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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.
Revenue by Segment
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.
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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