Covering the Companies Most Desks Won't, Thracian Research

Thracian Research

Covering the Companies Most Desks Won't

Thracian Research is an independent equity research firm covering the companies most desks won't: under-followed small- and mid-caps, post-spinoff, and contested, high-leverage situations. We publish full-length, two-sided research notes — typically 8,000–15,000 words with proprietary models, reverse-DCF analysis, scenario tables, and explicit ratings — built bottom-up from primary filings rather than borrowed consensus.

Equity Bottom-Up

<ul><li>The hard part of the separation is done and the margin plan is on track; at 12.9x guided earnings the price now banks most of that plan while free cash flow stays pinned by separation costs and 3M’s residual 15% waits to be sold.</li><li>Two years after leaving 3M, Solventum has sold its lowest-quality segment, repaid $3.1bn of debt and put a credible cost programme behind a 21.0–21.5% margin guide.</li><li>The decisive issue is price: after a 37% rise from the April low, $85.44 credits roughly a 22% terminal operating margin on 2% growth, which is most of the margin plan and none of the growth plan.</li></ul>

The hard part of the separation is done and the margin plan is on track; at 12.9x guided earnings the price now banks most of that plan while free cash flow stays pinned by separation costs and 3M’s residual 15% waits to be sold.Two years after leaving 3M, Solventum has sold its lowest-quality segment, repaid $3.1bn of debt and put a credible cost programme behind a 21.0–21.5% margin guide.The decisive issue is price: after a 37% rise from the April low, $85.44 credits roughly a 22% terminal operating margin on 2% growth, which is most of the margin plan and none of the growth plan.

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>Solventum reported first quarter fiscal year 2026 results that surpassed both internal plans and market expectations, with organic sales growth and earnings per share (EPS) exceeding targets.</li><li>The company highlighted strong commercial execution across all segments, bolstered by robust volume growth, favorable mix, and ongoing savings initiatives which contributed to better-than-anticipated margins.</li><li>Solventum’s leadership emphasized progress in key transformation initiatives—particularly the separation from 3M, ERP system cutovers, and portfolio optimization actions—as foundational elements underpinning operational improvements and long-term strategy execution.</li></ul>

Solventum reported first quarter fiscal year 2026 results that surpassed both internal plans and market expectations, with organic sales growth and earnings per share (EPS) exceeding targets.The company highlighted strong commercial execution across all segments, bolstered by robust volume growth, favorable mix, and ongoing savings initiatives which contributed to better-than-anticipated margins.Solventum’s leadership emphasized progress in key transformation initiatives—particularly the separation from 3M, ERP system cutovers, and portfolio optimization actions—as foundational elements underpinning operational improvements and long-term strategy execution.

<ul><li>Solventum is facing a classic Wall Street standoff: management says the transformation is already underway, while activist investor Trian says the company is still moving too slowly.</li><li>The former 3M healthcare business has spent its short life as a standalone company trying to simplify its portfolio, cut debt, improve growth, exit transition arrangements with 3M, and rebuild its commercial engine.</li><li>Yet Trian, which owns about 5% of the company, is pushing for more aggressive action, including a separation of the dental products and software operations.</li></ul>

Solventum is facing a classic Wall Street standoff: management says the transformation is already underway, while activist investor Trian says the company is still moving too slowly.The former 3M healthcare business has spent its short life as a standalone company trying to simplify its portfolio, cut debt, improve growth, exit transition arrangements with 3M, and rebuild its commercial engine.Yet Trian, which owns about 5% of the company, is pushing for more aggressive action, including a separation of the dental products and software operations.

Solventum’s $4 Billion Makeover Still Has Trian Fired Up!

Founder at Stock Spin-off Investing, Stock Spin-Off Investing

Richard Howe

Founder at Stock Spin-off Investing

Stock Spin-Off Investing

Generate attractive returns by taking advantage of inefficiencies in the stock spin-off market.

Stock Spin-offs

Event-Driven

<ul><li>Dupont (DD) management gave guidance on its last earnings call that it remains on track to separate its electronics business on November 1, 2025.</li><li>Given that it is a Saturday, I expect regular way trading to begin on November 3.</li><li>The spin-off of the electronics business will be step one of Dupont’s 3-part breakup which was announced in May 2024.<figure class="editor-figure mceNonEditable"></figure></li></ul>

Dupont (DD) management gave guidance on its last earnings call that it remains on track to separate its electronics business on November 1, 2025.Given that it is a Saturday, I expect regular way trading to begin on November 3.The spin-off of the electronics business will be step one of Dupont’s 3-part breakup which was announced in May 2024.

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There were no new spin-off announcements this week, but I’ve done some more work on the Aptiv (APTV) spin-off announcement.
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Aptiv PLC (APTV), an automotive technology supplier, announced on January 22, 2025, that it plans to split into two distinct companies.
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Aptiv will spin-off its electrical systems business. The RemainCo will concentrate on technological components, including sensor-to-cloud solutions and autonomous driving software.
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There were no new spin-off announcements this week, but I’ve done some more work on the Aptiv (APTV) spin-off announcement.


Aptiv PLC (APTV), an automotive technology supplier, announced on January 22, 2025, that it plans to split into two distinct companies.


Aptiv will spin-off its electrical systems business. The RemainCo will concentrate on technological components, including sensor-to-cloud solutions and autonomous driving software.



Weekly Update (APTV, MRP, MEDXF, AAF, WDC)

United States

Solventum Corporation is a health care solutions company. The Company engages in developing, manufacturing, and commercialization a broad portfolio of solutions that leverages material and data science, clinical research, and digital capabilities. Solventum operates in separation and purification, health information, medical solutions, medical device component, and oral care market.

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Solventum (SOLV US)

Solventum Corporation (SOLV)

The hard part of the separation is done and the margin plan is on track; at 12.9x guided earnings the price now banks most of...

Thracian Research

Solventum: Initiation Of Coverage

Solventum reported first quarter fiscal year 2026 results that surpassed both internal plans and market expectations, with organic sales growth...

Baptista Research

Solventum’s $4 Billion Makeover Still Has Trian Fired Up!

Solventum is facing a classic Wall Street standoff: management says the transformation is already underway, while activist investor Trian says the...

Baptista Research

Weekly Update (Qnity, MEDXF, STRZ, UNTC)

Dupont (DD) management gave guidance on its last earnings call that it remains on track to separate its electronics business on November 1, 2025.

Richard Howe

Weekly Update (APTV, MRP, MEDXF, AAF, WDC)

There were no new spin-off announcements this week, but I’ve done some more work on the Aptiv (APTV) spin-off announcement.

Richard Howe

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