WILMINGTON, DE — Ashland Inc. (NYSE: ASH) reported a mixed performance for the second quarter of fiscal 2025, reflecting challenges in market demand and revised projections for the year. The global additives and specialty ingredients company recorded sales of $479 million for the quarter, a 17% drop from $575 million in the prior year. The decline includes a $67 million (12%) impact from portfolio optimization decisions, such as divesting lower-margin products. Excluding these actions, sales decreased 5% year-over-year.
Net income fell dramatically, landing at $31 million compared to $120 million in the same period last year. Earnings per diluted share dropped from $2.40 to $0.63. Adjusted earnings per share, which exclude one-time impacts, decreased to $0.99 from $1.27 a year ago. Adjusted EBITDA was $108 million, down 14% year-over-year, though the company noted some savings achieved through cost reduction initiatives helped moderate the decline.
CEO Guillermo Novo emphasized Ashland’s continued focus on its strategic reshaping efforts. “With our portfolio optimization now complete and $30 million in cost-saving initiatives implemented, we are building a stronger organization despite macroeconomic headwinds,” he said. Novo added that recent challenges in consumer sentiment, softer demand in key markets like Europe, and competitive pressures in export regions such as the Middle East and India have all weighed on results.
Individual business segments showed mixed performance. The Life Sciences unit, though impacted by portfolio adjustments, benefited from recovering demand for pharmaceutical ingredients. Personal Care faced softer European markets and customer-specific challenges, but core product lines in skin and hair care showed stability. Specialty Additives experienced volume declines in China and competitive export markets, offset in part by recoveries in North America and Europe.
Looking forward, Ashland revised its 2025 full-year revenue outlook to a range of $1.825 billion to $1.9 billion and adjusted EBITDA guidance to $400 million to $420 million. The company remains optimistic about its long-term fundamentals, citing anticipated improvements in Life Sciences performance and the benefits of its cost-cutting measures.
“While near-term visibility is limited given challenging economic conditions, our core markets remain resilient. We are focused on mitigating risks, executing on strategic priorities, and positioning Ashland for sustainable growth,” Novo said. The company expects second-half results to benefit from easing pricing pressures and the full realization of its operational efficiencies.
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