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- **Resilient Q4 Results**: Adjusted EBITDA of $119M (25% margin) despite 8% sales decline, driven by portfolio optimization.
- **Growth Drivers**: Personal Care up 5% organically, Life Sciences pharma demand stable, Specialty Additives EBITDA flat YoY.
- **2026 Outlook**: 1%-5% sales growth, $400M-$430M EBITDA, >10% EPS growth from lower tax rate.
- **Innovation Momentum**: $15M incremental sales from innovation, TVO platform pipeline up 30%.
- **China Risks**: Coatings market remains weak, but Specialty Additives positioned for recovery.

**【CEO Summary Section】**
- **Q4 Performance**: Sales of $478 million (-8% YoY), adjusted EBITDA of $119 million (-4% YoY), driven by portfolio optimization. Comparable EBITDA grew 5% with margins expanding to 25%.
- **Business Unit Highlights**: 
  - *Life Sciences*: Resilient pharma demand, 32% EBITDA margin, new Vila sucrose launch.
  - *Personal Care*: 5% organic growth, biofunctional actives up double digits, 28.5% EBITDA margin.
  - *Specialty Additives*: EBITDA of $29 million (flat YoY), China coatings weakness offset by globalized gains.
- **2026 Outlook**: Sales $1.835B-$1.905B (1%-5% growth), EBITDA $400M-$430M, free cash flow >50% of EBITDA.

**【CFO Financial Commentary】**
- **Q4 Results**: GAAP net income $420M, Non-GAAP EPS $1.08 (vs. $1.24 prior year). Free cash flow $52M, liquidity $800M.
- **Cost Actions**: $30M restructuring savings ($20M realized in FY25), $60M manufacturing optimization ($5M savings in FY25, $18M expected FY26).
- **Tax Impact**: $103M tax refund from nutraceutical sale, reducing net leverage to mid-2s.
- **FY26 Guidance**: Adjusted EPS growth >10%, driven by lower tax rate and cost savings.

**【Q&A Highlights】**
- **Volumes & Pricing**: Globalized platforms (biofunctional actives, microbial protection) up double digits, offsetting China coatings weakness. Pricing stable in Life Sciences, 2% decline overall.
- **Innovation Pipeline**: $15M incremental sales from innovation in FY26, TVO platform driving 30%+ pipeline growth.
- **Capital Allocation**: $100M CapEx (50% growth projects), dividend payout ~30%, share buybacks contingent on leverage <2.5x.
- **China Recovery**: Specialty Additives expects stabilization in FY26, but no near-term recovery in coatings market.


Ashland Inc.(ASH)-20251105-2025 Q4 Earnings call transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

ASH

ASH fundamentals

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