What changed in this filing

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Item 1. Financial Statements

2026-04-29 compared with 2026-02-03 · 253 added, 165 removed, 691 unchanged (38% of the section changed)

3 unchanged sentences

Three months ended

Six months ended

(In millions except per share data - unaudited)

2 unchanged sentences

Selling, general and administrative expense - Note Q

Research and development expense

Intangibles amortization expense - Note G

Equity and other income

Income (loss) on divestitures, net - Note B

Operating loss

Research and development expense - Note Q

Intangibles amortization expense - Note G and Note Q

Equity and other income - Note Q

Income (loss) on divestitures, net - Note B and Note Q

Operating income (loss)

Net interest and other expense

Other net periodic benefit loss - Note K

Loss from continuing operations before income taxes

Income tax benefit - Note J

Loss from continuing operations

Income (loss) from continuing operations before income taxes

Income tax expense (benefit) - Note J

Income (loss) from continuing operations

Income from discontinued operations, net of income taxes - Note C

Net income (loss)

PER SHARE DATA

Basic earnings (loss) per share - Note M

Loss from continuing operations

Income (loss) from continuing operations

Income from discontinued operations

Net income (loss)

Diluted earnings (loss) per share - Note M

Loss from continuing operations

Income (loss) from continuing operations

Income from discontinued operations

Net income (loss)

COMPREHENSIVE INCOME (LOSS)

Net income (loss)

Other comprehensive income (loss), net of tax

2 unchanged sentences

Other comprehensive income (loss) - Note N

Comprehensive loss

Comprehensive income (loss)

SEE NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.

35 unchanged sentences

Total liabilities and equity

(a) Accounts receivable, net includes an allowance for credit losses of $ 3 million and $ 2 million at December 31, 2025 and September 30, 2025 , respectively.

(b) Asbestos insurance receivable, net includes an allowance for credit losses of $ 2 million at both December 31, 2025 and September 30, 2025 .

(a) Accounts receivable, net includes an allowance for credit losses of $ 4 million and $ 2 million at March 31, 2026 and September 30, 2025 , respectively.

(b) Asbestos insurance receivable, net includes an allowance for credit losses of $ 2 million at both March 31, 2026 and September 30, 2025 .

SEE NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.

1 unchanged sentence

STATEMENTS OF CONDENSED CONSOLIDATED CASH FLOWS

Three months ended

Six months ended

(In millions - unaudited)

CASH FLOWS PROVIDED (USED) BY OPERATING ACTIVITIES FROM CONTINUING OPERATIONS

Net income (loss)

Income from discontinued operations, net of income taxes

Adjustments to reconcile loss from continuing operations to cash flows from operating activities:

Adjustments to reconcile income (loss) from continuing operations to cash flows from operating activities:

Depreciation and amortization

14 unchanged sentences

Proceeds from disposal of property, plant and equipment

Proceeds from sale of operations

Proceeds from settlement of Company-owned life insurance contracts

5 unchanged sentences

Total cash flows provided (used) by investing activities from continuing operations

CASH FLOWS USED BY FINANCING ACTIVITIES FROM CONTINUING OPERATIONS

CASH FLOWS PROVIDED (USED) BY FINANCING ACTIVITIES FROM CONTINUING OPERATIONS

Repurchase of common stock

Proceeds from short-term debt

Cash dividends paid

5 unchanged sentences

Total cash used by discontinued operations

Effect of currency exchange rate changes on cash and cash equivalents

Effect of currency exchange rate changes on cash and cash equivalents (a)

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

1 unchanged sentence

CASH AND CASH EQUIVALENTS - END OF PERIOD

(a) Zero denotes less than $1 million of activity.

SEE NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.

9 unchanged sentences

and consolidated subsidiaries ("Ashland" or the "Company") Annual Report on Form 10-K for the fiscal year ended September 30, 2025, filed with the SEC on November 20, 2025.

Results of operations for the three months ended December 31, 2025, are not necessarily indicative of the expected results for the remainder of the fiscal year.

Results of operations for the three and six months ended March 31, 2026, are not necessarily indicative of the expected results for the remainder of the fiscal year.

Ashland is comprised of the following reportable segments:

3 unchanged sentences

Use of estimates, risks and uncertainties

The preparation of Ashland’s Condensed Consolidated Financial Statements in conformity with U.S.

The preparation of the Condensed Consolidated Financial Statements in conformity with U.S.

GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosures of contingent assets and liabilities.

8 unchanged sentences

A detailed listing of new accounting standards relevant to Ashland is included in the Annual Report on Form 10-K for the fiscal year ended September 30, 2025 .

There were no new accounting pronouncements recently adopted or issued that are expected to have a material impact on the Condensed Consolidated Financial Statements.

There were no new accounting pronouncements recently adopted or issued since then that are expected to have a material impact on the Condensed Consolidated Financial Statements.

NOTE B – DIVESTITURES

Avoca business sale

On March 31, 2025, Ashland completed the sale its Avoca business to Mane SA (Ashland signed the definitive agreement to sell substantially all of the net assets of Avoca in December 2024).

On March 31, 2025, Ashland completed the sale of its Avoca business to Mane SA.

Proceeds from the sale were $ 16 million, net of transaction costs.

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) within the income (loss) on divestitures, net caption of the Statement of Condensed Consolidated Comprehensive Income (Loss) for the three months ended December 31, 2024.

The impairment charge includes the impact of the related inside tax basis differences associated with the impaired assets.

The tax benefit associated with the sale is included within the income tax benefit caption of the Statement of Condensed Consolidated Comprehensive Income (Loss) for the three months ended December 31, 2024.

The Avoca business was included within Ashland's Personal Care reportable segment.

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.

Ashland recorded an impairment charge of zero 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) within the income (loss) on divestitures, net caption of the Statement of Condensed Consolidated Comprehensive Income (Loss) for the three and six months ended March 31, 2025.

The impairment charge includes the impact of the related inside tax basis differences associated with the impaired assets.

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 six months ended March 31, 2025 .

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 divestitures, net caption of the Statements of Condensed Consolidated Comprehensive Income (Loss) for the three and six months ended March 31, 2025.

Other corporate assets

During the three months ended December 31, 2025, Ashland completed the sale of an excess land property with a net book value of $ 2 million.

Ashland received net proceeds of $ 4 million and recorded a pre-tax gain of $ 2 million within the income (loss) on divestitures, net caption of the Statement of Condensed Consolidated Comprehensive Income (Loss) for the three months ended December 31, 2025.

During the six months ended March 31, 2026 , Ashland completed the sale of an excess land property with a net book value of $ 2 million.

During the three months ended March 31, 2025, Ashland completed the sale of an excess land property with a net book value of zero .

Ashland received net proceeds and recorded a pre-tax gain of $ 11 million within the income (loss) on divestitures, net caption of the Statements of Condensed Consolidated Comprehensive Income (Loss) for the three and six months ended March 31, 2025.

