Ashland reports financial results for first quarter fiscal 20251, reiterates outlook for full-year fiscal 2025
Ashland Inc. (ASH) reported Q1 fiscal 2025 financial results with sales of $405 million, down 14% year-over-year. The decline includes an 11% reduction ($50 million) from Portfolio Optimization initiatives. The company reported a net loss of $165 million, or $3.50 per diluted share, compared to net income of $26 million in the prior year.
Adjusted EBITDA was $61 million, down 13% from the prior year, primarily due to Portfolio Optimization, reduced pricing, and increased expenses. The company maintains its full-year fiscal 2025 outlook, expecting sales between $1.90-2.05 billion and Adjusted EBITDA of $430-470 million.
Ashland signed a definitive agreement to sell its Avoca business to Mane and is implementing a $30 million cost reduction plan to offset stranded costs from the nutraceutical business sale.
Ashland Inc. (ASH) ha riportato i risultati finanziari del primo trimestre dell'anno fiscale 2025, con vendite pari a 405 milioni di dollari, in calo del 14% rispetto all'anno precedente. Il declino include una riduzione dell'11% (50 milioni di dollari) dovuta alle iniziative di ottimizzazione del portafoglio. L'azienda ha registrato una perdita netta di 165 milioni di dollari, ovvero 3,50 dollari per azione diluita, rispetto a un utile netto di 26 milioni di dollari nell'anno precedente.
L'EBITDA rettificato è stato di 61 milioni di dollari, in calo del 13% rispetto all'anno passato, principalmente a causa dell'ottimizzazione del portafoglio, della riduzione dei prezzi e dell'aumento delle spese. L'azienda mantiene le previsioni per l'intero anno fiscale 2025, prevedendo vendite comprese tra 1,90-2,05 miliardi di dollari e un EBITDA rettificato di 430-470 milioni di dollari.
Ashland ha firmato un accordo definitivo per vendere la sua divisione Avoca a Mane e sta attuando un piano di riduzione dei costi di 30 milioni di dollari per compensare i costi residui derivanti dalla vendita del business nutraceutico.
Ashland Inc. (ASH) informó los resultados financieros del primer trimestre del año fiscal 2025, con ventas de 405 millones de dólares, una disminución del 14% en comparación con el año anterior. La caída incluye una reducción del 11% (50 millones de dólares) debido a las iniciativas de optimización de cartera. La compañía reportó una pérdida neta de 165 millones de dólares, o 3,50 dólares por acción diluida, en comparación con una ganancia neta de 26 millones de dólares en el año anterior.
El EBITDA ajustado fue de 61 millones de dólares, una disminución del 13% en comparación con el año anterior, principalmente debido a la optimización de cartera, disminución de precios y aumento de gastos. La compañía mantiene su perspectiva para el año fiscal 2025, esperando ventas entre 1,90-2,05 mil millones de dólares y un EBITDA ajustado de 430-470 millones de dólares.
Ashland firmó un acuerdo definitivo para vender su negocio Avoca a Mane y está implementando un plan de reducción de costos de 30 millones de dólares para compensar los costos no recuperables de la venta del negocio nutracéutico.
Ashland Inc. (ASH)는 2025 회계연도 1분기 재무 결과를 보고했으며, 매출은 4억 500만 달러로 전년 대비 14% 감소했습니다. 이 감소에는 포트폴리오 최적화 이니셔티브로 인한 11% 감소(5천만 달러)가 포함됩니다. 회사는 1억 6천 5백만 달러의 순손실을 보고했으며, 희석주당 3.50달러로, 전년 대비 2천6백만 달러의 순익에 비해 큰 폭으로 내리막을 보였습니다.
조정된 EBITDA는 6천1백만 달러로, 전년 대비 13% 감소했으며, 이는 주로 포트폴리오 최적화, 가격 인하 및 증가한 경비 때문입니다. 회사는 2025 회계연도 전체 매출을 19억-20억 5천만 달러로 예상하고 조정된 EBITDA는 4억 3천-4억 7천만 달러로 유지하고 있습니다.
Ashland는 Avoca 사업을 Mane에 매각하기 위한 확정 계약을 체결했으며, 영양소 사업 매각으로 인한 고립된 비용을 상쇄하기 위해 3천만 달러의 비용 절감 계획을 시행하고 있습니다.
