[Executive Summary & Financial Highlights](index=1&type=section&id=Ashland%20reports%20third%20quarter%20fiscal%202025%20results%20and%20narrows%20full-year%20outlook%20range) Ashland reported a 15% sales decline and a significant net loss in Q3 FY2025 due to goodwill impairment, while management highlighted resilient performance and strategic cost initiatives [Q3 FY2025 Overall Financial Performance](index=1&type=section&id=Q3%20FY2025%20Overall%20Financial%20Performance) Ashland's Q3 FY2025 sales declined 15% to $463 million, with a $742 million net loss primarily from a $706 million goodwill impairment, despite resilient Adjusted EBITDA Q3 FY2025 Key Financial Metrics | Metric | Q3 FY2025 | Q3 FY2024 | YoY Change | | :--- | :--- | :--- | :--- | | Sales | $463 million | $544 million | -15% | | Loss from Continuing Operations | $(719) million | $31 million | N/A | | Diluted EPS from Cont. Ops | $(15.70) | $0.60 | N/A | | Net Loss | $(742) million | $6 million (Income) | N/A | | Adjusted EBITDA | $113 million | $139 million | -19% | | Cash Flow from Operations | $114 million | $128 million | -11% | - A non-cash goodwill impairment charge of **$706 million** was the primary driver of the significant loss from continuing operations and net loss[4](index=4&type=chunk)[6](index=6&type=chunk) - Portfolio optimization initiatives, involving the divestiture of lower-margin products, reduced overall sales by approximately **$53 million (10%)** and Adjusted EBITDA by **$13 million (9%)**; excluding these, sales declined **5%** and Adjusted EBITDA declined **10%**[4](index=4&type=chunk)[5](index=5&type=chunk)[6](index=6&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Guillermo Novo highlighted resilient performance amid mixed demand, emphasizing cost savings and operational discipline, with varied segment dynamics across pharma, personal care, and specialty additives - Management characterized performance as resilient despite volumes falling short of expectations, underscoring the importance of cost savings and operational discipline in supporting strong margins[3](index=3&type=chunk) - Life Sciences maintained pharma growth momentum, positioning the segment for continued progress[3](index=3&type=chunk) - Personal Care operated in a stable but subdued demand environment, impacted by customer-specific softness in biofunctional actives[3](index=3&type=chunk) - Specialty Additives was impacted by a soft architectural coatings season and prior-year share loss in China[3](index=3&type=chunk) [Reportable Segment Performance](index=2&type=section&id=Reportable%20Segment%20Performance) This section details the performance of Ashland's key segments, including Life Sciences, Personal Care, Specialty Additives, and Intermediates, highlighting sales, EBITDA, and key drivers for each [Life Sciences](index=2&type=section&id=Life%20Sciences) Life Sciences sales fell 17% to $162 million, primarily due to portfolio optimization, though pharma applications showed growth, maintaining a strong 33% Adjusted EBITDA margin Life Sciences Q3 FY2025 Performance | Metric | Q3 FY2025 | Q3 FY2024 | YoY Change | | :--- | :--- | :--- | :--- | | Sales | $162 million | $195 million | -17% | | Adjusted Operating Income | $40 million | $43 million | -7% | | Adjusted EBITDA | $54 million | $59 million | -8% | | Adjusted EBITDA Margin | 33% | 30.3% | +2.7 p.p. | - Portfolio optimization initiatives, including the divestiture of the Nutraceuticals business, reduced sales by approximately **$32 million (16%)**[9](index=9&type=chunk) - Pharma applications demonstrated strength, with organic sales volumes growing **4%**, and "globalize" business lines delivered double-digit year-over-year sales growth[9](index=9&type=chunk) [Personal Care](index=3&type=section&id=Personal%20Care) Personal Care sales decreased 16% to $147 million, mainly due to the Avoca divestiture and customer-specific softness, yet maintained a strong 27.9% Adjusted EBITDA margin Personal Care Q3 FY2025 Performance | Metric | Q3 FY2025 | Q3 FY2024 | YoY Change | | :--- | :--- | :--- | :--- | | Sales | $147 million | $175 million | -16% | | Adjusted Operating Income | $26 million | $32 million | -19% | | Adjusted EBITDA | $41 million | $51 million | -20% | | Adjusted EBITDA Margin | 27.9% | 29.1% | -1.2 p.p. | - Portfolio optimization, largely the divestiture of the Avoca business, reduced sales by approximately **$18 million (10%)** and Adjusted EBITDA by **$7 million**[12](index=12&type=chunk)[13](index=13&type=chunk) - Excluding portfolio optimization, the sales decline was driven by customer-specific softness in biofunctional actives and a tough comparison for microbial protection, while care ingredients remained stable[12](index=12&type=chunk) [Specialty Additives](index=3&type=section&id=Specialty%20Additives) Specialty Additives sales fell 13% to $131 million, primarily due to lower coatings sales in China and competitive pressures, despite growth in performance specialties Specialty Additives Q3 FY2025 Performance | Metric | Q3 FY2025 | Q3 FY2024 | YoY Change | | :--- | :--- | :--- | :--- | | Sales | $131 million | $150 million | -13% | | Adjusted Operating Income | $9 million | $22 million | -59% | | Adjusted EBITDA | $26 million | $38 million | -32% | - The sales decline was driven by weakness in the China coatings market and competitive intensity in export markets, partially offset by growth in performance specialties and energy markets[14](index=14&type=chunk) - The company's recently announced HEC manufacturing network consolidation is expected to support future margin improvement in this segment[3](index=3&type=chunk)[15](index=15&type=chunk) [Intermediates](index=3&type=section&id=Intermediates) Intermediates