ASH · Ashland Inc.

Revenue Growth Driven by FX and Personal Care Volume

Profitability Squeezed by Operational Disruptions and Higher Costs

Gross profit remained flat at $147 million, resulting in a gross margin of 30.5%. Operating income decreased 23.5% to $39 million from $51 million in the prior year quarter. The decline was primarily due to higher costs, including the continued effects of plant optimization costs, Calvert City startup delays, and weather disruptions, as well as unfavorable price/mix, partially offset by higher volume and favorable foreign currency exchange. Net income fell 48.4% to $16 million, and diluted earnings per share decreased 47.7% to $0.34, reflecting the lower operating income and higher net interest expense.

Cash Flow and Capital Allocation

Outlook and Strategic Initiatives

Ashland continues to navigate a challenging operating environment, with construction expected to remain a year-over-year headwind as the company actively manages product mix toward higher-value, pharma-grade applications. The company remains focused on cost management and operational efficiency to mitigate the impact of disruptions and support long-term growth.