- Sales of $386 million, down five percent from the prior-year quarter
- Previously announced Avoca divestiture reduced overall sales by approximately $10 million or two percent versus the prior-year quarter; excluding the Avoca divestiture, sales declined three percent
- Loss from continuing operations of $14 million, or $(0.30) per diluted share
- Adjusted Income from Continuing Operations Excluding Intangibles Amortization Expense of $12 million, or $0.26 per diluted share
- Net loss of $12 million, or $(0.26) per diluted share
- Adjusted EBITDA of $58 million, down five percent from the prior-year quarter, with the Avoca divestiture contributing to a two percent or $1 million decline; excluding the Avoca divestiture, Adjusted EBITDA declined three percent
- Cash flows provided by operating activities of $125 million; Ongoing Free Cash Flow2 of $26 million
- Narrowing full‑year fiscal 2026 Adjusted EBITDA guidance to $400–$420 million, reflecting approximately $11 million of temporary impacts from the Calvert City startup delay and recent weather-related disruptions, isolated to the second quarter
WILMINGTON, Del., Feb. 02, 2026 (GLOBE NEWSWIRE) — Ashland Inc. (NYSE:ASH) today announced financial results1 for the first quarter of fiscal year 2026, which ended December 31, 2025, and narrowed its full-year fiscal 2026 outlook. Ashland, a global additives and specialty ingredients company, holds leadership positions in high-quality, consumer-focused markets including pharmaceuticals, personal care and architectural coatings.
“Ashland’s first‑quarter performance reflects our disciplined execution and ability to deliver resilient results despite mixed demand conditions,” said Guillermo Novo, chair and chief executive officer of Ashland. “While overall sales declined modestly, primarily within Specialty Additives, we delivered solid margins supported by cost actions, improved product mix, and continued benefits from our portfolio optimization initiatives. Life Sciences achieved year‑over‑year growth driven by healthy pharma demand and strong innovation momentum. Personal Care delivered resilient results, supported by strong performance in biofunctional actives and ongoing share gains in microbial protection, while softer demand in core hair care markets largely reflected unplanned customer plant outages. In Specialty Additives, we continued to advance initiatives to improve profitability and accelerate regional innovation against a backdrop of ongoing competitive intensity and softer demand in coatings, construction, and select industrial markets.”
Novo continued, “Across the portfolio, our teams executed well despite month-to-month variability in certain end-markets. In Life Sciences, momentum in injectables and oral solid‑dosage excipients underscores the strength of our innovation opportunities and customer engagement. In Personal Care, enhanced commercial capabilities and targeted investments drove stronger performance and share gains in key categories. In Specialty Additives, we advanced operational efficiencies and realized benefits from prior optimization actions, including the HEC consolidation, improving our cost structure and helping offset lower volumes. Intermediates continues to navigate trough‑like conditions with focused commercial and operational management.”
“We generated strong cash flow in our seasonally weakest quarter, demonstrating disciplined working-capital management while navigating the equipment replacement at Calvert City. Although the Calvert outage pressured margins and will continue to have some impact early in the second quarter, customer supply remains uninterrupted. As we move through the year, we remain focused on advancing our innovation pipeline, globalizing high‑performing business lines, and driving additional cost and productivity benefits as we execute with discipline,” Novo concluded.
First-quarter sales were $386 million, down five percent from $405 million in the prior-year quarter. The Avoca divestiture reduced sales by approximately $10 million, or two percent. Excluding this action, sales declined three percent year-over-year. Organic sales volumes were mixed with growth in Life Sciences more than offset by declines in Personal Care and Specialty Additives. Pricing declined two percent, generally across segments, primarily reflecting carry-over adjustments from the prior year. Foreign currency movements contributed a favorable $9 million, or two percent, to sales.
