8 unchanged sentences
With approximately 2,960 employees worldwide, Ashland serves customers in more than 100 countries.
−Removed: Ashland’s sales generated outside of North America were 72% for both the three and six months ended March 31, 2025, and 69% and 68% for the three and six months ended March 31, 2024, respectively.
+Added: Ashland’s sales generated outside of North America were 73% and 72% for the three and nine months ended June 30, 2025, respectively, and 69% and 68% for the three and nine months ended June 30, 2024, respectively.
Sales by region expressed as a percentage of total consolidated sales were as follows:
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−Removed: Six months ended
+Added: Nine months ended
Sales by Geography
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+Added: Nine months ended
Sales by Reportable Segment
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Uncertainty related to tariffs and global trade policy changes
−Removed: The March quarter saw increased regulatory activity, including the imposition of tariffs and evolving global trade policies, which have resulted in retaliatory measures on U.S.
+Added: The first nine months of the fiscal year saw increased regulatory activity, including the imposition of tariffs and evolving global trade policies, which have resulted in retaliatory measures on U.S.
The extent and duration of the tariffs and the resulting impact on general economic conditions and on Ashland are uncertain and depend on various factors, such as negotiations between the U.S.
and affected countries, the responses of other countries or regions, exemptions that may be granted, availability and cost of alternative sources of supply and demand for Ashland's products in affected markets.
−Removed: Additionally, the uncertainty about trade policy, tariff rates, and other changes in practices affecting international trade, including whether such tariffs or other measures will be withdrawn, or modified in the future, may make it difficult to operate optimally.
+Added: Additionally, the uncertainty about trade policy, tariff rates, and other changes in practices affecting international trade, including whether such tariffs or other measures will be
+Added: withdrawn, or modified in the future, may make it difficult to operate optimally.
Ashland continues to monitor the rapidly evolving tariff and global trade policies and is working to mitigate potential impacts on its business.
−Removed: Uncertainty relating to the ongoing Ukraine/Russia and Israel/Hamas conflicts
−Removed: Business disruptions, including those related to the ongoing conflicts between Ukraine/Russia or Israel/Hamas continue to impact businesses around the globe.
+Added: Uncertainty relating to the ongoing Israel/Iran, Ukraine/Russia and Israel/Hamas conflicts
+Added: Business disruptions, including those related to the ongoing conflicts between Israel/Iran, Ukraine/Russia and Israel/Hamas continue to impact businesses around the globe.
While it is impossible to predict the effects of the conflicts such as possible escalating geopolitical tensions (including the imposition of existing and additional sanctions by the U.S.
1 unchanged sentence
Ashland is closely monitoring these situations and maintains business continuity plans that are intended to continue operations or mitigate the effects of events that could disrupt its business.
−Removed: Ashland does not have manufacturing operations in Russia, Ukraine, or Belarus.
+Added: Ashland does not have manufacturing operations in Iran, Israel, Russia, Ukraine, or Belarus.
Ashland sells (or previously sold) additives and specialty ingredients to manufacturers in these countries for their use in pharmaceuticals, personal care, and coatings applications.
1 unchanged sentence
We have sales controls in place to ensure that future potential sales into the region are only to support critical pharmaceutical or personal hygiene products which are essential for the general population and in accordance with any applicable sanctions.
−Removed: Sales to Ukraine, Russia, and Belarus represent less than 1% of total consolidated sales and less than 1% of total consolidated assets (related to accounts receivable).
−Removed: Ashland does not have manufacturing operations in Israel.
−Removed: Sales to Israel represent approximately 1% of total consolidated sales and less than 1% of total consolidated assets (related to accounts receivable).
+Added: Sales to Israel, Ukraine, Russia, and Belarus represent less than 1% of total consolidated sales and less than 1% of total consolidated assets (related to accounts receivable).
Restructuring programs
−Removed: As previously announced, Ashland initiated a new $30 million pre-tax restructuring plan to offset the impact from the Nutraceuticals sale, completed in fiscal 2024, and other portfolio optimization actions, which are expected to be realized 50 percent in fiscal 2025 and 50 percent in fiscal 2026.
+Added: As previously announced, Ashland initiated a new $30 million pre-tax restructuring plan to offset the impact from the Nutraceuticals business sale, completed in fiscal 2024, and other portfolio optimization actions, which were expected to be realized 50 percent in fiscal 2025 and 50 percent in fiscal 2026.
+Added: Ashland's current expectations include greater than 50 percent realization in fiscal 2025 of approximately $20 million.
Ashland is also advancing a multi-year manufacturing optimization restructuring plan to improve operational cost and strengthen its competitive position.
−Removed: This optimization plan is expected to generate pre-tax savings of $60 million once fully achieved, including savings of $5 million in fiscal 2025.
+Added: This optimization plan is expected to generate pre-tax savings of $60 million once fully achieved, including savings of approximately $5 million in fiscal 2025.
Ashland is also continuing to execute its fiscal 2024 portfolio and plant optimization actions to further strengthen Ashland’s resilience and improve margins and returns.
These previously announced actions include initiatives focused on carboxymethylcellulose (CMC), methylcellulose (MC), Nutraceuticals and Avoca Portfolio Optimization (collectively, Portfolio Optimization).
−Removed: Overall, these portfolio optimization actions reduced sales and operating income (loss) by approximately $67 million and $9 million, respectively, for the three months ended March 31, 2025 and approximately $117 million and $14 million, respectively, for the six months ended March 31, 2025 as compared to the prior year.
−Removed: Adjusted EBITDA was also reduced by $13 million and $21 million for the three and six months ended March 31, 2025, respectively, as compared to the prior year.
+Added: Overall, these portfolio optimization actions reduced sales and operating loss by approximately $53 million and $8 million, respectively, for the three months ended June 30, 2025 and approximately $170 million and $22 million, respectively, for the nine months ended June 30, 2025 as compared to the prior year.
+Added: Adjusted EBITDA was also reduced by $13 million and $34 million for the three and nine months ended June 30, 2025, respectively, as compared to the prior year.
The following table summarizes the expense impact of these restructuring actions:
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+Added: Nine months ended
(In millions)
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(a) Recorded within the cost of sales caption within the Statements of Condensed Consolidated Comprehensive Income (Loss).
−Removed: (b) Recorded within the selling, general and administrative caption within the Statements of Condensed Consolidated Comprehensive Income (Loss).
+Added: (b) Recorded within the selling, general and administrative expense caption within the Statements of Condensed Consolidated Comprehensive Income (Loss).
Avoca business sale
3 unchanged sentences
Ashland determined this transaction did not qualify for discontinued operations treatment since it neither represented a strategic shift nor did it have a major effect on Ashland's operations and financial results.
−Removed: Ashland recorded an impairment charge of zero for the three months ended March 31, 2025 and $183 million ($1 million allocated to goodwill, $134 million to other intangible assets, $33 million to property, plant and equipment, $14 million to operating lease assets, net and $1 million to other current assets) for the six months ended March 31, 2025, within the income (loss) on acquisitions and divestitures, net caption of the Statements of Condensed Consolidated Comprehensive Income (Loss).
−Removed: The tax benefit associated with the sale is included within the income tax expense (benefit) caption of the Statements of Condensed Consolidated Comprehensive Income (Loss) for the three and six months ended March 31, 2025.
−Removed: See Note J of the Notes to the Condensed Consolidated Financial Statements for additional details.
−Removed: Ashland also recorded a pre-tax gain on sale of $8 million following the completion of this sale, mainly related to working capital movements, within the income (loss) on acquisitions and divestitures, net caption of the Statements of Condensed Consolidated Comprehensive Income (Loss) for the three and six months ended March 31, 2025.
+Added: Ashland recorded an impairment charge of $183 million ($1 million allocated to goodwill, $134 million to other intangible assets, $33 million to property, plant and equipment, $14 million to operating lease assets, net and $1 million to other current assets) for the nine months ended June 30, 2025, within the loss on acquisitions and divestitures, net caption of the Statement of Condensed Consolidated Comprehensive Income (Loss).
+Added: The tax benefit associated with the sale is included within the income tax expense (benefit) caption of the Statement of Condensed Consolidated Comprehensive Income (Loss) for the nine months ended June 30, 2025.
+Added: See Note J of the Notes to the Condensed Consolidated Financial Statements for tax details associated with the transaction.
+Added: Ashland also recorded a pre-tax gain on sale of $8 million following the completion of this sale, mainly related to working capital movements, within the loss on acquisitions and divestitures, net caption of the Statements of Condensed Consolidated Comprehensive Income (Loss) for the nine months ended June 30, 2025.
+Added: Goodwill impairment
+Added: During the third quarter fiscal 2025, Ashland experienced a continued decline in the market price of its Common
+Added: Ashland also experienced slowing growth due to weakening macroeconomic environment that is dampening consumer sentiment and demand globally which resulted in lower growth and lower margins for the Life Sciences and Specialty Additives reportable segments (and reporting units) than what was previously reported.
+Added: These factors led Ashland to determine that triggering events occurred, and a quantitative goodwill impairment assessment was performed during the three months ended June 30, 2025.
+Added: Following the aforementioned quantitative analysis, the carrying value of the Life Sciences and the Specialty Additives reporting units exceeded their fair value, resulting in non-cash goodwill impairment charges of $375 million and $331 million, respectively, for a total goodwill impairment charge of $706 million, which was recorded during the three and nine months ended June 30, 2025, within the goodwill impairment caption of the Statements of Condensed Consolidated Comprehensive Income (Loss) for the both three and nine months ended June 30, 2025.
+Added: No subsequent indicators of impairment have been identified.
RESULTS OF OPERATIONS – CONSOLIDATED REVIEW
2 unchanged sentences
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−Removed: Six months ended
+Added: Nine months ended
(In millions except per share data)
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Diluted earnings per share income (loss) from continuing operations (a)
−Removed: Operating income (loss)
+Added: Operating loss
Adjusted EBITDA (b)
Adjusted Diluted EPS from Continuing Operations Excluding Intangibles Amortization Expense (b)
−Removed: (a) As a result of the loss from continuing operations attributable to Ashland during the six months ended March 31, 2025, the effect of the share-based awards convertible to common stock would be antidilutive and have been excluded from the diluted EPS calculation.
+Added: (a) As a result of the loss from continuing operations attributable to Ashland during the three and nine months ended June 30, 2025, the effect of the share-based awards convertible to common stock would be antidilutive and have been excluded from the diluted EPS calculation.
(b) These are non-GAAP financial measures.
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Business results current quarter
−Removed: Ashland's net income of $31 million ($0.65 diluted earnings per share) and $120 million ($2.39 diluted earnings per share) included income from discontinued operations of $1 million ($0.02 diluted earnings per share) and a loss from discontinued operations of $1 million (loss of $0.01 diluted earnings per share) in the three months ended March 31, 2025 and 2024, respectively.
−Removed: Results for Ashland’s continuing operations, diluted earnings per share from continuing operations and operating income for the three months ended March 31, 2025 and 2024 included certain key items that were excluded to arrive at Adjusted EBITDA and are quantified in the “Use of Non-GAAP Financial Measures” section below.
−Removed: These pre-tax key items totaled expense of $6 million and $42 million for the three months ended March 31, 2025 and 2024, respectively, impacting continuing operations.
−Removed: Continuing operations was also impacted by favorable tax specific key items for discrete tax items totaling $1 million and $105 million for the three months ended March 31, 2025 and 2024, respectively.
−Removed: Excluding these key items, the decrease in continuing operations, diluted earnings per share from continuing operations and operating income was primarily driven by portfolio optimization actions, which includes volume impacts, and lower organic sales.
−Removed: This was partially offset by favorable production costs and lower selling, administrative, research and development costs.
+Added: Ashland's net loss of $742 million (loss of $16.21 diluted earnings per share) and income of $6 million ($0.12 diluted earnings per share) included loss from discontinued operations of $23 million (loss of $0.51 diluted earnings per share) and a loss from discontinued operations of $25 million (loss of $0.48 diluted earnings per share) in the three months ended June 30, 2025 and 2024, respectively.
