MoatScopeSolstice Advanced Materials Inc.SOLS
Spin-off from Honeywell International Inc. (HON) · Oct 30, 2025 · Nasdaq
one share of Solstice common stock for every four shares of Honeywell common stock (assumed ratio in the filing)
Documents
Both companies today
Moat ratings, quality scores and fair value estimates are MoatScope research opinions and refresh with the data pipeline. Price / FV below 1.00× means the shares trade under our base-case estimate.
What is being separated
Solstice Advanced Materials is Honeywell's former Advanced Materials business, with two segments: Refrigerants & Applied Solutions — low-global-warming refrigerants, blowing agents, solvents and aerosol materials — and Electronic & Specialty Materials. It took on about $2.0 billion of debt (a term loan and 5.625% notes due 2033) and paid Honeywell a cash distribution of roughly $1.5 billion at separation.
Stated rationaleHoneywell announced the spin-off in October 2024 as the first step of a portfolio transformation into three focused companies, letting the materials business set its own growth and capital priorities.
The four questions
Indiscriminate selling
PartialManagement incentives
PartialThe hidden jewel
StrongLeverage
StrongThe write-up
Honeywell distributed Solstice Advanced Materials on October 30, 2025, one Solstice share for every four Honeywell shares, in the first step of its three-way separation. Solstice is the former Advanced Materials business, with two segments: Refrigerants & Applied Solutions — low-global-warming refrigerants, blowing agents, solvents and aerosol materials — and Electronic & Specialty Materials. It borrowed about $2.0 billion through a term loan and 5.625% notes due 2033 and paid Honeywell roughly $1.5 billion in cash on the way out. On MoatScope's framework the company carries a Narrow moat and a quality score of 50 at a $10.1 billion market value, trading at $63.73 against a base-case fair value estimate of $27.45 — 2.26×.
Not investment advice. Terms are as stated in the latest filing; spin-off shares are often thinly covered and volatile in their first months. Write-up dated Sep 8, 2026.