Core Viewpoint - Ashland reported a significant decline in revenue and adjusted EBITDA for Q3 FY2025, falling short of analysts' expectations, with management signaling caution due to ongoing market softness and macroeconomic uncertainty [1][15][17] Financial Performance - Revenue for Q3 FY2025 was $463 million, missing consensus estimates by $13.6 million, and down 14.9% year-over-year from $544 million [2][5] - Non-GAAP EPS from continuing operations was $1.04, below the $1.20 consensus and down 30.2% from $1.49 in Q3 FY2024 [2][12] - Adjusted EBITDA was $113 million, a decrease of 18.7% from $139 million in the prior year [2][12] - Ongoing free cash flow was $108 million, down from $112 million in Q3 FY2024 [2][11] Business Overview and Strategic Focus - Ashland operates in various markets including pharmaceuticals, personal care, coatings, and industrial materials, focusing on performance-enhancing ingredients [3] - The company is engaged in portfolio optimization, emphasizing high-value specialty offerings and operational efficiency [4][17] Segment Performance - Life Sciences segment saw a 17% decline in sales, but a 4% organic increase in pharmaceutical applications [6] - Personal Care revenue declined 16%, with a 27.9% Adjusted EBITDA margin despite lower sales [7] - Specialty Additives experienced a 13% sales drop, with Adjusted EBITDA falling 32% to $26 million [8][9] - Intermediates segment reported a sales decline, with Adjusted EBITDA down 22% [10] Cost Management and Restructuring - The company completed a $30 million restructuring program, expecting an additional $7.5 million in cost savings in Q4 [13] - A $60 million manufacturing optimization effort is underway to improve margins [13] Outlook - Management revised full-year guidance, projecting sales between $1.825 billion and $1.850 billion, and adjusted EBITDA between $400 million and $410 million [15][16] - The company anticipates a stronger Q4, driven by cost savings from restructuring [15] - Key focus areas include organic volume stabilization, margin control, and inventory management [16][17]