+Added: Results for Ashland’s continuing operations, diluted earnings per share from continuing operations and operating loss for the three months ended June 30, 2025 and 2024 included certain key items that were excluded to arrive at Adjusted EBITDA and are quantified in the “Use of Non-GAAP Financial Measures” section below.
+Added: These pre-tax key items totaled expense of $754 million and $147 million for the three months ended June 30, 2025 and 2024, respectively, impacting continuing operations, including a non-cash goodwill impairment charge of $706 million in the current quarter ($375 million for the Life Sciences and $331 million for the Specialty Additives reportable segments).
+Added: Continuing operations was also impacted by unfavorable tax specific key items for discrete tax items totaling $13 million and favorable tax specific key items for discrete tax items totaling $106 million for the three months ended June 30, 2025 and 2024, respectively.
+Added: Excluding these key items, the decrease in continuing operations, diluted earnings per share from continuing operations and operating loss was primarily driven by portfolio optimization actions, lower volume, and unfavorable production costs.
+Added: This was partially offset by lower selling, administrative, research and development costs.
In addition, diluted earnings per share from continuing operations was also impacted by common stock reductions from repurchases of Ashland common stock over the last twelve months.
−Removed: These common stock repurchases reduced the number of weighted average shares from 51 million diluted shares at March 31, 2024 to 47 million diluted shares at March 31, 2025.
−Removed: Ashland’s Adjusted EBITDA was $108 million for the three months ended March 31, 2025 compared to $126 million for the three months ended March 31, 2024 (see U.S.
+Added: These common stock repurchases reduced the number of weighted average shares from 51 million diluted shares at June 30, 2024 to 46 million diluted shares at June 30, 2025.
+Added: Ashland’s Adjusted EBITDA was $113 million for the three months ended June 30, 2025 compared to $139 million for the three months ended June 30, 2024 (see U.S.
GAAP reconciliation under “Use of Non-GAAP Financial Measures” below).
−Removed: The $18 million decrease in Adjusted EBITDA was primarily driven by portfolio optimization actions, which includes volume impacts, and lower organic sales.
−Removed: This was partially offset by favorable production costs and lower selling, administrative, research and development costs.
+Added: The $26 million decrease in Adjusted EBITDA was primarily driven by portfolio optimization actions, lower volume, and unfavorable production costs.
+Added: This was partially offset by lower selling, administrative, research and development costs.
Adjusted Diluted EPS from Continuing Operations (non-GAAP) Excluding Intangibles Amortization Expense was also impacted by these key factors along with the impact of common stock repurchases noted above.
2 unchanged sentences
A comparative analysis of the Statements of Condensed Consolidated Comprehensive Income (Loss) by caption is provided as follows:
−Removed: Three months ended March 31
−Removed: Six months ended March 31
+Added: Three months ended June 30
+Added: Nine months ended June 30
(In millions)
−Removed: The following table provides a reconciliation of the change in sales for the three and six months ended March 31, 2025 and 2024:
+Added: The following table provides a reconciliation of the change in sales for the three and nine months ended June 30, 2025 and 2024:
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−Removed: Six months ended
+Added: Nine months ended
(In millions)
−Removed: March 31, 2025
−Removed: March 31, 2025
+Added: June 30, 2025
+Added: June 30, 2025
Foreign currency exchange
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Current Quarter - Sales for the current quarter decreased $81 million compared to the prior year quarter.
−Removed: The decrease was driven by the unfavorable impact of divestitures, lower volume, unfavorable pricing and unfavorable foreign currency exchange.
−Removed: Portfolio optimization initiatives had an approximate $67 million impact on sales compared to the prior year quarter, primarily within divestiture and volume caption changes.
+Added: The decrease was driven by the unfavorable impact of divestitures, lower volume, and unfavorable pricing which was
+Added: partially offset by favorable foreign currency exchange.
+Added: Portfolio optimization initiatives had an approximate $53 million impact on sales in the current quarter compared to the prior year quarter, primarily within divestitures and volume caption changes.
Year-to-date - Sales for the current year decreased $244 million compared to the prior year period.
−Removed: The decrease was driven by the unfavorable impact of divestitures, lower volume, unfavorable pricing and unfavorable foreign currency exchange.
−Removed: Portfolio optimization initiatives had an approximate $117 million impact on sales compared to the prior year period, primarily within divestiture and volume caption changes.
−Removed: Three months ended March 31
−Removed: Six months ended March 31
+Added: The decrease was driven by the unfavorable impact of divestitures, lower volume, and unfavorable pricing.
+Added: Portfolio optimization initiatives had an approximate $170 million impact on sales in the current year period compared to the prior year period, primarily within divestitures and volume caption changes.
+Added: Three months ended June 30
+Added: Nine months ended June 30
(In millions)
1 unchanged sentence
Gross profit as a percent of sales
−Removed: The following table provides a reconciliation of the change in cost of sales between the three and six months ended March 31, 2025 and 2024:
+Added: The following table provides a reconciliation of the change in cost of sales between the three and nine months ended June 30, 2025 and 2024:
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+Added: Nine months ended
(In millions)
−Removed: March 31, 2025
−Removed: March 31, 2025
+Added: June 30, 2025
+Added: June 30, 2025
Cost of sales change
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Current Quarter - Cost of sales for the current quarter decreased $27 million compared to the prior year quarter.
−Removed: The decrease was primarily driven by the favorable impact of divestitures, lower sales volume, lower operating costs, and favorable foreign exchange currency, partially offset by unfavorable pricing.
−Removed: The current period operating costs were affected by $13 million of accelerated depreciation for product line optimization activities at a Life Sciences manufacturing plant and $6 million of other plant optimization costs while the prior year quarter included $27 million of accelerated depreciation for product line optimization activities at two Speciality Additives manufacturing plants and $1 million of other plant optimization costs.
−Removed: Gross profit as a percentage of sales increased 2.7% primarily due to production volume recovery versus inventory corrective actions and decreased accelerated depreciation compared to the prior year quarter.
+Added: The decrease was primarily driven by the favorable impact of divestitures, lower sales volume, and favorable pricing, partially offset by higher operating costs and unfavorable foreign exchange currency.
+Added: The current period operating costs were affected by $27 million of accelerated depreciation for product line optimization activities at manufacturing facilities within the Life Sciences, Personal Care and Specialty Additives reportable segments and $3 million of other plant optimization costs while the prior year quarter included $8 million of accelerated depreciation for product line optimization activities at two Speciality Additives manufacturing plants and one Personal Care manufacturing plant, and $4 million of other plant optimization costs.
+Added: Gross profit as a percentage of sales decreased 5.7% primarily due to lower sales volume, higher operating costs and increased accelerated depreciation compared to the prior year quarter.
Year-to-date - Cost of sales for the current year decreased $190 million compared to the prior year period.
−Removed: The decrease was primarily driven by the favorable impact of divestitures, lower operating costs, lower sales volume, and favorable foreign exchange currency, partially offset by unfavorable pricing.
−Removed: The current period operating costs were affected by $13 million of accelerated depreciation for product line optimization activities at a Life Sciences manufacturing plant and $9 million of other plant optimization costs while the prior year period included $49 million of accelerated depreciation for product line optimization activities at two Speciality Additives manufacturing plants and $1 million of other plant optimization costs.
+Added: The decrease was primarily driven by the favorable impact of divestitures, lower sales volume, and lower operating costs, partially offset by unfavorable pricing.
+Added: The current period operating costs were affected by $40 million of accelerated depreciation for product line optimization activities at manufacturing facilities within the Life Sciences, Personal Care and Specialty Additives reportable segments and $12 million of other plant optimization costs while the prior year period included $56 million of accelerated depreciation for product line optimization activities at two Speciality Additives manufacturing plants and one Personal Care manufacturing plant, and $5 million of other plant optimization costs.
Gross profit as a percentage of sales increased 1.1% primarily due to production volume recovery versus inventory corrective actions and decreased accelerated depreciation compared to the prior year period.
−Removed: Three months ended March 31
−Removed: Six months ended March 31
+Added: Three months ended June 30
+Added: Nine months ended June 30
(In millions)
1 unchanged sentence
As a percent of sales
−Removed: Current Quarter - Selling, general and administrative expense for the current quarter decreased $21 million compared to the prior year quarter with expenses as a percent of sales decreasing 0.7%.
+Added: Current Quarter - Selling, general and administrative expense for the current quarter decreased $8 million compared to the prior year quarter with expenses as a percent of sales increasing 1.9%.
Key drivers of the fluctuation in selling, general and administrative expense compared to the prior year quarter were:
1 unchanged sentence
• Expense of $7 million and $3 million comprised of key items for severance, lease abandonment and other restructuring costs during the current and prior year quarter, respectively;
−Removed: • Lower stock-based compensation expense, favorable currency exchange and the favorable impact of divestitures between periods.
+Added: • Lower variable compensation expense, the favorable impact of divestitures, and realized cost reductions associated with restructuring actions partially offset by unfavorable currency exchange between periods.
Year-to-date - Selling, general and administrative expense for the current year decreased $35 million compared to the prior year period with expenses as a percent of sales increasing 0.9%.
Key drivers of the fluctuation in selling, general and administrative expense compared to the prior year period were:
−Removed: • $3 million and $7 million in net environmental-related expenses during the current and prior year quarter, respectively (see Note L of the Notes to the Condensed Consolidated Financial Statements for more information);
−Removed: • Expense of $11 million and $24 million comprised of key items for severance, lease abandonment and other restructuring costs during the current and prior year quarter, respectively;
+Added: • $33 million and $41 million in net environmental-related expenses during the current and prior year period, respectively (see Note L of the Notes to the Condensed Consolidated Financial Statements for more information);
+Added: • Expense of $18 million and $28 million comprised of key items for severance, lease abandonment and other restructuring costs during the current and prior year period, respectively;
• A $5 million charge associated with the impact of a currency devaluation in Argentina in the prior period;
−Removed: • Favorable currency exchange and the favorable impact of divestitures between periods.
−Removed: Three months ended March 31
−Removed: Six months ended March 31
+Added: • Lower variable compensation expense, the favorable impact of divestitures, and the realized cost reductions associated with restructuring actions between periods.
+Added: Three months ended June 30
+Added: Nine months ended June 30
(In millions)
Research and development expense
−Removed: Current Quarter - Research and development expense is generally consistent with the prior year quarter.
+Added: Current Quarter - Research and development expense decreased mostly due to lower incentive compensation.
Year-to-date - Research and development expense is generally consistent with the prior year period.
−Removed: Three months ended March 31
−Removed: Six months ended March 31
+Added: Three months ended June 30
+Added: Nine months ended June 30
(In millions)
Intangibles amortization expense
−Removed: Current Quarter - The lower intangibles amortization expense in the current quarter is driven by the impact of amortization related to the divested Avoca business in the current quarter and Nutraceuticals business in the prior year quarter.
+Added: Current Quarter - The lower intangibles amortization expense in the current quarter is driven by the impact of amortization related to the divested Avoca business in the prior quarter and Nutraceuticals business in the prior year quarter.
Year-to-date - The lower intangibles amortization expense in the current year is driven by the impact of amortization related to the divested Avoca business in the current year and Nutraceuticals business in the prior year period.
−Removed: Three months ended March 31
−Removed: Six months ended March 31
+Added: Three months ended June 30
+Added: Nine months ended June 30
(In millions)
1 unchanged sentence
Current Quarter - Equity and other income was zero for the current and prior year quarter.
−Removed: Year-to-date - Equity and other income is generally consistent with the prior year period.
−Removed: Three months ended March 31
−Removed: Six months ended March 31
+Added: Year-to-date - Equity and other income is lower than the prior year period, which included $2 million in China subsidies.
+Added: Three months ended June 30
+Added: Nine months ended June 30
(In millions)
−Removed: Income (loss) on acquisitions and divestitures, net
−Removed: Current Quarter - Ashland recorded a pre-tax gain on sale of $8 million associated with the sale of the Avoca business and a pre-tax gain on sale of a land property of $11 million during the current period.
−Removed: Additionally, Ashland incurred $1 million of charges related to the Nutraceuticals business sale completed in fiscal 2024.
