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ASH Q2 Earnings and Sales Miss on Weak Pricing, Intermediates Weakness
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Key Takeaways
ASH reported Q2 adjusted EPS of 91 cents, down 8% year over year and below estimates.
Sales rose 1% to $482M, aided by Personal Care strength but hurt by pricing pressure.
Ashland sees FY2026 sales of $1.835B-$1.87B and EBITDA between $385M-$400M.
Ashland Global Holdings Inc. (ASH - Free Report) recorded income from continuing operations of $15 million or 32 cents per share for the second quarter of fiscal 2026 (ended March 31, 2026) compared with income of $30 million or 63 cents per share in the prior-year quarter.
Barring one-time items, adjusted earnings were 91 cents per share, down 8% from the year-ago quarter figure of 99 cents. The bottom line missed the Zacks Consensus Estimate of 97 cents.
Sales were up around 1% year over year to $482 million. The top line missed the Zacks Consensus Estimate of $490.8 million. Sales for the second quarter benefited from strength in Personal Care, resilient performance in Life Sciences and stabilization in Specialty Additives, partly offset by softness in Intermediates and lower pricing across segments.
Life Sciences: Sales in the segment were flat year over year at $172 million in the reported quarter. The figure missed the Zacks Consensus Estimate of $180 million. Performance reflected higher sales volumes within pharma applications, where demand remained resilient across most regions
Personal Care: Sales in the division increased 3% year over year to $150 million. The metric missed the Zacks Consensus Estimate of $153 million. The year-over-year rise was driven by double-digit growth across the global platform, led by robust momentum in biofunctional actives, continued traction in microbial protection and strong execution across key care ingredients categories.
Specialty Additives: Sales in the segment were flat year over year at $134 million and were in line with the Zacks Consensus Estimate. Performance reflected stable volumes driven by strong execution and continued share gains in coatings and performance specialties.
Intermediates: Sales in the segment went down 5% year over year to $35 million. The figure missed the Zacks Consensus Estimate of $36.3 million. The decrease reflected stable market conditions in a trough environment, with lower BDO demand and pricing versus the prior year, as well as commercial and operating impacts related to the Calvert City outage.
ASH’s Financials
Cash and cash equivalents were $343 million at the end of the quarter, up around 12.8% sequentially. Long-term debt was $1,374 million, down roughly 0.9% from the prior quarter.
ASH’s Outlook
For fiscal 2026, Ashland expects sales to be in the range of $1.835-$1.870 billion and adjusted EBITDA to be $385-$400 million. Adjusted EPS, excluding intangible amortization, is forecast to deliver mid-to-high single-digit growth, while ongoing free cash flow conversion is targeted at roughly 50% of adjusted EBITDA, with capital expenditure of about $100 million.
ASH’s Price Performance
Shares of ASH have gained 4.3% in a year compared with a 5.9% rise in the industry.
Image Source: Zacks Investment Research
ASH’s Zacks Rank & Key Picks
ASH currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks worth a look in the basic materials space include CF Industries Holdings, Inc. (CF - Free Report) , Aris Mining Corporation (ARIS - Free Report) , and Hawkins, Inc. (HWKN - Free Report) .
CF Industries is slated to report first-quarter 2026 results on May 6. The Zacks Consensus Estimate for earnings is pegged at $2.35 per share, indicating 27.03% year-over-year growth. CF sports a Zacks Rank #1 (Strong Buy) at present.
Aris Mining is slated to report quarterly results on May 6. The Zacks Consensus Estimate for earnings is pegged at 67 cents per share, indicating 318.75% year-over-year growth. ARIS has a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Hawkins is scheduled to report fiscal fourth-quarter results on May 13. The Zacks Consensus Estimate for HWKN’s fourth-quarter earnings is pegged at 77 cents per share. HWKN currently has a Zacks Rank #2.
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ASH Q2 Earnings and Sales Miss on Weak Pricing, Intermediates Weakness
Key Takeaways
Ashland Global Holdings Inc. (ASH - Free Report) recorded income from continuing operations of $15 million or 32 cents per share for the second quarter of fiscal 2026 (ended March 31, 2026) compared with income of $30 million or 63 cents per share in the prior-year quarter.
Barring one-time items, adjusted earnings were 91 cents per share, down 8% from the year-ago quarter figure of 99 cents. The bottom line missed the Zacks Consensus Estimate of 97 cents.
Sales were up around 1% year over year to $482 million. The top line missed the Zacks Consensus Estimate of $490.8 million. Sales for the second quarter benefited from strength in Personal Care, resilient performance in Life Sciences and stabilization in Specialty Additives, partly offset by softness in Intermediates and lower pricing across segments.
Ashland Inc. Price, Consensus and EPS Surprise
Ashland Inc. price-consensus-eps-surprise-chart | Ashland Inc. Quote
ASH’s Segment Highlights
Life Sciences: Sales in the segment were flat year over year at $172 million in the reported quarter. The figure missed the Zacks Consensus Estimate of $180 million. Performance reflected higher sales volumes within pharma applications, where demand remained resilient across most regions
Personal Care: Sales in the division increased 3% year over year to $150 million. The metric missed the Zacks Consensus Estimate of $153 million. The year-over-year rise was driven by double-digit growth across the global platform, led by robust momentum in biofunctional actives, continued traction in microbial protection and strong execution across key care ingredients categories.
Specialty Additives: Sales in the segment were flat year over year at $134 million and were in line with the Zacks Consensus Estimate. Performance reflected stable volumes driven by strong execution and continued share gains in coatings and performance specialties.
Intermediates: Sales in the segment went down 5% year over year to $35 million. The figure missed the Zacks Consensus Estimate of $36.3 million. The decrease reflected stable market conditions in a trough environment, with lower BDO demand and pricing versus the prior year, as well as commercial and operating impacts related to the Calvert City outage.
ASH’s Financials
Cash and cash equivalents were $343 million at the end of the quarter, up around 12.8% sequentially. Long-term debt was $1,374 million, down roughly 0.9% from the prior quarter.
ASH’s Outlook
For fiscal 2026, Ashland expects sales to be in the range of $1.835-$1.870 billion and adjusted EBITDA to be $385-$400 million. Adjusted EPS, excluding intangible amortization, is forecast to deliver mid-to-high single-digit growth, while ongoing free cash flow conversion is targeted at roughly 50% of adjusted EBITDA, with capital expenditure of about $100 million.
ASH’s Price Performance
Shares of ASH have gained 4.3% in a year compared with a 5.9% rise in the industry.
ASH’s Zacks Rank & Key Picks
ASH currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks worth a look in the basic materials space include CF Industries Holdings, Inc. (CF - Free Report) , Aris Mining Corporation (ARIS - Free Report) , and Hawkins, Inc. (HWKN - Free Report) .
CF Industries is slated to report first-quarter 2026 results on May 6. The Zacks Consensus Estimate for earnings is pegged at $2.35 per share, indicating 27.03% year-over-year growth. CF sports a Zacks Rank #1 (Strong Buy) at present.
Aris Mining is slated to report quarterly results on May 6. The Zacks Consensus Estimate for earnings is pegged at 67 cents per share, indicating 318.75% year-over-year growth. ARIS has a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Hawkins is scheduled to report fiscal fourth-quarter results on May 13. The Zacks Consensus Estimate for HWKN’s fourth-quarter earnings is pegged at 77 cents per share. HWKN currently has a Zacks Rank #2.