What changed in this filing

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Item 1. Financial Statements

2026-07-29 compared with 2026-04-29 · 299 added, 229 removed, 715 unchanged (42% of the section changed)

3 unchanged sentences

Three months ended

Six months ended

Nine months ended

(In millions except per share data - unaudited)

5 unchanged sentences

Equity and other income - Note Q

Goodwill impairment - Note G

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

Net interest and other (income) expense

Other net periodic benefit (income) loss - Note K

Income (loss) from continuing operations before income taxes

1 unchanged sentence

Income (loss) from continuing operations

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

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

Net income (loss)

2 unchanged sentences

Income (loss) from continuing operations

Income from discontinued operations

Loss from discontinued operations

Net income (loss)

1 unchanged sentence

Income (loss) from continuing operations

Income from discontinued operations

Loss from discontinued operations

Net income (loss)

3 unchanged sentences

Unrealized translation gain (loss)

Unrealized gain on commodity hedges

Unrealized (loss) gain on commodity hedges

Other comprehensive income (loss) - Note N

14 unchanged sentences

Goodwill - Note G

Intangibles - Note G

Intangibles, net - Note G

Operating lease assets, net - Note I

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Total liabilities and equity

(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 .

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

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

SEE NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.

1 unchanged sentence

STATEMENTS OF CONDENSED CONSOLIDATED CASH FLOWS

Six months ended

Nine months ended

(In millions - unaudited)

1 unchanged sentence

Net income (loss)

Income from discontinued operations, net of income taxes

Loss from discontinued operations, net of income taxes

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

6 unchanged sentences

Loss from excess tax deduction on stock based compensation

(Income) loss from restricted investments

Income from restricted investments

Loss on divestitures, net

Goodwill impairment

Pension contributions

Loss on pension and other postretirement plan remeasurements

(Gain) loss on pension and other postretirement plan remeasurements

Change in operating assets and liabilities

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

Total cash flows provided by operating activities from continuing operations

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

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Purchases of securities

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

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

Total cash flows provided by investing activities from continuing operations

CASH FLOWS USED BY FINANCING ACTIVITIES FROM CONTINUING OPERATIONS

Repurchase of common stock

Proceeds from short-term debt

Debt issuance costs

Cash dividends paid

5 unchanged sentences

Total cash used by discontinued operations

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

Effect of currency exchange rate changes on cash and cash equivalents

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.

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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.

Results of operations for the three and nine months ended June 30, 2026, are not necessarily indicative of the expected results for the remainder of the fiscal year.

Ashland is comprised of the following reportable segments:

17 unchanged sentences

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.

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

Proceeds from the sale were $ 16 million, net of transaction costs for the nine months ended June 30, 2025 within the investing activities section of the Statement of Condensed Consolidated Cash Flows.

Ashland recorded the final sale proceeds

of $ 2 million within the investing activities section of the Statement of Condensed Consolidated Cash Flows for the nine months ended June 30, 2026.

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.

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 Statement of Condensed Consolidated Comprehensive Income (Loss) for the nine months ended June 30, 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.

During the nine months ended June 30, 2026 , Ashland completed the sale of an excess land property with a net book value of $ 2 million.

Ashland also recorded a $ 2 million pre-tax gain related to excess land property termination fee within the income (loss) on divestitures, net caption of the Statements of Condensed Consolidated Comprehensive Income (Loss) during the three and nine months ended June 30, 2026.

During the nine months ended June 30, 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 Statement of Condensed Consolidated Comprehensive Income (Loss) for the nine months ended June 30, 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 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 loss 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 loss from discontinued operations, net of income taxes caption in the Statements of Condensed Consolidated Comprehensive Income (Loss).

• The Performance Adhesives business divested in 2022;

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

• The separation of Valvoline Inc.

("Valvoline") business divested in 2017;

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

• The sale of the Ashland Distribution ("Distribution") business divested in 2011;

• 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 loss 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

Nine months ended

(In millions)

Water Technologies

Performance Adhesives

Water Technologies

Asbestos-related litigation

NOTE D – RESTRUCTURING ACTIVITIES

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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

Three months ended June 30, 2026

Three months ended June 30, 2025

(In millions)

Severance expense (a)

Utilization (cash paid)

Severance expense (a)

Utilization (cash paid)

2025 Restructuring Program

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 March 31, 2026 and 2025 .

