Ashland Inc. Reports $135 Million Net Loss and 15.6% Revenue Decline for Six Months Ended March 31, 2025

Ashland Inc. reported a net loss of $135 million for the six months ended March 31, 2025, compared to a net income of $147 million for the same period in the previous year. The company's diluted earnings per share from continuing operations was $(2.91), a significant decline from $2.95 in the prior year. Total revenue for the six months was $884 million, down from $1.048 billion, reflecting a decrease of 15.6%. The decline in revenue was attributed to divestitures, lower sales volumes, and unfavorable pricing, which were partially offset by improved production costs and reduced selling, administrative, and research expenses.

In terms of operational changes, Ashland completed the sale of its Avoca business for approximately $16 million in March 2025, which was part of its Personal Care segment. This transaction did not qualify for discontinued operations treatment as it did not represent a strategic shift. The company also recorded an impairment charge of $183 million for the six months ended March 31, 2025, primarily related to this divestiture. Additionally, Ashland initiated a restructuring plan aimed at optimizing its operations and offsetting the impact of previous divestitures, which included accelerated depreciation costs of $13 million for the Life Sciences segment.

Ashland's reportable segments showed varied performance. The Life Sciences segment generated $306 million in sales, down from $422 million, while the Personal Care segment reported $279 million, a slight decrease from $298 million. The Specialty Additives segment saw sales drop to $249 million from $279 million, and the Intermediates segment reported $71 million, down from $73 million. The overall operating income for the company was $51 million, a recovery from a loss of $128 million in the previous year, driven by cost reductions and improved operational efficiencies.

Looking ahead, Ashland anticipates a challenging macroeconomic environment, with expectations of flat organic sales volume growth for the full fiscal year. The company projects sales in the range of $1.825 billion to $1.9 billion and adjusted EBITDA between $400 million and $420 million. Ashland is closely monitoring global trade policies and tariffs, which may impact its operations and financial performance. The company remains focused on strategic priorities, including portfolio optimization and cost-saving initiatives, to enhance profitability in the coming quarters.