sales decreased 8% to $33 million due to lower pricing, with Adjusted EBITDA falling 22% to $7 million, partially offset by tax credits Intermediates Q3 FY2025 Performance | Metric | Q3 FY2025 | Q3 FY2024 | YoY Change | | :--- | :--- | :--- | :--- | | Sales | $33 million | $36 million | -8% | | Adjusted Operating Income | $4 million | $6 million | -33% | | Adjusted EBITDA | $7 million | $9 million | -22% | [Unallocated & Other](index=4&type=section&id=Unallocated%20%26%20Other) Unallocated and other expense significantly decreased to $49 million, primarily due to a prior-year non-cash impairment charge, with Adjusted unallocated EBITDA at $15 million - The significant year-over-year decrease in unallocated expense was primarily due to a non-cash impairment on the nutraceuticals business in the prior-year quarter[18](index=18&type=chunk) [Financial Outlook](index=4&type=section&id=Financial%20Outlook) Ashland narrowed its full-year fiscal 2025 guidance, reflecting a subdued macroeconomic environment and ongoing strategic initiatives to enhance cost efficiency and margins [Full-Year Fiscal 2025 Guidance](index=4&type=section&id=Full-Year%20Fiscal%202025%20Guidance) Ashland narrowed its full-year fiscal 2025 outlook to sales of $1.825-$1.850 billion and Adjusted EBITDA of $400-$410 million, reflecting a cautious macroeconomic stance Updated Full-Year Fiscal 2025 Outlook | Metric | Guidance Range | | :--- | :--- | | Sales | $1.825 billion to $1.850 billion | | Adjusted EBITDA | $400 million to $410 million | - The updated outlook reflects a stable but subdued macroeconomic environment and continued caution across customer channels[19](index=19&type=chunk) - The company's guidance is weighted toward the lower end of the range, reflecting a prudent base-case stance amid ongoing uncertainty[23](index=23&type=chunk) [Management's Outlook and Strategic Initiatives](index=4&type=section&id=Management's%20Outlook%20and%20Strategic%20Initiatives) Management anticipates mixed demand, prioritizing a $30 million restructuring and $60 million manufacturing optimization to support margins and cash flow - The company is prioritizing controllable levers, including a **$30 million** restructuring program and a **$60 million** manufacturing network optimization initiative, to support margins[22](index=22&type=chunk) - The restructuring program is expected to generate approximately **$7.5 million** in savings in the fourth quarter[22](index=22&type=chunk) - Management remains committed to driving self-help initiatives to improve cost position and enhance operating consistency and efficiency[24](index=24&type=chunk) [Financial Statements and Reconciliations](index=8&type=section&id=Financial%20Statements%20and%20Reconciliations) This section presents Ashland's condensed consolidated financial statements and detailed non-GAAP reconciliations for Q3 FY2025, covering income, balance sheet, and cash flow [Statements of Condensed Consolidated Income (Loss)](index=8&type=section&id=Statements%20of%20Condensed%20Consolidated%20Income%20(Loss)) The Q3 FY2025 income statement shows a significant operating loss of $708 million and a net loss of $742 million, primarily due to a $706 million goodwill impairment charge Q3 FY2025 Income Statement Highlights (in millions) | Line Item | Q3 2025 | Q3 2024 | | :--- | :--- | :--- | | Sales | $463 | $544 | | Gross Profit | $132 | $186 | | Goodwill Impairment | $706 | $0 | | Operating Loss | $(708) | $(61) | | Net Income (Loss) | $(742) | $6 | [Condensed Consolidated Balance Sheets](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of June 30, 2025, reflects a decrease in total assets to $4.62 billion from $5.65 billion, largely due to a goodwill impairment reducing the balance to $705 million Balance Sheet Highlights (in millions) | Line Item | June 30, 2025 | Sept 30, 2024 | | :--- | :--- | :--- | | Total Current Assets | $1,124 | $1,195 | | Goodwill | $705 | $1,381 | | Total Assets | $4,621 | $5,645 | | Long-term Debt | $1,382 | $1,349 | | Stockholders' Equity | $1,889 | $2,868 | [Statements of Condensed Consolidated Cash Flows](index=10&type=section&id=Statements%20of%20Condensed%20Consolidated%20Cash%20Flows) Ashland generated $114 million in operating cash flow for Q3 FY2025, a slight decrease from the prior year, with minimal investing activities and $69 million used in financing activities Q3 FY2025 Cash Flow Highlights (in millions) | Line Item | Q3 2025 | Q3 2024 | | :--- | :--- | :--- | | Cash from Operating Activities | $114 | $128 | | Cash from Investing Activities | $1 | $(5) | | Cash from Financing Activities | $(69) | $(151) | | Increase (Decrease) in Cash | $39 | $(40) | [Non-GAAP Reconciliations](index=11&type=section&id=Non-GAAP%20Reconciliations) Detailed reconciliations from GAAP to non-GAAP metrics show Q3 FY2025 GAAP Net Loss of $742 million reconciled to Adjusted EBITDA of $113 million and Adjusted Diluted EPS of $0.78 Q3 FY2025 Reconciliation of Net Income (Loss) to Adjusted EBITDA (in millions) | Line Item | Q3 2025 | Q3 2024 | | :--- | :--- | :--- | | Net income (loss) | $(742) | $6 | | Adjustments (Taxes, Interest, D&A, etc.) | $38 | $(40) | | EBITDA | $(683) | $(34) | | Operating key items (incl. goodwill impairment) | $773 | $148 | | Adjusted EBITDA | $113 | $139 | Q3 FY2025 Reconciliation of Diluted EPS | Line Item | Q3 2025 | Q3 2024 | | :--- | :--- | :--- | | Diluted EPS from continuing operations (as reported) | $(15.70) | $0.60 | | Total key items adjustment per share | $16.48 | $0.58 | | Adjusted Diluted EPS from Continuing Operations | $0.78 | $1.18 | | Amortization expense adjustment (net of tax) | $0.26 | $0.31 | | Adjusted Diluted EPS Excl. Intangibles Amortization | $1.04 | $1.49 |