Ashland Inc. (ASH) a annoncé les résultats financiers du premier trimestre de l'exercice 2025, avec des ventes s'élevant à 405 millions de dollars, en baisse de 14 % par rapport à l'année précédente. Cette baisse inclut une réduction de 11 % (50 millions de dollars) due à des initiatives d'optimisation de portefeuille. L'entreprise a déclaré une perte nette de 165 millions de dollars, soit 3,50 dollars par action diluée, par rapport à un bénéfice net de 26 millions de dollars l'année précédente.
Le résultat brut d'exploitation ajusté (EBITDA) était de 61 millions de dollars, en baisse de 13 % par rapport à l'année précédente, principalement en raison de l'optimisation du portefeuille, de la réduction des prix et de l'augmentation des dépenses. L'entreprise maintient ses prévisions pour l'exercice 2025, s'attendant à des ventes comprises entre 1,90 et 2,05 milliards de dollars et un EBITDA ajusté de 430-470 millions de dollars.
Ashland a signé un accord définitif pour vendre son activité Avoca à Mane et met en œuvre un plan de réduction des coûts de 30 millions de dollars pour compenser les coûts non récupérables découlant de la vente de l'activité nutraceutique.
Ashland Inc. (ASH) hat die finanziellen Ergebnisse für das erste Quartal des Geschäftsjahres 2025 bekannt gegeben, mit einem Umsatz von 405 Millionen Dollar, was einem Rückgang von 14% im Vergleich zum Vorjahr entspricht. Der Rückgang umfasst eine Reduzierung von 11% (50 Millionen Dollar) aufgrund von Portfolioprofilerungsinitiativen. Das Unternehmen berichtete von einem Nettoverlust von 165 Millionen Dollar, oder 3,50 Dollar pro verwässerter Aktie, verglichen mit einem Nettogewinn von 26 Millionen Dollar im Vorjahr.
Das bereinigte EBITDA betrug 61 Millionen Dollar, ein Rückgang um 13% im Vergleich zum Vorjahr, hauptsächlich aufgrund der Portfolioprofilerung, reduzierter Preise und steigender Kosten. Das Unternehmen hält an seinen Prognosen für das gesamte Geschäftsjahr 2025 fest und erwartet einen Umsatz zwischen 1,90-2,05 Milliarden Dollar und ein bereinigtes EBITDA von 430-470 Millionen Dollar.
Ashland hat einen endgültigen Vertrag zum Verkauf seines Avoca-Geschäfts an Mane unterzeichnet und führt einen Kostensenkungsplan in Höhe von 30 Millionen Dollar durch, um die nicht gedeckten Kosten aus dem Verkauf des nutraceutical-Geschäfts auszugleichen.
- Maintained full-year fiscal 2025 guidance despite market challenges
- Personal Care segment sales increased 4% year-over-year
- Implementing $30 million cost reduction plan
- Strong performance in skin care, hair care, and biofunctionals markets
- Net loss of $165 million compared to $26 million net income in prior year
- Sales declined 14% year-over-year to $405 million
- Adjusted EBITDA decreased 13% to $61 million
- Negative ongoing free cash flow of $26 million
- Lower pharma sales due to softening market demand
- Reduced pricing in Intermediates and Life Science segments
Insights
Ashland's Q1 FY2025 results reflect a strategic transformation period marked by deliberate portfolio optimization rather than purely market-driven challenges. The 14% revenue decline to
The standout performer was the Personal Care segment, achieving
The company's proactive decision to front-load annual maintenance turnarounds in Q1 is strategically sound, creating operational flexibility for potential trade policy changes. This, combined with the
Key financial metrics reveal deeper insights:
- The negative ongoing free cash flow of
$26 million appears concerning but is primarily due to timing of inventory movements and compensation payouts - Share count reduction from 51M to 48M shares through repurchases indicates confidence in long-term value creation
- Maintenance of full-year guidance suggests management's confidence in the trajectory of their transformation strategy
The Life Sciences segment's
- Sales of
$405 million , down 14 percent from the prior-year quarter - Previously announced carboxymethylcellulose (CMC), methylcellulose (MC) and nutraceuticals portfolio optimization initiatives (collectively, “Portfolio Optimization”) reduced overall sales by approximately
$50 million or 11 percent versus the prior-year quarter. Excluding Portfolio Optimization, sales declined 3 percent versus prior-year quarter - Loss from continuing operations of
$166 million , or loss of$3.51 per diluted share - Adjusted income from continuing operations excluding intangibles amortization expense of
$14 million , or$0.28 per diluted share - Net loss of
$165 million , or loss of$3.50 per diluted share - Adjusted EBITDA of
$61 million , down 13 percent from the prior-year quarter. Portfolio Optimization reduced overall Adjusted EBITDA by approximately$8 million or 11 percent versus the prior-year quarter. Excluding Portfolio Optimization, Adjusted EBITDA declined two percent versus prior-year quarter - Cash flows used by operating activities of
$30 million ; ongoing free cash flow2 of negative$26 million - Signed a definitive agreement to sell its Avoca business to Mane
WILMINGTON, Del., Jan. 28, 2025 (GLOBE NEWSWIRE) -- Ashland Inc. (NYSE: ASH) today announced financial results1 for the first quarter of fiscal year 2025, which ended December 31, 2024, and issued its full-year fiscal 2025 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.