NOTE C – DISCONTINUED OPERATIONS

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Due to the ongoing assessment of certain matters associated with previous divestitures, subsequent adjustments to these divestitures may continue in future periods in the income from discontinued operations, net of income taxes caption in the Statements of Condensed Consolidated Comprehensive Income (Loss).

The following divested businesses represent disposal groups that qualified as discontinued operations in previous periods and impacted discontinued operations for the three months ended December 31, 2025 and 2024:

• The Performance Adhesives business divested in 2022;

• The separation of Valvoline Inc.

(Valvoline) business divested in 2017;

• The sale of Ashland Water Technologies (Water Technologies) business divested in 2014.

• Ashland is subject to liabilities from claims alleging personal injury caused by exposure to asbestos.

Such claims result primarily from indemnification obligations undertaken in 1990 in connection with the sale of Riley Stoker Corporation ("Riley"), a former subsidiary, which qualified as a discontinued operation and from the acquisition during 2009 of Hercules LLC (formerly Hercules Incorporated) ("Hercules"), an indirect wholly-owned subsidiary of Ashland.

Adjustments to the recorded asbestos litigation reserves and related insurance receivables are recorded within the income from discontinued operations, net of income taxes caption within the Statements of Condensed Consolidated Comprehensive Income (Loss).

See Note L for more information related to the adjustments on asbestos litigation reserves and receivables.

Components of amounts reflected in the Statements of Condensed Consolidated Comprehensive Income (Loss) related to discontinued operations are presented in the following table:

Three months ended

Six months ended

(In millions)

Water Technologies

Asbestos-related litigation

Performance Adhesives

NOTE D – RESTRUCTURING ACTIVITIES

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During fiscal 2025, Ashland initiated a restructuring plan to offset the impact from the Nutraceuticals business sale completed in fiscal 2024, the Avoca business sale completed in fiscal 2025, and other portfolio optimization actions ("2025 Restructuring Program").

As a part of this program, Ashland is also advancing a multi-year manufacturing network optimization to improve operational cost and strengthen its competitive position.

This program continued into fiscal 2026.

During fiscal 2023, Ashland implemented targeted organizational restructuring actions to reduce costs.

This program is now completed.

As a part of the 2025 Restructuring Program, Ashland is also advancing a multi-year manufacturing network optimization to improve operational cost and strengthen its competitive position.

The 2025 Restructuring Program continued into fiscal 2026.

During fiscal 2023, Ashland implemented targeted organizational restructuring actions to reduce costs ("2023 Restructuring Program").

The 2023 Restructuring Program is now completed.

The following tables detail the amount of restructuring severance expense related to these programs.

Three months ended December 31, 2025

Three months ended December 31, 2024

Three months ended March 31, 2026

Three months ended March 31, 2025

(In millions)

5 unchanged sentences

2023 Restructuring Program

(a) Severance expense is recorded within the selling, general and administrative expense caption of the Statements of Condensed Consolidated Comprehensive Income (Loss) for the three months ended December 31, 2025 and 2024.

The following table details at December 31, 2025, the amount of restructuring severance liabilities related to these programs.

Six months ended March 31, 2026

Six months ended March 31, 2025

(In millions)

Severance expense (a)

Utilization (cash paid)

Severance expense (income) (a)

Utilization (cash paid)

2025 Restructuring Program

2023 Restructuring Program

(a) Severance expense (income) is recorded within the selling, general and administrative expense caption of the Statements of Condensed Consolidated Comprehensive Income (Loss) for the six months ended March 31, 2026 and 2025 .

The following table details at March 31, 2026, the amount of restructuring severance liabilities related to these programs.

(In millions)

2025 Restructuring Program

2023 Restructuring Program

Balance at September 30, 2025 (a)

1 unchanged sentence

Utilization (cash paid)

Balance at December 31, 2025 (a)

(a) The restructuring severance liabilities associated with these programs is recorded within accrued expenses and other liabilities in the Condensed Consolidated Balance Sheets at December 31, 2025 and September 30, 2025 .

Balance at March 31, 2026 (a)

Plant optimization actions

Ashland's portfolio optimization actions have included manufacturing network optimization projects associated with carboxymethylcellulose ("CMC"), industrial methylcellulose ("MC"), vinyl pyrrolidone and derivatives ("VP&D") and hydroxyethylcellulose ("HEC").

During the three months ended December 31, 2025, Ashland incurred $ 3 million of accelerated depreciation for product line optimization activities associated with a Specialty Additives manufacturing facility, which was recorded within the cost of sales caption of the Statement of Condensed Consolidated Comprehensive Income (Loss).

During the three and six months ended March 31, 2026 , Ashland incurred zero and $ 3 million of accelerated depreciation for product line optimization activities associated with a Specialty Additives manufacturing facility, which was recorded within the cost of sales caption of the Statements of Condensed Consolidated Comprehensive Income (Loss).

During both the three and six months ended March 31, 2025 , Ashland incurred $ 13 million of accelerated depreciation for product line optimization activities associated with a Life Sciences manufacturing facility, which was recorded within the cost of sales caption of the Statements of Condensed Consolidated Comprehensive Income (Loss).

NOTE E – FAIR VALUE MEASUREMENTS

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For assets that are measured using quoted prices in active markets (Level 1), the total fair value is the published market price per unit multiplied by the number of units held without consideration of transaction costs.

Assets and liabilities that are measured using significant other observable inputs (Level 2) are primarily valued by reference to

quoted prices of similar assets or liabilities in active markets, adjusted for any terms specific to that asset or liability.

Assets and liabilities that are measured using significant other observable inputs (Level 2) are primarily valued by reference to quoted prices of similar assets or liabilities in active markets, adjusted for any terms specific to that asset or liability.

For all other assets and liabilities for which unobservable inputs are used (Level 3), fair value is derived through the use of fair value models, such as a discounted cash flow model or other standard pricing models that Ashland deems reasonable.

The following table summarizes financial instruments subject to recurring fair value measurements as of December 31, 2025:

The following table summarizes financial instruments subject to recurring fair value measurements as of March 31, 2026:

(In millions)

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Investment of captive insurance company (c)

Foreign currency derivatives (d)

Commodity derivatives (d)

Total assets at fair value

Foreign currency derivatives (e)

Commodity derivatives (e )

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The financial instruments are designated as investment securities, classified as Level 1 measurements within the fair value hierarchy.

These investment securities were classified primarily as noncurrent restricted investment assets, with $ 50 million classified within other current assets, in the Condensed Consolidated Balance Sheets at both December 31, 2025 and September 30, 2025.

