Ashland Inc. Faces Weather Headwinds in Q1, Updates Full-Year Guidance

Ashland Inc. (ASH) released its first-quarter earnings results, revealing a significant improvement in losses compared to the prior year, alongside updated guidance for fiscal year 2026 that reflects temporary weather-related disruptions affecting the second quarter.

Q1 Results: Reduced Losses and Earnings Performance

The company reported a net loss of $12 million, or $0.26 per share, a marked improvement from the prior year’s loss of $165 million, or $3.50 per share. The prior year’s results had been substantially impacted by non-cash impairment charges related to the Avoca business, a divestiture that has since been completed. Adjusted income from continuing operations, excluding intangibles amortization, came in at $0.26 per share, slightly below the prior-year figure of $0.28 per share and meeting analyst expectations of $0.25 per share for the quarter.

Revenue Decline Reflects Portfolio Adjustment and Organic Headwinds

First-quarter sales reached $386 million, declining 5% from $405 million in the comparable prior-year period. The Avoca divestiture accounted for approximately $10 million, or 2% of the sales reduction. Adjusting for this portfolio action, organic sales declined 3% year-over-year. Business segment performance was decidedly mixed: Life Sciences demonstrated solid expansion, while both Personal Care and Specialty Additives experienced declines that outweighed the growth in Life Sciences. This mixed performance reflects broader market dynamics and the timing of customer demand across ashland’s product portfolio.

FY2026 Guidance: Accounting for Weather Impact and Startup Delays

Ashland narrowed its full-year fiscal 2026 Adjusted EBITDA guidance to a range of $400 to $420 million. This revised forecast incorporates approximately $11 million in temporary headwinds during the second quarter, primarily from the Calvert City facility startup delay and weather-related operational disruptions. Management emphasized that these impacts are expected to be absorbed over the remainder of the fiscal year, though the precise timing of recovery remains uncertain—a factor reflected in the adjusted guidance range.

The company projects annual sales between $1.835 billion and $1.905 billion, with ongoing momentum in innovation-driven and globally-positioned product lines expected to support growth through the year. This forecast aligns closely with analyst expectations of $1.86 billion in revenue.

Stock performance reflected market sentiment: ASH closed recent regular trading at $61.56, up $0.40 or 0.65%, but retreated to $60.00 in after-hours trading, down $1.56 or 2.53%. The divergent price movements highlight investor caution regarding the weather-related uncertainties outlined in ashland’s guidance.