Ashland Q1 revenue misses expectations, hurt by Avoca divestiture

Overview

• Global additives firm's Q1 revenue fell 5% yr/yr, missing analyst expectations

• Adjusted EBITDA for Q1 declined 5%, impacted by Avoca divestiture and Calvert City outage

• Company narrowed full-year fiscal 2026 adjusted EBITDA guidance due to temporary impacts

Outlook

• Ashland narrows full-year fiscal 2026 Adjusted EBITDA guidance to $400 mln–$420 mln

• Company expects resilient demand in Life Sciences and Personal Care

• Specialty Additives markets remain mixed; coatings recovery expected to be uneven

Result Drivers

• AVOCA DIVESTITURE - Reduced sales and adjusted EBITDA by 2%, with a 3% decline excluding this impact

• CALVERT CITY OUTAGE - Negatively impacted adjusted EBITDA by approximately $10 million

• SPECIALTY ADDITIVES CHALLENGES - Weak demand in coatings and construction markets affected sales

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the diversified chemicals peer group is "buy"

• Wall Street's median 12-month price target for Ashland Inc is $67.65, about 10.6% above its January 30 closing price of $61.16

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nGNX88tc3Q

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