Core Insights - Ashland Inc. reported third-quarter fiscal year 2025 results, with sales of $463 million, a 15% decrease from $544 million in the prior year, primarily due to Portfolio Optimization initiatives [2][4][22] - The company narrowed its full-year fiscal 2025 outlook, expecting sales between $1.825 billion and $1.850 billion and Adjusted EBITDA in the range of $400 million to $410 million [22][18] Financial Performance - Net loss totaled $742 million, down from net income of $6 million in the prior year, largely due to a non-cash goodwill impairment charge of $706 million [3][4] - Adjusted EBITDA was $113 million, a 19% decrease from $139 million in the prior year, with Portfolio Optimization contributing to a 9% decline [5][4] - Cash flows from operating activities were $114 million, a decrease from $128 million in the prior-year quarter [6][4] Segment Performance - Life Sciences segment sales were $162 million, down 17% year-over-year, primarily due to Portfolio Optimization initiatives [8][9] - Personal Care sales totaled $147 million, a 16% decrease compared to the prior year, impacted by customer-specific softness in biofunctional actives [10][11] - Specialty Additives sales were $131 million, down 13% from the prior year, with a notable decline in coatings sales in China [13][14] Strategic Initiatives - The company is focusing on cost savings and operational discipline to support strong margins amid mixed demand trends [2][18] - Ashland is implementing a $30 million restructuring program expected to generate approximately $7.5 million in savings in the fourth quarter [21][18] - The company is also advancing a $60 million manufacturing network optimization initiative to enhance operational efficiency [21][18] Market Outlook - The macroeconomic environment remains stable but subdued, with mixed demand trends across segments [18][22] - The company is seeing resilience in pharma, stability in Personal Care, and early signs of recovery in specific areas [23][18] - Ashland is benefiting from favorable foreign currency movements and stable raw material costs, which are expected to support margin performance [20][18]