Six months ended March 31, 2026

Six months ended March 31, 2025

Nine months ended June 30, 2026

Nine months ended June 30, 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.

The following table details at June 30, 2026, the amount of restructuring severance liabilities related to these programs.

(In millions)

2025 Restructuring Program

2023 Restructuring Program

Restructuring

Balance at September 30, 2025 (a)

Restructuring reserve

Restructuring expense

Utilization (cash paid)

Balance at March 31, 2026 (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 March 31, 2026 and September 30, 2025 .

Balance at June 30, 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 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).

During the three and nine months ended June 30, 2026 , Ashland incurred zero and $ 4 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 the three and nine months ended June 30, 2025, Ashland incurred $ 27 million and $ 40 million, respectively, of accelerated depreciation for product line optimization activities associated with Life Sciences, Personal Care and Specialty Additives manufacturing facilities, 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 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 March 31, 2026:

The following table summarizes financial instruments subject to recurring fair value measurements as of June 30, 2026:

(In millions)

Carrying value

Cash and cash equivalents

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Investment of captive insurance company (c)

Commodity derivatives (d)

Total assets at fair value

Foreign currency derivatives (e)

Commodity derivatives (e )

Foreign currency derivatives (d)

Commodity derivatives (d )

Total liabilities at fair value

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(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.

(d) 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:

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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 March 31, 2026 and September 30, 2025.

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

(In millions)

Adjusted Cost

Unrealized Gain

Unrealized Loss

March 31, 2026

June 30, 2026

Demand deposit

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Fixed income mutual fund

The following table presents the investment income, net gains and losses realized, funds restricted for specific transactions, and disbursements related to restricted investments:

The following table presents the investment income, net gains realized, funds restricted for specific transactions, and disbursements related to restricted investments:

Three months ended

Six months ended

Nine months ended

(In millions)

Investment income (a)

Net gains (losses) (a)

Net gains (a)

Funds restricted for specific transactions

Disbursements

(a) Included in the net interest and other expense caption within the Statements of Condensed Consolidated Comprehensive Income (Loss).

(a) Included in the net interest and other (income) expense caption within the Statements of Condensed Consolidated Comprehensive Income (Loss).

Foreign currency derivatives

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Three months ended

Six months ended

Nine months ended

(In millions)

Foreign currency derivative gains (losses)

Foreign currency derivative (losses) gains

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:

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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):

Other commodity derivatives

Ashland utilizes 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 within 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 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.

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

Three months ended

Six months ended

Nine months ended

(In millions)

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:

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:

(In millions)

Commodity derivative assets

Commodity derivative assets (a)

Notional contract values

1 unchanged sentence

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).

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 .

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

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.

At June 30, 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 $ 1,369 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).

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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:

No indicators of impairment were identified during the three and nine months ended June 30, 2026.

During the three months ended June 30, 2025, Ashland performed an interim quantitative goodwill impairment assessment following a sustained decline in the market price of its Common Stock and weakened operating performance resulting from a challenging macroeconomic environment.

The assessment indicated that the carrying values of the Life Sciences and Specialty Additives reporting units exceeded their estimated fair values.

As a result, Ashland recorded non-cash goodwill impairment charges of $ 375 million and $ 331 million for the Life Sciences and Specialty Additives reporting units, respectively, for a total goodwill impairment charge of $ 706 million.

The impairment charge was recorded within goodwill impairment in the Statements of Condensed Consolidated Comprehensive Income (Loss) during the three and nine months ended June 30, 2025.

Prior to the impairment, goodwill balances associated with the Life Sciences and Specialty Additives reporting units were $ 841 million and $ 443 million, respectively.

The goodwill impairment charges were not deductible for income tax purposes.

The fair value estimates used in the interim quantitative impairment assessment were based on an income approach utilizing Level 3 inputs, including significant assumptions regarding future cash flows, sales growth rates, operating income (loss) before income taxes, depreciation and amortization ("EBITDA") growth rates, terminal growth rates, and discount rates.