The following table presents gross unrealized gains and losses for the restricted investments as of:

3 unchanged sentences

Unrealized Loss

December 31, 2025

March 31, 2026

Demand deposit

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Three months ended

Six months ended

(In millions)

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The impacts of these contracts were largely offset by gains and losses resulting from the impact of changes in exchange rates on transactions denominated in non-functional currencies.

The following table summarizes the gains recognized within the Statements of Condensed Consolidated Comprehensive Income (Loss):

The following table summarizes the gains (losses) recognized within the Statements of Condensed Consolidated Comprehensive Income (Loss):

Three months ended

Six months ended

(In millions)

2 unchanged sentences

(In millions)

Foreign currency derivative assets

Foreign currency derivative assets (a)

Notional contract values

1 unchanged sentence

Notional contract values

(a) Zero denotes less than $1 million of activity.

Commodity derivatives

Natural gas derivatives

To manage its exposure to the market price volatility of natural gas consumed by its U.S.

plants during the manufacturing process, Ashland regularly enters into forward contracts that are designated as cash flow hedges.

The following table summarizes the net losses recognized within the cost of sales caption of the Statements of Condensed Consolidated Comprehensive Income (Loss):

The following table summarizes the net gains ( losses) recognized within the cost of sales caption of the Statements of Condensed Consolidated Comprehensive Income (Loss):

Three months ended

Six months ended

(In millions)

Commodity derivative losses

The following table summarizes the fair values of the outstanding commodity derivatives included in accounts receivable, net and accrued expenses and other liabilities of the Condensed Consolidated Balance Sheets as of:

Commodity derivative gains (losses)

The following table summarizes the fair values of the outstanding natural gas derivatives included in accounts receivable, net and accrued expenses and other liabilities of the Condensed Consolidated Balance Sheets as of:

(In millions)

3 unchanged sentences

Notional contract values

Other commodity derivatives

During the three months ended March 31, 2026, Ashland entered into a series of forward contracts to manage its exposure to the market volatility of butane consumed by its U.S.

plants during the manufacturing process.

These derivative instruments qualify as a hedge of future cash flows, are recognized as either assets or liabilities on the Condensed Consolidated Balance Sheets and are measured at fair value.

Gains and losses related to an instrument that qualifies for hedge accounting are either recognized in the Statements of Condensed Consolidated Comprehensive Income (Loss) immediately to offset the gain or loss on the hedged item, or deferred and recorded in the stockholders’ equity section of the Condensed Consolidated Balance Sheets as a component of accumulated other comprehensive loss and subsequently recognized in the Statements of Condensed Consolidated Comprehensive Income (Loss) when the hedged item affects net income (loss).

Cash flows from derivative financial instruments designated as cash flow hedges are classified as cash flows from operating activities in the Condensed Consolidated Statements of Cash Flows for the relevant period.

These contracts did not have a material impact on Ashland’s Condensed Consolidated Financial Statements during the three and six months ended March 31, 2026 .

Other financial instruments

At December 31, 2025 and September 30, 2025 , Ashland's long-term debt (including the current portion and excluding debt issuance cost discounts) had a carrying value of $ 1,397 million and $ 1,394 million, respectively, compared to a fair value of $ 1,383 million and $ 1,366 million, respectively.

At March 31, 2026 and September 30, 2025 , Ashland's long-term debt (including the current portion and excluding debt issuance cost discounts) had a carrying value of $ 1,383 million and $ 1,394 million, respectively, compared to a fair value of $ 1,333 million and $ 1,366 million, respectively.

The fair values of long-term debt are based on quoted market prices (level 1 of the fair value hierarchy).

9 unchanged sentences

Ashland tests goodwill and other indefinite-lived intangible assets for impairment annually as of July 1 or whenever events and circumstances indicate an impairment may have occurred.

No indicators of impairment were identified during the three months ended December 31, 2025.

The following is a progression of goodwill by reportable segment for the three months ended December 31, 2025:

No indicators of impairment were identified during the three and six months ended March 31, 2026.

The following is a progression of goodwill by reportable segment for the six months ended March 31, 2026:

(In millions)

2 unchanged sentences

Currency translation

Balance at December 31, 2025 (a)

(a) As of both December 31, 2025 and September 30, 2025, there were accumulated impairments of $ 375 million, $ 356 million, $ 505 million and $ 90 million related to the Life Sciences, Personal Care, Specialty Additives and Intermediates reportable segments, respectively.

Balance at March 31, 2026 (a)

(a) As of both March 31, 2026 and September 30, 2025, there were accumulated impairments of $ 375 million, $ 356 million, $ 505 million and $ 90 million related to the Life Sciences, Personal Care, Specialty Additives and Intermediates reportable segments, respectively.

Other intangible assets

2 unchanged sentences

The cost of trademarks and trade names is amortized principally over 3 to 20 years , intellectual property over 3 to 20 years , and customer lists over 10 to 24 years .

Ashland annually reviews, as of July 1, indefinite-lived intangible assets for possible impairment or whenever events or changes in circumstances indicate that carrying amounts may not be recoverable.

No indicators of impairment were identified for indefinite-lived trademarks and trade names during the three months ended December 31, 2025 .

Ashland annually reviews, as of July 1, indefinite-lived intangible assets for impairment or whenever events or changes in circumstances indicate that carrying amounts may not be recoverable.

No indicators of impairment were identified for indefinite-lived trademarks and trade names during the three and six months ended March 31, 2026 .

Other intangible assets were comprised of the following as of:

December 31, 2025

March 31, 2026

September 30, 2025

8 unchanged sentences

Total indefinite-lived intangible assets

Amortization expense recognized on other intangible assets was $ 15 million and $ 17 million for the three months ended December 31, 2025 and 2024 , respectively, and is included within the intangibles amortization expense caption of the Statements of Condensed Consolidated Comprehensive Income (Loss).

Estimated amortization expense for future periods is $ 59 million in 2026 (includes three months actual and nine months estimated), $ 37 million in 2027, $ 35 million in 2028, $ 27 million in 2029 and $ 19 million in 2030.

Actual amounts may change from such estimated amounts due to fluctuations in foreign currency exchange rates, additional intangible asset acquisitions and divestitures, potential impairment, accelerated amortization, or other events.

Amortization expense recognized on other intangible assets was $ 15 million for both the three months ended March 31, 2026 and 2025 , and $ 30 million and $ 32 million for the six months ended March 31, 2026 and 2025, respectively, and is included within the intangibles amortization expense caption of the Statements of Condensed Consolidated Comprehensive Income (Loss).

Estimated amortization expens e for future periods is $ 60 million in 2026 (includes six months actual and six months estimated), $ 37 million in 2027, $ 34 million in 2028, $ 27 million in 2029 and $ 19 million in 2030.

Actu al amounts may change from such estimated amounts due to fluctuations in foreign currency exchange rates, additional intangible asset acquisitions and divestitures, potential impairment, accelerated amortization, or other events.