+Added: Goodwill impairment
+Added: Current Quarter - Ashland recorded a $706 million goodwill impairment charge in the current quarter.
+Added: See Note G of the Notes to the Condensed Consolidated Financial Statements for more information.
+Added: Year-to-date - Ashland recorded a $706 million goodwill impairment charge in the current year.
+Added: See Note G of the Notes to the Condensed Consolidated Financial Statements for more information.
+Added: Three months ended June 30
+Added: Nine months ended June 30
+Added: (In millions)
+Added: Loss on acquisitions and divestitures, net
+Added: Current Quarter - The prior year quarter included $99 million of charges related to the Nutraceuticals business sale completed in fiscal 2024.
See Note B of the Notes to the Condensed Consolidated Financial Statements for more information.
1 unchanged sentence
In addition, Ashland recorded a pre-tax gain on sale of a land property of $11 million during the current year.
−Removed: Additionally, Ashland incurred $1 million of charges related
−Removed: to the Nutraceuticals business sale completed in fiscal 2024.
−Removed: Prior period primarily related to legal fees associated with ongoing divestiture activity and acquisitions related due diligence costs.
+Added: Additionally, the prior year period included $99 million of charges related to the Nutraceuticals business sale completed in fiscal 2024 as well as legal fees associated with ongoing divestiture activity and acquisitions related due diligence costs.
See Note B of the Notes to the Condensed Consolidated Financial Statements for more information.
−Removed: Three months ended March 31
−Removed: Six months ended March 31
+Added: Three months ended June 30
+Added: Nine months ended June 30
(In millions)
2 unchanged sentences
Interest income
−Removed: Expense (income) from restricted investments
+Added: Income from restricted investments
Other financing costs
−Removed: Current Quarter - Net interest and other expense (income) increased by $9 million during the current quarter compared to the prior year quarter.
−Removed: Interest expense and interest income remained primarily consistent during the current quarter compared to the prior year quarter.
−Removed: Restricted investments income of $6 million and $12 million included realized gains of $3 million compared to $9 million for the three months ended March 31, 2025 and 2024, respectively, and was the primary change between quarters.
+Added: Current Quarter - Net interest and other expense (income) decreased by $12 million during the current quarter compared to the prior year quarter.
+Added: Interest expense increased primarily related to lower capitalized interest on capital projects in the current year quarter while interest income decreased primarily due to the decrease in cash equivalents during the current quarter compared to the prior year quarter.
+Added: Restricted investments income of $22 million and $4 million included realized gains of $19 million compared to $1 million for the three months ended June 30, 2025 and 2024, respectively, and was the primary change between quarters.
See Note E of the Notes to the Condensed Consolidated Financial Statements for more information on the restricted investments.
Year-to-date - Net interest and other expense (income) increased by $48 million during the current year compared to the prior year period.
−Removed: Interest expense and interest income remained primarily consistent during the current quarter compared to the prior year quarter.
−Removed: Restricted investments expense of $7 million and income of $48 million included realized losses of $14 million compared to gains of $39 million for the six months ended March 31, 2025 and 2024, respectively, and was the primary change between periods.
+Added: Interest expense increased primarily related to lower capitalized interest on capital projects in the current year period while interest income decreased primarily due to the decrease in cash equivalents during the current year period compared to the prior year.
+Added: Restricted investments income of $15 million and $51 million included realized gains of $5 million compared to $39 million for the nine months ended June 30, 2025 and 2024, respectively, and was the primary change between periods.
See Note E of the Notes to the Condensed Consolidated Financial Statements for more information on the restricted investments.
−Removed: Three months ended March 31
−Removed: Six months ended March 31
+Added: Three months ended June 30
+Added: Nine months ended June 30
(In millions)
Other net periodic benefit loss
−Removed: Current Quarter - Other net periodic benefit loss for the three months ended March 31, 2025 primarily included interest cost of $4 million which was partially offset by expected return on plan assets of $3 million.
−Removed: Other net periodic benefit loss for the three months ended March 31, 2024 primarily included interest cost of $3 million which was partially offset by expected return on plan assets of $1 million.
+Added: Current Quarter - Other net periodic benefit loss for the three months ended June 30, 2025 primarily included interest cost of $3 million which was partially offset by expected return on plan assets of $2 million.
+Added: Other net periodic benefit loss for the three months ended June 30, 2024 primarily included interest cost of $3 million which was partially offset by expected return on plan assets of $1 million.
See Note K of the Notes to the Condensed Consolidated Financial Statements for more information.
−Removed: Year-to-date - Other net periodic benefit loss for the six months ended March 31, 2025 primarily included interest cost of $7 million and a $1 million curtailment loss partially offset by expected return on plan assets of $5 million.
−Removed: Other net periodic benefit loss for the six months ended March 31, 2024 primarily included interest cost of $8 million which was partially offset by expected return on plan assets of $4 million.
+Added: Year-to-date - Other net periodic benefit loss for the nine months ended June 30, 2025 primarily included interest cost of $10 million and a $1 million curtailment loss partially offset by expected return on plan assets of $7 million.
+Added: Other net periodic benefit loss for the nine months ended June 30, 2024 primarily included interest cost of $12 million which was partially offset by expected return on plan assets of $6 million.
See Note K of the Notes to the Condensed Consolidated Financial Statements for more information.
−Removed: Three months ended March 31
−Removed: Six months ended March 31
+Added: Three months ended June 30
+Added: Nine months ended June 30
(In millions)
2 unchanged sentences
Current Quarter - Ashland’s effective tax rate in any interim period is subject to adjustments related to discrete items and the mix of domestic and foreign operating results.
−Removed: The overall effective tax rate was 23% for the three months ended March 31, 2025 and was primarily impacted by jurisdictional income mix.
−Removed: The overall effective tax rate was a benefit of 612% for the three months ended March 31, 2024 and was primarily impacted by jurisdictional income mix, as well as net favorable discrete items of $102 million primarily related to changes in foreign tax reform related activity.
+Added: The overall effective tax rate was an expense of 2% for the three months ended June 30, 2025 and was primarily impacted by jurisdictional income mix, nondeductible goodwill impairment of $706 million charge and a net $16 million from unfavorable tax discrete items primarily related to return to provision adjustments and changes in uncertain tax positions.
+Added: The overall effective tax rate was 144% for the three months ended June 30, 2024 and was primarily impacted by jurisdictional income mix, as well as net favorable discrete items of $104 million primarily related to the tax impact of the held for sale classification for the Nutraceuticals business.
Year-to-date - Ashland’s effective tax rate in any interim period is subject to adjustments related to discrete items and the mix of domestic and foreign operating results.
−Removed: The overall effective tax rate was 20% for the six months
−Removed: ended March 31, 2025 and was primarily impacted by jurisdictional income mix as well as a net $7 million from unfavorable tax discrete items primarily related to final regulations issued in the United States during the year impacting the recognition of deferred taxes on certain unrealized foreign exchange gains and losses.
−Removed: The overall effective tax rate was a benefit of 610% for the six months ended March 31, 2024 and was primarily impacted by jurisdictional income mix, as well as net favorable discrete items of $126 million primarily related to changes in foreign tax reform related activity.
+Added: The overall effective tax rate was a benefit of 2% for the nine months ended June 30, 2025 and was primarily impacted by jurisdictional income mix, nondeductible goodwill impairment of $706 million, and a net $23 million from unfavorable tax discrete items primarily related to return to provision adjustments and changes to uncertain tax positions.
+Added: The overall effective tax rate was 467% for the nine months ended June 30, 2024 and was primarily impacted by jurisdictional income mix, as well as net favorable discrete items of $231 million primarily related to changes in foreign tax activity and the tax impact of the held for sale classification for the Nutraceuticals business.
Adjusted income tax expense (benefit)
−Removed: Key items are defined as the financial effects from significant transactions that may have caused short-term fluctuations in net income (loss) and/or operating income (loss) which Ashland believes do not accurately reflect Ashland’s underlying business performance and trends.
+Added: Key items are defined as the financial effects from significant transactions that may have caused short-term fluctuations in net income (loss) and/or operating loss which Ashland believes do not accurately reflect Ashland’s underlying business performance and trends.
Tax specific key items are defined as the financial effects from tax specific financial transactions, tax law changes or other matters that fall within the definition of key items as previously described.
1 unchanged sentence
Management believes investors and analysts use this financial measure in assessing Ashland's business performance and that presenting this non-GAAP financial measure on a consolidated basis assists investors in better understanding Ashland’s ongoing business performance enhancing their ability to compare period-to-period financial results.
−Removed: The effective tax rate during the three and six months ended March 31, 2025 was significantly impacted by U.S.
−Removed: tax final regulation activity while the effective tax rate during the three and six months ended March 31, 2024 was significantly impacted by foreign tax reform related activity.
+Added: The effective tax rate during the three and nine months ended June 30, 2025 was primarily impacted by jurisdictional income mix, the tax impact of cash repatriation, and changes in uncertain tax positions, while the effective tax rate during the three and nine months ended June 30, 2024 was significantly impacted by foreign tax reform related activity.
The following table is a calculation of the effective tax rate, excluding these key items.
Three months ended
−Removed: Six months ended
+Added: Nine months ended
(In millions)
−Removed: Income (loss) from continuing operations before income taxes
+Added: Loss from continuing operations before income taxes
Key items (pre-tax) (a)
5 unchanged sentences
Uncertain tax positions
+Added: Restructuring and separation activity
Other and tax reform related activity
7 unchanged sentences
(d) Due to rounding conventions, the effective tax rate presented may not recalculate precisely based on the numbers disclosed within this table.
−Removed: Three months ended March 31
−Removed: Six months ended March 31
+Added: Three months ended June 30
+Added: Nine months ended June 30
(In millions)
−Removed: Income (loss) from discontinued operations, net of income taxes
+Added: Loss from discontinued operations, net of income taxes
Performance Adhesives
Composites/Marl facility
−Removed: Current Quarter - The activity for Performance Adhesives in the current quarter represents subsequent adjustments that were made in conjunction with post-closing disputes and taxes.
−Removed: The activity for Valvoline represents subsequent adjustments that were made in conjunction with post-closing tax items during the current and prior year quarters.
−Removed: The activity for Composites/Marl facility and Distribution was related to post-closing adjustments in the prior year quarter.
−Removed: Year-to-date - The activity for Performance Adhesives and Valvoline in the current and prior year periods represents subsequent adjustments that were made in conjunction with post-closing disputes and taxes.
−Removed: The activity for Composites/Marl facility was related to post-closing adjustments in the prior year period.
+Added: Water Technologies
+Added: Asbestos-related litigation
+Added: Current Quarter - The activity for Distribution in the current and prior quarter represents subsequent adjustments that were made in conjunction with post-closing adjustments related to environmental liabilities.
+Added: The activity for Composites/Marl facility and Water Technologies was related to post-closing adjustments and environmental liabilities in the prior year quarter.
+Added: Asbestos activity in each quarter primarily relates to Ashland's annual update.
+Added: Year-to-date - The activity for Performance Adhesives, Distribution and Valvoline in the current and prior year periods represents subsequent adjustments that were made in conjunction with post-closing disputes, environmental liabilities, and taxes.
+Added: The activity for Composites/Marl facility and Water Technologies was related to post-closing adjustments and environmental liabilities in the prior year period.
+Added: Asbestos activity in each period primarily relates to Ashland's annual update.
Other comprehensive income (loss)
−Removed: Three months ended March 31
−Removed: Six months ended March 31
+Added: Three months ended June 30
+Added: Nine months ended June 30
(In millions)
1 unchanged sentence
Unrealized translation gain (loss)
−Removed: Unrealized gain on commodity hedges
+Added: Unrealized gain (loss) on commodity hedges
Current Quarter - Total other comprehensive income (loss), net of tax, for the current quarter increased $113 million compared to the prior year quarter primarily as a result of the following:
−Removed: • For the three months ended March 31, 2025 and 2024, the change in unrealized gain (loss) from foreign currency translation adjustments resulted in gains of $49 million and losses of $27 million, respectively.