The following is a progression of goodwill by reportable segment for the nine months ended June 30, 2026:

(In millions)

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Currency translation

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.

Balance at June 30, 2026 (a)

(a) As of both June 30, 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

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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 .

No indicators of impairment were identified for indefinite-lived trademarks and trade names during the three and nine months ended June 30, 2026 .

Other intangible assets were comprised of the following as of:

March 31, 2026

June 30, 2026

September 30, 2025

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Total indefinite-lived intangible assets

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.

Amortization expense recognized on other intangible assets was $ 15 million for both the three months ended June 30, 2026 and 2025 , and $ 46 million and $ 47 million for the nine months ended June 30, 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 nine months actual and three 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.

2 unchanged sentences

(In millions)

March 31, 2026

June 30, 2026

September 30, 2025

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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 :

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

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

The scheduled aggregate maturities for long-term debt by year (excluding debt issuance costs) are as follows as of June 30, 2026 :

zero 2026, $ 4 million in 2027, $ 571 million in 2028, $ 97 million in 2029, zero in 2030 and $ 450 million in 2031.

Credit agreements and refinancing

On May 28, 2026 (the “Closing Date”), Ashland Inc.

and its Swiss subsidiary, Ashland Industries Europe GmbH ("the Swiss Borrower"), entered into a Second Amended and Restated Credit Agreement (the “2026 Credit Agreement”).

The 2026 Credit Agreement provides for a $ 500 million five-year revolving credit facility (including a $ 125 million letter of credit sublimit) ("The Revolving Facility"), which may be drawn by Ashland or the Swiss Borrower.

The 2026 Credit Agreement amends and restates the Amended and Restated Credit Agreement dated as of July 22, 2022.

The obligations of the Swiss Borrower under the 2026 Revolving Facility are guaranteed by Ashland.

The Revolving Facility is unsecured.

At Ashland’s option, loans issued under the 2026 Credit Agreement will bear interest at (a) in the case of loans denominated in U.S.

dollars, either Term Secured Overnight Financing Rate ("SOFR") or an alternate base rate and (b) in the case of loans denominated in Euros, Euro Interbank Offered Rate ("EURIBOR"), in each case plus the applicable interest rate margin.

Loans will initially bear interest at Term SOFR or EURIBOR plus 1.375 % per annum, in the case of Term SOFR borrowings or EURIBOR borrowings, respectively, or at the alternate base rate plus 0.375 %, in the case of alternate base rate borrowings, through and including the date of delivery of a quarterly compliance certificate and thereafter the interest rate will fluctuate between Term SOFR or EURIBOR plus 1.250 % per annum and Term SOFR or EURIBOR plus 1.750 % per annum (or between the alternate base rate plus 0.250 % per annum and the alternate base rate plus 0.750 % annum), based upon the Consolidated Net Leverage Ratio (as defined in the 2026 Credit Agreement) at such time.

In addition, Ashland will initially be required to pay fees of 0.175 % per annum on the daily unused amount of the Revolving Facility through and including the date of delivery of a compliance certificate, and thereafter the fee rate will fluctuate between 0.125 % and 0.275 % per annum, based upon the Consolidated Net Leverage Ratio.

The Revolving Facility may be prepaid at any time without premium.

The 2026 Credit Agreement contains usual and customary representations and warranties, and usual and customary affirmative and negative covenants, including limitations on liens, additional subsidiary indebtedness, investments, mergers, dispositions, restricted payments, changes in the nature of business, affiliate transactions, restrictions on distributions by subsidiaries, use of proceeds, accounting changes and other customary limitations, as well as financial covenants (including maintenance of a maximum Consolidated Net Leverage Ratio and a minimum Consolidated Interest Coverage Ratio (as defined in the 2026 Credit Agreement)).

The 2026 Credit Agreement also contains usual and customary events of default, including non-payment of principal, interest, fees and other amounts, material breach of a representation or warranty, non-performance of covenants and obligations, default on other material debt, bankruptcy or insolvency, material judgments, incurrence of certain material ERISA liabilities, impairment of loan documentation and change of control.

