Ashland reports fourth quarter and full-year fiscal 2026 results and issues outlook for fiscal 2027

(NYSE: ASH) Ashland Inc. announced its financial results for the fourth quarter and full fiscal year 2026, as well as its outlook for fiscal 2027. Fourth-quarter sales were $498 million, up four percent from $478 million in the prior-year quarter. Sales volumes increased three percent, led by Pharma, Personal Care, Coatings, and Performance Specialties. Pricing increased two percent, offsetting raw material cost inflation, while foreign currency movements reduced sales by approximately $3 million. The company reported a net loss of $16 million for the quarter, compared to net income of $32 million in the prior-year quarter. Loss from continuing operations was $17 million, or ($0.36) per diluted share, versus income of $33 million, or $0.73 per diluted share, in the prior-year quarter. Adjusted Income from Continuing Operations Excluding Intangibles Amortization Expense was $52 million, up from $50 million, or $1.12 per diluted share versus $1.08 in the prior-year quarter. Adjusted Operating Income was $77 million, up from $71 million, and Adjusted EBITDA was $121 million, up two percent from $119 million, with an Adjusted EBITDA margin of 24.3 percent compared to 24.9 percent in the prior-year quarter. Cash flows provided by operating activities were $90 million, up from $40 million, and Ongoing Free Cash Flow totaled $74 million versus $52 million in the prior-year quarter, representing a conversion of 61 percent versus 44 percent. Life Sciences segment sales were $180 million, up four percent, with pharma sales increasing approximately six percent and Adjusted EBITDA rising to $64 million from $55 million. Personal Care sales were $163 million, up eight percent, with Adjusted EBITDA of $49 million, up from $43 million. Specialty Additives sales were $131 million, with Coatings sales up nine percent and Performance Specialties up fourteen percent; Adjusted EBITDA was $20 million, down from $29 million. Intermediates sales totaled $33 million, with Adjusted EBITDA of $6 million, up from $5 million. Unallocated and other expense was $44 million, compared to $11 million in the prior-year quarter. For fiscal year 2026, sales were $1.863 billion, up two percent from $1.824 billion, and net income was $4 million compared to a net loss of $845 million in the prior year. Income from continuing operations was $25 million, or $0.55 per diluted share, versus a loss of $822 million, or ($17.74) per diluted share, in fiscal 2025. Adjusted Income from Continuing Operations Excluding Intangibles Amortization Expense was $153 million, or $3.31 per diluted share, compared to $157 million, or $3.38 per diluted share, in the prior year. Adjusted EBITDA was $385 million, compared to $401 million, and cash flow from operating activities was $385 million, up from $134 million. Ongoing Free Cash Flow was $232 million, up from $127 million. Ashland ended fiscal 2026 with approximately $480 million of cash, $976 million of total liquidity, and net debt of $891 million. Net leverage was 2.3x. The company’s Globalize and Innovate initiatives each generated approximately $26 million of incremental sales, exceeding their respective targets of $20 million and $15 million. For fiscal 2027, Ashland is guiding for sales of $1,905 million to $1,975 million, Adjusted EBITDA of $405 million to $435 million, and Ongoing Free Cash Flow Conversion greater than 40 percent of Adjusted EBITDA.