ASHLAND INC. 10-Q

ITEM 1. FINANCIAL STATEMENTS ASHLAND INC. AND CONSOLIDATED SUBSIDIARIES STATEMENTS OF CONDENSED CONSOLIDATED COMPREHENSIVE INCOME (LOSS) Three months ended Six months ended March 31 March 31 (In millions except per share data - unaudited) 2026 2025 2026 2025 Sales - Note P $ 482 $ 479 $ 868 $ 884 Cost of sales - Note Q 335 332 616 626 Gross profit 147 147 252 258 Selling, general and administrative expense - Note Q 79 85 165 162 Research and development expense - Note Q 14 14 27 28 Intangibles amortization expense - Note G and Note Q 15 15 30 32 Equity and other income - Note Q — — 1 1 Income (loss) on divestitures, net - Note B and Note Q — 18 2 ( 165 ) Operating income (loss) 39 51 33 ( 128 ) Net interest and other expense 18 11 26 39 Other net periodic benefit loss - Note K 1 1 2 3 Income (loss) from continuing operations before income taxes 20 39 5 ( 170 ) Income tax expense (benefit) - Note J 5 9 4 ( 34 ) Income (loss) from continuing operations 15 30 1 ( 136 ) Income from discontinued operations, net of income taxes - Note C 1 1 3 1 Net income (loss) $ 16 $ 31 $ 4 $ ( 135 ) PER SHARE DATA Basic earnings (loss) per share - Note M Income (loss) from continuing operations $ 0.32 $ 0.63 $ 0.02 $ ( 2.91 ) Income from discontinued operations 0.02 0.02 0.06 0.03 Net income (loss) $ 0.34 $ 0.65 $ 0.08 $ ( 2.88 ) Diluted earnings (loss) per share - Note M Income (loss) from continuing operations $ 0.32 $ 0.63 $ 0.02 $ ( 2.91 ) Income from discontinued operations 0.02 0.02 0.06 0.03 Net income (loss) $ 0.34 $ 0.65 $ 0.08 $ ( 2.88 ) COMPREHENSIVE INCOME (LOSS) Net income (loss) $ 16 $ 31 $ 4 $ ( 135 ) Other comprehensive income (loss), net of tax Unrealized translation gain (loss) ( 12 ) 49 ( 10 ) ( 45 ) Unrealized gain on commodity hedges — 2 — 3 Other comprehensive income (loss) - Note N ( 12 ) 51 ( 10 ) ( 42 ) Comprehensive income (loss) $ 4 $ 82 $ ( 6 ) $ ( 177 ) SEE NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS. 2 ASHLAND INC. AND CONSOLIDATED SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In millions - unaudited) March 31 2026 September 30 2025 ASSETS Current assets Cash and cash equivalents $ 343 $ 215 Accounts receivable, net (a) - Note H 244 242 Inventories - Note F 506 568 Other assets 116 180 Total current assets 1,209 1,205 Noncurrent assets Property, plant and equipment Cost 3,362 3,355 Accumulated depreciation 2,199 2,154 Net property, plant and equipment 1,163 1,201 Goodwill - Note G 700 705 Intangibles - Note G 529 563 Operating lease assets, net - Note I 101 103 Restricted investments - Note E 276 297 Asbestos insurance receivable, net (b) - Note L 122 127 Deferred income taxes 157 157 Other assets 242 253 Total noncurrent assets 3,290 3,406 Total assets $ 4,499 $ 4,611 LIABILITIES AND EQUITY Current liabilities Trade and other payables $ 181 $ 189 Accrued expenses and other liabilities 195 213 Current operating lease obligations - Note I 19 21 Total current liabilities 395 423 Noncurrent liabilities Long-term debt - Note H 1,374 1,384 Asbestos litigation reserves - Note L 362 389 Deferred income taxes 31 31 Employee benefit obligations - Note K 96 96 Operating lease obligations - Note I 85 85 Other liabilities 290 299 Total noncurrent liabilities 2,238 2,284 Commitments and contingencies - Note I and L Equity - Note N 1,866 1,904 Total liabilities and equity $ 4,499 $ 4,611 (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. 3 ASHLAND INC. AND CONSOLIDATED SUBSIDIARIES STATEMENTS OF CONDENSED CONSOLIDATED CASH FLOWS Six months ended March 31 (In millions - unaudited) 2026 2025 CASH FLOWS PROVIDED (USED) BY OPERATING ACTIVITIES FROM CONTINUING OPERATIONS Net income (loss) $ 4 $ ( 135 ) Income from discontinued operations, net of income taxes ( 3 ) ( 1 ) Adjustments to reconcile income (loss) from continuing operations to cash flows from operating activities: Depreciation and amortization 93 111 Original issue discount and debt issuance costs amortization 4 3 Deferred income taxes 3 1 Gain from sales of property, plant and equipment ( 2 ) ( 11 ) Income from affiliates ( 1 ) ( 1 ) Stock based compensation expense 9 9 Loss from excess tax deduction on stock based compensation ( 2 ) — (Income) loss from restricted investments ( 5 ) 7 Loss on divestitures, net — 176 Pension contributions ( 5 ) ( 7 ) Loss on pension and other postretirement plan remeasurements — 1 Change in operating assets and liabilities 80 ( 174 ) Total cash flows provided (used) by operating activities from continuing operations 175 ( 21 ) CASH FLOWS PROVIDED (USED) BY INVESTING ACTIVITIES FROM CONTINUING OPERATIONS Additions to property, plant and equipment ( 31 ) ( 44 ) Proceeds from disposal of property, plant and equipment 4 11 Proceeds from sale of operations — 16 Proceeds from settlement of Company-owned life insurance contracts 20 — Company-owned life insurance payments ( 1 ) ( 1 ) Funds restricted for specific transactions ( 7 ) ( 8 ) Reimbursements from restricted investments 33 25 Proceeds from sale of securities 27 24 Purchases of securities ( 27 ) ( 24 ) Total cash flows provided (used) by investing activities from continuing operations 18 ( 1 ) CASH FLOWS PROVIDED (USED) BY FINANCING ACTIVITIES FROM CONTINUING OPERATIONS Repurchase of common stock — ( 100 ) Proceeds from short-term debt — 50 Cash dividends paid ( 38 ) ( 38 ) Stock based compensation employee withholding taxes paid in cash ( 2 ) ( 3 ) Total cash flows used by financing activities from continuing operations ( 40 ) ( 91 ) CASH PROVIDED (USED) BY CONTINUING OPERATIONS 153 ( 113 ) CASH USED BY DISCONTINUED OPERATIONS Operating cash flows ( 25 ) ( 18 ) Total cash used by discontinued operations ( 25 ) ( 18 ) Effect of currency exchange rate changes on cash and cash equivalents (a) — ( 1 ) INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 128 ( 132 ) CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD 215 300 CASH AND CASH EQUIVALENTS - END OF PERIOD $ 343 $ 168 (a) Zero denotes less than $1 million of activity. SEE NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS. 4 ASHLAND INC. AND CONSOLIDATED SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE A – SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with United States ("U.S.") generally accepted accounting principles for interim financial reporting ("U.S. GAAP") and U.S. Securities and Exchange Commission ("SEC") regulations. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. These Condensed Consolidated Financial Statements omit certain information and footnote disclosures required for complete annual financial statements and, therefore, should be read in conjunction with the Ashland Inc. 