"Since announcing the sale agreement for our Avoca business, we are nearing the final stages of our portfolio optimization activities. The last stage will be to fully implement our
“Given the significant uncertainty surrounding trade policy under the incoming U.S. administration, we moved major annual maintenance turnarounds to the first quarter. This builds greater resilience to respond to potential trade and economic changes. While this action shifted planned expenses forward, it significantly enhanced our operational flexibility to navigate uncertain markets. With our Portfolio Optimization behind us, our top priority is to advance our strategy through execution discipline, globalizing four high-quality business lines and advancing the commercialization of our new technology platforms. In the near term, our focus remains on delivering and accelerating cost savings and enhancing productivity initiatives.”
Sales in the first quarter were
Net loss was
Average diluted shares outstanding totaled 48 million in the first quarter, down from 51 million in the prior-year quarter following the company’s share repurchase activities over the past 12 months.
Cash flows used by operating activities totaled
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
First quarter Life Sciences sales declined 33 percent year-over-year to
Adjusted operating income was
Personal Care
Personal Care delivered strong performance in the first quarter, with sales increasing four percent year-over-year to
Adjusted operating income was
Specialty Additives
Sales were
Adjusted operating loss was
Intermediates
Sales were stable versus the prior-year quarter at
Adjusted operating income was
Unallocated & Other
Unallocated and other expense was
Financial Outlook
Ashland continues to proactively drive performance by leveraging growth catalysts, such as expanding high-performing business lines into new markets and commercializing new technology platforms, while simultaneously accelerating cost savings and optimizing its portfolio through the planned sale of Avoca. This diversified strategy aims to drive growth and improve business mix while improving cost structure to ultimately support the company's full-year outlook.
As expected, the first quarter was seasonally slow. Aside from weaker demand in Europe and the effects of extended plant shutdowns, Ashland’s performance is generally aligned with planning assumptions. The company is monitoring a potential European recovery and trade policy shifts, but has not observed any market dynamics that would necessitate a revision of its outlook. Despite uncertainty surrounding potential trade policy changes, Ashland is well-prepared following the completion of its annual maintenance turnarounds.
Overall, Ashland continues to expect full fiscal year sales in the range of
"Ashland is taking decisive action to deliver on our commitments," said Novo. "Our strong financial foundation allows us to invest strategically in our future while proactively addressing challenges. By focusing on commercial and operational excellence, accelerating cost savings, and advancing key growth initiatives, we are confident in our ability to drive sustainable growth and create long-term value. We are well-positioned to deliver on our goals with high-impact, self-help efforts underway. I look forward to sharing more insight into our plans as well as our outlook during our earnings call tomorrow morning," Novo concluded.
Conference Call Webcast
The company’s live webcast with securities analysts will include an executive summary and detailed remarks. The live webcast will take place at 9 a.m. ET on Wednesday, January 29, 2025. Simultaneously, the company will post a slide presentation in the Investor Relations section of its website at http://investor.ashland.com.
