Solstice Advanced Materials Inc.

Greetings, and welcome to the Solstice Advanced Materials Q2 2026 Earnings Conference Call. At this time, all participants are in 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 one on your telephone keypad. 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 zero. It's now my pleasure to turn the call over to Mike Leithead, Vice President, Investor Relations. Mike, please go ahead.

Thank you and good morning, everyone. Welcome to Solstice's second quarter 2026 earnings call. We released our second quarter 2026 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. This includes statements regarding our pending acquisition of Element Solutions, Please see the additional disclosure in this morning's materials and our related 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 second quarter 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. With that, I'll now turn the call over to David.

Thank you, Mike, and thank you everyone for joining us today. During the second quarter, Solstice Advanced Materials again delivered strong top and bottom line results, reflecting ongoing robust demand trends across several of our key businesses, including nuclear energy, electronic materials, refrigerants, and healthcare packaging. In fact, six of our seven businesses grew this quarter, four of them at double-digit rates. I want to take a moment to thank our entire Solstice team whose execution this quarter speaks for itself. This performance demonstrates the strength of Solstice's portfolio, not only through our transition to a standalone company, but also in a dynamic macroeconomic environment. This quarter That resilience showed up in sound execution through macroeconomic volatility, a heavier slate of planned plant turnarounds, and a largely complete exit of our transition service agreements. Our specialty materials assets and balance sheet strength continue to set us apart in this industry, allowing us to reinvest in growth at a time when many in the industry have needed to pare back. We continue to invest in compelling growth areas aligned with our strategic priorities, such as our electronic materials, safety and defense solutions, and nuclear businesses consistent with what we believe are attractive long-term outlooks for demand. That investment spans both CapEx and increased R&D spending. as we advance the next generation of critical molecules for our customers. Together with our announced acquisition of Element Solutions, these high-return organic investments mark a clear acceleration of our growth strategy. We generated $461 million of operating cash in the first half, supported by disciplined working capital management Cash Generation that funds our growth investments and supports returning cash to shareholders through our recently declared quarterly dividend. The strong cash generation of our business is what gives us confidence in the rapid deleveraging of net debt to less than three times EBITDA that we anticipate within 18 months following the close of the Element Solutions acquisitions. With our strong first half performance and continued momentum across the business, we are raising our full year 2026 guidance even against an uncertain macroeconomic backdrop. Turning to slide four, I'd like to briefly update you on our acquisition of Element Solutions, which we announced on July 6th. This combination represents a significant acceleration of our strategy to build an industry-leading advanced materials platform with increased exposure to high-growth electronics, AI infrastructure, and other attractive end markets. The same secular trends powering our results this quarter include artificial intelligence, data centers, semiconductor manufacturing, and thermal management are precisely what makes this combination so compelling. Together, we believe we will be better positioned to serve electronics and AI infrastructure customers from early stage development through high volume manufacturing while our refrigerant solutions including data center cooling and our specialty positions such as nuclear remain core to the combined company. The logic here is grounded in what you are already seeing in our results, the customer expansion, secular demand, and technical capability that are foundational to the strength of our business. Solstice and Element are a natural fit, not only because we support similar customer environments, but because our complementary strengths. When you combine our chemistry expertise with Element's formulation capabilities, you get what we expect to be a leading platform for innovation that will fuel the development of next-generation solutions. With Element, we believe we will also be positioned to collaborate with customers early in their project life cycles to develop solutions purpose-built to support their objectives. The synergies we outlined in our investor materials about the transaction build directly on those drivers, which is why we have confidence in the value this creates. The transaction remains subject to shareholder and regulatory approvals and other customary closing conditions, and we expect it to close in the first half of 2027. We are very excited about what our two companies can build together. Turning to slide five, I'd like to discuss our second quarter 2026 consolidated results. In the second quarter of 2026, Solstice recorded $1.148 billion in net sales, up 11% year-over-year, which exceeded the top end of the guidance we provided for the quarter. In our refrigerants and applied solutions segments, Strong demand for refrigerants driven by the ongoing HFO transition and accelerating data center orders together with continued strength in nuclear and a recovery in healthcare packaging drove double-digit top-line growth for this segment. In our electronic and specialty materials segment, net sales growth was driven by robust demand in our electronic materials business for semiconductor applications. Adjusted EBITDA for the second quarter of 2026 was $290 million, up 2% year over year and exceeding the top end of the guidance we provided for the quarter. Adjusted EBITDA margin was 25.3% in line with our expectations for the quarter. The decline in margin year over year was primarily driven by The timing of certain plant turnaround activity and prior year production incentive credits partially offset by volume growth and favorable pricing. As a reminder, we continue to see ongoing strong demand for our low global warming potential products. Now over a year into the 454B transition, we continue to expect our refrigerants and applied solutions segment to deliver mid-30% adjusted EBITDA margins in the second half of 2026 as the aftermarket develops. We reported GAAP net income attributable to Solstice of $119 million for the second quarter of 2026, up from $97 million a year ago, or 75 cents per diluted share. Consistent with what we signaled last quarter, non-controlling interest declined sequentially to $15 million this quarter from the atypically high $20 million in the first quarter. This quarter, we also reported adjusted diluted EPS of $0.88 for the second quarter. Free cash flow for the first half of 2026 was $248 million, which is inclusive of the significant year-over-year increase in growth capex as we invest in high return opportunities across the business, including the Spokane expansion to meet robust sputtering target demand. And with that, I'll now turn it over to Tina Pierce, our CFO, to discuss our financial results for the second quarter in more detail.