+Added: • For the three months ended June 30, 2025 and 2024, the change in unrealized gain (loss) from foreign currency translation adjustments resulted in gains of $91 million and losses of $25 million, respectively.
The fluctuations in unrealized translation gains and losses are primarily due to translating foreign subsidiary financial statements from local currencies to U.S.
−Removed: • For the three months ended March 31, 2025 and 2024, the change in commodity hedges is primarily due to the fluctuations of the market prices of the underlying commodities.
−Removed: Commodity hedges resulted in unrealized gains of $2 million and $1 million for the three months ended March 31, 2025 and 2024, respectively.
−Removed: Year-to-date - Total other comprehensive income (loss), net of tax, for the current year decreased $69 million compared to the prior year period primarily as a result of the following:
−Removed: • For the six months ended March 31, 2025 and 2024, the change in unrealized gain (loss) from foreign currency translation adjustments resulted in losses of $45 million and gains of $27 million, respectively.
+Added: • For the three months ended June 30, 2025 and 2024, the change in commodity hedges is primarily due to the fluctuations of the market prices of the underlying commodities.
+Added: Commodity hedges resulted in unrealized losses of $1 million and gains of $2 million for the three months ended June 30, 2025 and 2024, respectively.
+Added: Year-to-date - Total other comprehensive income (loss), net of tax, for the current year increased $44 million compared to the prior year period primarily as a result of the following:
+Added: • For the nine months ended June 30, 2025 and 2024, the change in unrealized gain (loss) from foreign currency translation adjustments resulted in gains of $46 million and $2 million, respectively.
The fluctuations in unrealized translation gains and losses are primarily due to translating foreign subsidiary financial statements from local currencies to U.S.
−Removed: • For the six months ended March 31, 2025 and 2024, the change in commodity hedges is primarily due to the fluctuations of the market prices of the underlying commodities.
−Removed: Commodity hedges resulted in unrealized gains of $3 million and zero for the six months ended March 31, 2025 and 2024, respectively.
+Added: • For the nine months ended June 30, 2025 and 2024, the change in commodity hedges is primarily due to the fluctuations of the market prices of the underlying commodities.
+Added: Commodity hedges resulted in unrealized gains of $2 million for both the nine months ended June 30, 2025 and 2024.
Use of Non-GAAP Financial Measures
6 unchanged sentences
Management believes the use of EBITDA and Adjusted EBITDA measures on a consolidated and reportable segment basis assists investors in understanding the ongoing operating performance by presenting comparable financial results between periods.
−Removed: Ashland believes that by removing the impact of depreciation and amortization and excluding certain non-cash charges, amounts spent on interest and taxes and certain other charges that are highly variable from year to year, EBITDA and Adjusted EBITDA provide Ashland’s investors with performance measures that reflect the impact to operations from trends in changes in sales, margin and operating expenses, providing a perspective not immediately apparent from net income (loss) and operating income (loss).
−Removed: The adjustments Ashland makes to derive the non-GAAP financial measures of EBITDA and Adjusted EBITDA exclude items which may cause short-term fluctuations in net income (loss) and operating income (loss) and which Ashland does not consider to be the fundamental attributes or primary drivers of its business.
+Added: Ashland believes that by removing the impact of depreciation and amortization and excluding certain non-cash charges, amounts spent on interest and taxes and certain other charges that are highly variable from year to year, EBITDA and Adjusted EBITDA provide Ashland’s investors with performance measures that reflect the impact to operations from trends in changes in sales, margin and operating expenses, providing a perspective not immediately apparent from net income (loss) and operating loss.
+Added: The adjustments Ashland makes to derive the non-GAAP financial measures of EBITDA and Adjusted EBITDA exclude items which may cause short-term fluctuations in net income (loss) and operating loss and which Ashland does not consider to be the fundamental attributes or primary drivers of its business.
EBITDA and Adjusted EBITDA provide disclosure on the same basis as that used by Ashland’s management to evaluate financial performance on a consolidated and reportable segment basis and provide consistency in our financial reporting, facilitate internal and external comparisons of Ashland’s historical operating performance and its segments and provide continuity to investors for comparability purposes.
28 unchanged sentences
EBITDA and Adjusted EBITDA
−Removed: EBITDA totaled income of $100 million and $74 million for the three months ended March 31, 2025 and 2024, respectively, and loss of $30 million and income of $109 million for the six months ended March 31, 2025 and 2024, respectively.
+Added: EBITDA totaled loss of $683 million and income of $34 million for the three months ended June 30, 2025 and 2024, respectively, and loss of $713 million and income of $76 million for the nine months ended June 30, 2025 and 2024, respectively.
EBITDA and Adjusted EBITDA results in the table below have been prepared to illustrate the ongoing effects of Ashland’s operations, which exclude certain key items previously described.
1 unchanged sentence
These operating key items for the applicable periods are summarized as follows:
+Added: • Goodwill impairment – Ashland recorded a non-cash goodwill impairment charge of $706 million within the goodwill impairment caption of the Statements of Condensed Consolidated Comprehensive Income (Loss) for the three and nine months ended June 30, 2025.
+Added: See Note G of the Notes to the Condensed Consolidated Financial Statements for more information;
• Avoca business impairment and sale – During March 2025, Ashland sold substantially all of the net assets of its Avoca business.
−Removed: As a result, Ashland recorded an impairment charge and gain on sale within the income (loss) on acquisitions and divestitures, net caption of the Statements of Condensed Consolidated Comprehensive Income (Loss) for the three and six months ended March 31, 2025.
+Added: As a result, Ashland recorded an impairment charge and gain on sale within the loss on acquisitions and divestitures, net caption of the Statements of Condensed Consolidated Comprehensive Income (Loss) for the nine months ended June 30, 2025.
See Note B of the Notes to the Condensed Consolidated Financial Statements for more information;
−Removed: • Accelerated depreciation – As a result of product line optimization activities at a Life Sciences manufacturing plant and two Specialty Additives manufacturing plants, Ashland recorded accelerated depreciation due to changes in the expected useful life of certain property, plant and equipment during the three and six months ended March 31, 2025 and 2024.
+Added: • Accelerated depreciation – As a result of product line optimization activities at manufacturing facilities within the Life Sciences, Specialty Additives, and Personal Care reportable segments, Ashland recorded accelerated depreciation due to changes in the expected useful life of certain property, plant and equipment during the three and nine months ended June 30, 2025 and 2024.
See Note D of the Notes to the Condensed Consolidated Financial Statements for more information;
+Added: • Environmental reserve adjustments – Ashland is subject to various federal, state and local environmental laws and regulations that require environmental assessment or remediation efforts (collectively environmental remediation) at multiple locations.
+Added: As a result of these activities, Ashland recorded adjustments during each year to its environmental liabilities and receivables primarily related to previously divested businesses or non-operational sites.
+Added: See Note L of the Notes to the Condensed Consolidated Financial Statements for more information;
• Restructuring, separation and other costs – Ashland periodically implements company-wide and targeted cost reduction programs related to acquisitions, divestitures and other cost reduction programs in order to enhance profitability through streamlined operations and an improved overall cost structure.
1 unchanged sentence
See Note D of the Notes to the Condensed Consolidated Financial Statements for further information on the restructuring activities;
−Removed: • Other plant optimization costs – During the three and six months ended March 31, 2025 and 2024, Ashland incurred inventory adjustments and production costs associated with product line optimization actions;
−Removed: • Environmental reserve adjustments – Ashland is subject to various federal, state and local environmental laws and regulations that require environmental assessment or remediation efforts (collectively environmental remediation) at multiple locations.
−Removed: As a result of these activities, Ashland recorded adjustments during each year to its environmental liabilities and receivables primarily related to previously
−Removed: divested businesses or non-operational sites.
−Removed: See Note L of the Notes to the Condensed Consolidated Financial Statements for more information;
−Removed: • Argentina foreign currency devaluation – Following the enactment by the Argentina government of a 50% peso devaluation against the dollar, Ashland recorded a currency devaluation charge within the selling, general and administrative expense caption of the Statement of Condensed Consolidated Comprehensive Income (Loss) for the six months ended March 31, 2024;
−Removed: • Held for sale depreciation and amortization – Represents the depreciation and amortization for the Avoca business assets during the three and six months ended March 31, 2025.
−Removed: See Note B of the Notes to the Condensed Consolidated Financial Statements for more information;
−Removed: • Income on divestitures, net – Ashland recorded income of $11 million during the three and six months ended March 31, 2025.
+Added: • Other plant optimization costs – During the three and nine months ended June 30, 2025 and 2024, Ashland incurred inventory adjustments and production costs associated with product line optimization actions;
+Added: • Nutraceutical impairment – During the three months ended June 30, 2024, Ashland entered into an agreement to sell substantially all of the net assets of its Nutraceuticals business.
+Added: As a result, Ashland recorded a $99 million impairment charge within the loss on acquisitions and divestitures, net caption of the Statements of Consolidated Comprehensive Income (Loss) for the three and nine months ended June 30, 2024.
+Added: See Note B of the Notes to Condensed Consolidated Financial Statements for more information;
+Added: • Argentina foreign currency devaluation – Following the enactment by the Argentina government of a 50% peso devaluation against the dollar, Ashland recorded a currency devaluation charge within the selling, general and administrative expense caption of the Statement of Condensed Consolidated Comprehensive Income (Loss) for the nine months ended June 30, 2024;
+Added: • Held for sale depreciation and amortization – Represents the depreciation and amortization for the Avoca business assets during the three and nine months ended June 30, 2025 and the Nutraceuticals business assets during the three and nine months ended June 30, 2024;
+Added: • Income on divestitures, net – Ashland recorded income of zero and $10 million during the three and nine months ended June 30, 2025.
The income was related to the pre-tax gains in connection with the sale of a land property.
1 unchanged sentence
Non-operating key items affecting EBITDA
−Removed: During the current and prior years, there were certain key items that were not included in operating income (loss) but were excluded to arrive at Adjusted EBITDA.
+Added: During the current and prior years, there were certain key items that were not included in operating loss but were excluded to arrive at Adjusted EBITDA.
These non-operating key items for the applicable periods are summarized as follows:
−Removed: • Loss on pension plan remeasurements – During the six months ended March 31, 2025, Ashland recognized a curtailment loss for pension plan remeasurement for defined benefit pension plan.
+Added: • Loss on pension plan remeasurements – During the nine months ended June 30, 2025, Ashland recognized a curtailment loss for pension plan remeasurement for defined benefit pension plan.
See Note K of the Notes to the Condensed Consolidated Financial Statements for more information.
Three months ended
−Removed: Six months ended
+Added: Nine months ended
(In millions)
3 unchanged sentences
Depreciation and amortization (a)
−Removed: Loss (income) from discontinued operations, net of income taxes
+Added: Loss from discontinued operations, net of income taxes
Key items included in EBITDA:
+Added: Goodwill impairment
Avoca business impairment and sale
Accelerated depreciation
+Added: Environmental reserve adjustments
Restructuring, separation and other costs
Other plant optimization costs
−Removed: Environmental reserve adjustments
Loss on pension plan remeasurements
+Added: Nutraceuticals impairment and sale
Argentina currency devaluation impact
4 unchanged sentences
Total key items included in EBITDA
−Removed: Unrealized losses (gains) on securities
+Added: Unrealized gains on securities
Total key items, before tax
−Removed: (a) Depreciation and amortization excludes accelerated depreciation of $13 million for Life Sciences for both the three and six months ended March 31, 2025, and $27 million and $49 for Specialty Additives for the three and six months ended March 31, 2024, respectively, which is included as a key item within this table as a component of Adjusted EBITDA.
−Removed: Depreciation and amortization includes $2 million for Personal Care associated with the Avoca business assets for both the three and six months ended March 31, 2025, which is included as a key item within this table as a component of Adjusted EBITDA.
+Added: (a) Depreciation and amortization excludes accelerated depreciation of $8 million and $21 million for Life Sciences for the three and nine months ended June 30, 2025, respectively, $19 million for Specialty Additives for both the three and nine months ended June 30, 2025, $7 million and $55 million for Specialty Additives for the three and nine months ended June 30, 2024, respectively, and $1 million for Personal Care for both the three and nine months ended June 30, 2024, which is included as a key item within this table as a component of Adjusted EBITDA.
