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Sep 30, 2024
Ashland Q4 2024 Earnings Report
Ashland's Q4 2024 financial performance reflected a sales increase and significant profitability growth driven by volume recovery and portfolio optimization.
Key Takeaways
Ashland reported a one percent increase in sales to $522 million for the fourth quarter of fiscal year 2024. Net income rose to $16 million, and adjusted EBITDA increased by 68 percent to $124 million, primarily due to sales and production volume recovery, improved product mix, and deflationary raw materials. The company issued its outlook for full-year fiscal 2025 and provided an update on portfolio optimization.
Sales increased by one percent to $522 million compared to the prior-year quarter.
Net income improved to $16 million, up from a net loss of $4 million in the prior-year quarter.
Adjusted EBITDA increased by 68 percent to $124 million, driven by volume recovery and improved product mix.
The company repurchased 1.7 million shares and has $620 million remaining under its share repurchase authorization.
Ashland
Ashland
Ashland Revenue by Segment
Revenue by Segment
Life Sciences Revenue
CapyFin.comPersonal Care Revenue
CapyFin.comSpecialty Additives Revenue
CapyFin.comIntermediates Revenue
CapyFin.com Forward Guidance
For fiscal year 2025, Ashland expects sales to be in the range of $1.90 billion to $2.05 billion, and Adjusted EBITDA to be in the range of $430 million to $470 million.
Positive Outlook
- Continued geopolitical and economic uncertainty results in lower overall growth in most regions.
- China’s economy will remain challenged for the fiscal year, especially the property market.
- Increased competitive intensity in China and several export markets result in volume growth being partially offset by additional price erosion.
- +$45 million in improved first-half absorption when compared to inventory actions in fiscal 2024.
- +$20 million in realized cost reduction actions.
Challenges Ahead
- ($30) million from reduced earnings and stranded costs from our nutraceuticals sale and other portfolio optimization actions.
- ($20) million in negative price carryover from fiscal year 2024.
- For Avoca, Ashland exited an unprofitable tolling operation and will sell or close the remaining sclareolide business; ($15) million year-over-year EBITDA erosion.
- ($10) million in variable incentive reset.
- Continued geopolitical and economic uncertainty results in lower overall growth in most regions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income