Core Viewpoint - Ashland Inc. has appointed William C. Whitaker as the new Chief Financial Officer, effective July 18, 2025, following his role as interim CFO since 2015 [1][2]. Company Overview - Ashland Inc. is a global additives and specialty ingredients company focused on environmental, social, and governance (ESG) principles, serving various consumer and industrial markets [3]. - The company employs approximately 2,960 professionals, including scientists, research chemists, engineers, and plant operators, who work on innovative solutions for customers in over 100 countries [3].

Core Points - Ashland Inc. plans to release its third-quarter fiscal 2025 earnings on July 29, 2025, at approximately 5 p.m. ET [1] - A live webcast with securities analysts will occur on July 30, 2025, at 10 a.m. ET, featuring an executive summary and detailed remarks [1] - The webcast and supporting materials will be available on Ashland's Investor Relations website, with an archived version accessible for 12 months post-event [3] Company Overview - Ashland Inc. is a global additives and specialty ingredients company focused on environmental, social, and governance (ESG) initiatives [4] - The company serves various markets, including architectural coatings, construction, energy, food and beverage, personal care, and pharmaceuticals [4] - Ashland employs approximately 2,960 professionals, including scientists, research chemists, engineers, and plant operators, dedicated to providing innovative solutions [4]

Core Insights - Ashland Inc. announced the retirement of Karl Bostaph, senior vice president of operations, effective October 1, 2025 [1] - Wayne Muil, global director of operations for specialty additives, will succeed Bostaph in the role of senior vice president of operations [3][4] Leadership Transition - Bostaph has been with the company since 1990, holding various roles in Research and Development, Quality, Engineering, and Manufacturing [2] - Muil joined Ashland in 2024 and has over 25 years of experience in the chemical industry, including leadership roles at Sadara Chemical Company [5][6] - Muil is recognized for his strategic vision and expertise in operational excellence, safety, and innovation across global production facilities [7] Company Overview - Ashland Inc. is a global additives and specialty ingredients company focused on environmental, social, and governance (ESG) initiatives [8] - The company serves diverse markets, including architectural coatings, construction, energy, food and beverage, personal care, and pharmaceuticals, with a workforce of approximately 2,960 employees [8]

Core Insights - Ashland Inc. is implementing a $60 million plan to optimize its manufacturing network, which includes closing its Parlin, NJ facility and relocating hydroxyethyl cellulose (HEC) production to Hopewell, VA [1][7] - The company aims to enhance operational efficiency, reduce production costs, and achieve HEC optimization targets on schedule through this transition [2][3] - Ashland has completed its portfolio optimization and a $30 million restructuring plan, which will accelerate cost savings and improve profitability [3][5] Manufacturing Network Changes - The closure of the Chatham, NJ site will also occur, with microbial protection production being transferred to Freetown, MA, consolidating smaller operations into larger, more efficient sites [2][7] - Investments have been made in the Hopewell facility to expand both capacity and capabilities, reinforcing Ashland's core technologies [4][5] Financial Performance and Market Position - The newly streamlined HEC production network is positioned to meet global demand, with operations in the United States, Europe, and China [5] - Ashland's shares have decreased by 41.4% over the past year, contrasting with a 3.7% rise in the industry [6]