NOTE H – DEBT AND OTHER FINANCING ACTIVITIES

1 unchanged sentence

(In millions)

December 31, 2025

March 31, 2026

September 30, 2025

3 unchanged sentences

6.50 % Junior Subordinated Notes, due 2029

Long-term debt (less debt issuance costs)

(a) Other includes $ 9 million and $ 10 million of debt issuance costs as of December 31, 2025 and September 30, 2025 , respectively.

The current portion of the long-term debt was zero for both December 31, 2025 and September 30, 2025 .

The scheduled aggregate maturities for long-term debt by year (excluding debt issuance costs) are as follows as of December 31, 2025 :

zero in 2026, $ 4 million in 2027, $ 588 million in 2028, $ 97 million in 2029, zero in 2030 and $ 450 million in 2031.

Accounts receivable facilities and off-balance sheet arrangements

Long-term debt (less debt issuance costs) (b)

(a) Other includes $ 9 million and $ 10 million of debt issuance costs as of March 31, 2026 and September 30, 2025 , respectively.

(b) The current portion of the long-term debt was zero for both March 31, 2026 and September 30, 2025 .

The scheduled aggregate maturities for long-term debt by year (excluding debt issuance costs) are as follows as of March 31, 2026 :

zero 2026, $ 4 million in 2027, $ 573 million in 2028, $ 97 million in 2029, zero in 2030 and $ 450 million in 2031.

Accounts receivable facilities and supply chain finance program

Ashland continues to maintain its U.S.

Accounts Receivable Sales Program, which was entered into during fiscal 2021, and its Foreign Accounts Receivable Sales Program, which was entered into during fiscal 2024.

programs, Ashland accounts for the accounts receivable transferred to buyers as sales.

Under these programs, Ashland accounts for the accounts receivable transferred to buyers as sales.

Ashland recognizes any gains or losses based on the excess of proceeds received net of buyer’s discounts and fees compared to the carrying value of the accounts receivable.

5 unchanged sentences

Accounts Receivable Sales Program

Ashland recognized a loss of less than $ 1 million and $ 1 million within the Statements of Condensed Consolidated Comprehensive Income (Loss) for the three months ended December 31, 2025 and 2024, respectively, within the net interest and other expense caption associated with sales under the program.

Ashland has recorded $ 59 million in sales at December 31, 2025 , against the buyer’s limit, which was $ 59 million at December 31, 2025 compared to $ 59 million of sales at September 30, 2025 against the buyer's limit, which was $ 59 million at September 30, 2025 .

Ashland transferred $ 71 million and $ 75 million in accounts receivable to the special purpose entity as of December 31, 2025 and September 30, 2025, respectively.

Ashland recorded liabilities related to its service obligations and limited guarantee as of both December 31, 2025 and September 30, 2025 , of less than $ 1 million.

For the three months ended December 31, 2025 and 2024 , the year-to-date gross cash proceeds received for accounts receivable transferred and derecognized were $ 31 million and $ 95 million, respectively, of which $ 31 million and $ 102 million were collected, which includes collections from sales in prior years transferred to the buyer.

The difference between accounts receivable transferred and derecognized versus collected of zero and $ 7 million for the three months ended December 31, 2025 and 2024, respectively, represents the impact of a net offset and a net reduction in accounts receivable sales volume during each period, respectively.

Ashland recognized a loss of less than $ 1 million and $ 1 million within the Statements of Condensed Consolidated Comprehensive Income (Loss) for the three months ended March 31, 2026 and 2025 , respectively, and $ 1 million and $ 2 million for the six months ended March 31, 2026 and 2025, respectively, within the net interest and other expense caption associated with sales under the program.

Ashland has recorded $ 60 million in sales at March 31, 2026 , against the buyer’s limit, which was $ 60 million at March 31, 2026 compared to $ 59 million of sales at September 30, 2025 against the buyer's limit, which was $ 59 million at September 30, 2025 .

Ashland transferred $ 72 million and $ 75 million in accounts receivable to the special purpose entity as of March 31, 2026 and September 30, 2025, respectively.

Ashland recorded liabilities related to its service obligations and limited guarantee as of both March 31, 2026 and September 30, 2025 , of less than $ 1 million.

For the six months ended March 31, 2026 and 2025 , the year-to-date gross cash proceeds received for accounts receivable transferred and derecognized were $ 77 million and $ 189 million, respectively, of which $ 76 million and $ 200 million, respectively, were collected which includes collections from sales in prior years transferred to the buyer.

The difference between accounts receivable transferred and derecognized versus collected of $ 1 million and $ 11 million for the six months ended March 31, 2026 and 2025, respectively, represents the impact of a net increase and a net reduction in accounts receivable sales volume during each period, respectively.

Foreign Accounts Receivable Sales Program

Ashland recognized a loss of less than $ 1 million within the Statements of Condensed Consolidated Comprehensive Income (Loss) for the three months ended December 31, 2025 and 2024, respectively, within the net interest and other expense caption associated with sales under the program.

Ashland has recorded $ 91 million in sales at December 31, 2025 against the buyer’s limit, which was $ 91 million at December 31, 2025 compared to $ 103 million o f sales at September 30, 2025 against the buyer's limit, which was $ 103 million at September 30, 2025 .

Ashland transferred $ 135 million and $ 142 million in accounts receivable to the special purpose entity as of December 31, 2025 and September 30, 2025, respectively.

Ashland recorded liabilities related to its service obligations and limited guarantee as of both December 31, 2025 and September 30, 2025 of less than $ 1 million.

For the three months ended December 31, 2025 and 2024 , the year-to-date gross cash proceeds received for accounts receivable transferred and derecognized were $ 38 million and $ 71 million, respectively, of which $ 45 million and $ 84 million were collected.

The difference between accounts receivable transferred and derecognized versus collected of $ 7 million and $ 13 million for the three months ended December 31, 2025 and 2024, respectively, represents the impact of a net reduction in accounts receivable sales volume during each period, respectively.

Ashland recognized a loss of less than $ 1 million and $ 1 million within the Statements of Condensed Consolid ated Comprehensive Income (Loss) for the three months ended March 31, 2026 and 2025 , respectively, and $ 1 million and $ 2 million for the six months ended March 31, 2026 and 2025 , respectively, within the net interest and other expense caption associated with sales under the program.

Ashland has recorded $ 104 million in sales at March 31, 2026 against the buyer’s limit, which was $ 104 million at March 31, 2026 compared to $ 103 million of sales at September 30, 2025 against the buyer's limit, which was $ 103 million at September 30, 2025 .

Ashland transferred

$ 147 million and $ 142 million, respectively, in accounts receivable to the special purpose entity as of March 31, 2026 and September 30, 2025, respectively.

Ashland recorded liabilities related to its service obligations and limited guarantee as of both March 31, 2026 and September 30, 2025 of less than $ 1 million.

