Adds CEO comments in paragraphs 6 and 7

By Pooja Menon

May 6 (Reuters) - Solstice Advanced Materials SOLS.O forecast second-quarter sales above market expectations on Wednesday, as it continues to bet on resilient demand for nuclear and electronic materials.

The specialty materials maker was spun off from Honeywell HON.O in October last year, as part of its separation into three independent companies.

The increasing demand for its thermal management and refrigerant products in AI-driven data centers, as well as the growing need for advanced computing solutions in semiconductor electronic materials, are driving business growth.

CEO David Sewell said the demand trend continues to be strong, bolstering the company's confidence in long-term growth drivers such as artificial intelligence, data centers, semiconductor production and nuclear power.

Sewell, however, told Reuters the U.S. and Israel's war with Iran hit sales, with the cost impact expected in the mid-single-digit percentage range or less than 10% of overall sales.

"That's created our need to work with customers on pricing to overcome that inflationary environment," he added.

In February, the company said it will expand production of uranium hexafluoride by about 20% at its Metropolis Works facility in Illinois in 2026, amid rising demand for nuclear energy.

Solstice expects second-quarter net sales to be between $1.06 billion and $1.1 billion, beating analysts' average estimate of $1.05 billion, according to data compiled by LSEG.

However, it forecast adjusted EBITDA margin for the same period in a range of 25% to 26%, compared with analysts' average estimate of 26.6%.

The first-quarter net sales rose 10.5% to $991 million, driven by growth in nuclear, electronic materials and refrigerant products, and also beat estimates of $974 million.

However, adjusted core profit fell marginally to $249 million, with margins narrowing 277 basis points to 25.1%.

The company posted adjusted profit of 63 cents per share for the three months ended March 31, compared with analysts' estimate of 62 cents.