To access the call by phone, please go to this registration link and you will be provided with dial in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time.
Following the live event, an archived version of the webcast and supporting materials will be available for 12 months on http://investor.ashland.com.
Use of Non-GAAP Measures
Ashland believes that by removing the impact of depreciation and amortization and excluding certain non-cash charges, amounts spent on interest and taxes and certain other charges that are highly variable from year to year, EBITDA, Adjusted EBITDA, EBITDA margin and Adjusted EBITDA margin provide Ashland’s investors with performance measures that reflect the impact to operations from trends in changes in sales, margin and operating expenses, providing a perspective not immediately apparent from net income, operating income, net income margin and operating income margin. The adjustments Ashland makes to derive the non-GAAP measures of EBITDA, Adjusted EBITDA, EBITDA margin and Adjusted EBITDA margin exclude items which may cause short-term fluctuations in net income and operating income and which Ashland does not consider to be the fundamental attributes or primary drivers of its business. EBITDA, Adjusted EBITDA, EBITDA margin and Adjusted EBITDA margin provide disclosure on the same basis as that used by Ashland’s management to evaluate financial performance on a consolidated and reportable segment basis and provide consistency in our financial reporting, facilitate internal and external comparisons of Ashland’s historical operating performance and its business units, and provide continuity to investors for comparability purposes. EBITDA margin and Adjusted EBITDA margin are defined as EBITDA and Adjusted EBITDA divided by sales for the corresponding period.
Key items, which are set forth on Table 7 of this release, are defined as financial effects from significant transactions that, either by their nature or amount, have caused short-term fluctuations in net income and/or operating income which Ashland does not consider to reflect Ashland’s underlying business performance and trends most accurately. Further, Ashland believes that providing supplemental information that excludes the financial effects of these items in the financial results will enhance the investor’s ability to compare financial performance between reporting periods.
Tax-specific key items, which are set forth on Table 7 of this release, are defined as financial transactions, tax law changes or other matters that fall within the definition of key items as described above. These items relate solely to tax matters and would only be recorded within the income tax caption of the Statement of Consolidated Income. As with all key items, due to their nature, Ashland does not consider the financial effects of these tax-specific key items on net income to be the most accurate reflection of Ashland’s underlying business performance and trends.
The free cash flow metrics enable Ashland to provide a better indication of the ongoing cash being generated that is ultimately available for both debt and equity holders as well as other investment opportunities. Unlike cash flow provided by operating activities, free cash flow and ongoing free cash flow include the impact of capital expenditures from continuing operations and other significant items impacting free cash flow, providing a more complete picture of current and future cash generation. Free cash flow, ongoing free cash flow, and free cash flow conversion are non-GAAP liquidity measures that Ashland believes provide useful information to management and investors about Ashland’s ability to convert Adjusted EBITDA to ongoing free cash flow. These liquidity measures are used regularly by Ashland’s stakeholders and industry peers to measure the efficiency at providing cash from regular business activity. Free cash flow, ongoing free cash flow, and free cash flow conversion have certain limitations, including that they do not reflect adjustments for certain non-discretionary cash flows such as mandatory debt repayments. The amount of mandatory versus discretionary expenditures can vary significantly between periods.
Adjusted diluted earnings per share is a performance measure used by Ashland and is defined by Ashland as earnings (loss) from continuing operations, adjusted for identified key items and divided by the number of outstanding diluted shares of common stock. Ashland believes this measure provides investors additional insights into operational performance by providing earnings and diluted earnings per share metrics that exclude the effect of the identified key items and tax specific key items.
The Adjusted diluted earnings per share, excluding intangibles amortization expense metric enables Ashland to demonstrate the impact of non-cash intangibles amortization expense on earnings per share, in addition to key items previously mentioned. Ashland’s management believes this presentation is helpful to illustrate how previous acquisitions impact applicable period results.
