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Money

Is SOLS Outperforming the Supplies Sector?

Madisony
Last updated: December 19, 2025 8:01 pm
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Is SOLS Outperforming the Supplies Sector?
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With a market cap of round $7.6 billion, Solstice Superior Supplies, Inc. (SOLS) is a New Jersey-based specialty chemical compounds and superior supplies firm that started buying and selling publicly in late October 2025 after being spun off from Honeywell Worldwide Inc. (HON). It serves over 3,000 clients globally via a diversified portfolio centered on high-performance, application-critical supplies.

The corporate runs two most important companies, with one centered on low-global-warming-potential refrigerants, blowing brokers, and specialised chemical options, and the opposite centered on high-purity chemical compounds, superior fibers, and engineered supplies that help semiconductor, electronics, protection, and life-sciences functions.

Corporations valued between $2 billion and $10 billion are usually thought of “mid-cap” shares, and Solstice suits this criterion completely. Leveraging its Honeywell heritage, Solstice is positioned to profit from long-term tendencies in sustainable cooling applied sciences, semiconductor manufacturing, and superior industrial functions.

Solstice made a robust first impression on the general public markets, hitting its all-time excessive of $61 on its very first buying and selling day on Oct. 20. Momentum has solely strengthened since then, with the inventory rallying 17.5% over the previous month, comfortably outperforming the Supplies Choose Sector SPDR Fund’s (XLB) 5.8% rise throughout the identical interval.

www.barchart.com

From a technical standpoint, the pattern has remained firmly constructive, as Solstice has traded above each its 50-day and 200-day transferring averages since its debut.

www.barchart.com
www.barchart.com

Solstice Superior Supplies’ market drivers are anchored in a number of highly effective structural and trade tendencies. Chief amongst them is rising world demand for low-global-warming-potential refrigerants and sustainable supplies, pushed by tightening environmental rules and the continuing transition in HVAC and cooling applied sciences. Moreover, progress in semiconductor manufacturing, electronics, and data-center infrastructure is one other key catalyst, supporting demand for the corporate’s high-purity chemical compounds and superior supplies. Solstice additionally advantages from its broad publicity to resilient finish markets akin to protection, life sciences, and industrial functions, which helps mitigate cyclical volatility.

On Nov. 6, Solstice launched its third-quarter outcomes, prompting a constructive market response that lifted its shares 5.5% within the following buying and selling session. The earnings replace highlighted resilient working efficiency throughout a transitional interval, with a 7% year-over-year enhance in internet gross sales to about $969 million, supported by regular demand throughout each Refrigerants & Utilized Options and Digital & Specialty Supplies.

Though Solstice reported a internet lack of $35 million, reflecting greater tax bills and spin-off-related prices, adjusted standalone EBITDA got here in at $235 million, representing a 24.3% margin. Administration additionally reaffirmed its full-year 2025 outlook, calling for $3.75–$3.85 billion in internet gross sales and an adjusted EBITDA margin round 25%, which helped underpin the constructive market response.

Moreover, SOLS inventory has outperformed its rival, Air Merchandise and Chemical substances, Inc. (APD). APD inventory has dipped 2.7% over the previous month.

SOLS inventory has a consensus score of “Reasonable Purchase” from six analysts in protection, and the imply value goal of $58.17 is a premium of 19.1% to present ranges.

On the date of publication, Kritika Sarmah didn’t have (both immediately or not directly) positions in any of the securities talked about on this article. All info and information on this article is solely for informational functions. This text was initially revealed on Barchart.com

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