Solstice Advanced Materials Inc (SOLS) experienced a pre-market plunge of 5.17% on Wednesday, as investors reacted negatively to the company's latest financial results and future guidance.

The specialty materials maker reported fourth-quarter earnings that fell short of analyst expectations, with EPS of $0.26 compared to estimates ranging from $0.37 to $0.39. More significantly, the company's net income attributable to shareholders dropped 69% year-over-year to $41 million, reflecting higher operating costs and other expenses.

While Solstice posted better-than-expected quarterly sales of $987 million and announced its first quarterly dividend, these positive developments were overshadowed by a disappointing profit outlook for 2026. The company forecast adjusted earnings per share of $2.45 to $2.75 for the full year 2026, below the analyst consensus estimate of $2.93. Management cited continued margin pressure from the transition to low-global-warming-potential refrigerants, plant downtime, and other operational headwinds as key challenges affecting profitability despite strong demand in nuclear energy and electronic materials segments.