Ashland reports first quarter fiscal 2026 results and narrows full-year outlook

Core Insights - Ashland Inc. reported financial results for Q1 FY2026, with a sales decline of 5% year-over-year, totaling $386 million, primarily due to a divestiture and mixed demand conditions across segments [1][3][4] - The company narrowed its full-year fiscal 2026 Adjusted EBITDA guidance to a range of $400 to $420 million, reflecting temporary impacts from operational disruptions [21][25] Financial Performance - First-quarter sales were $386 million, down from $405 million in the prior-year quarter, with a 2% reduction attributed to the Avoca divestiture [3][4] - Net loss was $12 million, an improvement from a loss of $165 million in the prior year, which was heavily impacted by a non-cash impairment [4][7] - Adjusted EBITDA was $58 million, down 5% from the prior-year quarter, with a margin of 15% [5][11] Segment Performance Life Sciences - Sales for the Life Sciences segment totaled $139 million, up 4% year-over-year, driven by resilient pharma demand and innovation [9][10] - Adjusted Operating Income for Life Sciences was $17 million, reflecting a favorable product mix and lower expenses [11] Personal Care - Personal Care sales decreased by 8% to $123 million, primarily due to the Avoca divestiture [12][15] - Adjusted EBITDA for Personal Care was $26 million, down from $30 million, with a margin of 21% [15] Specialty Additives - Specialty Additives sales were $102 million, down 11% year-over-year, impacted by weak demand in coatings and construction [16][17] - Adjusted EBITDA for Specialty Additives was $15 million, up from $13 million, indicating improved cost performance [17] Intermediates - Intermediates sales totaled $31 million, a decrease of 6% compared to the prior year, primarily due to lower pricing [18][19] Cash Flow and Financial Outlook - Cash flows from operating activities were $125 million, significantly improved from a use of $30 million in the prior-year quarter, largely due to a tax refund [7][21] - The company expects ongoing Free Cash Flow to be approximately 50% of Adjusted EBITDA, with capital expenditures around $100 million [26] Strategic Initiatives - Ashland is focused on advancing its innovation pipeline and optimizing its portfolio to enhance profitability [2][22] - The company continues to expect stronger performance in the second half of the fiscal year as operational efficiencies improve [22][27]