Net loss was $12 million, up from a loss of $165 million in the prior year, which was significantly impacted by the non-cash impairment of the Avoca business. Loss from continuing operations was $14 million, up from a loss of $166 million, or $(0.30) per diluted share compared to $(3.51) last year. Adjusted Income from Continuing Operations Excluding Intangibles Amortization Expense was $12 million, down from $14 million, or $0.26 per diluted share versus $0.28 in the prior year. Adjusted Operating Income was $14 million, up from $11 million last year, reflecting continued capital discipline and early benefits from restructuring and cost‑optimization initiatives. Adjusted EBITDA was $58 million, representing a 15 percent margin, down five percent from $61 million in the prior-year quarter, with the divestiture of the Avoca business accounting for a $1 million reduction. Excluding this action, Adjusted EBITDA declined three percent, driven by lower sales volumes and modest pricing pressure offset by favorable product mix and lower selling, administrative, research and development (SARD) expenses as restructuring related benefits continue to be realized. The Calvert City outage negatively impacted Adjusted EBITDA by approximately $10 million, consistent with prior disclosures. Foreign currency movements contributed a favorable $4 million to Adjusted EBITDA.
Average diluted shares outstanding were 46 million in the first quarter, down from 47 million in the prior-year quarter, reflecting share repurchase activity over the past 12 months.
As previously reported, Ashland received a $103 million tax refund in October 2025 related to the capital loss carryback from the Nutraceuticals divestiture, providing a meaningful cash inflow that further strengthened the company’s financial position. Cash flows provided by operating activities were $125 million, up from a use of $30 million in the prior-year quarter, primarily reflecting the tax refund and working capital improvements. Ongoing Free Cash Flow totaled $26 million, excluding the tax refund, versus negative $26 million in the prior‑year quarter, driven by the same improvements to working capital performance.
Reportable Segment Performance
To aid in the understanding of Ashland’s ongoing business performance, the results of Ashland’s reportable segments are described below on an adjusted basis. In addition, EBITDA and Adjusted EBITDA are reconciled to operating income in Table 4. Free Cash Flow, Ongoing Free Cash Flow and Adjusted Operating Income are reconciled in Table 6 and Adjusted Income from Continuing Operations, Adjusted Diluted Earnings Per Share and Adjusted Diluted Earnings Per Share Excluding Intangible Amortization Expense are reconciled in Table 7 of this news release. These adjusted results are considered non-GAAP financial measures. For a full description of the non-GAAP financial measures used, see the “Use of Non-GAAP Measures” section that further describes these adjustments below.
Life Sciences
Sales for the Life Sciences segment totaled $139 million in the first quarter, up four percent compared to $134 million in the prior‑year quarter. The increase was driven by higher sales volumes within pharma applications, where demand remained resilient across regions as the business moved past last year’s customer inventory control actions. Pricing declined modestly year‑over‑year, consistent with expectations and largely reflecting carry‑over effects from prior‑period adjustments. Foreign currency movements contributed a favorable impact of approximately $3 million to segment sales compared to the prior year.
Pharma achieved low‑single‑digit sales growth, marking its third consecutive quarter of year‑over‑year volume gains. Growth was supported by robust demand for high‑value cellulosic excipients, as well as sustained progress across globalize initiatives, including injectables and tablet coatings, both of which delivered strong pipeline activity and sales growth. The innovation pillar continued to advance, with meaningful contributions from low‑nitrite cellulosics, high‑purity excipients, and new product introductions highlighted in the quarter’s strong innovation performance. Pricing remained generally stable sequentially, supported by commercial execution.
Adjusted Operating Income for the quarter was $17 million, up from $14 million in the prior‑year quarter. Adjusted EBITDA totaled $31 million, representing a 22 percent margin and an 11 percent increase versus $28 million last year. The year‑over‑year improvement was driven by favorable product mix, resilient pharma demand, and lower SARD expenses as restructuring‑related benefits continued to flow through, partially offset by modest pricing pressure. Foreign currency movements contributed a favorable $2 million impact to Adjusted EBITDA. The combination of durable pharma demand and ongoing progress across the globalize and innovate pillars position Life Sciences for continued profitable growth in fiscal 2026.
Personal Care
Personal Care sales in the first quarter were $123 million, a decrease of eight percent compared to $134 million in the prior-year quarter. The year-over-year decline was primarily due to the divestiture of the Avoca business, which reduced sales by approximately $10 million, or seven percent. Excluding this portfolio action, Personal Care sales declined one percent versus the prior year in a generally muted demand environment. Performance reflected strong growth in biofunctional actives and year‑over‑year volume growth in microbial protection, partially offset by softer demand in North America. Pricing was down modestly in select end markets, and …