Ashland does not quantitatively reconcile our guidance ranges for our non-GAAP measures to their most comparable GAAP measures in the Financial Outlook section of this press release. The guidance ranges for GAAP and non-GAAP financial measures reflect Ashland’s assessment of potential sources of variability in financial results and are informed by evaluation of multiple scenarios, many of which have interactive effects across several financial statement line items. Providing guidance for individual reconciling items between our non-GAAP financial measures and the comparable GAAP measures would imply a degree of precision and certainty in those reconciling items that is not a consistent reflection of our scenario-based process to prepare our guidance ranges. To the extent that a material change affecting the individual reconciling items between the Company’s forward-looking non-GAAP and comparable GAAP financial measures is anticipated, the Company has provided qualitative commentary in the Financial Outlook section of this press release for your consideration. However, as the impact of such factors cannot be predicted with a reasonable degree of certainty or precision, a quantitative reconciliation is not available without unreasonable effort.
About Ashland
Ashland Inc. (NYSE: ASH) is a global additives and specialty ingredients company with a conscious and proactive mindset for environmental, social and governance (ESG). The company serves customers in a wide range of consumer and industrial markets, including architectural coatings, construction, energy, food and beverage, personal care and pharmaceutical. Approximately 3,200 passionate, tenacious solvers – from renowned scientists and research chemists to talented engineers and plant operators – thrive on developing practical, innovative and elegant solutions to complex problems for customers in more than 100 countries. Visit ashland.com and ashland.com/ESG to learn more.
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Ashland has identified some of these forward-looking statements with words such as “anticipates,” “believes,” “expects,” “estimates,” “is likely,” “predicts,” “projects,” “forecasts,” “objectives,” “may,” “will,” “should,” “plans” and “intends” and the negative of these words or other comparable terminology. Ashland may from time to time make forward-looking statements in its annual reports, quarterly reports and other filings with the SEC, news releases and other written and oral communications. These forward-looking statements are based on Ashland’s expectations and assumptions, as of the date such statements are made, regarding Ashland’s future operating performance, financial, operating cash flow and liquidity, as well as the economy and other future events or circumstances. These statements include but may not be limited to statements with respect to Ashland’s anticipations and expectations regarding raw materials and year-over-year absorption; its ability to drive sustainable growth and create long-term value; its portfolio optimization initiatives and accelerated cost savings programs; and management’s expectations and beliefs regarding Ashland’s fiscal-year 2025 results and outlook.
Ashland’s expectations and assumptions include, without limitation, internal forecasts and analyses of current and future market conditions and trends, management plans and strategies, operating efficiencies and economic conditions (such as prices, supply and demand, cost of raw materials, and the ability to recover raw-material cost increases through price increases), and risks and uncertainties associated with the following: the impact of acquisitions and/or divestitures Ashland has made or may make (including the possibility that Ashland may not realize the anticipated benefits from such transactions); Ashland’s substantial indebtedness (including the possibility that such indebtedness and related restrictive covenants may adversely affect Ashland’s future cash flows, results of operations, financial condition and its ability to repay debt); severe weather, natural disasters, public health crises, cyber events and legal proceedings and claims (including product recalls, environmental and asbestos matters); the effects of the ongoing Ukraine/Russia and Israel/Hamas conflicts on the geographies in which we operate, the end markets we serve and on our supply chain and customers, and without limitation, risks and uncertainties affecting Ashland that are described in Ashland’s most recent Form 10-K (including Item 1A Risk Factors) filed with the SEC, which is available on Ashland’s website at http://investor.ashland.com or on the SEC’s website at http://www.sec.gov. Various risks and uncertainties may cause actual results to differ materially from those stated, projected or implied by any forward-looking statements. Ashland believes its expectations and assumptions are reasonable, but there can be no assurance that the expectations reflected herein will be achieved. Unless legally required, Ashland undertakes no obligation to update any forward-looking statements made in this news release whether as a result of new information, future events or otherwise.
1Financial results are preliminary until Ashland’s Form 10-Q is filed with the U.S. Securities and Exchange Commission.
2The ongoing free cash flow metric excludes the impact of inflows and outflows from U.S. and Foreign Accounts Receivable Sales Program and payments related to restructuring and environmental and litigation-related matters in both the current-year and prior-year periods.
™ Trademark, Ashland or its subsidiaries, registered in various countries.
FOR FURTHER INFORMATION:
| Investor Relations: | Media Relations: |
| William C. Whitaker | Carolmarie C. Brown |
| +1 (614) 790-2095 | +1 (302) 995-3158 |
| wcwhitaker@ashland.com | ccbrown@ashland.com |
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