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Jun 30, 2025
Ashland Q3 2025 Earnings Report
Ashland reported third quarter fiscal 2025 results, with sales down 15 percent from the prior-year quarter, primarily due to portfolio optimization initiatives and a significant net loss driven by a non-cash goodwill impairment charge.
Key Takeaways
Ashland reported a challenging third quarter of fiscal year 2025, with sales declining 15% to $463 million, largely impacted by portfolio optimization initiatives. The company posted a substantial net loss of $742 million, primarily due to a $706 million non-cash goodwill impairment charge. Despite these headwinds, Ashland delivered Adjusted EBITDA generally in line with expectations, supported by strong margins from cost savings and operational discipline.
Sales decreased 15% to $463 million, with portfolio optimization initiatives accounting for a 10% reduction.
Net loss was $742 million, primarily driven by a $706 million non-cash goodwill impairment charge.
Adjusted EBITDA was $113 million, down 19% from the prior year, but generally in line with expectations.
The company narrowed its full-year fiscal 2025 outlook, expecting sales of $1.825 billion to $1.850 billion and Adjusted EBITDA of $400 million to $410 million.
Revenue by Segment
Forward Guidance
Ashland updated its full-year fiscal 2025 outlook, narrowing its sales and Adjusted EBITDA guidance ranges. The company expects sales of approximately $1.825 billion to $1.850 billion and Adjusted EBITDA in the range of $400 million to $410 million, reflecting a stable but subdued macroeconomic environment and continued caution across customer channels.
Positive Outlook
- Pharma continues to recover and show resilience.
- Personal Care is stable with early signs of company-specific momentum.
- Innovation is tracking ahead of plan.
- Early signs of recovery in 'globalize' platforms.
- Execution of high-impact self-help initiatives mitigating near-term volume pressure.
Challenges Ahead
- Muted near-term growth and cautious consumer sentiment.
- Specialty Additives and Intermediates remain under pressure.
- Current assumptions are weighted toward the lower end of the guidance range.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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