From Honeywell to Hot Stock? Solstice Debuts With AI and Nuclear Tailwinds

If you were optimizing a company to spin out right now it might look a lot like Solstice Advanced Materials. Honeywell(HON) completed its spinoff of Solstice(SOLS) this morning and now shifts its focus to the upcoming spinoff of its aerospace division. Honeywell shareholders as of the record date of October 17, 2025 received one share of Solstice stock for every four shares owned of Honeywell stock. The Solstice spinoff was tax-free to shareholders.

Barron’s calls Solstice “a play on AI and Nuclear Power“, and it would be difficult to conceive of a theme more of the moment. Solstice’s refrigerants and semiconductor materials are critical for supplying the massive demand for new data centers. Solstice is also the only provider of uranium hexafluoride in the U.S. This critical material for nuclear power production is already sold out through 2030 in the face of increasing demand for nuclear power from energy-hungry data centers.

Even with Solstice stock up 3% in trading today, the company trades at less than 10 times trailing EBITDA. Between the potential growth that these businesses are likely to achieve and an expanded multiple, Solstice could be a major win for investors willing to hold past initial selling pressure.

Disclosure: The author holds no position in any stock mentioned