , I guess . Can you help us to think about how pricing may flow through this business for you ?

David Sewell: John, thanks for the question and the comments. The nuclear business, obviously, there is a spot pricing market, and you can track that spot pricing market. It has gone up substantially since we've restarted the plant in 2023. If you look at our backlog through 2030, we do lock in contract pricing for that. So as new orders continue to come in, it continues to come in at incrementally higher prices as they align with the market and the tight supply-demand dynamics. Our backlog can be anywhere from three to five years, and then we have a spot market where we'll keep a little bit of capacity for the open market, which obviously gets premium pricing.

Speaker #4: Looking out over the next few years?

Speaker #2: John , thanks for the question and the comments . The nuclear business obviously spot there is a spot pricing market and you can track that spot spot pricing market .

Speaker #2: It has gone up substantially since we've restarted the plant in And if 2023 . you look at our at our backlog through 2030 , we do lock in contract pricing for that .

Speaker #2: So as new orders continue to come in , it continues to come in at incrementally higher prices as they align with the market and the tight supply demand dynamics .

Speaker #2: Our backlog is , you know , anywhere 3 to 5 from years . And then we have a spot spot market where we'll we'll keep a little bit of capacity for the open market , which obviously gets premium pricing .

David Sewell: So when you combine all those factors and you look through 2030, you'll just see incrementally growing pricing as the demand and the spot market continues to increase, which it's shown over the last couple of years and through our contract pricing through 2030.

Speaker #2: So when you combine all those factors and you look 2030 , through you'll just see incrementally growing pricing as the demand and the spot market continues to increase , which it's shown over the last couple of years .

Tina Pierce: I would just add the double-digit earnings growth CAGR from 2026 to 2030, that, certainly, pricing is a component of that.

Speaker #2: And through our contract pricing through 2030 ,

Speaker #3: I would just add there the double digit earnings growth from 26 to 30 . That certainly pricing is a component of that

Mike Leithead: Got it. Okay. Fair enough. And then maybe just as the follow-up, I guess, can you give us some at least preliminary thoughts around the commentary that came out last night around the potential to expand capacity? I guess, can you help us to think about the permitting process and maybe potentially just the scale that you're considering, just given kind of what you see in terms of overall demand from your customers? Is it something that could be as big as a 50% capacity expansion or even maybe bigger than that? I guess, can you help us to frame that a little bit in terms of how you're thinking about it going into the look at the with your EPC partner?

John McNulty: Got it. Okay. Fair enough. And then maybe just as the follow-up, I guess, can you give us some at least preliminary thoughts around the commentary that came out last night around the potential to expand capacity? I guess, can you help us to think about the permitting process and maybe potentially just the scale that you're considering, just given kind of what you see in terms of overall demand from your customers? Is it something that could be as big as a 50% capacity expansion or even maybe bigger than that? I guess, can you help us to frame that a little bit in terms of how you're thinking about it going into the look at the with your EPC partner?

Speaker #3: . Okay . Got it .

Speaker #4: Fair And then fair enough . maybe just as the follow up I guess , can you give us some at least preliminary thoughts around the commentary that came out last night around the potential to expand capacity , I guess .

Speaker #4: you help us to Can about the permitting process and and maybe potentially just the scale that you're considering , just given kind of what you see in terms of overall demand from your customers ?

Speaker #4: Is it something that could be as big as a 50% capacity expansion or even maybe bigger than that , I guess ? Can you help us to that a little frame bit in terms of how you're thinking about it going into the into the .

David Sewell: Sure. Absolutely, John. The way we're looking at it is really first starting with conversations with customers right now on what that demand profile's going to be in the future. Obviously, it's an incredibly tight market. You've heard our current administration talk about a 400% increase in nuclear energy output to 2050. And then if you peel back the onion even more, there are currently 75 to 77 new nuclear reactors being constructed with another 100+ announced that they will be constructed. So we're trying to take all of that new demand into account. And with our return on invested capital profile that we need, we want to make sure we're aligned with what that customer need is and what that capacity need is going to be, obviously, especially being the only converter in the United States. So I mean, I don't want to not answer your question.

Speaker #4: Look at the with your EPC partner ?

Speaker #2: Sure . Absolutely . John . The way we're looking at it is really first , starting with conversations with customers right now on what that demand profile is going to be in the future .

Speaker #2: Obviously it's an incredibly tight market . You've current our heard administration talk about 400% increase in nuclear energy output to And then 2050 .

Speaker #2: if you peel back the onion even more , there are currently 75 to 77 new nuclear reactors . Being constructed , with another 100 plus announced that they will be constructed .

David Sewell: And with our return on invested capital profile that we need, we want to make sure we're aligned with what that customer need is and what that capacity need is going to be, obviously, especially being the only converter in the United States. So I mean, I don't want to not answer your question.