+Added: Depreciation and amortization includes $2 million for Personal Care associated with the Avoca business assets for the nine months ended June 30, 2025, and $1 million for Life Sciences associated with the Nutraceuticals business assets for both the three and nine months ended June 30, 2024, which is included as a key item within this table as a component of Adjusted EBITDA.
Diluted EPS and Adjusted Diluted EPS
1 unchanged sentence
GAAP calculation for the income (loss) from continuing operations adjusted for the cumulative diluted EPS effect for key items after tax that have been identified in the Adjusted EBITDA table in the previous section.
−Removed: Key items are defined as the financial effects from significant transactions that may have caused short-term fluctuations in net income (loss) and/or operating income (loss) which Ashland believes do not accurately reflect Ashland’s underlying business performance and trends.
+Added: Key items are defined as the financial effects from significant transactions that may have caused short-term fluctuations in net income (loss) and/or operating loss which Ashland believes do not accurately reflect Ashland’s underlying business performance and trends.
The Adjusted Diluted EPS for the income (loss) from continuing operations in the following table has been prepared to illustrate the ongoing effects of Ashland’s operations.
1 unchanged sentence
In addition to the operating key items previously described, additional non-operating key items for the applicable periods are summarized as follows:
−Removed: • Unrealized losses (gains) on securities – represents losses (gains) recognized on restricted investments related to the Asbestos trust and Environmental trust for each period.
+Added: • Unrealized gains on securities – represents gains recognized on restricted investments related to the Asbestos trust and Environmental trust for each period.
See Note E of the Notes to Condensed Consolidated Financial Statements for more information;
−Removed: • Uncertain tax positions – represents the impact from the settlement of uncertain tax positions with various tax authorities for the three and six months ended March 31, 2025 and 2024;
−Removed: • Other and tax reform related activity – primarily represents tax specific key items associated with final tax regulations and tax reform related activity for the three and six months ended March 31, 2025 and 2024.
+Added: • Uncertain tax positions – represents the impact from the settlement of uncertain tax positions with various tax authorities for the three and nine months ended June 30, 2025 and 2024;
+Added: • Restructuring and separation activity – represents the tax impact of the held for sale classification for the Nutraceuticals business;
+Added: • Other and tax reform related activity – primarily impacted by jurisdictional income mix, the tax impact of cash repatriation, and changes in uncertain tax positions for the three and nine months ended June 30, 2025, while the three and nine months ended June 30, 2024 were mostly impacted by foreign tax reform related activity.
Three months ended
−Removed: Six months ended
+Added: Nine months ended
Diluted EPS from continuing operations (as reported)
Key items, before tax:
+Added: Goodwill impairment
Avoca business impairment and sale
Accelerated depreciation
−Removed: Unrealized losses (gains) on securities
+Added: Environmental reserve adjustments
Restructuring, separation and other costs
Other plant optimization costs
−Removed: Environmental reserve adjustments
Loss on pension plan remeasurements
+Added: Nutraceuticals impairment and sale
Argentina currency devaluation impact
Held for sale depreciation and amortization
+Added: Unrealized gains on securities
Income on divestitures, net
4 unchanged sentences
Uncertain tax positions
+Added: Restructuring, separation and other costs
Other and tax reform related activity
7 unchanged sentences
For additional explanation of these tax specific key items, see the income tax expense (benefit) discussion within the Statements of Condensed Consolidated Comprehensive Income (Loss) caption review section above.
−Removed: (c) Amortization expense adjustment (net of tax) tax rates were 21% for both the three and six months ended March 31, 2025, and 20% for both the three and six months ended March 31, 2024.
+Added: (c) Amortization expense adjustment (net of tax) tax rates were 20% and 21% for the three and nine months ended June 30, 2025, respectively, and 20% for both the three and nine months ended June 30, 2024.
RESULTS OF OPERATIONS – REPORTABLE SEGMENT REVIEW
11 unchanged sentences
Three months ended
−Removed: Six months ended
+Added: Nine months ended
(In millions - unaudited)
5 unchanged sentences
OPERATING INCOME (LOSS)
−Removed: Life Sciences
+Added: Life Sciences (b)
Personal Care
−Removed: Specialty Additives
+Added: Specialty Additives (c)
Intermediates
−Removed: Unallocated and other (b)
+Added: Unallocated and other (d)
DEPRECIATION EXPENSE
−Removed: Life Sciences (c)
−Removed: Personal Care
−Removed: Specialty Additives (d)
+Added: Life Sciences (e)
+Added: Personal Care (f)
+Added: Specialty Additives (g)
Intermediates
11 unchanged sentences
All other intersegment sales are accounted for at cost.
−Removed: (b) Includes a $8 million gain on sale for the three and six months ended March 31, 2025 and a $183 million impairment charge for the six months ended March 31, 2025, both related to the divestiture of the Avoca business within the income (loss) on acquisitions and divestitures, net caption of the Statements of Condensed Consolidated Income (Loss).
−Removed: (c) Depreciation includes accelerated depreciation of $13 million for Life Sciences for the three and six months ended March 31, 2025.
−Removed: (d) Depreciation includes accelerated depreciation of $27 million and $49 million for Specialty Additives for the three and six months ended March 31, 2024, respectively.
−Removed: (e) Excludes income (loss) from discontinued operations and other net periodic benefit loss.
+Added: (b) Includes goodwill impairment of $375 million for Life Sciences for the three and nine months ended June 30, 2025.
+Added: (c) Includes goodwill impairment of $331 million for Specialty Additives for the three and nine months ended June 30, 2025.
+Added: (d) Includes a $8 million gain on sale and a $183 million impairment charge related to the sale of the Avoca business for the nine months ended June 30, 2025, and a $99 million impairment charge related to the sale of the Nutraceuticals business for the three and nine months ended June 30, 2024, within the loss on acquisitions and divestitures, net caption of the Statements of Condensed Consolidated Income (Loss).
+Added: (e) Depreciation includes accelerated depreciation of $8 million and $21 million for Life Sciences for the three and nine months ended June 30, 2025, respectively.
+Added: (f) Depreciation includes accelerated depreciation of $1 million for Personal Care for both the three and nine months ended June 30, 2024.
+Added: (g) Depreciation includes accelerated depreciation of $19 million for Specialty Additives for both the three and nine months ended June 30, 2025, respectively, and $7 million and $55 million for the three and nine months ended June 30, 2024.
+Added: (h) Excludes loss from discontinued operations, net of income taxes and other net periodic benefit loss.
See the Statements of Condensed Consolidated Comprehensive Income (Loss) for applicable amounts excluded.
7 unchanged sentences
Three months ended
−Removed: Six months ended
+Added: Nine months ended
(In millions)
−Removed: March 31, 2025
−Removed: March 31, 2025
+Added: June 30, 2025
+Added: June 30, 2025
Foreign Currency
−Removed: The following table provides a reconciliation of the change in operating income for the Life Sciences reportable segment.
+Added: The following table provides a reconciliation of the change in operating income (loss) for the Life Sciences reportable segment.
Three months ended
−Removed: Six months ended
+Added: Nine months ended
(In millions)
−Removed: March 31, 2025
−Removed: March 31, 2025
−Removed: Operating income change
+Added: June 30, 2025
+Added: June 30, 2025
+Added: Operating income (loss) change
+Added: Goodwill impairment
Foreign Currency
1 unchanged sentence
The following EBITDA presentation is provided as a means to enhance the understanding of financial measurements that Ashland has internally determined to be relevant measures of comparison for the results of Life Sciences.
−Removed: The key items for the three and six months ended March 31, 2025 were $13 million and $2 million related to accelerated depreciation and other product line optimization activities associated with a Life Sciences manufacturing plant.
−Removed: Life Sciences had no key items for the three and six months ended March 31, 2024.
+Added: There were key items in the three and nine months ended June 30, 2025 and 2024.
+Added: These items are listed below and described within the "Use of Non-GAAP Financial Measures" section above.
Life Sciences
−Removed: Three months ended March 31
−Removed: Six months ended March 31
+Added: Three months ended June 30
+Added: Nine months ended June 30
(In millions)
−Removed: Operating income
+Added: Operating income (loss)
Depreciation and amortization (a)
+Added: Goodwill impairment
Accelerated depreciation
+Added: Environmental reserve adjustments
+Added: Held for sale depreciation and amortization
Other plant optimization costs
Adjusted EBITDA
−Removed: Operating income as a percent of sales
+Added: Operating income (loss) as a percent of sales
+Added: Not meaningful
+Added: Not meaningful
Adjusted EBITDA as a percent of sales
−Removed: (a) Depreciation and amortization excludes accelerated depreciation of $13 million for Life Sciences for the three and six months ended March 31, 2025, which is included as a key item within this table as a component of Adjusted EBITDA.
−Removed: Three months ended March 31, 2025 compared to three months ended March 31, 2024
−Removed: Life Sciences' sales, operating income and Adjusted EBITDA decreased in the current quarter due to the divestiture of the Nutraceuticals business, higher costs, including the effects of portfolio optimization activities and accelerated depreciation, unfavorable pricing, lower volume and unfavorable foreign currency exchange.
+Added: (a) Depreciation and amortization excludes accelerated depreciation of $8 million and $21 million for Life Sciences for the three and nine months ended June 30, 2025, respectively, and includes $1 million associated with the Nutraceuticals business held for sale assets for both the three and nine months ended June 30, 2024, which is included as a key item within this table as a component of Adjusted EBITDA.
+Added: Three months ended June 30, 2025 compared to three months ended June 30, 2024
+Added: Life Sciences' sales, operating income (loss) and Adjusted EBITDA decreased in the current quarter primarily due to the divestiture of the Nutraceuticals business, higher costs, including the effects of portfolio optimization activities and accelerated depreciation, and unfavorable pricing, partially offset by favorable foreign currency exchange.
+Added: The three months ended June 30, 2025 included a goodwill impairment charge of $375 million.
Fiscal 2025 year-to-date compared to fiscal 2024 year-to-date
−Removed: Life Sciences' sales, operating income and Adjusted EBITDA decreased in the current period due to the divestiture of the Nutraceuticals business, lower volume, higher costs, including the effects of portfolio optimization activities and accelerated depreciation, unfavorable price/mix actions and unfavorable foreign currency exchange.
+Added: Life Sciences' sales, operating income (loss) and Adjusted EBITDA decreased in the current period primarily due to the divestiture of the Nutraceuticals business, higher costs, including the effects of portfolio optimization activities and accelerated depreciation, lower volume and unfavorable price/mix actions partially offset by favorable foreign currency exchange.
+Added: The nine months ended June 30, 2025 included a goodwill impairment charge of $375 million.
Personal Care
6 unchanged sentences
Three months ended
−Removed: Six months ended
+Added: Nine months ended
(In millions)
−Removed: March 31, 2025
−Removed: March 31, 2025
+Added: June 30, 2025
+Added: June 30, 2025
Foreign Currency
1 unchanged sentence
Three months ended
−Removed: Six months ended
+Added: Nine months ended
(In millions)
−Removed: March 31, 2025
−Removed: March 31, 2025
+Added: June 30, 2025
+Added: June 30, 2025
Operating income change
Divestiture (site closure)
+Added: Foreign Currency
EBITDA and Adjusted EBITDA reconciliation
−Removed: The following EBITDA and Adjusted EBITDA presentation is provided as a means to enhance the understanding of financial measurements that Ashland has internally determined to be relevant measures of comparison for the results of Personal Care.
−Removed: The key items for Personal Care for the three and six months ended March 31, 2025 related to $1 million and $2 million of plant optimization costs, respectively and $2 million from held for sale depreciation and amortization.
−Removed: Personal Care had no key items for the three and six months ended March 31, 2024.
+Added: The following EBITDA presentation is provided as a means to enhance the understanding of financial measurements that Ashland has internally determined to be relevant measures of comparison for the results of Personal Care.
+Added: There were key items in the three and nine months ended June 30, 2025 and 2024.
