Solstice Advanced Materials Inc. (NASDAQ:SOLS) shares rose 1.3% on Thursday after the company reported third-quarter revenue that surpassed Wall Street expectations, supported by robust performance in its refrigerants division.

Revenue came in at $969 million, up 7% year over year, exceeding analyst forecasts. The specialty chemicals and advanced materials manufacturer reported a net loss of $35 million, compared to net income of $152 million in the same period last year.

The quarterly loss reflected higher tax expenses tied to its recent spin-off from Honeywell, which officially closed on October 30.

Adjusted standalone EBITDA reached $235 million, representing a 24.3% margin, down from 27.1% a year earlier. The decline was attributed to an unfavorable product mix in refrigerants and temporary spin-off-related costs.

“Our performance in the third quarter builds on a foundation of growth and reflects the team’s strong execution throughout the business as we prepared to transition to being an independent entity,” said David Sewell, President and Chief Executive Officer.

By segment, Refrigerants & Applied Solutions delivered 9% sales growth, including a 22% jump in refrigerants, while Electronic & Specialty Materials achieved a modest 2% increase.

Solstice reaffirmed its 2025 full-year outlook, targeting net sales between $3.75 billion and $3.85 billion and an adjusted standalone EBITDA margin of around 25%.

Following the separation from Honeywell, the company reported long-term debt of $2 billion and cash holdings of roughly $450 million, resulting in a net leverage ratio of approximately 1.5x.

Solstice Advanced Materials stock price

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