Speaker #2: So we're trying to take all of that new demand into account . And with our return on invested capital profile , that that we need , we want to make sure we're aligned with what that customer need is and what that capacity need is going to be .

Speaker #2: You know , obviously , especially being the only converter in the United States . So , I mean , I don't want to not answer your question .

David Sewell: At minimum, we'll continue to debottleneck, but with the engineering work that we're doing, it would entail potentially brick-and-mortar new capacity that could be significant. But we need to tie in the customer demand out past 2030 and what that looks like with all this new construction that's happening. And then, obviously, we work closely with the DOE to ensure that's aligned as well. So as soon as we get better clarity on what that demand is and what that pre-engineering work looks like, we'll certainly share it. I would tell you, though, that initial conversations with customers right now are very positive.

Speaker #2: You know , at minimum , we'll we'll continue to to Debottlenecking , but with the that we're engineering work doing , it would entail potentially , you know , brick and mortar , new capacity that that could be significant .

Speaker #2: But we need to tie in the customer demand , you know , out past 2030 and what that looks like with all this construction new that's happening .

Speaker #2: then and And then obviously we work closely with the Doe to ensure that's aligned as well . So , you as soon as know , we get , you know , better clarity on what that demand is and what that pre-engineering work looks like .

Speaker #2: We’ll certainly share it. I would tell you, though, that initial conversations with customers right now are very positive.

Operator: Thank you. Our next question today is coming from Kevin McCarthy from Vertical Research Partners. Your line is now live.

Tina Pierce: Yes. Thank you, Anne. Good morning. With regard to your refrigerant sales of $1.5 billion in 2025, can you comment on how your mix of HFOs versus HFCs evolved and what you're expecting along those lines for 2026, please?

Kevin McCarthy: Yes. Thank you, Anne. Good morning. With regard to your refrigerant sales of $1.5 billion in 2025, can you comment on how your mix of HFOs versus HFCs evolved and what you're expecting along those lines for 2026, please?

Speaker #1: Thank you . Our next question today is coming from Kevin McCarthy from Vertical Research Partners . Your line is now live .

Speaker #5: Yes . Thank you . And good morning . With your sales refrigerant of $1.5 billion in 2025 , can you comment on how your mix of hfos versus HFCS evolved and and what you're expecting along those lines for 2026 , please ?

David Sewell: Sure. I'll start, and I'll certainly have Mike and Tina jump in. We have seen, over the last couple of years, a continued evolution of our product mix from HFCs to HFOs. We are now stronger in HFO sales than HFCs. I believe that number was 60% HFOs. And if you look out over the next couple of years, I would say we expect it to get to approximately an 80/20 split of HFOs to HFCs. There will be a continuing need of HFCs, especially in the aftermarket, as you can imagine, as well as our blends. But Tina, Michael, certainly have you add color.

Speaker #2: Sure . I'll start and I'll certainly have Mike and Tina jump in . We have we seen over the last couple of years a continued evolution of our product mix from HFCS to Hfos .

Speaker #2: We are now stronger in HFO sales than HFCS . I believe that number was 60% hfos . And if you look out over the next couple years , I would say we expect it to get to approximately an 80 over 20 split of Hfos to HFCS .

Speaker #2: There will be a continuing need of HFCS , especially in the aftermarket , as you can imagine , as well as our blends , Bettina have you and Michael certainly add color .

Operator: Yeah. Just to build on what David said there, if you go back to our investor day, we had guided to greater than 60% HFOs, less than 40% HFCs. Obviously, we're seeing, as David mentioned, significant momentum, particularly as you go into the second half of this year. And as you well know, 454B and the uptake there has driven a lot of that. So we have that as well as some of the new data center demand, which continues to accelerate. So overall, continuing to see a very nice mix shift there.

Mike Leithead: Yeah. Just to build on what David said there, if you go back to our investor day, we had guided to greater than 60% HFOs, less than 40% HFCs. Obviously, we're seeing, as David mentioned, significant momentum, particularly as you go into the second half of this year. And as you well know, 454B and the uptake there has driven a lot of that. So we have that as well as some of the new data center demand, which continues to accelerate. So overall, continuing to see a very nice mix shift there.

Speaker #2: Yeah .

Speaker #6: Just to build on what David said there . If you go back to our Investor Day , we had guided to greater than 60% Hfos , less than 40% HFCS .

Speaker #6: Obviously , we're seeing as David mentioned , significant momentum , particularly as you go into the second half of this year and as you well know , for 54 B and the uptick there has driven a lot of that .

Speaker #6: So we have that as well as some of the new data center demand , which continues to accelerate . So so overall , continuing to see a very nice mix shift there .

