Overview

* Ashland fiscal Q3 revenue down 15%, missing analyst expectations, per LSEG data

* Adjusted EPS for fiscal Q3 misses consensus, reflecting demand challenges and portfolio optimization

* Net loss of $742 million primarily due to non-cash goodwill impairment charge

Outlook

* Ashland expects FY2025 sales of $1.825 bln to $1.850 bln

* Company projects FY2025 Adjusted EBITDA of $400 mln to $410 mln

* Ashland sees stable macro environment with mixed demand trends

* Tariff-related uncertainty persists, no material FY2025 impact expected

Result Drivers

* PORTFOLIO OPTIMIZATION - Initiatives reduced sales by $53 mln, impacting revenue and adjusted EBITDA

* SOFTER DEMAND - Personal Care and Specialty Additives faced subdued demand, contributing to revenue decline

* PHARMA GROWTH - Life Sciences segment maintained growth momentum in pharma applications despite overall sales decline

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Miss $463 mln $476.40

Revenue mln (7

Analysts

)

Q3 Miss $1.04 $1.23 (9

Adjusted Analysts

EPS )

Q3 EPS -$16.21

Q3 Net -$742

Income mln

Q3 Miss $113 mln $115.10

Adjusted mln (10

EBITDA Analysts

)

Q3 Free $108 mln

Cash

Flow

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the diversified chemicals peer group is "buy"

* Wall Street's median 12-month price target for Ashland Inc ( ASH ) is $62.00, about 17.8% above its July 28 closing price of $50.95

* The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)