Ashland Inc. (NYSE: ASH) released its financial results for the first quarter of fiscal year 2026, reporting sales of $386 million, a five percent decrease from the prior-year quarter. The divestiture of Avoca reduced overall sales by approximately $10 million or two percent versus the prior-year quarter.
The company reported a loss from continuing operations of $14 million, or $(0.30) per diluted share. Adjusted income from continuing operations, excluding intangibles amortization expense, was $12 million, or $0.26 per diluted share. Net loss was $12 million, or $(0.26) per diluted share.
Adjusted EBITDA was $58 million, down five percent from the prior-year quarter, with the Avoca divestiture contributing to a two percent or $1 million decline. Excluding the divestiture, adjusted EBITDA declined three percent.
Cash flows provided by operating activities were $125 million, with ongoing free cash flow of $26 million. The company narrowed its full-year fiscal 2026 adjusted EBITDA guidance to $400–$420 million, reflecting approximately $11 million of temporary impacts from the Calvert City startup delay and recent weather-related disruptions, isolated to the second quarter.
In terms of segment performance, the Life Sciences segment saw sales increase to $139 million, up four percent compared to the prior-year quarter. The Personal Care segment reported sales of $123 million, a decrease of eight percent, primarily due to the divestiture of the Avoca business. Specialty Additives sales were $102 million, down eleven percent year-over-year. Intermediates sales totaled $31 million, a decrease of six percent compared to the prior-year quarter.
Ashland received a $103 million tax refund in October 2025 related to the capital loss carryback from the Nutraceuticals divestiture, providing a meaningful cash inflow that further strengthened the company’s financial position. Cash flows provided by operating activities were $125 million, up from a use of $30 million in the prior-year quarter, primarily reflecting the tax refund and working capital improvements. Ongoing free cash flow totaled $26 million, excluding the tax refund, versus negative $26 million in the prior‑year quarter, driven by the same improvements to working capital performance.
The company's financial outlook remains cautious due to temporary impacts from the Calvert City startup delay and recent weather-related disruptions, but it expects these impacts to be recoverable over time. Ashland continues to expect the year to unfold with momentum in several consumer-focused markets and ongoing progress in cost savings actions. Following these announcements, the company's shares moved -2.0%, and are now trading at a price of $62.89. Check out the company's full 8-K submission here.