+Added: These items are listed below and described within the "Use of Non-GAAP Financial Measures" section above.
Personal Care
−Removed: Three months ended March 31
−Removed: Six months ended March 31
+Added: Three months ended June 30
+Added: Nine months ended June 30
(In millions)
1 unchanged sentence
Depreciation and amortization
+Added: Accelerated depreciation
Held for sale depreciation and amortization
3 unchanged sentences
Adjusted EBITDA as a percent of sales
−Removed: a) Depreciation and amortization includes $2 million for Personal Care associated with the Avoca business assets for the three and six months ended March 31, 2025, which is included as a key item within this table as a component of Adjusted EBITDA.
−Removed: Three months ended March 31, 2025 compared to three months ended March 31, 2024
−Removed: Personal Care's sales decreased in the current quarter primarily due to lower volume, including the divestiture of the Avoca business and other portfolio optimization actions, while operating income increased mainly due to lower costs partially offset by unfavorable price/mix.
−Removed: Adjusted EBITDA remained relatively consistent compared to the prior quarter.
+Added: (a) Depreciation and amortization includes zero and $2 million for Personal Care associated with the Avoca business assets for the three and nine months ended June 30, 2025, respectively, and excludes accelerated depreciation of $1 million for both the three and nine months ended June 30, 2024, which is included as a key item within this table as a component of Adjusted EBITDA.
+Added: Three months ended June 30, 2025 compared to three months ended June 30, 2024
+Added: Personal Care's sales, operating income and Adjusted EBITDA decreased in the current quarter due to lower volume, including the divestiture of the Avoca business and other portfolio optimization actions, and unfavorable price/mix partially offset by lower costs and favorable foreign currency exchange.
Fiscal 2025 year-to-date compared to fiscal 2024 year-to-date
−Removed: Personal Care's sales decreased in the current period primarily due to lower volume, including the divestiture of the Avoca business and other portfolio optimization actions, while operating income and Adjusted EBITDA increased primarily due to lower costs partially offset by unfavorable price/mix.
+Added: Personal Care's sales decreased in the current period primarily due to lower volume, including the divestiture of the Avoca business and other portfolio optimization actions, while operating income increased primarily due to lower costs partially offset by unfavorable price/mix.
+Added: Adjusted EBITDA remained relatively consistent compared to the prior period.
Specialty Additives
6 unchanged sentences
Three months ended
−Removed: Six months ended
+Added: Nine months ended
(In millions)
−Removed: March 31, 2025
−Removed: March 31, 2025
+Added: June 30, 2025
+Added: June 30, 2025
Foreign Currency
−Removed: The following table provides a reconciliation of the change in operating loss for the Specialty Additives reportable segment.
+Added: The following table provides a reconciliation of the change in operating income (loss) for the Specialty Additives reportable segment.
Three months ended
−Removed: Six months ended
+Added: Nine months ended
(In millions)
−Removed: March 31, 2025
−Removed: March 31, 2025
−Removed: Operating loss change
+Added: June 30, 2025
+Added: June 30, 2025
+Added: Operating income (loss) change
+Added: Goodwill impairment
EBITDA and Adjusted EBITDA reconciliation
−Removed: The following EBITDA and Adjusted EBITDA presentation is provided as a means to enhance the understanding of financial measurements that Ashland has internally determined to be relevant measures of comparison for the results of Specialty Additives.
−Removed: The key items during the three and six months ended March 31, 2025 related to $3 million and $5 million of other plant optimization costs, respectively.
−Removed: The key items during the three months ended March 31, 2024 related to $27 million of accelerated depreciation and $1 million of other plant optimization costs.
−Removed: The key items during the six months ended March 31, 2024 related to $49 million of accelerated depreciation and $1 million of other plant optimization costs.
+Added: The following EBITDA presentation is provided as a means to enhance the understanding of financial measurements that Ashland has internally determined to be relevant measures of comparison for the results of Specialty Additives.
+Added: There were key items in the three and nine months ended June 30, 2025 and 2024.
+Added: These items are listed below and described within the "Use of Non-GAAP Financial Measures" section above.
Specialty Additives
−Removed: Three months ended March 31
−Removed: Six months ended March 31
+Added: Three months ended June 30
+Added: Nine months ended June 30
(In millions)
1 unchanged sentence
Depreciation and amortization (a)
+Added: Goodwill impairment
Accelerated depreciation
+Added: Environmental reserve adjustments
Other plant optimization costs
Adjusted EBITDA
−Removed: Operating income as a percent of sales
+Added: Operating income (loss) as a percent of sales
+Added: Not meaningful
+Added: Not meaningful
Adjusted EBITDA as a percent of sales
−Removed: (b) Depreciation and amortization excludes accelerated depreciation of $27 million and $49 million for Specialty Additives for the three and six months ended March 31, 2024, which is included as a key item within this table as a component of Adjusted EBITDA.
−Removed: Three months ended March 31, 2025 compared to three months ended March 31, 2024
−Removed: Specialty Additives sales for the quarter decreased primarily as a result of lower volume and unfavorable pricing while operating income increased primarily due to lower costs as a result of higher production volumes when compared to the inventory corrective actions in the prior year which included accelerated depreciation associated with portfolio optimization actions.
−Removed: Adjusted EBITDA remained relatively consistent compared to the prior quarter.
+Added: (a) Depreciation and amortization for Specialty Additives excludes accelerated depreciation of $19 million for the three and nine months ended June 30, 2025, and $7 million and $55 million for the three and nine months ended June 30, 2024, respectively, which is included as a key item within this table as a component of Adjusted EBITDA.
+Added: Three months ended June 30, 2025 compared to three months ended June 30, 2024
+Added: Specialty Additives sales, operating income (loss) and Adjusted EBITDA for the quarter decreased as a result of lower volume, higher costs, including the effects of portfolio optimization activities and accelerated depreciation partially offset by favorable foreign currency exchange.
+Added: The three months ended June 30, 2025 included a goodwill impairment charge of $331 million.
Fiscal 2025 year-to-date compared to fiscal 2024 year-to-date
−Removed: Specialty Additives sales for the current period decreased primarily due to lower volume and unfavorable pricing while operating income and Adjusted EBITDA increased mainly due to lower costs as a result of higher production volumes when compared to the inventory corrective actions in the prior year which included accelerated depreciation associated with portfolio optimization actions.
+Added: Specialty Additives sales, operating income (loss) and Adjusted EBITDA for the current period decreased primarily due to lower volume offset by lower costs, including the effects of portfolio optimization activities and accelerated depreciation.
+Added: The nine months ended June 30, 2025 included a goodwill impairment charge of $331 million.
Intermediates
4 unchanged sentences
Three months ended
−Removed: Six months ended
+Added: Nine months ended
(In millions)
−Removed: March 31, 2025
−Removed: March 31, 2025
+Added: June 30, 2025
+Added: June 30, 2025
Foreign Currency
1 unchanged sentence
Three months ended
−Removed: Six months ended
+Added: Nine months ended
(In millions)
−Removed: March 31, 2025
−Removed: March 31, 2025
+Added: June 30, 2025
+Added: June 30, 2025
Operating income change
+Added: Foreign Currency
EBITDA reconciliation
The following EBITDA presentation is provided as a means to enhance the understanding of financial measurements that Ashland has internally determined to be relevant measures of comparison for the results of Intermediates.
−Removed: Intermediates had no key items for the three and six months ended March 31, 2025 or 2024.
+Added: Intermediates had no key items for the three and nine months ended June 30, 2025 or 2024.
Intermediates
−Removed: Three months ended March 31
−Removed: Six months ended March 31
+Added: Three months ended June 30
+Added: Nine months ended June 30
(In millions)
3 unchanged sentences
EBITDA as a percent of sales
−Removed: Three months ended March 31, 2025 compared to three months ended March 31, 2024
+Added: Three months ended June 30, 2025 compared to three months ended June 30, 2024
Intermediates' sales, operating income and EBITDA decreased primarily due to unfavorable price/mix and higher costs.
Fiscal 2025 year-to-date compared to fiscal 2024 year-to-date
−Removed: Intermediates' sales, operating income and EBITDA for the current period decreased primarily due to unfavorable price/mix, partially offset by higher volume and lower costs.
+Added: Intermediates' sales, operating income and EBITDA for the current period decreased primarily due to unfavorable price/mix partially offset by higher volume.
Unallocated and other
−Removed: The following table summarizes the key components of the Unallocated and other’s operating loss between the three and six months ended March 31, 2025 and 2024.
+Added: The following table summarizes the key components of the Unallocated and other’s operating loss between the three and nine months ended June 30, 2025 and 2024.
Unallocated and other
−Removed: Three months ended March 31
−Removed: Six months ended March 31
+Added: Three months ended June 30
+Added: Nine months ended June 30
(In millions)
1 unchanged sentence
Environmental expenses
−Removed: Income (loss) on acquisitions and divestitures, net
+Added: Loss on acquisitions and divestitures, net
Argentina currency devaluation impact
1 unchanged sentence
Total expense
−Removed: Three months ended March 31, 2025 compared to three months ended March 31, 2024
−Removed: Unallocated and other recorded expense of $11 million and $45 million for the three months ended March 31, 2025 and 2024, respectively.
+Added: Three months ended June 30, 2025 compared to three months ended June 30, 2024
+Added: Unallocated and other recorded expense of $49 million and $151 million for the three months ended June 30, 2025 and 2024, respectively.
The current and prior year quarter included expense of $7 million and $3 million, respectively, for restructuring activities mainly comprised of severance, lease abandonment and other restructuring costs related to company-wide cost reduction programs during the current and prior year quarter, respectively.
−Removed: The current quarter and prior year quarter included $2 million and $3 million for environmental expenses, respectively.
−Removed: The current quarter also includes gains of $18 million from acquisitions and divestitures primarily related to the sale of the Avoca business and excess corporate land property.
+Added: The current and prior year quarter included $28 million and $33 million for environmental expenses, respectively.
+Added: The prior year quarter included a $99 million loss on acquisitions and divestitures, net due to an impairment charge within the Nutraceuticals business.
See Note B of the Notes to the Condensed Consolidated Financial Statements for more information.
1 unchanged sentence
Fiscal 2025 year-to-date compared to fiscal 2024 year-to-date
−Removed: Unallocated and other recorded expense of $213 million and $72 million for the six months ended March 31, 2025 and 2024, respectively.
+Added: Unallocated and other recorded expense of $262 million and $223 million for the nine months ended June 30, 2025 and 2024, respectively.
The current and prior year period included expense of $18 million and $28 million, respectively, for restructuring activities mainly comprised of severance, lease abandonment and other restructuring costs related to company-wide cost reduction programs during the current and prior year period, respectively.
The current and prior year period included $31 million and $40 million for environmental expenses, respectively.
−Removed: The current year period included a loss on divestiture of $165 million, primarily related to the $183 million impairment of the Avoca business during the December quarter, $8 million pre-tax gain on the final sale of the Avoca business, and $11 million gain on the sale of a property, compared to a loss of $2 million on property sale during the prior year period.
+Added: The current year period included a loss on divestiture of $165 million, primarily related to the $183 million impairment of the Avoca business during the December quarter, $8 million pre-tax gain on the final sale of the Avoca business, and $11 million gain on the sale of a property, compared to a $99 million loss on acquisitions and divestitures, net due to an impairment charge within the Nutraceuticals business during the prior year period.
The prior year period also included expense of $5 million related to the devaluation of the currency in Argentina during the prior year.
−Removed: See Note B of the Notes to the Condensed Consolidated Financial Statements for more information.
Other expenses between periods were driven by changes in governance and legacy expenses primarily associated with fluctuations in foreign currency, deferred compensation and variable incentive compensation, including stock compensation expense in the current period.
7 unchanged sentences
Ashland provides no guarantees to JP Morgan and Taulia Alliance under this program.
−Removed: As of March 31, 2025, the program is still in implementation with no active supplier participation.
+Added: The program was implemented during June 2025 and has been actively offered to suppliers.
+Added: As of June 30, 2025 participation in the program was not significant.
