WILMINGTON, DE — Ashland Inc. (NYSE: ASH) reported lower second-quarter fiscal 2026 profit despite a slight increase in sales and reduced its full-year outlook, citing slower productivity improvements at its Hopewell manufacturing site, a Calvert City startup delay and weather-related disruptions.
The specialty ingredients company reported net income of $16 million, or $0.34 per diluted share, for the quarter ended March 31. Income from continuing operations was $15 million, or $0.32 per diluted share.
Sales rose 1% to $482 million from $479 million a year earlier. Adjusted EBITDA fell 9% to $98 million, with a 20% margin.
Adjusted income from continuing operations excluding intangibles amortization expense was $42 million, or $0.91 per diluted share, compared with $46 million, or $0.99 per diluted share, in the prior-year quarter.
The company said the Calvert City startup delay and weather-related disruptions reduced adjusted EBITDA by about $10 million. Foreign currency movements added $16 million to sales and $6 million to adjusted EBITDA.
Ashland updated its full-year fiscal 2026 sales guidance to $1.835 billion to $1.870 billion and adjusted EBITDA guidance to $385 million to $400 million. The revised outlook primarily reflects the slower-than-expected productivity ramp at Hopewell, softer energy-related demand tied to the Middle East conflict and reduced electric-vehicle-driven demand for BDO derivatives.
Chair and Chief Executive Officer Guillermo Novo said the company’s operating performance “has fallen short of our standards,” while adding that the Hopewell issues are “internal and within our control.”
Operating cash flow rose to $50 million from $9 million a year earlier, driven by working capital improvements. Ongoing free cash flow was $29 million, compared with negative $6 million in the prior-year quarter.
Life Sciences sales were flat at $172 million. Adjusted EBITDA fell to $50 million from $56 million as lower pricing and higher costs offset pharma volume growth and favorable foreign exchange.
Personal Care sales rose 3% to $150 million, driven by growth in biofunctional actives, microbial protection, skin care and hair care. Adjusted EBITDA was $43 million, compared with $44 million a year earlier.
Specialty Additives sales were flat at $134 million. Adjusted EBITDA fell to $16 million from $26 million, reflecting lower pricing, Hopewell scale-up challenges, weather-related disruptions and weaker energy markets in the Middle East.
Intermediates sales fell 5% to $35 million. Adjusted EBITDA rose to $5 million from $2 million, supported by cost management and lower raw material and operating costs.
Unallocated and other expense was $20 million, compared with $11 million a year earlier, mainly because the prior-year quarter included gains from the sale of the Avoca business and a land sale.
Ashland said full-year assumptions include resilient demand in Life Sciences and Personal Care, stable but trough-level conditions in Specialty Additives and Intermediates, continued construction weakness, higher raw material and freight costs, and reduced expected savings from its manufacturing optimization program by about $10 million to $12 million.
The company said it expects ongoing free cash flow conversion of about 50% of adjusted EBITDA, with capital expenditures of about $100 million.
Ashland makes additives and specialty ingredients used in pharmaceuticals, personal care, architectural coatings and other consumer-focused markets.
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