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Mar 31, 2025
Ashland Q2 2025 Earnings Report
Ashland reported second quarter fiscal 2025 results and revised full-year outlook
Key Takeaways
Ashland reported a decrease in sales and net income in the second quarter of fiscal year 2025 compared to the prior year, significantly impacted by portfolio optimization initiatives. Despite a mixed demand environment, the company saw momentum in its cost savings program and anticipates accelerated financial impact from cost reduction and manufacturing optimization initiatives in the second half of the fiscal year.
Sales decreased by 17% to $479 million, with portfolio optimization initiatives accounting for a 12% reduction.
Net income was $31 million, down from $120 million in the prior year.
Adjusted EBITDA decreased by 14% to $108 million, with portfolio optimization contributing to a 10% decline.
Cash flows provided by operating activities were $9 million, a decrease from $54 million in the prior year.
Revenue by Segment
Forward Guidance
Ashland adjusted its full-year fiscal 2025 outlook, projecting sales in the range of $1.825 billion to $1.9 billion and adjusted EBITDA in the range of $400 million to $420 million, reflecting a weakening macroeconomic environment and challenging market conditions.
Positive Outlook
- Anticipates flattish organic sales volume growth for the full fiscal year, with a positive inflection in the second half led by Life Sciences.
- Year-over-year pricing headwinds are expected to lessen in the second half.
- Excluding tariff impact, overall raw material costs are expected to remain generally stable year-over-year.
- Completed portfolio optimization and accelerating cost savings programs are expected to enhance business mix and improve profitability.
- End-markets generally demonstrate resilience, operating primarily in consumer-led staple markets providing inherent stability.
Challenges Ahead
- Weakening macroeconomic environment is dampening consumer sentiment and demand globally.
- Reduced consumer sentiment negatively impacting demand from Ashland’s customer base, particularly for architectural coatings.
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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