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 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: Life Sciences, Personal Care, Specialty Additives and Intermediates. Unallocated and other includes corporate governance activities and certain legacy matters. For additional information about Ashland's reportable segments, see Note Q. Use of estimates, risks and uncertainties 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. Significant items that are subject to such estimates and assumptions include, but are not limited to, environmental remediation, asbestos litigation, accounting for goodwill and other indefinite-lived intangible assets and income taxes. Although management bases its estimates on historical experience and various other assumptions that are believed to be reasonable under the circumstances, actual results could differ significantly from the estimates under different assumptions or conditions. Ashland’s results are affected by domestic and international economic, political, legislative, regulatory and legal actions. Economic conditions, such as recessionary trends, inflation, interest and monetary exchange rates, government fiscal policies and changes in the prices of certain key raw materials, can have a significant effect on operations. While Ashland maintains reserves for anticipated liabilities and carries various levels of insurance, Ashland could be affected by civil, criminal, regulatory or administrative actions, claims or proceedings relating to asbestos, environmental remediation, income taxes or other matters. New accounting pronouncements A description of new U.S. GAAP accounting standards issued or adopted during the current quarter is required in interim financial reporting. 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 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 of its Avoca business to Mane SA. Proceeds from the sale were $ 16 million, net of transaction costs. 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. 5 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 six months ended March 31, 2026 , 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 six months ended March 31, 2026. 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 Ashland has divested certain businesses that have qualified as discontinued operations. The operating results from these divested businesses and subsequent adjustments related to ongoing assessments of certain retained liabilities and income tax items have been recorded within the income from discontinued operations, net of income taxes caption in the Statements of Condensed Consolidated Comprehensive Income (Loss) for all periods presented. 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 and six months ended March 31, 2026 and 2025: • The Performance Adhesives business divested in 2022; • The separation of Valvoline Inc. (Valvoline) business divested in 2017; and • The sale of Ashland Water Technologies (Water Technologies) business divested in 2014. 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 March 31 March 31 (In millions) 2026 2025 2026 2025 Water Technologies $ — $ — $ 2 $ — Performance Adhesives — ( 1 ) — ( 1 ) Valvoline 1 2 1 2 $ 1 $ 1 $ 3 $ 1 6 NOTE D – RESTRUCTURING ACTIVITIES Ashland periodically implements restructuring programs related to acquisitions, divestitures and other cost reduction programs in order to enhance profitability through streamlined operations and an improved overall cost structure. Restructuring costs 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 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 March 31, 2026 Three months ended March 31, 2025 (In millions) Severance expense (a) Utilization (cash paid) Severance expense (a) Utilization (cash paid) 2025 Restructuring Program $ 1 $ ( 2 ) $ 8 $ ( 5 ) 2023 Restructuring Program — — — ( 8 ) Total $ 1 $ ( 2 ) $ 8 $ ( 13 ) (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 March 31, 2026 and 2025 . 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 $ 2 $ ( 4 ) $ 12 $ ( 6 ) 2023 Restructuring Program 1 ( 2 ) ( 2 ) ( 9 ) Total $ 3 $ ( 6 ) $ 10 $ ( 15 ) (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) $ 5 $ 1 Restructuring reserve 2 1 Utilization (cash paid) ( 4 ) ( 2 ) Balance at March 31, 2026 (a) $ 3 $ — (a) The restructuring severance liabilities associated with these programs is recorded within accrued expenses and other liabilities in the Condensed Consolidated Balance Sheets at March 31, 2026 and September 30, 2025 . 7 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 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 As required by U.S. GAAP, Ashland uses applicable guidance for defining fair value, the initial recording and periodic remeasurement of certain assets and liabilities measured at fair value and related disclosures for instruments measured at fair value. Fair value accounting guidance establishes a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). An instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the instrument’s fair value measurement. The three levels within the fair value hierarchy are described as follows. Level 1 – Observable inputs such as unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3 – Unobservable inputs for the asset or liability for which there is little, if any, market activity at the measurement date. Unobservable inputs reflect Ashland’s own assumptions about what market participants would use to price the asset or liability. The inputs are developed based on the best information available in the circumstances, which might include Ashland’s own financial data such as internally developed pricing models, discounted cash flow methodologies, as well as instruments for which the fair value determination requires significant management judgment. 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. 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. 8 The following table summarizes financial instruments subject to recurring fair value measurements as of March 31, 2026: (In millions) Carrying value Total fair value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 343 $ 343 $ 343 $ — $ — Restricted investments (a)(b) 326 326 326 — — Investment of captive insurance company (c) 7 7 7 — — Commodity derivatives (d) 1 1 — 1 — Total assets at fair value $ 677 $ 677 $ 676 $ 1 $ — Liabilities Foreign currency derivatives (e) $ 2 $ 2 $ — $ 2 $ — Commodity derivatives (e ) 1 1 — 1 — Total liabilities at fair value $ 3 $ 3 $ — $ 3 $ — (a) Includes $ 276 million within restricted investments and $ 50 million within other current assets in the Condensed Consolidated Balance Sheet . (b) Includes $ 213 million related to the Asbestos trust and $ 113 million related to the Environmental trust. (c) Included in other noncurrent assets in the Condensed Consolidated Balance Sheet. (d) Included in accounts receivable, net in the Condensed Consolidated Balance Sheet. (e) Included in accrued expenses and other liabilities in the Condensed Consolidated Balance