ASHLAND INC. 10-Q

ITEM 1. FINANCIAL STATEMENTS ASHLAND INC. AND CONSOLIDATED SUBSIDIARIES STATEMENTS OF CONDENSED CONSOLIDATED COMPREHENSIVE INCOME (LOSS) Three months ended Nine months ended June 30 June 30 (In millions except per share data - unaudited) 2026 2025 2026 2025 Sales - Note P $ 497 $ 463 $ 1,365 $ 1,347 Cost of sales - Note Q 327 331 943 957 Gross profit 170 132 422 390 Selling, general and administrative expense - Note Q 99 106 264 268 Research and development expense - Note Q 15 13 41 41 Intangibles amortization expense - Note G and Note Q 15 15 46 47 Equity and other income - Note Q 1 — 2 1 Goodwill impairment - Note G — 706 — 706 Income (loss) on divestitures, net - Note B and Note Q 1 — 3 ( 165 ) Operating income (loss) 43 ( 708 ) 76 ( 836 ) Net interest and other (income) expense ( 8 ) ( 5 ) 19 34 Other net periodic benefit (income) loss - Note K ( 5 ) 1 ( 3 ) 4 Income (loss) from continuing operations before income taxes 56 ( 704 ) 60 ( 874 ) Income tax expense (benefit) - Note J 15 15 18 ( 19 ) Income (loss) from continuing operations 41 ( 719 ) 42 ( 855 ) Loss from discontinued operations, net of income taxes - Note C ( 25 ) ( 23 ) ( 22 ) ( 22 ) Net income (loss) $ 16 $ ( 742 ) $ 20 $ ( 877 ) PER SHARE DATA Basic earnings (loss) per share - Note M Income (loss) from continuing operations $ 0.89 $ ( 15.70 ) $ 0.91 $ ( 18.39 ) Loss from discontinued operations ( 0.54 ) ( 0.51 ) ( 0.48 ) ( 0.46 ) Net income (loss) $ 0.35 $ ( 16.21 ) $ 0.43 $ ( 18.85 ) Diluted earnings (loss) per share - Note M Income (loss) from continuing operations $ 0.89 $ ( 15.70 ) $ 0.91 $ ( 18.39 ) Loss from discontinued operations ( 0.54 ) ( 0.51 ) ( 0.48 ) ( 0.46 ) Net income (loss) $ 0.35 $ ( 16.21 ) $ 0.43 $ ( 18.85 ) COMPREHENSIVE INCOME (LOSS) Net income (loss) $ 16 $ ( 742 ) $ 20 $ ( 877 ) Other comprehensive income (loss), net of tax Unrealized translation gain (loss) 4 91 ( 6 ) 46 Unrealized (loss) gain on commodity hedges ( 2 ) ( 1 ) ( 2 ) 2 Other comprehensive income (loss) - Note N 2 90 ( 8 ) 48 Comprehensive income (loss) $ 18 $ ( 652 ) $ 12 $ ( 829 ) SEE NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS. 2 ASHLAND INC. AND CONSOLIDATED SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In millions - unaudited) June 30 2026 September 30 2025 ASSETS Current assets Cash and cash equivalents $ 440 $ 215 Accounts receivable, net (a) - Note H 256 242 Inventories - Note F 490 568 Other assets 106 180 Total current assets 1,292 1,205 Noncurrent assets Property, plant and equipment Cost 3,377 3,355 Accumulated depreciation 2,228 2,154 Net property, plant and equipment 1,149 1,201 Goodwill - Note G 700 705 Intangibles, net - Note G 513 563 Operating lease assets, net - Note I 100 103 Restricted investments - Note E 285 297 Asbestos insurance receivable, net (b) - Note L 139 127 Deferred income taxes 157 157 Other assets 243 253 Total noncurrent assets 3,286 3,406 Total assets $ 4,578 $ 4,611 LIABILITIES AND EQUITY Current liabilities Trade and other payables $ 198 $ 189 Accrued expenses and other liabilities 208 213 Current operating lease obligations - Note I 18 21 Total current liabilities 424 423 Noncurrent liabilities Long-term debt - Note H 1,374 1,384 Asbestos litigation reserves - Note L 399 389 Deferred income taxes 31 31 Employee benefit obligations - Note K 88 96 Operating lease obligations - Note I 84 85 Other liabilities 308 299 Total noncurrent liabilities 2,284 2,284 Commitments and contingencies - Note I and L Equity - Note N 1,870 1,904 Total liabilities and equity $ 4,578 $ 4,611 (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. 3 ASHLAND INC. AND CONSOLIDATED SUBSIDIARIES STATEMENTS OF CONDENSED CONSOLIDATED CASH FLOWS Nine months ended June 30 (In millions - unaudited) 2026 2025 CASH FLOWS PROVIDED (USED) BY OPERATING ACTIVITIES FROM CONTINUING OPERATIONS Net income (loss) $ 20 $ ( 877 ) Loss from discontinued operations, net of income taxes 22 22 Adjustments to reconcile income (loss) from continuing operations to cash flows from operating activities: Depreciation and amortization 141 187 Original issue discount and debt issuance costs amortization 6 5 Deferred income taxes 4 5 Gain from sales of property, plant and equipment ( 2 ) ( 11 ) Income from affiliates ( 1 ) ( 1 ) Stock based compensation expense 13 11 Loss from excess