N.A. Chems & Pkg "The Daily InSpector" Spector

Research evidence excerpt

N.A. Chems & Pkg "The Daily InSpector" Spector

Global Research

22 May 2026ab

N.A. Chems & Pkg Equities

AmericasThe Daily InSpector

Chemicals, Commodity

Joshua Spector, CFA

CC & SOLS over react to EPA refrigerant role change in our view Analyst

CC and SOLS stocks were down ~4% and ~6%, respectively, yesterday. This was joshua.spector@ubs.com

on news of the EPA officially pushing back refrigeration transition timelines for +1-212-713 6188

certain refrigeration, chiller and cooling markets. We suspect that SOLS was down Lucas Beaumont

more as the delayed change to Industrial Chillers in certain applications Analyst

(specifically semis), negatively impacted investor expectations of higher refrigerant lucas.beaumont@ubs.com

growth in that market in the near term. While the changes will likely lead to slower +1-212-713 4809

HFO refrigerant adoption in these markets, the EPA acknowledges this means Christopher Perrella

legacy refrigerant pricing will increase as quota limits (and future step downs) Analyst

remain in place. christopher.perrella@ubs.com

+1-212-713 1443

This means to us that the administration is not fully repealing the AIM act, but just

Anojja Shah

delaying forced transitions into certain markets. We estimate non-HFO refrigerants

Analyst

are still ~30-40% of CC and SOLS refrigerant earnings, and demand may shift anojja.shah@ubs.com

here driving pricing higher if demand increases while supply is reduced under +1-312-525 4310

global warming potential (GWP) quota phasedowns. We also estimate the areas

James Cannon

seeing delayed transitions reflect ~10% of refrigerant demand for both companies

Associate Analyst

(OEM only, UBSe). james-p.cannon@ubs.com

+1-212-713 4057 A key point in all of this is that we knew the EPA was reviewing these rules since