Sheet. The following table summarizes financial instruments subject to recurring fair value measurements as of September 30, 2025: (In millions) Carrying value Total fair value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 215 $ 215 $ 215 $ — $ — Restricted investments (a)(b) 347 347 347 — — Investment of captive insurance company (c) 5 5 5 — — Commodity derivatives (d) 1 1 — 1 — Total assets at fair value $ 568 $ 568 $ 567 $ 1 $ — Liabilities Foreign currency derivatives (e) $ 1 $ 1 $ — $ 1 $ — Commodity derivatives (e) 1 1 — 1 — Total liabilities at fair value $ 2 $ 2 $ — $ 2 $ — (a) Includes $ 297 million within restricted investments and $ 50 million within other current assets in the Condensed Consolidated Balance Sheet. (b) Includes $ 231 million related to the Asbestos trust and $ 116 million related to the Environmental trust . (c) Included in other noncurrent assets in the Condensed Consolidated Balance Sheet. (d) Included in accounts receivable, net in the Condensed Consolidated Balance Sheet. (e) Included in accrued expenses and other liabilities in the Condensed Consolidated Balance Sheet. Restricted investments Ashland maintains certain investments in Company restricted renewable annual trusts for the purpose of paying future asbestos indemnity and defense costs and future environmental remediation and related litigation costs. 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 March 31, 2026 and September 30, 2025. 9 The following table presents gross unrealized gains and losses for the restricted investments as of: Gross Gross (In millions) Adjusted Cost Unrealized Gain Unrealized Loss Fair Value March 31, 2026 Demand deposit $ 3 $ — $ — $ 3 Equity mutual fund 94 60 — 154 Fixed income mutual fund 202 — ( 33 ) 169 Fair value $ 299 $ 60 $ ( 33 ) $ 326 September 30, 2025 Demand deposit $ 3 $ — $ — $ 3 Equity mutual fund 103 67 — 170 Fixed income mutual fund 205 — ( 31 ) 174 Fair value $ 311 $ 67 $ ( 31 ) $ 347 The following table presents the investment income, net gains and losses realized, funds restricted for specific transactions, and disbursements related to restricted investments: Three months ended Six months ended March 31 March 31 (In millions) 2026 2025 2026 2025 Investment income (a) $ 2 $ 3 $ 8 $ 8 Net gains (losses) (a) ( 5 ) 3 ( 3 ) ( 14 ) Funds restricted for specific transactions — 8 7 8 Disbursements ( 18 ) ( 19 ) ( 33 ) ( 25 ) (a) Included in the net interest and other expense caption within the Statements of Condensed Consolidated Comprehensive Income (Loss). Foreign currency derivatives Ashland conducts business in a variety of foreign currencies. Accordingly, Ashland regularly uses foreign currency derivative instruments to manage exposure on certain transactions denominated in foreign currencies to curtail potential earnings volatility effects of certain assets and liabilities, including short-term intercompany loans, denominated in currencies other than Ashland’s functional currency of an entity. These derivative contracts generally require exchange of one foreign currency for another at a fixed rate at a future date and generally have maturities of less than twelve months. All contracts are valued at fair value with net changes in fair value recorded within the selling, general and administrative expense caption within the Statements of Condensed Consolidated Comprehensive Income (Loss). 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 (losses) recognized within the Statements of Condensed Consolidated Comprehensive Income (Loss): Three months ended Six months ended March 31 March 31 (In millions) 2026 2025 2026 2025 Foreign currency derivative gains (losses) $ ( 3 ) $ 12 $ ( 2 ) $ ( 3 ) The following table summarizes the fair values of the outstanding foreign currency derivatives included in accounts receivable, net and accrued expenses and other liabilities of the Condensed Consolidated Balance Sheets as of: March 31 September 30 (In millions) 2026 2025 Foreign currency derivative assets (a) $ — $ — Notional contract values 26 44 Foreign currency derivative liabilities $ 2 $ 1 Notional contract values 171 128 (a) Zero denotes less than $1 million of activity. 10 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 gains ( losses) recognized within the cost of sales caption of the Statements of Condensed Consolidated Comprehensive Income (Loss): Three months ended Six months ended March 31 March 31 (In millions) 2026 2025 2026 2025 Commodity derivative gains (losses) $ 1 $ — $ 1 $ ( 1 ) 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: March 31 September 30 (In millions) 2026 2025 Commodity derivative assets $ 1 $ 1 Notional contract values 2 6 Commodity derivative liabilities $ 1 $ 1 Notional contract values 9 7 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 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). NOTE F – INVENTORIES Inventories are carried at the lower of cost or net realizable value. Inventories are stated at cost using the weighted-average cost method. This method values inventories using average costs for raw materials and most recent production costs for labor and overhead. The following table summarizes Ashland’s inventories as of: March 31 September 30 (In millions) 2026 2025 Finished products $ 371 $ 421 Raw materials, supplies and work in process 135 147 $ 506 $ 568 11 NOTE G – GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill 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 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: Life Personal Specialty (In millions) Sciences Care Additives Intermediates Total Balance at September 30, 2025 (a) $ 466 $ 127 $ 112 $ — $ 705 Currency translation ( 4 ) ( 1 ) — — ( 5 ) Balance at March 31, 2026 (a) $ 462 $ 126 $ 112 $ — $ 700 (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 Other intangible assets principally consist of trademarks and trade names, intellectual property and customer lists. Intangible assets classified as finite are amortized on a straight-line basis over their estimated useful lives. 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 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: March 31, 2026 September 30, 2025 Gross Net Gross Net carrying Accumulated carrying carrying Accumulated carrying (In millions) amount amortization amount amount amortization amount Definite-lived intangible assets Trademarks and trade names $ 74 $ ( 41 ) $ 33 $ 75 $ ( 39 ) $ 36 Intellectual property 678 ( 649 ) 29 683 ( 638 ) 45 Customer lists 608 ( 419 ) 189 614 ( 410 ) 204 Total definite-lived intangible assets 1,360 ( 1,109 ) 251 1,372 ( 1,087 ) 285 Indefinite-lived intangible assets Trademarks and trade names 278 — 278 278 — 278 Total indefinite-lived intangible assets $ 1,638 $ ( 1,109 ) $ 529 $ 1,650 $ ( 1,087 ) $ 563 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. 