Ashland’s cash flows from operating, investing and financing activities, as reflected in the Statements of Condensed Consolidated Cash Flows, are summarized as follows:
−Removed: Six months ended
+Added: Nine months ended
(In millions)
5 unchanged sentences
Effect of currency exchange rate changes on cash and cash equivalents
−Removed: Net increase (decrease) in cash and cash equivalents
−Removed: Cash and cash equivalents decreased $132 million for the six months ended March 31, 2025 compared to an increase of $22 million for the six months ended March 31, 2024.
−Removed: The $132 million decrease for the six months ended March 31, 2025 was primarily driven by payment of cash dividends, additions to property, plant and equipment and stock repurchase activity of $38 million, $44 million and $100 million, respectively.
−Removed: Operating cash flows from continuing operations were outflows of $21 million, while discontinued operations cash flows were outflows of $18 million.
−Removed: These outflows were partially offset by inflows from short-term debt, proceeds from the sale of Avoca, and proceeds from the sale of a land proprerty of $50 million, $16 million and $11 million, respectively.
−Removed: The $22 million increase for the six months ended March 31, 2024 was primarily driven by operating cash inflows from continuing operations of $255 million partially offset by payment of cash dividends, additions to property, plant and equipment, and stock repurchase activity of $39 million, $70 million, and $100 million, respectively.
−Removed: Discontinued operations cash flows were outflows of $27 million.
+Added: Net decrease in cash and cash equivalents
+Added: Cash and cash equivalents decreased $93 million for the nine months ended June 30, 2025 and $18 million for the nine months ended June 30, 2024.
+Added: The $93 million decrease for the nine months ended June 30, 2025 was primarily driven by payment of cash dividends, additions to property, plant and equipment and stock repurchase activity of $57 million, $64 million and $100 million, respectively, while discontinued operations cash flows were outflows of $27 million.
+Added: These outflows were partially offset by inflows from operating activities from continuing operations, proceeds from the sale of Avoca and proceeds from the sale of a land property of $94 million, $16 million and $11million, respectively.
+Added: The $18 million decrease for the nine months ended June 30, 2024 was primarily driven by payment of cash dividends, additions to property, plant and equipment, and stock repurchase activity of $59 million, $99 million, and $230 million, respectively.
+Added: Operating cash flows from continuing operations were inflows of $382 million.
The change in cash flows from operating activities from continuing operations was primarily driven by U.S.
4 unchanged sentences
Free Cash Flow does not reflect adjustments for certain non-discretionary cash flows such as mandatory debt repayments.
−Removed: Six months ended
+Added: Nine months ended
(In millions)
−Removed: Total cash flows provided (used) by operating activities from continuing operations
+Added: Total cash flows provided by operating activities from continuing operations
Additions to property, plant and equipment
19 unchanged sentences
(g) Ongoing Free Cash Flow Conversion is defined as Ongoing Free Cash Flow divided by Adjusted EBITDA.
−Removed: Working capital (current assets minus current liabilities, excluding long-term debt due within one year) amounted to $612 million and $705 million as of March 31, 2025 and September 30, 2024, respectively.
−Removed: The $93 million decrease in working capital was driven by lower cash due to share repurchases and increased accounts receivable sales primarily related to sales of foreign accounts receivable under the Foreign Accounts Receivable Sales Programs, and an increase in short-term debt, partially offset by an increase in refundable income taxes and lower other payables and accrued expenses and other liabilities.
−Removed: See Note H of the Notes to the Condensed Consolidated Financial Statements for additional information on the Foreign Accounts Receivable Sales Programs.
−Removed: Liquid assets (cash, cash equivalents and accounts receivable) amounted to 85% and 111% of current liabilities as as of March 31, 2025 and September 30, 2024, respectively.
−Removed: The decrease in Ongoing Free Cash Flows was driven by lower Adjusted EBITDA, higher variable compensation payouts and increased inventory reductions in the prior year due to inventory control measures during that period offset by lower additions to property, plant and equipment.
−Removed: The following summary reflects Ashland’s cash, unused borrowing capacity and liquidity as of:
+Added: Working capital (current assets minus current liabilities, excluding long-term debt due within one year) amounted to $704 million and $705 million as of June 30, 2025 and September 30, 2024, respectively.
+Added: Liquid assets (cash, cash equivalents and accounts receivable) amounted to 97% and 111% of current liabilities as as of June 30, 2025 and September 30, 2024, respectively.
+Added: The decrease in Ongoing Free Cash Flows was driven by lower Adjusted EBITDA, higher variable compensation payouts, increased inventory, and inventory reductions in the prior year due to inventory control measures during that period offset by lower additions to property, plant and equipment.
+Added: The following summary reflects Ashland’s cash and cash equivalents, unused borrowing capacity and liquidity as of:
(In millions)
6 unchanged sentences
Foreign Accounts Receivable Sales Program
−Removed: (a) Includes $222 million and $248 million related to the Asbestos trust and $123 million and $120 million related to the Environmental trust as of March 31, 2025 and September 30, 2024, respectively.
−Removed: The borrowing capacity remaining under the 2022 Credit Agreement was $546 million, which reflects the $550 million undrawn balance of the $600 million Revolving Credit Facility less a reduction of $4 million for letters of credit outstanding at March 31, 2025.
−Removed: In total, Ashland’s available liquidity position, which includes cash and cash equivalents and the revolving credit facility, was $714 million at March 31, 2025, compared to $896 million at September 30, 2024.
+Added: (a) Includes $228 million and $248 million related to the Asbestos trust and $122 million and $120 million related to the Environmental trust as of June 30, 2025 and September 30, 2024, respectively.
+Added: The borrowing capacity remaining under the 2022 Credit Agreement was $596 million, which reflects the full $600 million revolving credit facility less a reduction of $4 million for letters of credit outstanding at June 30, 2025.
+Added: In total, Ashland’s available liquidity position, which includes cash and cash equivalents and the revolving credit facility, was $803 million at June 30, 2025, compared to $896 million at September 30, 2024.
Ashland had no available liquidity under the U.S.
−Removed: and Foreign Accounts Receivable Sales Programs as of March 31, 2025.
+Added: and Foreign Accounts Receivable Sales Programs as of June 30, 2025.
Ashland also maintained $350 million of restricted investments to pay for future asbestos claims and environmental remediation and related litigation.
4 unchanged sentences
Long-term debt (less debt issuance cost discounts) (a)
−Removed: (a) Includes $11 million and $12 million of debt issuance cost discounts as of March 31, 2025 and September 30, 2024 , respectively.
−Removed: Debt as a percent of capital employed was 35% and 32% at March 31, 2025 and September 30, 2024, respectively.
−Removed: At March 31, 2025, Ashland’s total debt had an outstanding principal balance of $1,423 million, discounts of $26 million, and debt issuance costs of $11 million.
+Added: (a) Includes $10 million and $12 million of debt issuance cost discounts as of June 30, 2025 and September 30, 2024 , respectively.
+Added: Debt as a percent of capital employed was 42% and 32% at June 30, 2025 and September 30, 2024, respectively.
+Added: At June 30, 2025, Ashland’s total debt had an outstanding principal balance of $1,418 million, discounts of $26 million, and debt issuance costs of $10 million.
Ashland has no long-term debt (excluding debt issuance costs) maturing within 2025 and 2026, $4 million due in fiscal 2027, $586 million due in 2028, $97 million in 2029, and zero in 2030.
1 unchanged sentence
Ashland’s corporate credit ratings remained unchanged at BB+ by Standard & Poor’s and Ba1 by Moody’s Investor Services.
−Removed: As of March 31, 2025, both Moody’s Investor Services and Standard & Poor's outlook remained at stable.
+Added: As of June 30, 2025, both Moody’s Investor Services and Standard & Poor's outlook remained at stable.
Subsequent changes to these ratings or outlook may have an effect on Ashland’s borrowing rate or ability to access capital markets in the future.
Ashland debt covenant restrictions
−Removed: Ashland's current credit agreement (the "2022 Credit Agreement") contains usual and customary representations, warranties and affirmative and negative covenants, including financial covenants for leverage and interest coverage ratios, limitations on liens, additional subsidiary indebtedness, restrictions on subsidiary distributions, investments, mergers, sale of assets and restricted payments and other customary limitations.
−Removed: As of March 31, 2025, Ashland is in compliance with all debt agreement covenant restrictions under the 2022 Credit Agreement.
+Added: Ashland's 2022 credit agreement contains usual and customary representations, warranties and affirmative and negative covenants, including financial covenants for leverage and interest coverage ratios, limitations on liens, additional subsidiary indebtedness, restrictions on subsidiary distributions, investments, mergers, sale of assets and restricted payments and other customary limitations.
+Added: As of June 30, 2025, Ashland is in compliance with all debt agreement covenant restrictions under the 2022 Credit Agreement.
The maximum consolidated net leverage ratio permitted under the 2022 Credit Agreement is 4.0.
The 2022 Credit Agreement defines the consolidated net leverage ratio as the ratio of consolidated indebtedness minus unrestricted cash and cash equivalents to consolidated EBITDA (Covenant Adjusted EBITDA) for any measurement period.
−Removed: general, the 2022 Credit Agreement defines Covenant Adjusted EBITDA as net income (loss) plus consolidated interest charges, taxes, depreciation and amortization expense, fees and expenses related to capital market transactions and proposed or actual acquisitions and divestitures, restructuring and integration charges, noncash stock and equity compensation expense, and any other nonrecurring expenses or losses that do not represent a cash item in such period or any future period;
+Added: In general, the 2022 Credit Agreement defines Covenant Adjusted EBITDA as net income (loss) plus consolidated interest charges, taxes, depreciation and amortization expense, fees and expenses related to capital market transactions and proposed or actual acquisitions and divestitures, restructuring and integration charges, noncash stock and equity compensation expense, and any other nonrecurring expenses or losses that do not represent a cash item in such period or any future period;
less any noncash gains or other items increasing net income (loss).
1 unchanged sentence
In general, consolidated indebtedness includes debt plus all purchase money indebtedness, banker’s acceptances and bank guaranties, deferred purchase price of property or services, attributable indebtedness and guarantees.
−Removed: At March 31, 2025, Ashland’s calculation of the consolidated net leverage ratio was 2.9.
+Added: At June 30, 2025, Ashland’s calculation of the consolidated net leverage ratio was 2.9.
The minimum required consolidated interest coverage ratio under the 2022 Credit Agreement is 3.0.
The 2022 Credit Agreement defines the consolidated interest coverage ratio as the ratio of Covenant Adjusted EBITDA to consolidated interest charges for any measurement period.
−Removed: At March 31, 2025, Ashland’s calculation of the consolidated interest coverage ratio was 7.0.
+Added: At June 30, 2025, Ashland’s calculation of the consolidated interest coverage ratio was 6.5.
Any change in Covenant Adjusted EBITDA of $100 million would have an approximate 0.6x effect on the consolidated net leverage ratio and a 1.6x effect on the consolidated interest coverage ratio.
1 unchanged sentence
Additional capital resources
−Removed: Total equity decreased by $309 million since September 30, 2024 to $2,559 million at March 31, 2025.
−Removed: The decrease of $309 million was due to net loss of $135 million, stock repurchase activity of $101 million (includes $1 million in excise tax), $45 million of deferred translation losses, and dividends of $38 million partially offset by common stock issued of $6 million, $3 million for unrealized gains on commodity hedges and other activity of $1 million.
+Added: Total equity decreased by $979 million since September 30, 2024 to $1,889 million at June 30, 2025.
+Added: The decrease of $979 million was due to net loss of $877 million, stock repurchase activity of $101 million (includes $1 million in excise tax), and dividends of $57 million partially offset by $46 million of deferred translation gains, $8 million of common stock issued, and $2 million for unrealized gains on commodity hedges.
2023 Stock Repurchase program
1 unchanged sentence
The new authorization terminated and replaced the 2022 Stock Repurchase Program, which had $200 million outstanding at the date of termination.
−Removed: As of March 31, 2025, $520 million remained available for repurchase under the 2023 Stock Repurchase Program.
+Added: As of June 30, 2025, $520 million remained available for repurchase under the 2023 Stock Repurchase Program.
