WILMINGTON, DE — Specialty chemicals firm Ashland Inc. (NYSE: ASH) posted a steep third-quarter loss driven by a $706 million non-cash goodwill impairment, while reaffirming its focus on portfolio streamlining and cost discipline. The company also narrowed its full-year fiscal 2025 guidance amid continued market uncertainty.
For the quarter ending June 30, Ashland reported a net loss of $742 million, or $16.21 per diluted share, compared to net income of $6 million in the prior year. Revenue fell 15% year-over-year to $463 million, with roughly two-thirds of the decline attributable to ongoing “Portfolio Optimization” efforts. Excluding those actions, which included divesting lower-margin businesses in its Life Sciences and Personal Care segments, sales were down 5%.
Loss from continuing operations totaled $719 million, or $15.70 per diluted share, compared to income of $31 million, or $0.60 per diluted share, a year earlier. Adjusted EBITDA came in at $113 million, down 19% from $139 million last year. Excluding the $13 million impact from portfolio changes, adjusted EBITDA declined 10%.
CEO Guillermo Novo said the quarter reflected “resilient performance in a mixed demand environment” and emphasized that cost savings and disciplined execution helped preserve margins despite volume shortfalls. “These conditions underscore the importance of our sustained focus on cost savings and operational discipline,” Novo said.
Ashland continues to invest in its core business segments while implementing self-help initiatives. Cash provided by operating activities was $114 million, with $108 million in ongoing free cash flow. The company expects restructuring and network optimization efforts to yield meaningful savings in the fourth quarter and beyond.
Segment Performance
Life Sciences sales dropped 17% to $162 million, largely due to the divestiture of its Nutraceuticals business and exit from low-margin products. Pharma applications showed growth, while pricing declined modestly. Adjusted EBITDA was $54 million, down 8%, but margins held steady at 33%.
Personal Care revenue fell 16% to $147 million, impacted by the sale of the Avoca line and softness in biofunctional actives. Microbial protection faced a difficult year-over-year comparison. Adjusted EBITDA declined 20% to $41 million, with a 28% margin.
Specialty Additives generated $131 million in revenue, down 13%, reflecting continued weakness in coatings sales in China and export markets. EBITDA dropped 32% to $26 million. Ashland is consolidating its HEC manufacturing network to improve efficiency.
Intermediates sales were $33 million, down 8%, driven by lower pricing and reduced captive butanediol sales. EBITDA fell to $7 million, a 22% decline.
Revised Guidance
Ashland now expects full-year fiscal 2025 revenue of $1.825 billion to $1.850 billion and adjusted EBITDA of $400 million to $410 million. This outlook reflects muted growth expectations and persistent caution in customer spending.
Despite macroeconomic headwinds, Novo expressed confidence in the company’s trajectory. “We remain committed to driving self-help initiatives, improving our cost position, and enhancing operating consistency and efficiency,” he said.
Ashland plans to provide additional detail during its quarterly earnings call on July 31.
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