tax deduction on stock based compensation ( 1 ) — Income from restricted investments ( 28 ) ( 15 ) Loss on divestitures, net — 176 Goodwill impairment — 706 Pension contributions ( 10 ) ( 9 ) (Gain) loss on pension and other postretirement plan remeasurements ( 5 ) 1 Change in operating assets and liabilities 136 ( 106 ) Total cash flows provided by operating activities from continuing operations 295 94 CASH FLOWS PROVIDED (USED) BY INVESTING ACTIVITIES FROM CONTINUING OPERATIONS Additions to property, plant and equipment ( 51 ) ( 64 ) Proceeds from disposal of property, plant and equipment 4 11 Proceeds from sale of operations 2 16 Proceeds from settlement of Company-owned life insurance contracts 25 5 Company-owned life insurance payments ( 1 ) ( 1 ) Funds restricted for specific transactions ( 9 ) ( 8 ) Reimbursements from restricted investments 52 41 Proceeds from sale of securities 40 36 Purchases of securities ( 40 ) ( 36 ) Total cash flows provided by investing activities from continuing operations 22 — CASH FLOWS USED BY FINANCING ACTIVITIES FROM CONTINUING OPERATIONS Repurchase of common stock — ( 100 ) Debt issuance costs ( 2 ) — Cash dividends paid ( 57 ) ( 57 ) Stock based compensation employee withholding taxes paid in cash ( 1 ) ( 4 ) Total cash flows used by financing activities from continuing operations ( 60 ) ( 161 ) CASH PROVIDED (USED) BY CONTINUING OPERATIONS 257 ( 67 ) CASH USED BY DISCONTINUED OPERATIONS Operating cash flows ( 31 ) ( 27 ) Total cash used by discontinued operations ( 31 ) ( 27 ) Effect of currency exchange rate changes on cash and cash equivalents ( 1 ) 1 INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 225 ( 93 ) CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD 215 300 CASH AND CASH EQUIVALENTS - END OF PERIOD $ 440 $ 207 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 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: 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 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 5 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 nine months ended June 30, 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 nine months ended June 30, 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 nine months ended June 30, 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 nine months ended June 30, 2026. 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 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 following divested businesses represent disposal groups that qualified as discontinued operations in previous periods and impacted discontinued operations for the three and nine months ended June 30, 2026 and 2025: • The Performance Adhesives business divested in 2022; • The sale of Ashland Water Technologies ("Water Technologies") business divested in 2014; 6 • The separation of Valvoline Inc. ("Valvoline") business divested in 2017; • The sale of the Ashland Distribution ("Distribution") business divested in 2011; and • 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 Nine months ended June 30 June 30 (In millions) 2026 2025 2026 2025 Performance Adhesives $ — $ — $ — $ ( 1 ) Water Technologies — — 2 — Valvoline — — 1 2 Distribution ( 3 ) ( 10 ) ( 3 ) ( 10 ) Asbestos-related litigation ( 22 ) ( 13 ) ( 22 ) ( 13 ) $ ( 25 ) $ ( 23 ) $ ( 22 ) $ ( 22 ) 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 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 $ 1 $ ( 2 ) $ 4 $ ( 2 ) 2023 Restructuring Program — — — ( 2 ) Total $ 1 $ ( 2 ) $ 4 $ ( 4 ) (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 June 30, 2026 and 2025 . 7 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 $ 3 $ ( 6 ) $ 15 $ ( 7 ) 2023 Restructuring Program 1 ( 2 ) ( 2 ) ( 11 ) Total $ 4 $ ( 8 ) $ 13 $ ( 18 ) (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 nine months ended June 30, 2026 and 2025 . 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 Balance at September 30, 2025 (a) $ 5 $ 1 Restructuring expense 3 1 Utilization (cash paid) ( 6 ) ( 2 ) Balance at June 30, 2026 (a) $ 2 $ — (a) The restructuring severance liabilities associated with these programs is recorded within accrued expenses and other liabilities in the Condensed Consolidated Balance Sheets at June 30, 2026 and September 30, 2025 . 