Stock repurchase program agreements
−Removed: The following table provides the common stock repurchase activity for the three and six months ended March 31, 2025 and 2024:
+Added: The following table provides the common stock repurchase activity for the three and nine months ended June 30, 2025 and 2024:
Three months ended
−Removed: Six months ended
+Added: Nine months ended
(In millions, except per share data)
7 unchanged sentences
Stockholder dividends
−Removed: Ashland paid a dividend of 40.5 cents per share for the first and second quarters of fiscal 2024 and 38.5 cents per share in the first and second quarters of fiscal 2024.
+Added: On May 6, 2025, Ashland's Board declared a quarterly cash dividend of 41.5 cents per share on the company's common stock representing a 2.5 percent increase from the previous quarter.
+Added: The dividend was paid in the third quarter of fiscal 2025.
+Added: Dividends of 40.5 cents per share were paid in the first and second quarters of fiscal 2024 and the third quarter of fiscal 2024 and 38.5 cents per share in the first and second quarters of fiscal 2024.
Capital expenditures
−Removed: Capital expenditures were $44 million for the six months ended March 31, 2025, compared to $70 million for the six months ended March 31, 2024.
+Added: Capital expenditures were $64 million for the nine months ended June 30, 2025, compared to $99 million for the nine months ended June 30, 2024.
CRITICAL ACCOUNTING POLICIES
5 unchanged sentences
Management has reviewed the estimates affecting these items with the Audit Committee of Ashland’s Board of Directors.
−Removed: No material changes have been made to the valuation techniques during the six months ended March 31, 2025.
−Removed: Ashland recognizes the current economic headwinds and uncertainties created by tariffs and global trade policies.
−Removed: The company is closely monitoring changes in tariff policies and adjusting its strategies to optimize performance.
−Removed: To navigate this evolving landscape, Ashland is focused on maintaining flexible operations and actively managing risks for financial resilience while pursuing growth opportunities.
−Removed: Key tariff exposures (as of April 30th):
−Removed: • Raw materials:
−Removed: Ashland has limited direct exposure to US or China tariffs on raw materials due to the company’s localized sourcing strategy.
−Removed: Ashland’s estimated tariff impact for fiscal year 2025 is $3 to $5 million for the second half, modestly increasing to $5 to $7 million annually after mitigation actions;
−Removed: • US finished goods:
−Removed: The vast majority of Ashland’s US sales are domestically sourced.
−Removed: A small portion is imported from the European Union and mostly benefits from current Annex II exemptions.
−Removed: Ashland is closely monitoring the recently initiated Section 232 investigation to assess potential future impacts.
−Removed: For context, without the current Annex II exemptions, the annual tariff exposure is projected to be $4 to $6 million, and approximately $1 million in fiscal year 2025;
−Removed: • China finished goods:
−Removed: While most China sales are produced outside the US, approximately $70 million of US-produced China sales, generating company average gross profit, are mostly in scope for tariffs.
−Removed: The primary exposure within these exports is in the Life Sciences and Personal Care segments, with the majority being intercompany transactions.
−Removed: Ashland’s tariff response plan includes measures to offset a significant portion of this business-at-risk.
−Removed: Approximately one-third of Ashland's gross profit is derived from products where the company is the sole supplier.
−Removed: With approximately 90 days of finished goods inventory currently held in China, any potential impact on fiscal year 2025 is anticipated to occur in the fourth quarter;
−Removed: • Tariff response plan:
−Removed: Ashland is evaluating and executing several mitigation strategies, including optimizing production, sourcing, logistics, intercompany trading strategies, relative competitive positioning, share gain opportunities, customer and vendor negotiations, and pricing actions where appropriate.
−Removed: Financial Outlook
−Removed: Ashland is adjusting its full-year fiscal 2025 outlook to reflect a weakening macroeconomic environment that is dampening consumer sentiment and demand globally.
−Removed: This shift is evident in the following key areas:
−Removed: • Reduced consumer sentiment:
−Removed: growing global macroeconomic and geopolitical uncertainties are negatively impacting consumer confidence, leading to decreased demand from Ashland’s customer base, particularly for architectural coatings;
−Removed: • Challenging intermediates market:
−Removed: a persistent supply-demand imbalance continues to pressure the intermediates market.
−Removed: Despite ongoing pricing adjustments, overall pricing remains below expectations;
−Removed: • Subdued European demand:
−Removed: while European markets have stabilized at a low level, the anticipated moderate recovery has not yet materialized.
−Removed: Ashland now anticipates flattish organic sales volume growth for the full fiscal year.
−Removed: This revision reflects the company’s expectation of a positive inflection in organic sales volumes in the second half, led by Life Sciences, which Ashland anticipates will offset the organic sales volume declines experienced in the first half.
−Removed: Year-over-year pricing headwinds are expected to lessen in the second half of the fiscal year as the company moves beyond comparable periods with prior pricing actions.
−Removed: Excluding the tariff impact detailed earlier above, overall raw material costs are expected to remain generally stable year-over-year.
−Removed: The outlook reflects Ashland’s assessment of the direct financial impact from global trade policies in the second half of fiscal 2025.
−Removed: In response to this evolving demand landscape, Ashland is proactively focusing on its strategic priorities.
−Removed: The completed portfolio optimization initiative and accelerating cost savings programs are expected to enhance business mix and improve profitability throughout the remainder of the fiscal year.
−Removed: Based on these factors, Ashland now projects full fiscal year sales in the range of $1.825 billion to $1.9 billion and adjusted EBITDA in the range of $400 million to $420 million.
+Added: No material changes have been made to the valuation techniques during the nine months ended June 30, 2025.
+Added: Ashland reviews goodwill for impairment annually as of July 1 or when events and circumstances indicate an impairment may have occurred.
+Added: Ashland tests goodwill for impairment by comparing the estimated fair value of the reporting units to the related carrying value.
+Added: If the fair value of the reporting unit is lower than its carrying amount, goodwill is written down for the amount by which the carrying amount exceeds fair value.
+Added: However, the loss recognized cannot exceed the carrying amount of goodwill.
+Added: Reporting units are defined as either operating segments or one level below the operating segments for which discrete financial information is available and reviewed by the business management.
+Added: Ashland determined that its reporting units are Life Sciences, Personal Care, Specialty Additives and Intermediates.
+Added: Ashland makes various estimates and assumptions in determining the estimated fair value of each reporting unit using a combination of discounted cash flow models and valuations based on earnings multiples for guideline public companies in each reporting unit’s industry peer group, when externally quoted market prices are not readily available.
+Added: Discounted cash flow models are reliant on various assumptions, including projected business results, long-term growth factors and weighted-average cost of capital.
+Added: Management judgment is involved in estimating these variables, and they include uncertainties since they are forecasting future events.
+Added: Ashland performs sensitivity analyses by using a range of inputs to confirm the reasonableness of the long-term growth rate and weighted average cost of capital estimates.
+Added: Additionally, Ashland compares the indicated equity value to Ashland’s market capitalization and evaluates the resulting implied control premium/discount to determine if the estimated enterprise value is reasonable.
+Added: During the third quarter fiscal 2025, Ashland experienced a continued decline in the market price of its Common Stock.
+Added: Ashland also experienced slowing growth due to weakening macroeconomic environment that is dampening consumer sentiment and demand globally which resulted in lower growth and lower margins for the Life Sciences and Specialty Additives reporting units then what was previously forecasted.
+Added: These factors led Ashland to determine that triggering events occurred, and a quantitative goodwill impairment assessment was performed as of June 30, 2025.
+Added: Following the completion of this quantitative analysis, Ashland concluded that the fair value of Personal Care reporting unit exceeded its carrying value by more than 100%.
+Added: The Intermediates reporting unit has no associated goodwill.
+Added: The carrying values of the Life Sciences and Specialty Additives reporting units exceeded their respective fair values, resulting in non-cash goodwill impairment charges of $375 million and $331 million, respectively, for a total goodwill impairment charge of $706 million, which was recorded within the goodwill impairment caption of the Statements of Condensed Consolidated Comprehensive Income (Loss) for the both three and nine months ended June 30, 2025.
+Added: Remaining goodwill after impairment was $466 million for Life Sciences and $112 million for Specialty Additives.
+Added: For further information, see Note G of the Notes to the Condensed Consolidated Financial Statements.
+Added: The below table provides a sensitivity analysis for Life Sciences and Specialty Additives reporting units remaining goodwill, utilizing reasonably possible changes in the assumptions for the shorter term and residual growth rates and the discount rate, to demonstrate the potential impacts to the estimated fair values.
+Added: The below table provides, in isolation, the estimated fair value impacts related to a 25-basis point increase to discount rate or a 25-basis point decrease to residual growth rates, both of which would result in incremental impairment charges to the Life Sciences and Specialty Additives reporting units.
+Added: Approximate Percent Change in Estimated Fair Value
+Added: Discount Rate
+Added: Life Sciences
+Added: Specialty Additives
+Added: Assumptions inherent in the valuation methodologies include estimates of future projected business results (principally sales and EBITDA), long-term growth rates, and the weighted-average cost of capital.
+Added: Ashland performed sensitivity analyses by using a range of inputs to confirm the reasonableness of long-term growth rate and weighted average cost of capital estimates.
+Added: Significant assumptions utilized in the impairment analysis included the weighted-average cost of capital, ranging between 12.50% and 13.75%, and terminal growth rate, ranging between 2.0% and 4.0% depending on the reporting unit.
+Added: Based on sensitivity analysis performed on two key
+Added: assumptions in the discounted cash flow model at June 30, 2025, a 1% decrease in the long-term growth factor assumption or a 1% increase in the weighted average cost of capital assumption for the Personal Care reporting unit would not have resulted in a fair value below the carrying value.
+Added: For further information, see Note G of the Notes to the Condensed Consolidated Financial Statements.
+Added: Ashland is updating its full-year fiscal 2025 outlook to reflect a stable but subdued macroeconomic environment and continued caution across customer channels.
+Added: Demand trends remain mixed:
+Added: pharma continues to recover and show resilience, Personal Care is stable with early signs of company-specific momentum, while Specialty Additives and Intermediates remain under pressure.
+Added: Ashland maintains a measured outlook, supported by innovation tracking ahead of plan, early signs of recovery in its “globalize” platforms, and the execution of high-impact self-help initiatives.
+Added: These strategic levers are helping to mitigate near-term volume pressure and position the company for improved performance going forward.
+Added: Tariff-related uncertainty persists, and the company continues to monitor the evolving regulatory landscape.
+Added: While long-term rules are still being finalized, Ashland does not expect a material direct impact to fiscal year 2025.
+Added: At the same time, Ashland is benefiting from an FX tailwind, while other input costs and pricing dynamics remain stable.
+Added: Raw material costs are steady, and year-over-year pricing pressure is easing as the company laps prior actions.
+Added: These conditions are expected to support margin performance through the fourth quarter.
+Added: Ashland continues to prioritize controllable levers.
+Added: The company’s $30 million restructuring program is expected to generate approximately $7.5 million in savings in the fourth quarter.
+Added: Progress continues on the $60 million manufacturing network optimization initiative.
+Added: These efforts, combined with strong execution, are expected to support continued margin strength.
+Added: Free Cash Flow generation was strong in the third quarter, and Ashland expects continued healthy conversion in the fourth quarter.
+Added: Based on these factors, Ashland now expects full-year fiscal 2025 sales of approximately $1.825 billion to $1.850 billion and Adjusted EBITDA in the range of $400 million to $410 million.
+Added: While the company has narrowed its guidance to reflect muted near-term growth, current assumptions are weighted toward the lower end of the range, reflecting a prudent base-case stance amid ongoing uncertainty, while underscoring the resilience of Ashland’s business model.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
−Removed: Ashland’s market risk exposure at March 31, 2025 is generally consistent with the types of market risk exposures presented in Ashland’s Annual Report on Form 10-K for the fiscal year ended September 30, 2024.
+Added: Ashland’s market risk exposure at June 30, 2025 is generally consistent with the types of market risk exposures presented in Ashland’s Annual Report on Form 10-K for the fiscal year ended September 30, 2024.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.