Tina Pierce: Great. And then, if I may, come back to the UF6 business, maybe a few questions there. How did your backlog trend in the quarter? And I think you made a comment that you anticipate a $30 million sales impact from the loan return. Sounds like that's kind of a one-off event. But perhaps you can just comment on how you would expect your sales volume to trend in 2026, maybe gross and net of that loan return, please.

Kevin McCarthy: Great. And then, if I may, come back to the UF6 business, maybe a few questions there. How did your backlog trend in the quarter? And I think you made a comment that you anticipate a $30 million sales impact from the loan return. Sounds like that's kind of a one-off event. But perhaps you can just comment on how you would expect your sales volume to trend in 2026, maybe gross and net of that loan return, please.

Speaker #5: Great . And then if I may come back to the Uf6 business , maybe a few questions there . How did your backlog trend in the quarter ?

Speaker #5: And I think you made a comment that you anticipate a 30 million sales impact from the loan return . Sounds like that's kind of a one off event , but can just perhaps you comment on how you would expect your sales volume to trend in 2026 .

David Sewell: Yeah. So obviously, that loan return goes back to when our plant was idled. We had been in receipt of loans to keep our customers in production, and now this is the final of the loan payback. If you were to look at 2026, even with the loan payback that occurs of that $30 million, we still anticipate kind of a low to mid-single-digit growth rate in nuclear. So even despite that headwind, we're still going to grow. And then, obviously, to your point, it's kind of a one-timer for 2026. And beyond that, those loans are all repaid, and then it's full production growth and that double-digit EBITDA CAGR that Tina referred to.

Speaker #5: Maybe gross and net of that loan return . Please .

Speaker #2: Yeah , so obviously that loan return goes back to when our plant was idled . We we had been on the receivership of loans to keep our customers in production .

Speaker #2: And now this is the final of the loan payback . If you were to look at even 2026 , with the loan payback that occurs , of that $30 million , we still anticipate kind of a low to mid single digit growth rate in nuclear .

Speaker #2: So even despite that headwind , we're still going to grow . And then obviously to your point , it's kind of a one timer for 26 .

Speaker #2: that , those And beyond loans were repaid . And then it's full production growth . And that double digit EBITDA kegger that Tina referred to .

Tina Pierce: I would just add there that our backlog is in excess of $2 billion, and we have good line of sight through 2030. As we've mentioned before, about 10% of that would be open for spot sales at a favorable spot pricing right now.

Speaker #2: .

Speaker #3: And I would just add there that our backlog is in excess of $2 billion. And we have good line of sight through 2030.

Speaker #3: And as we mentioned before , about 10% of that would be open for spot sales at a favorable spot . Pricing right now .

Operator: Thank you. Next question today is coming from Josh Spector from UBS. Your line is now live.

Joshua Spector: Yeah. Thanks. Kind of a similar line of thought here. Just not sure if you can get a little bit more granular on the UF6 pricing in 2026 and 2027. Understanding there's backlogs and pricing will take time, but will there be any increase in contract pricing in 2026 versus 2025, or is that all longer dated? And that $30 million of loan repayment, can you size that in terms of EBITDA?

Josh Spector: Yeah. Thanks. Kind of a similar line of thought here. Just not sure if you can get a little bit more granular on the UF6 pricing in 2026 and 2027. Understanding there's backlogs and pricing will take time, but will there be any increase in contract pricing in 2026 versus 2025, or is that all longer dated? And that $30 million of loan repayment, can you size that in terms of EBITDA?

Speaker #1: Thank you . Next question . Today is coming from Josh Spector from UBS . Your line is now live .

Speaker #7: Thanks . Yeah . Kind of a similar line of thought here . Just not sure if you can get a little bit more granular on the US six pricing in 26 and 27 .

Speaker #7: Understanding there's backlogs and pricing will take time. Will there be any increase in contract pricing in '26 versus '25, or is that all longer dated? And that $30 million of loan repayment.

David Sewell: Yeah. So Josh, I'll answer it as best I can without, obviously, sharing customer pricing. The orders that we're shipping in 2026 are probably orders that have come in in that 2023-2024 timeframe. So if you look at, and a good guide point could be that if you just look at spot pricing over the last few years, you've seen incremental step-ups in pricing, and that's probably directionally close or reflective of our contract pricing. So every year that our backlog continues to ship, it's going to be incrementally improved pricing from how those contracts were set up when we received those orders. There are inflection points in our pricing that cover inflationary aspects, so we do get increases on top of that from that regard.

Speaker #7: Can you size that in terms of EBITDA ?

Speaker #2: Josh Yes . I'll answer it as as best I can without , you know , obviously sharing customer pricing the the the orders that are that we're shipping in 26 are probably orders that have come in and that 2020 , 23 , 2024 timeframe .