12 NOTE H – DEBT AND OTHER FINANCING ACTIVITIES The following table summarizes Ashland’s long-term debt as of: (In millions) March 31, 2026 September 30, 2025 3.375 % Senior Notes, due 2031 $ 450 $ 450 2.00 % Senior Notes, due 2028 (Euro 500 million principal) 573 586 6.875 % Notes, due 2043 282 282 6.50 % Junior Subordinated Notes, due 2029 74 72 Other (a) ( 5 ) ( 6 ) Long-term debt (less debt issuance costs) (b) $ 1,374 $ 1,384 (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. 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. Proceeds received, net of buyer’s discounts and fees, are recorded within the operating activities of the Statements of Condensed Consolidated Cash Flows. Losses on sale of accounts receivable, including related transaction expenses are recorded within the net interest and other expense caption of the Statements of Condensed Consolidated Comprehensive Income (Loss). Ashland regularly assesses its servicing obligations and records them as assets or liabilities when appropriate. Ashland also monitors its obligation with regards to the limited guarantee and records the resulting guarantee liability when warranted. When applicable, Ashland discloses the amount of the accounts receivable that serves as over-collateralization as a restricted asset. U.S. 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 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 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 13 $ 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 During April 2024, Ashland authorized a financing program offered through JP Morgan and Taulia Alliance. Under this program, JP Morgan and its affiliates may purchase certain confirmed receivables directly from suppliers pursuant to the terms of a separate arrangement entered into between JPMorgan and Taulia Alliance and such suppliers. There were no changes to Ashland's standard payment terms with its suppliers in connection with this program. Ashland provides no guarantees to JP Morgan and Taulia Alliance under this program. The program was implemented during June 2025 and has been actively offered to suppliers. 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 $ 4 $ — Invoices confirmed during the period 5 10 Confirmed invoices paid during the period ( 4 ) ( 5 ) Confirmed obligations outstanding at end of period $ 5 $ 5 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 March 31, 2026. Ashland had no available liquidity under its current U.S. 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 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 March 31, 2026 , Ashland’s calculation of the consolidated interest coverage ratio was 6.5 . 14 NOTE I – LEASING ARRANGEMENTS The components of lease cost recognized within the Statements of Condensed Consolidated Comprehensive Income (Loss) are as follows: Three months ended Six months ended March 31 March 31 (In millions) Location 2026 2025 2026 2025 Lease cost: Operating lease cost Selling, general and administrative $ 3 $ 3 $ 6 $ 6 Operating lease cost Cost of sales 3 3 6 7 Variable lease cost Selling, general and administrative 1 1 3 2 Variable lease cost Cost of sales 1 2 2 4 Short-term leases Cost of sales 1 1 1 2 Total lease cost $ 9 $ 10 $ 18 $ 21 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: Three months ended Six months ended March 31 March 31 (In millions) 2026 2025 2026 2025 Operating cash flows from operating leases $ 6 $ 6 $ 13 $ 13 NOTE J – INCOME TAXES Current fiscal year 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 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 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 Changes in unrecognized tax benefits are summarized as follows for the six months ended March 31, 2026: (In millions) Balance at October 1, 2025 $ 65 Decreases related to positions taken on items from prior years ( 2 ) Increases related to positions taken in the current year 1 Increases related to positions taken in the prior year 1 Balance at March 31, 2026 $ 65 15 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 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. NOTE K - EMPLOYEE BENEFIT PLANS Restructuring and plan remeasurement 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 . 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 six months ended March 31, 2025. Plan contributions 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. pension plans. Ashland expects to make additional contributions of $ 3 million to its U.S. pension plans and $ 3 million to its non-U.S. pension plans during the remainder of fiscal 2026. Components of net periodic benefit costs The following table summarizes the components of pension and other postretirement benefit costs for continuing operations: Pension benefits Other postretirement benefits (In millions) 2026 2025 2026 2025 Three months ended March 31 Service cost $ 1 $ 1 $ — $ — Interest cost 3 3 — 1 Expected return on plan assets ( 2 ) ( 3 ) — — Total net periodic benefit costs $ 2 $ 1 $ — $ 1 Six months ended March 31 Service cost $ 2 $ 2 $ — $ — Interest cost 6 6 1 1 Expected return on plan assets ( 5 ) ( 5 ) — — Curtailment loss — 1 — — Total net periodic benefit costs $ 3 $ 4 $ 1 $ 1 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 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. 16 NOTE L – LITIGATION, CLAIMS AND CONTINGENCIES Asbestos litigation Ashland is subject to liabilities from claims alleging personal injury caused by exposure to asbestos. Such claims result from indemnification obligations undertaken in 1990 in connection with the sale of Riley and the acquisition of Hercules in November 2008. Although Riley, a former subsidiary, was neither a producer nor a manufacturer of asbestos, its industrial boilers contained some asbestos-containing components provided by other companies. Hercules, an indirect wholly-owned subsidiary of Ashland, has liabilities from claims alleging personal injury caused by exposure to asbestos. Such claims typically arise from alleged exposure to asbestos fibers from resin encapsulated pipe and tank products sold by one of Hercules’ former subsidiaries to a limited industrial market. To assist in developing and annually updating independent reserve estimates for future asbestos claims and related costs given various assumptions for Ashland and Hercules asbestos claims, Ashland retained third party actuarial experts Gnarus. The methodology used by Gnarus to project future asbestos costs is based largely on recent experience, including claim-filing and settlement rates, disease mix, open claims and litigation defense. The claim experience of Ashland and Hercules are separately compared to the results of previously conducted third party epidemiological studies estimating the number of people likely to develop asbestos-related