Ashland incurred and paid $ 2 million of debt issuance costs in connection with the 2026 Credit Agreement during the three and nine months ended June 30, 2026.

These costs are being amortized over the term of the 2026 Credit Agreement using the straight-line method and are included within net interest and other (income) expense in the Statements of Consolidated Comprehensive Income (Loss).

This amount was also recorded within debt issuance costs paid in the cash flows used by financing activities from continuing operations section of the Statement of Condensed Consolidated Cash Flows for the nine months ended June 30, 2026.

Accounts receivable facilities and supply chain finance program

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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).

Losses on sale of accounts receivable, including related transaction expenses are recorded within the net interest and other (income) 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.

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When applicable, Ashland discloses the amount of the accounts receivable that serves as over-collateralization as a restricted asset.

Accounts Receivable Sales Programs

The following table provides information related to the U.S.

and Foreign Accounts Receivable Sales Programs as of:

(In millions)

June 30, 2026

September 30, 2025

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.

Sales outstanding

Receivables transferred to SPE (Special purpose entity)

Servicing and guarantee liability (a)

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

$ 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.

Sales outstanding

Receivables transferred to SPE

Servicing and guarantee liability (a)

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

The following table provides the impact of the U.S.

and Foreign Accounts Receivable Sales Programs on the Statements of Condensed Consolidated Comprehensive Income (Loss).

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(In millions)

Accounts Receivable Sales Program

Loss on sale (a)(b)

Foreign Accounts Receivable Sales Program

Loss on sale (a)(b)

(a) Recorded within the net interest and other (income) expense caption within the Statements of Condensed Consolidated Comprehensive Income (Loss).

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

The following table provides cash flow activity related to the U.S.

and Foreign Accounts Receivable Sales Programs.

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(In millions)

June 30, 2026

June 30, 2025

Accounts Receivable Sales Program

Gross proceeds received

Cash collections

Net change in receivables sales volume

Foreign Accounts Receivable Sales Program

Gross proceeds received

Cash collections

Net change in receivables sales volume

Supply Chain Finance Program

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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

Three months ended June 30, 2026

Nine months ended June 30, 2026

Confirmed obligations outstanding at beginning of period

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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.

The borrowing capacity remaining under the 2026 Credit Agreement was $ 496 million, which reflects the full $ 500 million Revolving Credit Facility less a reduction of $ 4 million for letters of credit outstanding as of June 30, 2026.

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

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

and Foreign Accounts Receivable Sales Programs as of June 30, 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 .

As of June 30, 2026, Ashland is in compliance with all debt agreement covenant restrictions.

The maximum consolidated net leverage ratio permitted under the 2026 Credit Agreement is 4.0 .

At June 30, 2026 , Ashland’s calculation of the consolidated net leverage ratio was 2.3 .

The minimum required consolidated interest coverage ratio under the 2026 Credit Agreement is 3.0 .

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

At June 30, 2026 , Ashland’s calculation of the consolidated interest coverage ratio was 6.9 .

NOTE I – LEASING ARRANGEMENTS

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(In millions)

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Cost of sales

Short-term leases

Short-term leases (a)

Cost of sales

Total lease cost

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.

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

Right-of-use assets exchanged for new operating lease obligations were $ 1 million and $ 3 million for the three months ended June 30, 2026 and 2025 , respectively, and $ 5 million for both the nine months ended June 30, 2026 and 2025.

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 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.

The effective tax rate was 27 % and 30 % f or the three and nine months ended June 30, 2026, respectively.

The tax rate for the three months ended June 30, 2026 , was primarily impacted by jurisdictional income mix and a net $ 3 million from unfavorable tax discrete items primarily related to cash repatriation and changes in uncertain tax positions.

The tax rate for the nine months ended June 30, 2026 , was primarily impacted by jurisdictional income mix, as well as a net $ 4 million from unfavorable tax discrete items primarily related to cash repatriation, 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.

The effectiv e tax rate was negative 2 % and 2 % for the three and nine months ended June 30, 2025, respectively.