Speaker #2: So if you look at and a good guide point could be if you just look at spot pricing over the last few years , you've seen incremental step ups in pricing , and that's probably , you know , directionally close to reflective of of our contract pricing .

Speaker #2: So every year that our backlog continues to ship , it's going to be incrementally improved pricing from from how those contracts were set up .

Speaker #2: When we receive those orders, there are inflection points in our pricing that cover inflationary aspects. So we do get increases on top of that in that regard.

David Sewell: But just our backlog, to help maybe give a constructive outlook on it. It gets incrementally better through 2030 on a pricing standpoint as the market continues to increase on its market pricing.

Speaker #2: But just our backlog to help maybe give a constructive outlook on it . It gets incrementally better through 2032 , 2030 on a pricing standpoint , as the market continues to increase its on on its market pricing .

Joshua Spector: Okay. Thanks. And the EBITDA impact of the $30 million loan repayment?

Josh Spector: Okay. Thanks. And the EBITDA impact of the $30 million loan repayment?

David Sewell: Well, we don't give exact EBITDA on our subsegments, but we have talked about the margin profile, is similar within our RAS segment, so I think it would be fair to estimate around a $10 million impact in EBITDA for 2026.

Speaker #7: Okay . Thanks . And the EBITDA impact of the 30 million loan repayment .

Speaker #2: Well , we give don't exact EBITDA on our subsegments , but we have talked about , you know , the the margin profile is similar within our RA segment .

Speaker #2: So I think it would be fair to estimate around a $10 million impact in EBITDA for 2026 .

Operator: Thank you. Next question is coming from Arun Viswanathan from RBC. Your line is now live.

Speaker #1: Thank you . Your next question is coming from Arun Viswanathan from RBC . Your line is now live .

Arun Viswanathan: Thanks for taking my question. I hope you guys are well. I guess I just wanted to ask about refrigerants. We've gotten some questions on, I guess, the OEM inventory backlog. Maybe you could just address that and, I guess, how that plays into your outlook for HFO growth in 2026. Are you still kind of catching up to some prior shortages, or do you see that as a potential headwind as you move through the year? Thanks.

Speaker #8: Thanks for taking my question . I hope you guys are well . I guess I just wanted to ask about refrigerants . You know , we've gotten some questions on I guess the OEM inventory backlog .

Speaker #8: Maybe you could just address that . And I guess how that plays into your outlook for HFO growth in 26 . Are you still kind of catching up to some prior shortages and or do you see that as a potential headwind as you move through the year ?

David Sewell: Yeah. Thanks for the question. The shortages that occurred earlier in 2025 are, by and large, well behind us. We feel really confident in our supply chain moving forward. And then with our outlook for 2026, we really feel confident in our growth outlook, in everything we're seeing. And as you keep in mind, we have an OEM business, and then almost half of our business is automotive. And then at a macro level, half of our business is aftermarket. And now we're seeing really strong data center growth in refrigerants. So when you couple all that together, we feel really good about the growth aspects of refrigerants. We feel very good about the stability of supply chain and being able to maintain excellent service for our customers moving forward.

Speaker #8: Thanks .

Speaker #2: Yeah , thanks for the question . We the the the shortages that occurred earlier in , in 2025 are , by and large , well behind us .

Speaker #2: We feel really confident in our supply chain moving forward . And then with our our outlook for 2026 , we we really feel confident and our in our growth outlook in everything we're seeing as and you keep in mind , it's it's we have an OEM business .

Speaker #2: And then almost half of our business is automotive . And then at a macro level , half of our business is aftermarket . And now we're seeing really strong data center growth in refrigerants .

Speaker #2: So, when you couple all that together, we feel really good about the growth aspects of refrigerants. We feel very good about the stability of the supply chain and being able to maintain excellent service for our customers.

Arun Viswanathan: Okay. Thanks for that. Then just on the electronic materials side, it sounds like you have a relatively robust outlook there. Is there a way you can maybe describe what you're seeing by end market or by maybe product line? Where are you seeing the most strength and potential for upside? Thanks.

Speaker #2: Moving forward .

Speaker #8: Okay . Thanks for that . And then just on the electronic materials side , it sounds like you have a relatively robust outlook there .

Speaker #8: Is there a way you can maybe describe what you're seeing by end market or by , you know , maybe product line ? Where are you most seeing the strength and and potential for upside ?

David Sewell: So I'll give a higher-level look, and I'll certainly have Tina maybe provide some additional commentary. As we look at the demand for leading-edge nodes, it's really been remarkable. And our sputtering targets with our copper-manganese sputtering targets are just really an excellent and preferred solution as you get down to 3 nanometers, 2 nanometers, and really below 7 nanometers in general. So we feel great about the demand of our electronics business. We feel really good about memory as well. That demand is very strong, as you can imagine. So overall, this is driving the acceleration of our CapEx investment at our Spokane manufacturing site. And that's, in effect, to ensure we can keep up with the demand profile throughout the rest of the decade. Tina, any other commentary?