diseases. Those studies were undertaken in connection with national analyses of the population expected to have been exposed to asbestos. Using that information, Gnarus estimates a range of the number of future claims that may be filed, as well as the related costs that may be incurred in resolving those claims. Changes in asbestos litigation reserves and receivables are recorded on an after-tax basis within the income from discontinued operations, net of income taxes caption in the Statements of Condensed Consolidated Comprehensive Income (Loss). Ashland asbestos-related litigation The claims alleging personal injury caused by exposure to asbestos asserted against Ashland result primarily from indemnification obligations undertaken in 1990 in connection with the sale of Riley. The amount and timing of settlements and number of open claims can fluctuate from period to period. A summary of Ashland asbestos claims activity, excluding Hercules claims, is as follows: Six months ended March 31 Years ended September 30 (In thousands) 2026 2025 2025 2024 2023 Open claims - beginning of year 40 41 41 42 44 New claims filed 1 1 2 2 2 Claims settled — — — ( 1 ) ( 1 ) Claims dismissed ( 1 ) ( 1 ) ( 3 ) ( 2 ) ( 3 ) Open claims - end of period 40 41 40 41 42 Ashland asbestos-related liability From the range of estimates, Ashland records the amount it believes to be the best estimate of future payments for litigation defense and claim settlement costs. 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 $ 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. Six months ended March 31 Years ended September 30 (In millions) 2026 2025 2025 2024 2023 Asbestos litigation reserves - beginning of year $ 258 $ 274 $ 274 $ 281 $ 305 Reserve adjustment — — 16 24 9 Amounts paid ( 19 ) ( 18 ) ( 32 ) ( 31 ) ( 33 ) Asbestos litigation reserves - end of period (a) $ 239 $ 256 $ 258 $ 274 $ 281 17 (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 Ashland has insurance coverage for certain litigation defense and claim settlement costs incurred in connection with its asbestos claims, and coverage-in-place agreements exist with the insurance companies that provide substantially all of the coverage that will be accessed. For the Ashland asbestos-related obligations, Ashland has estimated the value of probable insurance recoveries associated with its asbestos litigation reserves based on management’s interpretations and estimates surrounding the available or applicable insurance coverage, including an assumption that all solvent insurance carriers remain solvent. Substantially all of the estimated receivables from insurance companies are expected to be due from domestic insurers, all of which are solvent. 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. Six months ended March 31 Years ended September 30 (In millions) 2026 2025 2025 2024 2023 Insurance receivable - beginning of year $ 95 $ 97 $ 97 $ 95 $ 101 Receivable adjustment — — 5 11 3 Amounts collected ( 4 ) ( 2 ) ( 7 ) ( 9 ) ( 9 ) Insurance receivable - end of period (a)(b) $ 91 $ 95 $ 95 $ 97 $ 95 (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 Hercules has liabilities from claims alleging personal injury caused by exposure to asbestos. Such claims typically arise from alleged exposure to asbestos fibers from resin encapsulated pipe and tank products which were sold by one of Hercules’ former subsidiaries to a limited industrial market. The amount and timing of settlements and number of open claims can fluctuate from period to period. A summary of Hercules’ asbestos claims activity follows: Six months ended March 31 Years ended September 30 (In thousands) 2026 2025 2025 2024 2023 Open claims - beginning of year 11 12 12 11 12 New claims filed 1 1 1 1 1 Claims dismissed ( 1 ) ( 1 ) ( 2 ) — ( 2 ) Open claims - end of period 11 12 11 12 11 Hercules asbestos-related liability From the range of estimates, Ashland records the amount it believes to be the best estimate of future payments for litigation defense and claim settlement costs. 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 $ 169 million and $ 177 million at March 31, 2026 and September 30, 2025, respectively. 18 A progression of activity in the asbestos litigation reserves is presented in the following table. Six months ended March 31 Years ended September 30 (In millions) 2026 2025 2025 2024 2023 Asbestos litigation reserves - beginning of year $ 177 $ 185 $ 185 $ 191 $ 213 Reserve adjustments — — 10 14 ( 2 ) Amounts paid ( 8 ) ( 5 ) ( 18 ) ( 20 ) ( 20 ) Asbestos litigation reserves - end of period (a) $ 169 $ 180 $ 177 $ 185 $ 191 (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 For the Hercules asbestos-related obligations, certain reimbursement obligations pursuant to coverage-in-place agreements with insurance carriers exist. As a result, any increases in the asbestos reserve have been partially offset by probable insurance recoveries. Ashland has estimated the value of probable insurance recoveries associated with its asbestos reserve based on management’s interpretations and estimates surrounding the available or applicable insurance coverage, including an assumption that all solvent insurance carriers remain solvent. The estimated receivable consists exclusively of solvent domestic insurers. 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. Six months ended March 31 Years ended September 30 (In millions) 2026 2025 2025 2024 2023 Insurance receivable - beginning of year $ 48 $ 50 $ 50 $ 47 $ 52 Receivable adjustment — — 4 6 ( 3 ) Amounts collected ( 1 ) ( 4 ) ( 6 ) ( 3 ) ( 2 ) Insurance receivable - end of period (a)(b) $ 47 $ 46 $ 48 $ 50 $ 47 (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 Projecting future asbestos costs is subject to numerous variables that are difficult to predict. In addition to the uncertainties surrounding the number of claims that might be received, other variables include the type and severity of the disease alleged by each claimant and the related costs incurred in resolving those claims, mortality rates, dismissal rates, and uncertainties surrounding the litigation process from jurisdiction to jurisdiction and from case to case. Furthermore, any predictions with respect to these variables are subject to even greater uncertainty as the projection period lengthens. In light of these inherent uncertainties, Ashland believes that the asbestos reserves for Ashland and Hercules represent the best estimate within a range of possible outcomes. As a part of the process to develop these estimates of future asbestos costs, a range of long-term cost models was developed. 