Ashland sees FY sales $1.83B-$1.85B, saw $1.83B-$1.90B

Ashland sees FY sales $1.83B-$1.85B, saw $1.83B-$1.90B

Title: Ashland Reports Third-Quarter Fiscal 2025 Results; Narrows Full-Year Outlook

Ashland Inc. (NYSE: ASH) reported its third-quarter fiscal 2025 results, highlighting a challenging quarter marked by significant declines in sales and earnings. The company announced a revised full-year outlook for fiscal 2025, reflecting the impact of its portfolio optimization initiatives and a mixed demand environment.

Key Financial Highlights:

- Sales: Third-quarter sales totaled $463 million, a 15% decrease from the prior-year quarter. This decline was primarily driven by the company's Portfolio Optimization initiatives, which reduced sales by approximately $53 million, or 10%. Excluding these initiatives, sales declined by 5% year-over-year.
- Loss from Continuing Operations: The company reported a loss from continuing operations of $719 million, or $(15.70) per diluted share, primarily reflecting a non-cash goodwill impairment charge of $706 million.
- Adjusted EBITDA: Adjusted EBITDA was $113 million, down 19% from the prior-year quarter. This decline was primarily driven by Portfolio Optimization, lower organic sales, and unfavorable production expenses, partially offset by lower selling, administrative, research and development (SARD) expenses.
- Cash Flow: Cash flows from operating activities were $114 million, a decrease from $128 million in the prior-year quarter. Ongoing Free Cash Flow2 totaled $108 million compared to $112 million in the prior-year quarter.

Segment Performance:

- Life Sciences: Sales for the Life Sciences segment totaled $162 million, a 17% decrease compared to the prior-year period. The decline was primarily attributable to Portfolio Optimization initiatives, including the divestiture of the Nutraceuticals business and the exit from low-margin nutrition offerings. Adjusted Operating Income for the quarter was $40 million, compared to $43 million in the prior-year period.
- Personal Care: Third-quarter sales for Personal Care totaled $147 million, a 16% decrease compared to the prior-year period. The year-over-year decline was primarily driven by Portfolio Optimization, which reduced sales by approximately $18 million. Adjusted Operating Income was $26 million, compared to $32 million in the prior year.
- Specialty Additives and Intermediates: These segments partially mitigated the impact of a soft architectural coatings season and last year’s share loss in China with growth in other markets.

Outlook:

Ashland narrowed its full-year fiscal 2025 sales outlook to a range of $1.83 billion to $1.85 billion, compared to its previously announced range of $1.83 billion to $1.90 billion. The company expects continued challenges in the demand environment and will continue to focus on cost savings and operational discipline to support strong margins.

Conclusion:

Ashland's third-quarter results reflect the impact of its strategic portfolio optimization initiatives and a mixed demand environment. While the company reported significant declines in sales and earnings, it maintained a strong focus on cost savings and operational discipline. The revised full-year outlook reflects the company's cautious approach to the current market conditions.

[1] https://investor.ashland.com/news-releases/news-release-details/ashland-reports-third-quarter-fiscal-2025-results-and-narrows