Speaker #8: Thanks .

Speaker #2: I'll , So I'll give a higher and I'll certainly have Tina maybe provide some additional commentary . You know , as we look at the demand for leading edge nodes , it's it's really been remarkable .

Speaker #2: And our sputtering targets with , you know , our copper manganese sputtering targets are just really an excellent and preferred solution . As as you get down to , you know , three nanometers , two nanometers and really , really below seven nanometers in general .

Speaker #2: So we feel great about the demand of our of electronics business . We feel really good about memory as well . That demand is very strong as you can imagine .

Speaker #2: So overall , this is driving the acceleration of our CapEx our Spokane investment in manufacturing site . And that's effect to ensure we can keep up with demand profile throughout the rest of the decade .

Tina Pierce: Yeah. I think the demand signals that we're seeing absolutely reinforce the decision that we made to expand our Spokane facility. In terms of the other businesses, safety and defense solutions, we made another announcement there. We see a strong growth profile this year for that business. And then for research and performance chemicals, part of that business, our specialty additives business, is related to construction. And this is where we've taken a more conservative view. We're not expecting a significant improvement in the construction.

Speaker #2: Tina , any other commentary ?

Speaker #3: Yeah , I think the demand signals that we're seeing absolutely reinforces the decision that we made to expand our Spokane facility in terms of the other businesses safety and defense solutions , we made another announcement there .

Speaker #3: We see a strong growth profile this year for for that and then business for research and performance chemicals . Part of that business are specialty additives .

Speaker #3: Business is related to construction . And this is where we've taken a more conservative view . We're not expecting , you know , a significant improvement in the construction .

Operator: Thank you. Our next question today is coming from Hassan Ahmed from Alembic Global Advisors. Your line is now live.

Hassan Ahmed: Morning, David. David, I know there are a lot of moving parts around this, but I'm just trying to reconcile the Q1 guidance range you guys gave with the full-year 2026 guidance. I mean, very simplistically, if I sort of sit there and take the midpoint of your Q1 range, call it $240 million in EBITDA, I mean, I come up with $960 million full year. If I go to the high end, that's $980 million. And the midpoint of your 2026 guidance is a billion. So I mean, as I sort of hear your commentary, a lot of sort of growth kicking in, a lot of the one-offs that you guys saw that compressed the margins in Q4 are being reversed in Q1.

Speaker #1: Thank you . Our next question today is coming from Hassan Ahmed from Alembic Global . Your line is now live . .

Speaker #9: Morning , David . David , I know there are a lot of moving parts around just trying but I'm this , to reconcile the guidance range .

Speaker #9: Q1 You gave with the full year 2026 guidance . I mean , you know , very simplistically , if I sort of sit there and take the midpoint of your Q1 range , call it 240 million in EBITDA , I mean , I come up with 960 million full year .

Speaker #9: You know , if I go to the high end , that's 980 million . And the midpoint of your 2026 guidance is a billion .

Speaker #9: So , you know , I mean , as I sort of hear your commentary , you know , a lot of sort of growth kicking in , you know , a lot of the one offs that you guys saw that compressed the margins in Q4 are being reversed in Q1 .

Hassan Ahmed: I understand the seasonality and other factors as well, but could you talk a bit about - and I know you touched on this a little bit earlier - some of the headwinds and the tailwinds that go into that bridge from, call it, Q1 to full-year 2026?

Speaker #9: And I , you know , understand this seasonality and other factors as well . But could you talk a bit about and I know you touched on this a little bit earlier , some of the headwinds and tailwinds that go into that , that bridge from call it to Q1 full year 2026 .

David Sewell: Sure. I'll kick it off, and I'll turn over to Tina. One of the two biggest areas that are really more of a '26 one-time situation is our continued transitory costs from the split with Honeywell and the TSA agreements we have in addition to the nuclear piece. And Tina, why don't you just kind of walk through some of those transitory costs that are kind of negating some of the really exciting growth aspect that we have?

Speaker #2: Sure , I'll kick it off and I'll turn it over to Tina , one of the two biggest areas that are really more of a 26 one time situation is our continued transitory costs from the the split with Honeywell .

Speaker #2: You know , in the TSA agreements , we have , in addition to the nuclear piece . And Tina , why don't you just kind of walk through .

Speaker #2: Yeah . Some some of those transitory costs that are kind of negating some of the , the really exciting growth aspect that we have ?