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 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 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. 8 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. The following table summarizes financial instruments subject to recurring fair value measurements as of June 30, 2026: (In millions) Carrying value Total fair value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 440 $ 440 $ 440 $ — $ — Restricted investments (a)(b) 332 332 332 — — Investment of captive insurance company (c) 7 7 7 — — Total assets at fair value $ 779 $ 779 $ 779 $ — $ — Liabilities Foreign currency derivatives (d) $ 3 $ 3 $ — $ 3 $ — Commodity derivatives (d ) 2 2 — 2 — Total liabilities at fair value $ 5 $ 5 $ — $ 5 $ — (a) Includes $ 285 million within restricted investments and $ 47 million within other current assets in the Condensed Consolidated Balance Sheet. (b) Includes $ 220 million related to the Asbestos trust and $ 112 million related to the Environmental trust. (c) Included in other noncurrent assets in the Condensed Consolidated Balance Sheet. (d) Included in accrued expenses and other liabilities in the Condensed Consolidated Balance Sheet. 9 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. 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 June 30, 2026 Demand deposit $ 2 $ — $ — $ 2 Equity mutual fund 86 76 — 162 Fixed income mutual fund 201 — ( 33 ) 168 Fair value $ 289 $ 76 $ ( 33 ) $ 332 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 realized, funds restricted for specific transactions, and disbursements related to restricted investments: 10 Three months ended Nine months ended June 30 June 30 (In millions) 2026 2025 2026 2025 Investment income (a) $ 3 $ 3 $ 10 $ 10 Net gains (a) 20 19 18 5 Funds restricted for specific transactions 2 — 9 8 Disbursements ( 19 ) ( 17 ) ( 52 ) ( 41 ) (a) Included in the net interest and other (income) 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 Nine months ended June 30 June 30 (In millions) 2026 2025 2026 2025 Foreign currency derivative (losses) gains $ ( 1 ) $ 20 $ ( 3 ) $ 17 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: June 30 September 30 (In millions) 2026 2025 Foreign currency derivative assets (a) $ — $ — Notional contract values 10 44 Foreign currency derivative liabilities $ 3 $ 1 Notional contract values 228 128 (a) Zero denotes less than $ 1 million of activity. Commodity derivatives Natural gas derivatives To manage its exposure to the market price volatility of natural gas consumed by its U.S. plants during the manufacturing process, Ashland regularly enters into forward contracts that are designated as cash flow hedges. 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 11 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 Nine months ended June 30 June 30 (In millions) 2026 2025 2026 2025 Commodity derivative losses $ ( 1 ) $ ( 1 ) $ — $ ( 2 ) 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: June 30 September 30 (In millions) 2026 2025 Commodity derivative assets (a) $ — $ 1 Notional contract values 2 6 Commodity derivative liabilities $ 2 $ 1 Notional contract values 16 7 (a) Zero denotes less than $ 1 million of activity. Other financial instruments 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). 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: June 30 September 30 (In millions) 2026 2025 Finished products $ 349 $ 421 Raw materials, supplies and work in process 141 147 $ 490 $ 568 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. 12 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: 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 June 30, 2026 (a) $ 462 $ 126 $ 112 $ — $ 700 (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 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 nine months ended June 30, 2026 . 13 Other intangible assets were comprised of the following as of: June 30, 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 $ ( 42 ) $ 32 $ 75 $ ( 39 ) $ 36 Intellectual property 678 ( 657 ) 21 683 ( 638 ) 45 Customer lists 607 ( 425 ) 182 614 ( 410 ) 204 Total definite-lived intangible assets 1,359 ( 1,124 ) 235 1,372 ( 1,087 ) 285 Indefinite-lived intangible assets Trademarks and trade names 278 — 278 278 — 278 Total indefinite-lived intangible assets $ 1,637 $ ( 1,124 ) $ 513 $ 1,650 $ ( 1,087 ) $ 563 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. NOTE H – DEBT AND OTHER FINANCING ACTIVITIES The following table summarizes Ashland’s long-term debt as of: (In millions) June 30, 2026 September 30, 2025 3.375 % Senior Notes, due 2031 $ 450 $ 450 2.00 % Senior Notes, due 2028 (Euro 500 million principal) 571 586 6.875 % Notes, due 2043 282 282 6.50 % Junior Subordinated Notes, due 2029 76 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 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. 