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 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 19 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 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: Six months ended March 31 (In millions) 2026 2025 Environmental remediation reserves - beginning of year $ 226 $ 221 Disbursements ( 18 ) ( 17 ) Revised obligation estimates and accretion 11 3 Environmental remediation reserves - end of period $ 219 $ 207 The total reserves for environmental remediation reflect Ashland’s estimates of the most likely costs that will be incurred over an extended period to remediate identified conditions for which the costs are reasonably estimable, without regard to any third-party recoveries. Engineering studies, historical experience and other factors are used to identify and evaluate remediation alternatives and their related costs in determining the estimated reserves for environmental remediation. Ashland regularly adjusts its reserves as environmental remediation continues. 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 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: Three months ended Six months ended March 31 March 31 (In millions) 2026 2025 2026 2025 Environmental expense $ 1 $ 2 $ 11 $ 3 Legal expense 1 — 1 1 Total expense 2 2 12 4 Insurance receivable — — — ( 1 ) Total expense, net of receivable activity $ 2 $ 2 $ 12 $ 3 Environmental remediation reserves are subject to uncertainties that affect Ashland’s ability to estimate its share of the costs. Such uncertainties involve the nature and extent of contamination at each site and the extent of required cleanup efforts under existing environmental regulations. 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 22 % of t he environmental remediation reserves as of March 31, 2026. 20 Other legal proceedings and claims In addition to the matters described above, there are other various claims, lawsuits and administrative proceedings pending or threatened against Ashland and its current and former subsidiaries. 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 March 31, 2026. 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 March 31, 2026 . 21 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 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 . Three months ended Six months ended March 31 March 31 (In millions, except per share data) 2026 2025 2026 2025 Numerator Numerator for basic and diluted EPS - Income (loss) from continuing operations, net of tax $ 15 $ 30 $ 1 $ ( 136 ) Denominator Denominator for basic EPS - Weighted-average common shares outstanding 46 47 46 47 Share based awards convertible to common shares (a) — — — — Denominator for diluted EPS - Adjusted weighted-average shares and assumed conversions 46 47 46 47 EPS from continuing operations Basic $ 0.32 $ 0.63 $ 0.02 $ ( 2.91 ) Diluted (a) 0.32 0.63 0.02 ( 2.91 ) (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 2023 Stock repurchase program 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 March 31, 2026 , $ 520 million remained available for repurchase under the 2023 Stock Repurchase Program. The following table provides the common stock repurchase activity: Three months ended Six months ended March 31 March 31 (In millions, except per share data) 2026 2025 2026 2025 Number of shares repurchased — 1.50 — 1.50 Weighted-average price per share (a) $ — $ 64.90 $ — $ 64.90 Aggregate purchase price (a) $ — $ 100 $ — $ 100 (a) Includes transaction costs. Stockholder dividends 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. 22 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: 2026 2025 (In millions) Before tax Tax expense Net of tax Before tax Tax benefit (expense) Net of tax Three months ended March 31 Other comprehensive income (loss) Unrealized translation gain (loss) $ ( 12 ) $ — $ ( 12 ) $ 49 $ — $ 49 Unrealized gain on commodity hedges — — — 3 ( 1 ) 2 Total other comprehensive income (loss) $ ( 12 ) $ — $ ( 12 ) $ 52 $ ( 1 ) $ 51 Six months ended March 31 Other comprehensive income (loss) Unrealized translation loss $ ( 9 ) $ ( 1 ) $ ( 10 ) $ ( 46 ) $ 1 $ ( 45 ) Unrealized gain on commodity hedges — — — 4 ( 1 ) 3 Total other comprehensive loss $ ( 9 ) $ ( 1 ) $ ( 10 ) $ ( 42 ) $ — $ ( 42 ) Summary of stockholders’ equity A reconciliation of changes in stockholders’ equity are as follows: Three months ended Six months ended March 31 March 31 (In millions, except per share data) 2026 2025 2026 2025 Common stock and paid in capital Balance, beginning of period $ 9 $ 2 $ 7 $ 1 Common shares issued under stock incentive and other plans (a) 4 5 6 6 Common shares purchased under repurchase program (b)(c) — ( 6 ) — ( 6 ) Balance, end of period 13 1 13 1 Retained earnings Balance, beginning of period 2,268 3,131 2,298 3,315 Net income (loss) 16 31 4 ( 135 ) Regular dividends ( 19 ) ( 19 ) ( 38 ) ( 38 ) Common shares purchased under repurchase program (b)(c) — ( 95 ) — ( 95 ) Other ( 1 ) — — 1 Balance, end of period 2,264 3,048 2,264 3,048 Accumulated other comprehensive loss Balance, beginning of period ( 399 ) ( 541 ) ( 401 ) ( 448 ) Unrealized translation gain (loss) ( 12 ) 49 ( 10 ) ( 45 ) Unrealized gain (loss) on commodity hedges — 2 — 3 Balance, end of period ( 411 ) ( 490 ) ( 411 ) ( 490 ) Total stockholders' equity $ 1,866 $ 2,559 $ 1,866 $ 2,559 Cash dividends declared per common share $ 0.415 $ 0.405 $ 0.830 $ 0.810 (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. 23 NOTE O – STOCK INCENTIVE PLANS The components of Ashland’s pre-tax stock-based compensation expense included in continuing operations are as follows: Three months ended Six months ended March 31 March 31 (In millions) 2026 (a) 2025 (b) 2026 (a) 2025 (b) Stock appreciation rights $ 1 $ — $ 1 $ — Nonvested stock awards 3 3 6 6 Performance share awards 1 2 3 3 $ 5 $ 5 $ 10 $ 9 (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. 24 NOTE P – REVENUE Disaggregation of revenue Ashland disaggregates its revenue by reportable segment and geographical region as Ashland believes these categories best depict how management reviews the financial performance of its operations. Ashland includes only U.S. and Canada in its North America designation and includes Europe, the Middle East and Africa in its Europe designation. See the following tables for details. See Note Q for additional information. Sales by geography Three months ended Six months ended March 31 March 31 (In millions) 2026 2025 2026 2025 Life Sciences North America $ 32 $ 30 $ 59 $ 53 Europe 68 69 117 119 Asia Pacific 53 53 99 99 Latin America & other 19 20 36 35 $ 172 $ 172 $ 311 $ 306 Three months ended Six months ended March 31 March 31 (In millions) 2026 2025 2026 2025 Personal Care North America $ 38 $ 41 $ 68 $ 81 Europe 60 59 106 104 Asia Pacific 33 30 64 60 Latin America & other 19 16 35 34 $ 150 $ 146 $ 273 $ 279 Three months ended Six months ended March 31 March 31 (In millions) 2026 2025 2026 2025 Specialty Additives North America $ 43 $ 46 $ 79 $ 86 Europe 47 48 79 82 Asia Pacific 36 33 64 67 Latin