Tina Pierce: Yeah. As we mentioned, in terms of the second half of the year, we had some transitory items the second half of 2025. Specifically, it was like an FX hedge that Honeywell had placed. We unwound that in October. And then as we stood up a logistics center from Honeywell, we had additional cost rollover from that. Specifically for Q1, if we just look at the year-over-year margin decline, there's really a couple of things. One is the stationary, the fact that there's still more OEM sales. The 454 did not really kick in until Q2 of last year, so there's still some impact from that. Our corporate expenses have ramped because we really didn't stand the organization up until the second half of last year. And then finally is the TSAs that David referenced. And we started to incur those in November and December.

Speaker #3: Yeah . As we mentioned in terms of the second half of the year , we had some transitory items . The second half of 25 specifically , it was like a FX hedge that Honeywell had placed .

Speaker #3: We unwound that in October . And then as we stood up a logistics center from Honeywell , we had additional cost rollover from that specifically for first quarter .

Speaker #3: If we just look at the year over year margin decline , there's really a couple of things . One is the stationary , the fact that there's still more OEM sales , the 454 did not really kick in until second quarter of last year .

Tina Pierce: Our corporate expenses have ramped because we really didn't stand the organization up until the second half of last year. And then finally is the TSAs that David referenced. And we started to incur those in November and December.

Speaker #3: there's So still some some impact from that . Our corporate expenses have ramped because we were we really didn't stand the organization up until the second half of last year .

Tina Pierce: And if you recall, this is roughly $30 million. And it tends to be a little bit heavier first half as we do all the IT transitions versus the second half. And then I'd say just in terms of just some comments around 2026, we do see, as you alluded, strong growth in our nuclear business, electronic materials, refrigerants, and defense. We've taken a more conservative stance on construction. We see that we can likely cover any inflation through price, slight tailwind on FX, and then the transitory items that we spoke about. And then the nuclear loan repayment, we already mentioned, that's roughly $30 million of impact. So that's kind of how we're seeing the year shape up.

Speaker #3: And then finally , as the SSAs that that David referenced , and we started to incur those in November and December . And if you recall , this is roughly $30 million and it tends to be a little bit heavier first half , as we do all the it transitions versus the second half .

Speaker #3: And then I'd say just in terms of just some comments , around 2026 , we do see , as you alluded , you know , strong growth in our nuclear business , electronic materials , refrigerants , defense .

Speaker #3: We've taken a more conservative stance on construction . We see that we can likely cover price . Any inflation through price slight tailwind on FX .

Speaker #3: And then the transitory items that we spoke about and then the nuclear loan repayment , we already mentioned . That's roughly $30 million of impact .

Hassan Ahmed: That's very helpful. And as a follow-up, just around capital allocation, I know you guys just instituted the dividend policy. But broadly speaking, I know you guys are new in the public domain and maybe a little sort of cautious around M&A and the like. But how are you thinking about M&A, particularly in light of some of the run-up in materials, chemical valuations that we have seen over the last couple of weeks, right? I mean, at times, it may be worthwhile to put aside how new you are as an independent company and maybe take advantage of cheap valuations, right?

Speaker #3: So that's kind of how we're seeing the year shape up.

Speaker #3: .

Speaker #9: That's helpful . And as a follow up , you know , just around capital allocation , you know I know you guys just instituted the dividend policy .

Speaker #9: very

Speaker #9: But you know , broadly speaking I know , you know , you guys are new in the public domain . And , you know , maybe a little sort of cautious around M&A and the like .

Speaker #9: But how are you thinking about M&A , particularly in light of , you know , some of the run up in materials , chemical valuations that we have seen over the last couple of weeks ?

Speaker #9: Right . You know , I mean , at times , you know , it may be worthwhile to put aside how new you are as an independent company .

David Sewell: Yeah. I think it's a fair comment. I would say what we're really grateful for is to have such a strong balance sheet. And since our spend, we've really started to develop a robust M&A pipeline, quite frankly. So I think M&A in the future is certainly on the table. We do want to ensure it fits our strategy, it fits our return profile in the markets we serve. But we do feel like, with our balance sheet, we are well-positioned. And to your point, if there's a very attractive bolt-on asset that's available at the right price, I think it would be fair to say we might move faster than in typical circumstances.

Speaker #9: And maybe take advantage of cheap valuations . Right ?

Speaker #2: Yeah , I , I think it's a fair comment . I would say what we're really grateful for is to have such a strong balance sheet and since our spend , we've really started to develop a robust M&A pipeline , quite frankly .

Speaker #2: So, I think M&A in the future is certainly on the table. We do want to ensure it fits our strategy.

Speaker #2: It fits our return profile and the markets we serve . But we do feel like with our balance sheet , we are well positioned .

Speaker #2: And to your point , if there's a very attractive , you know , bolt on asset that that's available at the right price , I , I think it would be fair to say , you know , we might move faster than in typical circumstances .

