Ashland Inc. Q1 FY2026 earnings call

• Strategic priorities include Execute, Globalize, and Innovate. - Execution of cost actions and disciplined cost management across segments. - Progress on Globalize and Innovate platforms with incremental sales towards goals. - Operational impacts from Calvert City outage and weather-related events, with recovery efforts underway. - Continued innovation progress across various product lines and segments.

Life Sciences: Sales were $139 million, up 4% from the prior year, driven by resilient pharma demand. Adjusted EBITDA was $31 million, up 11% year-over-year, with margins expanding to 22.3%. Intermediates: Sales were $31 million, down 6% versus last year. Adjusted EBITDA was $1 million, down from $6 million in the prior year, with margins declining to 3.2%. Personal Care: Sales were $123 million, down 8% year-over-year (largely due to Evoqua divestiture). Adjusted EBITDA was $26 million compared to $30 million in the prior year. Specialty Additives: Sales were $102 million, down 11% year-over-year. Adjusted EBITDA was $15 million, up 15% from the prior year, with margins improving to 14.7%.

• Fiscal 2026 adjusted EBITDA range narrowed to $400 million to $420 million. - Impact of Calvert City unit start-up delay and weather-related disruptions expected to affect Q2, with recovery timing challenging. - Expect second-half weighted performance, with Globalize and Innovate expected to drive growth above underlying markets. - $30 million total cost savings target remains on track.

• Delays in Calvert City unit start-up extending into Q2. - Weather-related outages resulting in incremental costs. - Ongoing demand softness in coatings and construction, particularly in China and select export markets. - Uncertainties around global trade issues and regional market dynamics.

Q: Specifically on Personal Care, can you talk about customer outages impacting demand?

A: In Personal Care, there were unplanned customer outages in North America, which were temporary and recoverable. Excluding these, the business would have been up low single digits.

Q: On China coatings demand, is there a line of sight to the bottom?

A: China coatings demand is expected to ease in the second half following Q2, with efforts on commercial discipline, productivity, and innovation to address the situation.

Q: In Life Sciences, break down growth algo and effect of BPND?

A: Life Sciences expects healthy growth from resilient pharma demand and momentum in Innovate and Globalize pillars. BPND has stabilized, with contract negotiations in Europe aligned with expectations.

Q: On injectable launches and new product ramp-up time?

A: New product ramp-up time varies by product line, with pharma products involving long pipelines and personal care products depending on customer approval and launch timelines.