The tax rate for the three months ended June 30, 2025, was primarily impacted by jurisdictional income mix, nondeductible goodwill impairment of $ 706 million and a net $ 16 million from unfavorable tax discrete items primarily related to return to provision adjustments and changes in uncertain tax positions.

The tax rate for the nine months ended June 30, 2025 , was impacted by jurisdictional income mix, nondeductible goodwill impairment of $ 706 million, and a net $ 23 million from unfavorable tax discrete items primarily related to return to provision adjustments and changes in uncertain tax positions .

Unrecognized tax benefits

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

Changes in unrecognized tax benefits are summarized as follows for the nine months ended June 30, 2026:

(In millions)

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Increases related to positions taken in the prior year

Balance at March 31, 2026

Lapse of statute of limitations

Balance at June 30, 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 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;

For the remaining balance as of June 30, 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

In June 2026, Ashland completed a buy-out transaction for certain retirees participating in two of its U.S.

defined benefit pension plans.

Under the buy-out transaction, the pension plans purchased group annuity contracts from an insurance company, which assumed responsibility for future benefit payments to the

affected retirees.

As a result, Ashland was relieved of the related pension obligations and derecognized the associated projected benefit obligations and related plan assets from its Condensed Consolidated Balance Sheet.

The affected pension plans continue to operate following the transaction, with remaining active, deferred vested and retiree participants.

The buy-in transaction triggered a remeasurement of the affected pension plans immediately prior to settlement.

Based on the remeasurement and settlement accounting, Ashland recognized a settlement gain of $ 2 million within the other net periodic benefit (income) loss caption of the Statements of Condensed Consolidated Comprehensive Income (Loss) for the three and nine months ended June 30, 2026.

As of June 30, 2026 , Ashland transferred approximately $ 30 million of projected benefit obligations and $ 28 million of related plan assets associated with the affected retirees to the insurance company.

The remaining projected benefit obligations and related plan assets of the two pension plans continue to be reflected in Ashland's Condensed Consolidated Balance Sheet.

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.

This resulted in a decrease in total expected future years of service within the plan and required Ashland to remeasure the plan during the nine months ended June 30, 2025 .

As a result, Ashland recorded a $ 1 million curtailment loss within the other net periodic benefit (income) loss caption of the Statement of Condensed Consolidated Comprehensive Income (Loss) for the nine months ended June 30, 2025.

Plan contributions

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

For the nine months ended June 30, 2026 , Ashland contributed $ 5 million to its U.S.

pension plans and $ 5 million to its non-U.S.

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(In millions)

Three months ended March 31

Three months ended June 30

Interest cost

Expected return on plan assets

Settlement gain

Actuarial gain

Total net periodic benefit costs

Six months ended March 31

Nine months ended June 30

Interest cost

Expected return on plan assets

Settlement gain

Actuarial gain

Curtailment loss

Total net periodic benefit costs

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.

sales captions on the Statements of Condensed Consolidated Comprehensive Income (Loss).

All other components are recorded within the other net periodic benefit (income) loss caption on the Statements of Condensed Consolidated Comprehensive Income (Loss), which netted to income of $ 5 million and $ 3 million for the three and nine months ended June 30, 2026 , respectively, and expense of $ 1 million and $ 4 million for the three and nine months ended June 30, 2025 , respectively.

NOTE L – LITIGATION, CLAIMS AND CONTINGENCIES

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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).

Changes in asbestos litigation reserves and receivables are recorded on an after-tax basis within the loss from discontinued operations, net of income taxes caption in the Statements of Condensed Consolidated Comprehensive Income (Loss).

Ashland asbestos-related litigation

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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 35-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.

During the most recent update completed in fiscal 2026, it was determined that the liability for Ashland asbestos-related claims should be increased by $ 31 million.

Total reserves for asbestos claims were $ 262 million and $ 258 million at June 30, 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 both March 31, 2026 and September 30, 2025 .

(a) Includes $ 29 mi llion classified in accrued expenses and other liabilities within the Condensed Consolidated Balance Sheets as of both June 30, 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 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.