Operator: Thank you. Next question today is coming from John Roberts from Mizuho Securities. Your line is now live.

John Roberts: Thank you again. It's Edwin Rodriguez for John. Quick one on refrigerants. As you continue to transition from HFC to HFOs, what should we expect the margin hit to be? Essentially, how should we think of the margin degradation as you continue to transition in that business?

Edlain Rodriguez: Thank you again. It's Edwin Rodriguez for John. Quick one on refrigerants. As you continue to transition from HFC to HFOs, what should we expect the margin hit to be? Essentially, how should we think of the margin degradation as you continue to transition in that business?

Speaker #1: Thank you . Next question today is coming from John Roberts from Mizuho Securities . Your line live is now

Speaker #10: Thank you It's it's again . Edwin Rodriguez for John , quick one on a refrigerants . As you continue to transition from HFC to Hfos .

Speaker #10: Like what should we expect the margin hit to be essentially like how should we think of the margin degradation as you continue to transition in that business ?

David Sewell: Yeah. The way I would think about it is short-term, because we do get higher margins in the aftermarket. So as we transition to HFOs, those are newer units most typically. So once they're in the market for a couple of years, then the aftermarket kicks in. And then that's where you will start to see the margin neutrality from HFCs. Having said that, as Tina mentioned, we went through that in 2025 and in the beginning of 2026. But our anticipation is we'll start getting those aftermarket sales more robustly in the second half of 2026. And then as that flows through, I think margin continuity comparatively to HFCs is very realistic.

Speaker #2: Yeah , the way I would think about it is short term because we do . We do get higher margins in the aftermarket .

Speaker #2: So as we transition to Hfos , you know , those are newer units most typically . So once they are in the market for a couple of years , then the aftermarket kicks in and then that's where you you will start to see the margin neutrality from from HFCS .

Speaker #2: Having said that , you know , as Tina we went through that in in 2025 and in the beginning of , of 26 .

Speaker #2: But our anticipation is we'll start getting those aftermarket sales more robustly in the second half of 26 . And then as that flows through , I think , I think margin continually comparatively to HFCS is is very realistic .

John Roberts: Okay. In terms of timing, do you expect your transition to be completed by the end of 2026, or does that spill over into 2027? When do you expect your transition to be completely done?

Edlain Rodriguez: Okay. In terms of timing, do you expect your transition to be completed by the end of 2026, or does that spill over into 2027? When do you expect your transition to be completely done?

Speaker #10: Okay . And in terms of timing , like do you do you expect like your transition to be completed by the end of 2026 , or does that spill over into 2027 , like when do you expect your transition to be completely done ?

David Sewell: Well, we expect the full transition to be done in early 2026. And then the aftermarket should kick in from transitions that happened in the previous few years. And then obviously, in Europe, that transition happened several years ago, so they're completely transitioned over to HFOs. And then in early 2026, we should be complete.

Speaker #2: Well , we expect the full transition to be done in early 26 , and then it's the aftermarket should kick in from , you know , transitions that happened in the previous few years .

Speaker #2: And then obviously in Europe , that transition happened several years ago . So they're completely transitioned over to Hfos . And then in early 2026 , we should be complete .

Operator: Thank you. Next question today is coming from Duffy Fischer from Goldman Sachs. Your line is now live.

Duffy Fischer,: Yeah. Good morning, guys. First question again, just around refrigerants. When you look at 2026 and 2027, is there any additional regulatory help for volumes in those years that would create an opportunity for HFCs to take or HFOs to take market share from HFC?

Duffy Fischer: Yeah. Good morning, guys. First question again, just around refrigerants. When you look at 2026 and 2027, is there any additional regulatory help for volumes in those years that would create an opportunity for HFCs to take or HFOs to take market share from HFC?

Speaker #1: Thank you. The next question today is coming from Duffy Fischer from Goldman Sachs. Your line is now live.

Speaker #11: Yeah . Good morning guys . First question again just around refrigerants . When you look at 26 and 27 , is there any additional regulatory help for volumes in those years that would create an opportunity for HFCS to take or hfos to take market share from HFC ?

David Sewell: Duffy, I think the legislation has, by and large, taken place. Europe is fully converted. The US will be mostly converted. The only caveat with that is on commercial refrigeration. That still has not converted yet. So from a regulatory standpoint, if that gets accelerated, that would certainly accelerate the conversions in commercial refrigerations. But we're anticipating that to be over the next couple of years. So that could certainly be a tailwind. The other piece really would be Asia. There is talk that Asia will convert to HFOs by the end of the decade. We remain cautious that that happens. But if it does happen as anticipated, that could be a huge tailwind for us.

Speaker #2: You know , Duffy , I think the legislation is , large , by and taken place . Europe is fully converted . The US will be mostly converted .