America & other 8 7 14 14 $ 134 $ 134 $ 236 $ 249 Three months ended Six months ended March 31 March 31 (In millions) 2026 2025 2026 2025 Intermediates North America $ 25 $ 25 $ 44 $ 48 Europe 5 6 10 11 Asia Pacific 3 4 8 8 Latin America & other 2 2 4 4 $ 35 $ 37 $ 66 $ 71 25 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 for these products: Three months ended Six months ended March 31 March 31 (In millions) 2026 2025 2026 2025 Cellulosics 41 % 38 % 40 % 39 % PVP 23 % 25 % 24 % 24 % 64 % 63 % 64 % 63 % Trade receivables 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 $ 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). NOTE Q – REPORTABLE SEGMENT INFORMATION 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 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. Reportable segment business descriptions Life Sciences is comprised of pharmaceuticals, nutrition, agricultural chemicals, diagnostic films (formerly known as advanced materials) and fine chemicals. Pharmaceutical solutions include controlled release polymers, disintegrants, tablet coatings, thickeners, solubilizers and tablet binders. Nutrition solutions include thickeners, stabilizers, emulsifiers and additives for enhancing mouthfeel, controlling moisture migration, reducing oil uptake and binding structured foods. Customers include pharmaceutical, food, beverage, hospitals and radiologists manufacturers. Personal Care is comprised of biofunctionals, microbial protectants (preservatives), skin care, sun care, oral care, hair care and household. These businesses have a broad range of natural, nature-derived, biodegradable, and high-performance ingredients for customer-driven solutions to help protect, renew, moisturize and revitalize skin and hair, and provide solutions for toothpastes, mouth washes and rinses, denture cleaning and care for teeth. Personal Care supplies nature-derived rheology ingredients, biodegradable surface wetting agents, performance encapsulates, and specialty polymers for household, industrial and institutional cleaning products. Customers include formulators at large multinational branded consumer products companies and smaller, independent boutique companies. The Avoca business was sold in March 2025. See Note B for additional information. Specialty Additives is comprised of rheology and performance-enhancing additives serving the architectural coatings, construction, energy, automotive and various industrial markets. Solutions include coatings additives for architectural paints, finishes and lacquers, cement- and gypsum-based dry mortars, ready-mixed joint compounds, synthetic plasters for commercial and residential construction, and specialty materials for industrial applications. Products include rheology modifiers (cellulosic and associative thickeners), foam control agents, surfactants and wetting agents, pH neutralizers, advanced ceramics used in catalytic converters, and environmental filters, ingredients that aid the manufacturing process of ceramic capacitors, plasma display panels and solar cells, ingredients for textile printing, thermoplastic metals and alloys for welding. Products help improve desired functional outcomes through rheology modification and control, water retention, workability, adhesive strength, binding power, film formation, deposition and suspension and emulsification. Customers include, but are not limited to, global paint manufacturers, electronics and automotive manufacturers, textile mills, the construction industry and welders. 26 Intermediates is comprised of the production of 1,4 butanediol ("BDO") and related derivatives, including n-methylpyrrolidone. These products are used as chemical intermediates in the production of engineering polymers and polyurethanes, and as specialty process solvents in a wide array of applications including electronics, agriculture, pharmaceuticals, water filtration membranes and more. BDO is also supplied to Life Sciences, Personal Care, and Specialty Additives for use as a raw material. Unallocated and other generally includes items such as certain significant company-wide restructuring activities, corporate governance costs and legacy costs or activities that relate to divested businesses that are no longer operated by Ashland. Reportable segment results Results of Ashland’s reportable segments are presented based on its management and internal accounting structure. The structure is specific to Ashland; therefore, the financial results of Ashland’s reportable segments are not necessarily comparable with similar information for other comparable companies. Ashland allocates all costs to its reportable segments except for certain significant company-wide restructuring activities, certain corporate governance costs and other costs or activities that relate to former businesses that Ashland no longer operates. The service cost component of pension and other postretirement benefits costs is allocated to each reportable segment on a ratable basis; while the remaining components of pension and other postretirement benefits costs are recorded within the other net periodic benefit loss caption of the Statements of Condensed Consolidated Comprehensive Income (Loss). Ashland refines its expense allocation methodologies to the reportable segments from time to time as more refined information becomes available and the industry or market changes. 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 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. The following table presents various financial information for each reportable segment: 27 Three months ended Six months ended March 31 March 31 (In millions - unaudited) 2026 2025 2026 2025 Sales Life Sciences $ 172 $ 172 $ 311 $ 306 Personal Care 150 146 273 279 Specialty Additives 134 134 236 249 Intermediates 35 37 66 71 Intersegment sales (a) ( 9 ) ( 10 ) ( 18 ) ( 21 ) $ 482 $ 479 $ 868 $ 884 Cost of sales Life Sciences $ 109 $ 117 $ 203 $ 208 Personal Care 88 82 167 169 Specialty Additives 118 106 206 205 Intermediates 29 37 58 65 Intersegment sales ( 9 ) ( 10 ) ( 18 ) ( 21 ) $ 335 $ 332 $ 616 $ 626 Selling, general and administrative expense Life Sciences $ 20 $ 19 $ 40 $ 40 Personal Care 21 21 42 41 Specialty Additives 17 15 33 31 Intermediates 2 1 4 4 Total operating segments 60 56 119 116 Unallocated and other 19 29 46 46 $ 79 $ 85 $ 165 $ 162 Research and development expense Life Sciences $ 3 $ 4 $ 7 $ 8 Personal Care 6 7 11 12 Specialty Additives 4 3 7 6 Intermediates — — — — Total operating segments 13 14 25 26 Unallocated and other 1 — 2 2 $ 14 $ 14 $ 27 $ 28 Amortization expense Life Sciences $ 5 $ 4 $ 9 $ 8 Personal Care 8 8 16 19 Specialty Additives 2 3 5 5 Intermediates — — — — Total operating segments 15 15 30 32 Unallocated and other — — — — $ 15 $ 15 $ 30 $ 32 Equity and other income Life Sciences $ — $ — $ — $ — Personal Care — — 1 1 Specialty Additives — — — — Intermediates — — — — Total operating segments — — 1 1 Unallocated and other — — — — $ — $ — $ 1 $ 1 28 Three months ended Three months ended March 31 March 31 (In millions - unaudited) 2026 2025 2026 2025 Income (loss) on divestitures, net Life Sciences $ — $ — $ — $ — Personal Care — — — — Specialty Additives — — — — Intermediates — — — — Total operating segments — — — — Unallocated and other — 18 2 ( 165 ) $ — $ 18 $ 2 $ ( 165 ) Operating income (loss) Life Sciences $ 35 $ 28 $ 52 $ 42 Personal Care 27 28 38 39 Specialty Additives ( 7 ) 7 ( 15 ) 2 Intermediates 4 ( 1 ) 4 2 Total operating segments 59 62 79 85 Unallocated and other (b) ( 20 ) ( 11 ) ( 46 ) ( 213 ) Total operating income (loss) $ 39 $ 51 $ 33 $ ( 128 ) Net interest and other expense 18 11 26 39 Other net periodic benefit loss 1 1 2 3 Income (loss) from continuing operations before income taxes $ 20 $ 39 $ 5 $ ( 170 ) EBITDA (c) Life Sciences $ 49 $ 54 $ 80 $ 81 Personal Care 42 43 68 73 Specialty Additives 8 23 18 34 Intermediates 5 2 6 8 Total operating segments 104 122 172 196 Unallocated and other ( 20 ) ( 11 ) ( 46 ) ( 213 ) Total EBITDA $ 84 $ 111 $ 126 $ ( 17 ) Depreciation expense 30 45 63 79 Amortization expense 15 15 30 32 Net interest and other expense 18 11 26 39 Other net periodic benefit loss 1 1 2 3 Income (loss) from continuing operations before income taxes $ 20 $ 39 $ 5 $ ( 170 ) Depreciation expense Life Sciences (d) $ 9 $ 22 $ 19 $ 31 Personal Care 7 7 14 15 Specialty Additives (e) 13 13 28 27 Intermediates 1 3 2 6 Total operating segments 30 45 63 79 Unallocated and other — — — — $ 30 $ 45 $ 63 $ 79 29 March 31 September 30 (In millions - unaudited) 2026 2025 Assets Life Sciences $ 1,455 $ 1,498 Personal Care 714 751 Specialty Additives 988 1,020 Intermediates 107 116 Unallocated and other 1,235 1,226 $ 4,499 $ 4,611 Property, plant and equipment - net Life Sciences $ 468 $ 481 Personal Care 95 101 Specialty Additives 468 484 Intermediates 30 30 Unallocated and other 102 105 $ 1,163 $ 1,201 (a) Intersegment sales from Intermediates are accounted for at prices that approximate market value. All other intersegment sales are accounted for at cost. (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). (c) Excludes income 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. (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 . 30 ASHLAND INC. AND CONSOLIDATED SUBSIDIARIES FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains forward-looking statements including, without limitation, statements made under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operation” (“MD&A”), within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Ashland has identified some of these forward-looking statements with words such as “anticipates,” “believes,” “expects,” “estimates,” “is likely,” “predicts,” “projects,” “forecasts,” “objectives,” “may,” “will,” “should,” “plans” and “intends” and the negative of these words or other comparable terminology. Ashland may from time to time make forward-looking statements in its Annual Report to Stockholders, quarterly reports and other filings with the Securities and Exchange Commission ("SEC"), news releases and other written and oral communications. These forward-looking statements are based on Ashland’s expectations and assumptions, as of the date such statements are made, regarding Ashland’s future operating performance and financial condition, as well as the economy and other future events or circumstances. The risks and uncertainties we face which may cause our actual results to differ materially from the results expressed, projected, or implied in these forward-looking statements include, but are not limited to: Ashland’s aggressive growth goals and the extent to which such goals may be impacted by a failure to optimize our tangible and intangible assets, a failure to identify and integrate acquisition targets, any unexpected costs and liabilities associated with such acquisitions, and goodwill impairment; business disruptions stemming from natural, operational, and other catastrophic events, including disruptions to supply and logistics functions, manufacturing delays, and information technology system and network failures; climate change and related resource impacts; changes in consumer preferences and a reduction in demand for Ashland’s products; risks inherent in operating a global business, including tariffs and other trade policies, geopolitical instability and armed conflict, and challenges associated with hiring and managing a diverse workforce across countries with differing laws, regulations, and cultural practices; economic downturns and disruptions in the financial markets; Ashland’s substantial indebtedness, including the possibility that such indebtedness and related restrictive covenants may adversely affect our future cash flows, limit our ability to repay debt and obtain future financing, place Ashland at a competitive disadvantage, and make us more vulnerable to interest rate increases; our ability to develop and market new products and remain competitive in the markets in which we operate; our ability to pass increases in the costs of energy and raw materials to customers and to fulfill our contractual requirements with customers and vendors; downward pressures on prices and margins; the ability to attract and retain key employees and to provide for effective succession planning; cybersecurity risks, including disruptions to or failures in Ashland’s information technology systems and networks, malicious cyberattacks, and the inadvertent or accidental disclosure or loss of proprietary or sensitive information; Ashland’s ability to effectively protect and enforce its intellectual property rights; exposure to products liability claims; risks related to compliance with environmental, health, and safety regulations, including the potential for costly litigation, remediation, and settlement actions; exposure to pending and threatened asbestos-related litigation; changes in the legal and regulatory landscapes in which we operate; changes in taxation or adverse tax rulings; and without limitation, risks and uncertainties affecting Ashland that are contained in “Use of estimates, risks and uncertainties” in Note A of Notes to Consolidated Financial Statements and in Item 1A of its most recent Form 10-K filed with SEC. Ashland believes its expectations and assumptions are reasonable, but there can be no assurance that the expectations reflected herein will be achieved. Unless legally required, Ashland undertakes no obligation to update any forward-looking statements made in this Form 10-Q whether as a result of new information, future events or otherwise. Information on Ashland’s website is not incorporated into or a part of this Form 10-Q. 31