Solstice Advanced Materials (SOLS) Is Down 9.0% After NASDAQ-100 Removal and Q3 Profit Decline – Has The Bull Case Changed?

• Solstice Advanced Materials, Inc. was recently removed from the NASDAQ-100 Index following the company's release of its third quarter 2025 earnings, which showed revenue of US$969 million and a net loss of US$35 million compared to a net income the previous year.
• The company reaffirmed its full-year guidance, signaling management's expectations for continued net sales between US$3.75 billion and US$3.85 billion despite recent profitability pressures.
• We'll explore how the drop from the NASDAQ-100 and the year-over-year profit decline shape Solstice's investment narrative.

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What Is Solstice Advanced Materials' Investment Narrative?

To understand the big picture for Solstice Advanced Materials, shareholders need to weigh the company's transformation into an independent entity and its ability to grow profitably despite recent challenges. The news of removal from the NASDAQ-100 Index alongside a year-over-year drop from US$152 million in net income to a US$35 million net loss in Q3 has put near-term pressure on sentiment. Yet, with management reaffirming its full-year guidance for net sales between US$3.75 billion and US$3.85 billion, the most important short-term catalyst remains operational execution, hitting these targets amid margin pressures. The drop from a headline index is unlikely to change the fundamental catalysts, but it has highlighted risks tied to profitability swings and board independence, both of which were already flagged in pre-event analysis. Investors are now watching closely for progress on margins, board structure, and liquidity risks, especially as recent price moves (-11.7% year-to-date) show market sensitivity to the company's transition and performance. On the other hand, concerns about board independence are something investors should watch closely.

Despite retreating, Solstice Advanced Materials' shares might still be trading 23% above their fair value. Discover the potential downside here.

Exploring Other Perspectives

Market opinions from the Simply Wall St Community center around a single fair value of US$55.28, with only one analysis reported. While this estimate sits well above the recent share price, ongoing worries about margin pressure and board independence have influenced wider market sentiment and may impact future estimates. Explore how alternative viewpoints could reshape your expectations.

Explore another fair value estimate on Solstice Advanced Materials - why the stock might be worth as much as 29% more than the current price!

Build Your Own Solstice Advanced Materials Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Solstice Advanced Materials research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Solstice Advanced Materials research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Solstice Advanced Materials' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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