Speaker #2: The only caveat with that is on commercial refrigeration that still has not yet converted. So from a regulatory standpoint, if that gets accelerated, that would certainly accelerate the conversions in commercial refrigeration we're seeing.

Speaker #2: But anticipating that to be over the next couple of years, so that could certainly be a tailwind. The other piece really would be Asia.

Speaker #2: There is talk that Asia will convert to to hfos , you know , by the end of the decade , we remain cautious that that happens .

Duffy Fischer,: Fair. And could you size your data center business? Is growing rapidly in refrigerants. How big is data centers or percentage of your refrigerants business?

Duffy Fischer: Fair. And could you size your data center business? Is growing rapidly in refrigerants. How big is data centers or percentage of your refrigerants business?

Speaker #2: But if it does happen as anticipated , that could be a huge tailwind for us there .

Speaker #11: And then, could you size your data center business? It's growing rapidly in refrigerants. How big is data center as a percentage of refrigerants?

David Sewell: We don't split it out, Duffy. The way I would say it is it's growing rapidly. It's certainly a smaller piece of our business, but it's growing very fast. I think we referenced double-digit growth in our data centers. We can mostly split it out, but we don't have it 100% split out just because we're a step removed from the installation. So we haven't given a number yet, but that is something we'll continue to track and provide when ready.

Speaker #11: Business ?

Speaker #2: You know , we don't split it out , Duffy . It's the way I would say it is . It's growing rapidly . It's certainly a smaller piece of our business , but it's growing very fast .

Speaker #2: I think we referenced double digit growth data in our centers . We doing we are can split it but mostly out , but we don't have it 100% split out just because we're a step removed from the installation .

Operator: Yeah. And it's Mike. I'd be remiss not to add. We're really excited about data centers because we really attack it from three fronts at Solstice. We get a lot of questions around refrigerants. And obviously, there's a lot going on around next-gen refrigerant and cooling solutions. But you also have to remember on the electronic material side of the house, what we're doing on the chip to get the heat off of the chip, as well as our nuclear business, sort of where we started the call. A lot of the nuclear energy is going to fuel data center growth. So we're really excited around if a lot of this data center growth comes to fruition, we attack that opportunity from really at least three different angles from an overall Solstice perspective. Thank you. We reached the end of our question-and-answer session.

Mike Leithead: Yeah. And it's Mike. I'd be remiss not to add. We're really excited about data centers because we really attack it from three fronts at Solstice. We get a lot of questions around refrigerants. And obviously, there's a lot going on around next-gen refrigerant and cooling solutions. But you also have to remember on the electronic material side of the house, what we're doing on the chip to get the heat off of the chip, as well as our nuclear business, sort of where we started the call. A lot of the nuclear energy is going to fuel data center growth. So we're really excited around if a lot of this data center growth comes to fruition, we attack that opportunity from really at least three different angles from an overall Solstice perspective.

Speaker #2: So we haven't given a number yet , but that is something we'll continue to track and provide when ready .

Speaker #6: Yeah , and it's Mike . I'd be remiss not to add . We're really excited about data centers because we really attack it from three fronts .

Speaker #6: At solstice , we get a lot of questions around refrigerants , and obviously there's a lot going on around next gen refrigerant and cooling solutions .

Speaker #6: But you also have to remember on the electronic materials side of the house , what we're doing on the chip to get the heat off of the chip , as well as our nuclear business , sort of where we started the call .

Speaker #6: A lot of the nuclear energy is going to fuel data center growth . So so we're really excited around if a lot of this data center growth comes to fruition , we attack that opportunity from really at least three different from an angles overall solstice perspective .

Duffy Fischer: Thank you.

Operator: We reached the end of our question-and-answer session. I'd like to turn the floor back over to Mike for any further or closing comments.

Operator: I'd like to turn the floor back over to Mike for any further or closing comments.

Operator: Great. Well, look, we really appreciate everybody joining us today to discuss our fourth-quarter results. And please follow up if you have any questions. Thank you, and have a good day.

Mike Leithead: Great. Well, look, we really appreciate everybody joining us today to discuss our fourth-quarter results. And please follow up if you have any questions. Thank you, and have a good day.

Speaker #1: Thank you . We reached the end of our question and answer session , and I'd like to turn the floor back over to Mike for any further closing comments .

Speaker #6: Great . Well , look , we really appreciate everybody joining us today to discuss our fourth quarter results . And please follow up if you have any questions .

Operator: Thank you. That does conclude today's teleconference and webcast. Let me just connect your line at this time and have a wonderful day. We thank you for your participation today.

Speaker #6: Thank you and have a good day .

Speaker #1: Thank you . That does conclude today's teleconference and webcast . Let me just connect your line at this time and have a wonderful day .

Q4 2025 Solstice Advanced Materials Inc Earnings Call

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