For the six months ended March 31, 2026 and 2025 , the year-to-date gross cash proceeds received for accounts receivable transferred and derecognized were $ 52 million and $ 242 million, respectively, of which $ 45 million and $ 233 million, respectively, were collected.

The difference between accounts receivable transferred and derecognized versus collected of $ 7 million and $ 9 million for the six months ended March 31, 2026 and 2025, respectively, represents the impact of a net increase in accounts receivable sales volume during each period, respectively.

Supply Chain Finance Program

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The program was implemented during June 2025 and has been actively offered to suppliers.

As of December 31, 2025 and September 30, 2025 , participation in the program was not significant.

There were $ 5 million of confirmed invoices, of which $ 1 million were paid during the three months ended December 31, 2025 .

There were $ 4 million and less than $ 1 million of confirmed invoices remaining under this program at December 31, 2025 and September 30, 2025, respectively.

A rollforward of obligations confirmed and paid is presented below:

(In millions)

Three months ended March 31, 2026

Six months ended March 31, 2026

Confirmed obligations outstanding at beginning of period

Invoices confirmed during the period

Confirmed invoices paid during the period

Confirmed obligations outstanding at end of period

Available borrowing capacity and liquidity

The borrowing capacity remaining under current credit agreement (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 as of December 31, 2025.

Ashland had no available liquidity under its current U.S.

and Foreign Accounts Receivable Sales Programs as of December 31, 2025.

and Foreign Accounts Receivable Sales Programs as of March 31, 2026.

Covenants related to current Ashland debt agreements

Ashland's debt 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.

As of December 31, 2025, Ashland is in compliance with all debt agreement covenant restrictions.

The maximum consolidated net leverage ratio permitted under Ashland’s most recent credit agreement (the 2022 Credit Agreement) is 4.0 .

At December 31, 2025 , Ashland’s calculation of the consolidated net leverage ratio was 2.7 .

As of March 31, 2026, Ashland is in compliance with all debt agreement covenant restrictions.

The maximum consolidated net leverage ratio permitted under Ashland’s 2022 Credit Agreement is 4.0 .

At March 31, 2026 , Ashland’s calculation of the consolidated net leverage ratio was 2.6 .

The minimum required consolidated interest coverage ratio under the 2022 Credit Agreement is 3.0 .

At December 31, 2025 , Ashland’s calculation of the consolidated interest coverage ratio was 6.5 .

At March 31, 2026 , Ashland’s calculation of the consolidated interest coverage ratio was 6.5 .

NOTE I – LEASING ARRANGEMENTS

1 unchanged sentence

Three months ended

Six months ended

(In millions)

Operating lease cost

Selling, general & administrative

Selling, general and administrative

Operating lease cost

1 unchanged sentence

Variable lease cost

Selling, general & administrative

Selling, general and administrative

Variable lease cost

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Total lease cost

Right-of-use assets exchanged for new operating lease obligations were $ 1 million and zero for the three months ended December 31, 2025 and 2024, respectively.

Right-of-use assets exchanged for new operating lease obligations were $ 3 million and $ 1 million for the three months ended March 31, 2026 and 2025 , respectively, and $ 4 million and $ 2 million for the six months ended March 31, 2026 and 2025, respectively.

The following table provides cash paid for amounts included in the measurement of lease liabilities:

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(In millions)

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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.

The overall effective tax rate was a benefit of 7 % f or the three months ended December 31, 2025.

The tax rate for the three months ended December 31, 2025 , was primarily impacted by jurisdictional income mix, as well as a net $ 2 million from unfavorable tax discrete items primarily related to equity compensation adjustments and changes in uncertain tax positions.

The effective tax rate was 25 % and 80 % f or the three and six months ended March 31, 2026, respectively.

The tax rate for the three months ended March 31, 2026 , was primarily impacted by jurisdictional income mix and a net $ 1 million from favorable tax discrete items primarily related to changes in uncertain tax positions.

The tax rate for the six months ended March 31, 2026 , was primarily impacted by jurisdictional income mix, as well as a net $ 1 million from unfavorable tax discrete items primarily related to equity compensation adjustments and changes in uncertain tax positions.

Prior fiscal year

The overall effective tax rate was a benefit of 21 % for the three months ended December 31, 2024.

The tax rate for the three months ended December 31, 2024, was impacted by jurisdictional income mix, as well as a net $ 8 million from unfavorable tax discrete items primarily related to final regulations issued in the U.S.

during the three months ended December 31, 2024, impacting the recognition of deferred taxes on certain unrealized foreign exchange gains and losses.

The effective tax rate was 23 % and 20 % for the three and six months ended March 31, 2025, respectively.

The tax rate for the three months ended March 31, 2025, was primarily impacted by jurisdictional income mix.

The tax rate for the six months ended March 31, 2025 , was impacted by jurisdictional income mix, as well as a net $ 7 million from unfavorable tax discrete items primarily related to changes in foreign tax activity and final regulations issued in the U.S.

impacting the recognition of deferred taxes on certain unrealized foreign exchange gains and losses.

Unrecognized tax benefits

There were no changes in unrecognized tax benefits for the three months ended December 31, 2025 .

The balance of unrecognized tax benefits was $ 65 million at both December 31, 2025 and September 30, 2025.

Changes in unrecognized tax benefits are summarized as follows for the six months ended March 31, 2026:

(In millions)

Balance at October 1, 2025

Decreases related to positions taken on items from prior years

Increases related to positions taken in the current year

Increases related to positions taken in the prior year

Balance at March 31, 2026

From a combination of statute expirations and audit settlements in the next twelve months, Ashland expects a decrease in the amount of accrual for uncertain tax positions between zero and $ 1 million for continuing operations.

For the remaining balance as of December 31, 2025 , it is reasonably possible that there could be material changes to the amount of uncertain tax positions due to activities of the taxing authorities, settlement of audit issues, reassessment of existing uncertain tax positions or the expiration of applicable statute of limitations;

For the remaining balance as of March 31, 2026 , it is reasonably possible that there could be material changes to the amount of uncertain tax positions due to activities of the taxing authorities, settlement of audit issues, reassessment of existing uncertain tax positions or the expiration of applicable statute of limitations;

however, Ashland is not able to estimate the impact of these items at this time.

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Restructuring and plan remeasurement

During the three months ended December 31, 2024, as part of its fiscal 2024 restructuring activities, Ashland terminated approximately 40 employees in its Doel, Belgium facility.

The post-retirement benefits for these employees, all of whom participated in a non-contributory defined benefit plan in Belgium, were frozen.

This resulted in a decrease in total expected future years of service within the plan and required Ashland to remeasure the plan during the three months ended December 31, 2024.

As a result, Ashland recorded a $ 1 million curtailment loss within the other net periodic benefit loss caption of the Statement of Condensed Consolidated Comprehensive Income (Loss) for the three months ended December 31, 2024.