Core Insights - Ashland Inc. is implementing a $60 million manufacturing network optimization plan to enhance operational consistency and profitability, which includes closing its Parlin, New Jersey facility and transferring hydroxyethyl cellulose (HEC) production to Hopewell, Virginia [1][2] - The company is also consolidating its microbial protection production from Chatham, New Jersey to Freetown, Massachusetts, aiming to improve cost efficiency across its manufacturing sites [1][2] - The optimization plan is expected to strengthen core technologies, including vinyl pyrrolidone and derivatives (VP&D) and HEC, with the Hopewell facility receiving increased investments to expand capacity [2][3] Manufacturing Strategy - The completion of the HEC plans is a vital component of Ashland's overall savings initiative, with the newly consolidated HEC network capable of supporting demand in the United States, Europe, and China [2] - Ashland is focused on identifying and accelerating productivity within its plant network to drive savings beyond the $60 million target [2][3] - The company emphasizes a strategic approach to innovation and organic growth, allowing for cost-effective repurposing of assets while maintaining operational efficiency [5] Investment and Growth - Significant investments have been made in various regions, including Ireland, the United States, Brazil, and China, to enhance capabilities in injectables, tablet coatings, and microbial protection [3] - Ashland is also in the process of building a tablet coating plant in India, further expanding its global footprint [3] - The company showcased new patented technologies during a recent Innovation Day, aimed at unlocking new markets with differentiated performance [4]

Core Insights - Ashland is hosting an Innovation Day for analysts and investors on May 29, 2025, at its Bridgewater, New Jersey facility to showcase its enhanced technology platforms and commercial opportunities [1][2] - The event will include presentations from Ashland's executive and senior technology leaders, followed by a Q&A session and a lab tour for in-person attendees [2][3] Event Details - Registration is required for the event, with options for live webcast or in-person attendance [1] - Presentations will start at 9:00 a.m. ET and conclude around 11:30 a.m. ET, followed by a luncheon and lab tour until approximately 2:00 p.m. ET [2] - A replay of the event will be available within 24 hours and archived for 12 months on Ashland's website [2] Company Overview - Ashland Inc. is a global additives and specialty ingredients company focused on environmental, social, and governance (ESG) initiatives [3] - The company serves various markets, including architectural coatings, construction, energy, food and beverage, personal care, and pharmaceuticals, employing around 3,200 professionals [3]

Core Viewpoint - Ashland Global Holdings Inc. reported a significant decline in profits and sales for the second quarter of fiscal 2025, missing consensus estimates across various metrics [1][2][3]. Financial Performance - The company recorded a profit of $31 million or 65 cents per share, down from $120 million or $2.39 in the same quarter last year [1]. - Adjusted earnings were 99 cents, a decrease from $1.27 year-over-year, and below the Zacks Consensus Estimate of $1.10 [1]. - Total sales fell 16.7% year-over-year to $479 million, missing the Zacks Consensus Estimate of $508.8 million [2]. Segment Performance - **Life Sciences**: Sales decreased by 22.5% year-over-year to $172 million, below the consensus estimate of $177 million, primarily due to the divestiture of the Neutraceuticals division [2]. - **Personal Care**: Sales declined 13.6% year-over-year to $146 million, missing the consensus estimate of $162.3 million, mainly due to portfolio optimization [3]. - **Specialty Additives**: Sales fell 14.6% year-over-year to $134 million, also missing the consensus estimate of $141.1 million, attributed to portfolio optimization [3]. - **Intermediates**: Sales decreased 7.5% year-over-year to $37 million, slightly beating the consensus estimate of $36.3 million, with overall sales impacted by lower prices [4]. Financial Position - Cash and cash equivalents stood at $168 million at the end of the quarter, down approximately 23% sequentially [5]. - Long-term debt increased to $1,336 million, up roughly 2% compared to the previous quarter [5]. Outlook - For the full fiscal year, Ashland expects sales to range between $1.825 billion and $1.9 billion, with adjusted EBITDA projected at $400 million to $420 million [6]. Stock Performance - Ashland's shares have declined by 49% over the past year, contrasting with a 0.9% decline in the industry [7].

Core Points - Kevin Willis, the senior vice president and chief financial officer of Ashland Inc., will leave the company to pursue another opportunity, with his last day being May 16, 2025 [1][13] - William C. Whitaker has been appointed as the interim chief financial officer until the board completes its review process [3][14] - Samuel A. Richardson has been appointed as vice president, controller, and principal accounting officer [5] Summary by Sections Executive Changes - Kevin Willis has been with Ashland since 1987, serving in various management roles, and his departure is not due to any disagreements regarding financial statements or internal controls [2][13] - William C. Whitaker, who has been with Ashland since 2015 and currently serves as vice president of finance and director of investor relations, will take on the interim CFO role [4][14] - Samuel A. Richardson has been the controller since January 2020 and has held senior accounting roles since 2008 [5] Company Overview - Ashland Inc. is a global additives and specialty ingredients company focused on environmental, social, and governance (ESG) initiatives, serving various markets including construction, energy, and pharmaceuticals [6]