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Mar 31, 2024
Ashland Q2 2024 Earnings Report
Ashland's financial performance in Q2 2024 reflected sales decrease but net income increase, with adjusted EBITDA exceeding outlook range.
Key Takeaways
Ashland reported Q2 2024 sales of $575 million, a 5% decrease year-over-year, but net income increased to $120 million. Adjusted EBITDA was $126 million, exceeding the previously issued outlook range. The company is experiencing demand normalization within the Personal Care and Specialty Additives segments.
Sales decreased by 5% to $575 million compared to the prior-year quarter.
Net income increased to $120 million, or $2.39 per diluted share.
Adjusted EBITDA decreased by 13% to $126 million from $145 million in the prior-year quarter.
Cash flows from operating activities totaled $54 million, with ongoing free cash flow at $4 million.
Revenue by Segment
Forward Guidance
Ashland expects flat-to-low single digit end market demand growth this year and anticipates sequential margin improvement in the second half of the fiscal year. For the fiscal third quarter, the company expects sales in the range of $560 million to $580 million and adjusted EBITDA in the range of $138 million to $148 million. For the full fiscal year, Ashland now expects sales in the range of $2.150 billion to $2.225 billion and adjusted EBITDA in the range of $470 million to $500 million.
Positive Outlook
- Stable consumer demand
- Lower inventories in the value chain
- Order patterns indicating demand normalization
- Positioned to increase production following disciplined inventory management
- Expectation of profit momentum in the second half
Challenges Ahead
- Uncertainty regarding the pace of complete normalization
- End market growth forecasted to be resilient but modest
- Portfolio optimization actions impacting revenue
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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