During the first quarter of fiscal 2025, as part of its fiscal 2024 restructuring activities, Ashland terminated approximately 40 employees in its Doel, Belgium facility.

The postretirement benefits for these employees, all of whom participated in a non-contributory defined benefit plan in Belgium, were frozen.

This resulted in a decrease in total expected future years of service within the plan and required Ashland to remeasure the plan during the six months ended March 31, 2025 .

Plan contributions

For the three months ended December 31, 2025 , Ashland contributed $ 1 million to its U.S.

For the six months ended March 31, 2026 , Ashland contributed $ 2 million to its U.S.

pension plans and $ 3 million to its non-U.S.

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Components of net periodic benefit costs

The following table summarizes the components of pension and other postretirement benefit costs for continuing operations for the three months ended December 31:

The following table summarizes the components of pension and other postretirement benefit costs for continuing operations:

Pension benefits

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(In millions)

Three months ended March 31

Interest cost

Expected return on plan assets

Total net periodic benefit costs

Six months ended March 31

Interest cost

Expected return on plan assets

Curtailment loss

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For segment reporting purposes, service cost is proportionately allocated to each segment, excluding Unallocated and other, and is recorded within the selling, general and administrative expense and cost of sales captions on the Statements of Condensed Consolidated Comprehensive Income (Loss).

All other components are recorded within the other net periodic benefit loss caption on the Statements of Condensed Consolidated Comprehensive Income (Loss), which netted to expense of $ 1 million and $ 2 million for the three months ended December 31, 2025 and 2024 , respectively.

All other components are recorded within the other net periodic benefit loss caption on the Statements of Condensed Consolidated Comprehensive Income (Loss), which netted to expense of $ 1 million and $ 2 million for the three and six months ended March 31, 2026 , respectively, and expense of $ 1 million and $ 3 million for the three and six months ended March 31, 2025 , respectively.

NOTE L – LITIGATION, CLAIMS AND CONTINGENCIES

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A summary of Ashland asbestos claims activity, excluding Hercules claims, is as follows:

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Ashland reviews this estimate and related assumptions quarterly and annually updates the results of a non-inflated, non-discounted approximate 40-year model developed with the assistance of Gnarus.

Total reserves for asbestos claims were $ 246 million and $ 258 million at December 31, 2025 and September 30, 2025, respectively.

Total reserves for asbestos claims were $ 239 million and $ 258 million at March 31, 2026 and September 30, 2025, respectively.

A progression of activity in the asbestos litigation reserves is presented in the following table.

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Asbestos litigation reserves - end of period (a)

(a) Includes $ 29 million classified in accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets as of December 31, 2025 and September 30, 2025 .

(a) Includes $ 29 million classified in accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets as of both March 31, 2026 and September 30, 2025 .

Ashland asbestos-related receivables

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Substantially all of the estimated receivables from insurance companies are expected to be due from domestic insurers, all of which are solvent.

At December 31, 2025 and September 30, 2025 , Ashland’s receivable for recoveries of litigation defense and claim settlement costs from insurers amounted to $ 92 million (excluding the Hercules receivable for asbestos claims discussed below) and $ 95 million, respectively.

At March 31, 2026 and September 30, 2025 , Ashland’s receivable for recoveries of litigation defense and claim settlement costs from insurers amounted to $ 91 million (excluding the Hercules receivable for asbestos claims discussed below) and $ 95 million, respectively.

A progression of activity in the Ashland insurance receivable is presented in the following table.

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Insurance receivable - end of period (a)(b)

(a) The total allowance for credit losses was $ 1 m illion at both December 31, 2025 and September 30, 2025 .

(b) Includes $ 10 million classified in accounts receivable, net on the Condensed Consolidated Balance Sheets at both December 31, 2025 and September 30, 2025 .

(a) The allowance for credit losses was $ 1 m illion at both March 31, 2026 and September 30, 2025 .

(b) Includes $ 10 million classified in accounts receivable, net on the Condensed Consolidated Balance Sheets at both March 31, 2026 and September 30, 2025 .

Hercules asbestos-related litigation

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A summary of Hercules’ asbestos claims activity follows:

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Ashland reviews this estimate, and related assumptions quarterly and annually updates the results of a non-inflated, non-discounted approximate 40-year model developed with the assistance of Gnarus.

Total reserves for asbestos claims were $ 172 million and $ 177 million at December 31, 2025 and September 30, 2025, respectively.

Total reserves for asbestos claims were $ 169 million and $ 177 million at March 31, 2026 and September 30, 2025, respectively.

A progression of activity in the asbestos litigation reserves is presented in the following table.

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Asbestos litigation reserves - end of period (a)

(a) Includes $ 17 million classified in accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets at both December 31, 2025 and September 30, 2025 .

(a) Includes $ 17 million classified in accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets at both March 31, 2026 and September 30, 2025 .

Hercules asbestos-related receivables

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The estimated receivable consists exclusively of solvent domestic insurers.

As of December 31, 2025 and September 30, 2025, Ashland’s receivable for recoveries of litigation defense and claims costs from insurers with respect to Hercules amounted to $ 48 million each.

As of March 31, 2026 and September 30, 2025 , Ashland’s receivable for recoveries of litigation defense and claims costs from insurers with respect to Hercules amounted to $ 47 million and $ 48 million, respectively.

A progression of activity in the Hercules insurance receivable is presented in the following table.

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Insurance receivable - end of period (a)(b)

(a) The total allowance for credit losses was $ 1 million at both December 31, 2025 and September 30, 2025 .

(b) Includes $ 6 million classified in accounts receivable, net on the Condensed Consolidated Balance Sheets at December 31, 2025 and September 30, 2025 .

(a) The allowance for credit losses was $ 1 million at both March 31, 2026 and September 30, 2025 .

(b) Includes $ 6 million classified in accounts receivable, net on the Condensed Consolidated Balance Sheets at both March 31, 2026 and September 30, 2025 .

Asbestos litigation cost projection

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These models are based on national studies that predict the number of people likely to develop asbestos-related diseases and are heavily influenced by assumptions regarding long-term inflation rates for indemnity payments and legal defense costs, as well as other variables mentioned previously.

Ashland asbestos-related litigation (current reserve of $ 246 million) and approximately $ 262 million for the Hercules asbestos-related litigation (current reserve of $ 172 million), depending on the combination of assumptions selected in the various models.

Ashland has currently estimated in various models ranging from approximately 40 year periods that it is reasonably possible that total future li tigation defense and claim settlement costs on an inflated and undiscounted basis could range as high as approximately $ 382 million for the Ashland asbestos-related litigation (current reserve of $ 239 million) and approximately $ 262 million for the Hercules asbestos-related litigation (current reserve of $ 169 million), depending on the combination of assumptions selected in the various models.