At June 30, 2026 and September 30, 2025 , Ashland’s receivable for recoveries of litigation defense and claim settlement costs from insurers (excluding the Hercules receivable for asbestos claims discussed below) amounted to $ 103 million and $ 95 million, respectively.

In fiscal 2026, the annual update of the model used for purposes of valuing the asbestos reserve and its impact on valuation of future recoveries from insurers was completed.

This model update resulted in a $ 15 million increase in the receivable for probable insurance recoveries.

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 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 .

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

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

Hercules asbestos-related litigation

3 unchanged sentences

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 35-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.

During the most recent update completed in fiscal 2026, it was determined that the liability for Hercules asbestos-related claims should be increased by $ 17 million.

Total reserves for asbestos claims were $ 183 million and $ 177 million at June 30, 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 March 31, 2026 and September 30, 2025 .

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

Hercules asbestos-related receivables

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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.

As of June 30, 2026 and September 30, 2025 , Ashland’s receivable for recoveries of litigation defense and claims costs from insurers with respect to Hercules amounted to $ 53 million and $ 48 million, respectively.

In fiscal 2026, the annual update of the model used for purposes of valuing the asbestos reserve and its impact on valuation of future recoveries from insurers was completed.

This model update resulted in an increase of $ 7 million in the receivable for probable insurance recoveries.

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 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 .

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

(b) Includes $ 7 million and $ 6 million classified in accounts receivable, net on the Condensed Consolidated Balance Sheets at June 30, 2026 and September 30, 2025 , respectively.

Asbestos litigation cost projection

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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.

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

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.

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.

At June 30, 2026 , such locations included 52 sites where Ashland has been identified as a potentially responsible party under Superfund or similar state laws, 106 current and former operating facilities and about 1,225 service station properties, of which 15 are being actively remediated.

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

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Environmental remediation reserves - beginning of year

Environmental remediation reserves - beginning of year (a)

Disbursements

Revised obligation estimates and accretion

Environmental remediation reserves - end of period

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.

Environmental remediation reserves - end of period (a)

(a) Includes $ 184 million and $ 179 million within other noncurrent liabilities within the Condensed Consolidated Balance Sheets at June 30, 2026 and September 30, 2025, respectively.

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

The total reserves for environmental remediation reflect Ashland’s esti mates 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.

1 unchanged sentence

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.

At June 30, 2026 and September 30, 2025 , Ashland’s recorded receivables for these probable insurance recoveries were $ 13 million and $ 14 million, respectively, of which $ 12 million at both June 30, 2026 and September 30, 2025 , were classified in other noncurrent assets within 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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Total expense, net of receivable activity

(a) Net expense of $ 4 million for both the three and nine months ended June 30, 2026 and $ 14 million for both the three and nine months ended June 30, 2025 , respectively, relates to divested businesses which qualified for treatment as discontinued operations for which certain environmental liabilities were retained by Ashland.

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

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.

The largest reserve for any site is 21 % of the environmental remediation reserves as of June 30, 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 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 .

however, Ashland believes that such potential losses were not material as of June 30, 2026 .

NOTE M – EARNINGS (LOSS) PER SHARE

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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 total number of these shares outstanding was approximately 2 million at both June 30, 2026 and 2025 .

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

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EPS from continuing operations

(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.

(a) As a result of the loss from continuing operations attributable to Ashland during the three and nine months ended June 30, 2025, the effect of the share-based awards convertible to common stock would be antidilutive and have been excluded from the diluted EPS calculation.

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

2 unchanged sentences

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.

As of June 30, 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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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.

On May 5, 2026, Ashland's Board declared a quarterly cash dividend of 42.0 cents per share on the Company's common stock representing a 1 % increase from the previous quarter.

The dividend was paid in the third quarter of fiscal 2026.

Dividends of 41.5 cents per share were paid in the first and second quarters of fiscal 2026, and the third and fourth quarters of fiscal 2025.