While the timeframe used in Ashland’s models for projecting asbestos litigation reserves generally decreases over time based on the expected lifetime of the reserves, these models have been consistently applied between all periods presented.

If actual experience is worse than projected, relative to the number of claims filed, the severity of alleged disease associated with those claims or costs incurred to resolve those claims, or actuarial refinement or improvements to the assumptions used within these models are initiated, Ashland may need to further increase the estimates of the costs associated with asbestos claims and these increases could be material over time.

may need to further increase the estimates of the costs associated with asbestos claims and these increases could be material over time.

Environmental remediation

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.

At December 31, 2025, such locations include d 53 sit es where Ashland has been identified as a potentially responsible party under Superfund or similar state laws, 107 current and former operating facilities and about 1,225 service station properties, of which 14 are being actively remediated.

Ashland’s reserves for environmental remediation and related environmental litigation amounted to $ 226 million at both December 31, 2025 and September 30, 2025 , of which $ 179 million at both December 31, 2025 and September 30, 2025, were classified in other noncurrent liabilities on the Condensed Consolidated Balance Sheets.

At March 31, 2026, such locations include d 52 sit es where Ashland has been identified as a potentially responsible party under Superfund or similar state laws, 107 current and former operating facilities and about 1,225 service station properties, of which 15 are being actively remediated.

Ashland’s reserves for environmental remediation and related environmental litigation amounted to $ 219 million and $ 226 million at March 31, 2026 and September 30, 2025 , respectively, of which $ 171 million and $ 179 million at March 31, 2026 and September 30, 2025, respectively, were classified in other noncurrent liabilities on the Condensed Consolidated Balance Sheets.

The remaining reserves were classified in accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets.

The following table provides a reconciliation of the changes in the environmental remediation reserves:

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Environmental remediation reserves - beginning of period

Environmental remediation reserves - beginning of year

Disbursements

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Ashland has estimated the value of its probable insurance recoveries associated with its environmental reserve based on management’s interpretations and estimates surrounding the available or applicable insurance coverage.

At December 31, 2025 and September 30, 2025, Ashland’s recorded receivables for these probable insurance recoveries w ere $ 12 million and $ 14 million, respectively, of which $ 11 million and $ 12 million at December 31, 2025 and September 30, 2025 , respectively, were classified in other noncurrent assets on the Condensed Consolidated Balance Sheets.

At March 31, 2026 and September 30, 2025, Ashland’s recorded receivables for these probable insurance recoveries w ere $ 12 million and $ 14 million, respectively, of which $ 10 million and $ 12 million at March 31, 2026 and September 30, 2025 , respectively, were classified in other noncurrent assets on the Condensed Consolidated Balance Sheets.

Components of environmental remediation expense included within the selling, general and administrative expense caption of the Statements of Condensed Consolidated Comprehensive Income (Loss) are presented in the following table:

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(In millions)

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Insurance receivable

Total expense, net of receivable activity (a)

(a) Net expense of less than $ 1 million for each of the three months ended December 31, 2025 and 2024 , relates to divested businesses which qualified for treatment as discontinued operations for which certain environmental remediation reserves were retained by Ashland.

These amounts are classified within the income from discontinued operations, net of income taxes caption of the Statements of Condensed Consolidated Comprehensive Income (Loss).

Total expense, net of receivable activity

Environmental remediation reserves are subject to uncertainties that affect Ashland’s ability to estimate its share of the costs.

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Although it is not possible to predict with certainty the ultimate costs of environmental remediation, Ashland currently estimates that the upper end of the reasonably possible range of future costs for identified sites could be as high as approximate ly $ 480 milli on.

The largest reserve for any site is 21 % of t he environmental remediation reserves as of December 31, 2025.

The largest reserve for any site is 22 % of t he environmental remediation reserves as of March 31, 2026.

Other legal proceedings and claims

1 unchanged sentence

Such actions are with respect to commercial matters, product liability, toxic tort liability, and other environmental matters, which seek remedies or damages, some of which are for substantial amounts.

While Ashland cannot predict with certainty the outcome of such actions, it believes that adequate reserves have been recorded and losses already recognized with respect to such actions were immaterial as of December 31, 2025.

There is a reasonable possibility that a loss exceeding amounts already recognized may be incurred related to these actions;

however, Ashland believes that such potential losses were immaterial as of December 31, 2025 .

however, Ashland believes that such potential losses were immaterial as of March 31, 2026 .

NOTE M – EARNINGS (LOSS) PER SHARE

The following is the computation of basic and diluted earnings (loss) per share ("EPS") from continuing operations attributable to Ashland.

Stock appreciation rights and warrants available to purchase shares outstanding for each reporting period whose exercise price was greater than the average market price of Ashland common stock for each applicable period were not included in the computation of loss from continuing operations per diluted share because the effect of these instruments would be antidilutive.

The total number of these shares outstanding was approximately 2 million and 1 million at December 31, 2025 and 2024 , respectively.

Stock appreciation rights and warrants available to purchase shares outstanding for each reporting period whose exercise price was greater than the average market price of Ashland common stock for each applicable period were not included in the computation of income (loss) from continuing operations per diluted share because the effect of these instruments would be antidilutive.

The total number of these shares outstanding was approximately 2 million and 1 million at March 31, 2026 and 2025 , respectively.

The majority of these shares are for warrants with a strike price of $ 128.66 .

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(In millions, except per share data)

Numerator for basic and diluted EPS - Loss from continuing operations, net of tax

Numerator for basic and diluted EPS - Income (loss) from continuing operations, net of tax

Denominator for basic EPS - Weighted-average common shares outstanding

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EPS from continuing operations

(a) As a result of the loss from continuing operations attributable to Ashland during the three months ended December 31, 2025 and 2024, the effect of the share-based awards convertible to common stock would be antidilutive and have been excluded from the diluted EPS calculation.

(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.

Convertible shares for each of the applicable periods was less than $ 1 million.

NOTE N – EQUITY ITEMS

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On June 28, 2023, Ashland's board of directors authorized a new evergreen $ 1 billion common share repurchase program ("2023 Stock Repurchase Program").

As of December 31, 2025 , $ 520 million remained available for repurchase under the 2023 Stock Repurchase Program.

There was no stock repurchase activity during the three months ended December 31, 2025 and 2024.

As of March 31, 2026 , $ 520 million remained available for repurchase under the 2023 Stock Repurchase Program.

The following table provides the common stock repurchase activity:

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(In millions, except per share data)

Number of shares repurchased

Weighted-average price per share (a)

Aggregate purchase price (a)

(a) Includes transaction costs.

Stockholder dividends

Dividends of 41.5 cents and 40.5 cents per share were paid in the first quarters of fiscal 2026 and 2025, respectively.

Dividends of 41.5 cents per share were paid in both the first and second quarters of fiscal 2026 and 40.5 cents per share were paid in both the first and second quarters of fiscal 2025.

Accumulated other comprehensive loss

Components of other comprehensive income (loss) recorded in the Statements of Condensed Consolidated Comprehensive Income (Loss) are presented below, before tax and net of tax effects for the three months ended December 31:

Components of other comprehensive income (loss) recorded in the Statements of Condensed Consolidated Comprehensive Income (Loss) are presented below, before tax and net of tax effects:

(In millions)

Tax benefit (expense)

Three months ended March 31

Other comprehensive income (loss)

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Total other comprehensive income (loss)

Six months ended March 31

Other comprehensive income (loss)

Unrealized translation loss

Unrealized gain on commodity hedges

Total other comprehensive loss

Summary of stockholders’ equity

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Common shares issued under stock incentive and other plans (a)

Common shares purchased under repurchase program (b)(c)

Balance, end of period

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Balance, beginning of period

Net income (loss)

Regular dividends

Common shares purchased under repurchase program (b)(c)

Balance, end of period

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Cash dividends declared per common share

(a) Common stock issued were 52,626 and 75,408 for the three months ended December 31, 2025 and 2024 , respectively.

Includes $ 2 million and $ 3 million for the three months ended December 31, 2025 and 2024 , respectively, associated with stock-based compensation employee withholding taxes.

(a) Common stock issued were 25,386 and 52,993 for the three months ended March 31, 2026 and 2025 , respectively, and 78,012 and 128,401 for the six months ended March 31, 2026 and 2025 , respectively.

Includes zero for both the three months ended March 31, 2026 and 2025 , and $ 2 million and $ 3 million for the six months ended March 31, 2026 and 2025 , respectively, associated with stock-based compensation employee withholding taxes.

(b) Common stock repurchased were zero for each of the three and six months ended March 31, 2026 , and 1,541,320 for each of the three and six months ended March 31, 2025 .

(c) Includes zero in excise tax on common stock repurchases for both the three and six months ended March 31, 2026 , and $ 1 million for both the three and six months ended March 31, 2025 .

Ashland paid a total of $ 100 million for the three and six months ended March 31, 2025 for common stock repurchases.

NOTE O – STOCK INCENTIVE PLANS

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Stock appreciation rights

Nonvested stock awards

Performance share awards

(a) Included $ 1 million of expense related to cash-settled nonvested restricted stock awards during the three months ended December 31, 2025 , and less than $ 1 million expense related to cash-settled performance units during the three months ended December 31, 2025 .

(b) Included $ 1 million of expense related to cash-settled nonvested restricted stock awards during the three months ended December 31, 2024, and $ 1 million income related to cash-settled performance units during the three months ended December 31, 2024 .

(a) Included zero and $ 1 million of expense related to cash-settled nonvested restricted stock awards during the three and six months ended March 31, 2026 , respectively, and zero and less than $ 1 million of expense related to cash-settled performance units during the three and six months ended March 31, 2026 , respectively.

(b) Included zero and $ 1 million of expense related to cash-settled nonvested restricted stock awards during the three and six months ended March 31, 2025, respectively, and zero and income of $ 1 million related to cash-settled performance units during the three and six months ended March 31, 2025 , respectively.

NOTE P – REVENUE

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Ashland has two product categories that represent 10 % or greater of Ashland's total consolidated sales, which were cellulosics and polyvinylpyrrolidones ("PVP").

The following table summarizes the percentage of Ashland's total consolidated sales by product:

Sales by product

The following table summarizes the percentage of Ashland's total consolidated sales for these products:

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Trade receivables are defined as receivables arising from contracts with customers and are recorded within the accounts receivable, net caption within the Condensed Consolidated Balance Sheets.

Ashland’s trade receivables were $ 145 million and $ 200 million as of December 31, 2025 and September 30, 2025 , respectively.

Ashland’s trade receivables were $ 199 million and $ 200 million as of March 31, 2026 and September 30, 2025 , respectively.

See Note H for additional information on Ashland’s programs to sell certain accounts receivables on a revolving basis to third-party banks up to an aggregate purchase limit (U.S and Foreign Accounts Receivable Sales Programs).

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Ashland determines its reportable segments based on how operations are managed internally for the products and services sold to customers, including how the results are reviewed by Guillermo Novo, Chair and Chief Executive Officer of the Company, which includes determining resource allocation methodologies used for reportable segments.

Operating loss before income taxes, depreciation and amortization ("EBITDA") are the primary measures of performance that are reviewed by the chief operating decision maker in assessing each reportable segment's financial performance.

Operating income (loss) before income taxes, depreciation and amortization ("EBITDA") are the primary measures of performance that are reviewed by the chief operating decision maker in assessing each reportable segment's financial performance.

Ashland does not aggregate operating segments to arrive at these reportable segments.

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Significant revisions to Ashland’s methodologies are adjusted for all reportable segments on a retrospective basis.

There were no material changes in methodology for the three months ended December 31, 2025 or 2024.

There were no material changes in methodology for the three and six months ended March 31, 2026 or 2025.

Ashland determined that disclosing sales by specific product was impracticable due to the highly customized and extensive portfolio of products offered to customers and since no one product or a small group of products could be aggregated together to represent a majority of revenue within a reportable segment.

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(In millions - unaudited)

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Unallocated and other (b)

Total operating loss

Total operating income (loss)

Net interest and other expense

Other net periodic benefit loss

Loss from continuing operations before income taxes

Income (loss) from continuing operations before income taxes

Life Sciences

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Other net periodic benefit loss

Loss from continuing operations before income taxes

Income (loss) from continuing operations before income taxes

Depreciation expense

Life Sciences

Life Sciences (d)

Personal Care

Specialty Additives

Specialty Additives (e)

Intermediates

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All other intersegment sales are accounted for at cost.

(b) Includes a $ 2 million gain on sale of excess corporate property and $ 183 million impairment charge related to the Avoca business for the three months ended December 31, 2025 and 2024, respectively, within the income (loss) on divestitures, net caption of the Statements of Condensed Consolidated Income (Loss).

(b) Includes a $ 2 million gain on sale of excess corporate property for the six months ended March 31, 2026 , a $ 8 million gain on sale of excess corporate property for both the three and six months ended March 31, 2025 , and a $ 183 million impairment charge related to the Avoca business for the six months ended March 31, 2025 , within the income (loss) on divestitures, net caption of the Statements of Condensed Consolidated Income (Loss).

See the Statements of Condensed Consolidated Comprehensive Income (Loss) for applicable amounts excluded.

(d) Depreciation includes accelerated depreciation of $ 13 million for Life Sciences for both the three and six months ended March 31, 2025 .

(e) Depreciation includes accelerated depreciation of $ 3 million for Specialty Additives for the six months ended March 31, 2026 .

AND CONSOLIDATED SUBSIDIARIES

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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.

What changed 10-Q

Item 1. Financial Statements