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

Accumulated other comprehensive loss

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(In millions)

Tax benefit (expense)

Three months ended March 31

Three months ended June 30

Other comprehensive income

Unrealized translation gain

Unrealized loss on commodity hedges

Total other comprehensive income

Nine months ended June 30

Other comprehensive income (loss)

Unrealized translation gain (loss)

Unrealized gain on commodity hedges

Unrealized translation (loss) gain

Unrealized (loss) gain on commodity hedges

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

A reconciliation of changes in stockholders’ equity are as follows:

Summary of equity

A reconciliation of changes in equity are as follows:

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Net income (loss)

Regular dividends

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

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Unrealized translation gain (loss)

Unrealized gain (loss) on commodity hedges

Unrealized (loss) gain on commodity hedges

Balance, end of period

Total stockholders' equity

Cash dividends declared per common share

(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.

(a) Common stock issued were 5,593 and 11,423 for the three months ended June 30, 2026 and 2025 , respectively, and 83,605 and 139,824 for the nine months ended June 30, 2026 and 2025 , respectively.

Includes zero for both the three months ended June 30, 2026 and 2025 , and $ 1 million and $ 4 million for the nine months ended June 30, 2026 and 2025 , respectively, associated with stock-based compensation employee withholding taxes.

(b) Common stock repurchased were zero for each of the three and nine months ended June 30, 2026 , and zero and 1,541,320 for the three and nine months ended June 30, 2025 .

(c) Includes zero in excise tax on common stock repurchases for both the three and nine months ended June 30, 2026 , and zero and $ 1 million for the three and nine months ended June 30, 2025 .

Ashland paid a total of $ 100 million for the nine months ended June 30, 2025 for common stock repurchases.

NOTE O – STOCK INCENTIVE PLANS

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Performance share awards

(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.

(a) Included $ 1 million and $ 2 million of expense related to cash-settled nonvested restricted stock awards during the three and nine months ended June 30, 2026 , respectively, and zero and $ 1 million of expense related to cash-settled performance units during the three and nine months ended June 30, 2026 , respectively.

(b) Included zero and $ 1 million of expense related to cash-settled nonvested restricted stock awards during the three and nine months ended June 30, 2025, respectively, and zero and income of $ 1 million related to cash-settled performance units during the three and nine months ended June 30, 2025 , respectively.

NOTE P – REVENUE

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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 $ 199 million and $ 200 million as of March 31, 2026 and September 30, 2025 , respectively.

Ashland’s trade receivables were $ 203 million and $ 200 million as of June 30, 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 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.

EBITDA is 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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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 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.

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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).

while the remaining components of pension and other postretirement benefits costs are recorded within the other net periodic benefit (income) 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.

There were no material changes in methodology for the three and nine months ended June 30, 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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Three months ended

Six months ended

Nine months ended

(In millions - unaudited)

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Three months ended

Nine months ended

(In millions - unaudited)

Income (loss) on divestitures, net

Goodwill impairment and (income) loss on divestitures, net

Life Sciences

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Total operating income (loss)

Net interest and other expense

Other net periodic benefit loss

Net interest and other (income) expense

Other net periodic benefit (income) loss

Income (loss) from continuing operations before income taxes

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Amortization expense

Net interest and other expense

Other net periodic benefit loss

Net interest and other (income) expense

Other net periodic benefit (income) loss

Income (loss) from continuing operations before income taxes

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Life Sciences (d)

Personal Care

Personal Care (e)

Specialty Additives (e)

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Total operating segments

Unallocated and other

Unallocated and other (f)

(In millions - unaudited)

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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 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).

(b) Includes a $ 2 million excess land sale contract termination fee income for both the three and nine months ended June 30, 2026 , a $ 8 million gain on sale and a $ 183 million impairment charge related to the Avoca business for both the nine months ended June 30, 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 .

(d) Depreciation includes accelerated depreciation of $ 8 million and $ 21 million for Life Sciences for the three and nine months ended June 30, 2025 , respectively.

(e) Depreciation includes accelerated depreciation of $ 1 million for Personal Care and $ 3 million for Specialty Additives for the nine months ended June 30, 2026 , and $ 19 million for both the three and nine months ended June 30, 2025.

(f) Depreciation includes accelerated depreciation of $ 1 million for Unallocated and other for both the three and nine months ended June 30, 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