14 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 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 (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. 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. 15 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 U.S. Accounts Receivable Sales Program Buyer limit $ 68 $ 59 Sales outstanding 68 59 Receivables transferred to SPE (Special purpose entity) 88 75 Servicing and guarantee liability (a) — — Foreign Accounts Receivable Sales Program Buyer limit $ 109 $ 103 Sales outstanding 109 103 Receivables transferred to SPE 149 142 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). Three months ended Nine months ended June 30 June 30 (In millions) 2026 2025 2026 2025 U.S. Accounts Receivable Sales Program Loss on sale (a)(b) $ — $ 1 $ 1 $ 3 Foreign Accounts Receivable Sales Program Loss on sale (a)(b) $ 1 $ — $ 2 $ 3 (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. Nine months ended Nine months ended (In millions) June 30, 2026 June 30, 2025 U.S. Accounts Receivable Sales Program Gross proceeds received $ 100 $ 290 Cash collections 91 301 Net change in receivables sales volume $ 9 $ ( 11 ) Foreign Accounts Receivable Sales Program Gross proceeds received $ 57 $ 413 Cash collections 45 400 Net change in receivables sales volume $ 12 $ 13 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. A rollforward of obligations confirmed and paid is presented below: 16 (In millions) Three months ended June 30, 2026 Nine months ended June 30, 2026 Confirmed obligations outstanding at beginning of period $ 5 $ — Invoices confirmed during the period 6 16 Confirmed invoices paid during the period ( 6 ) ( 11 ) Confirmed obligations outstanding at end of period $ 5 $ 5 Available borrowing capacity and liquidity 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 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 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 June 30, 2026 , Ashland’s calculation of the consolidated interest coverage ratio was 6.9 . 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 Nine months ended June 30 June 30 (In millions) Location 2026 2025 2026 2025 Lease cost: Operating lease cost Selling, general and administrative $ 3 $ 3 $ 9 $ 9 Operating lease cost Cost of sales 3 4 9 10 Variable lease cost Selling, general and administrative 1 1 4 4 Variable lease cost Cost of sales 1 1 3 5 Short-term leases (a) Cost of sales — 1 1 3 Total lease cost $ 8 $ 10 $ 26 $ 31 (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. 17 The following table provides cash paid for amounts included in the measurement of lease liabilities: Three months ended Nine months ended June 30 June 30 (In millions) 2026 2025 2026 2025 Operating cash flows from operating leases $ 6 $ 7 $ 19 $ 20 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 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 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 nine months ended June 30, 2026: (In millions) Balance at October 1, 2025 $ 65 Decreases related to positions taken on items from prior years ( 1 ) Increases related to positions taken in the current year 2 Increases related to positions taken in the prior year 1 Lapse of statute of limitations ( 1 ) Balance at June 30, 2026 $ 66 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 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. NOTE K - EMPLOYEE BENEFIT PLANS 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 18 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 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 nine months ended June 30, 2026 , Ashland contributed $ 5 million to its U.S. pension plans and $ 5 million to its non-U.S. pension plans. Ashland expects to make additional contributions of $ 1 million to its U.S. pension plans and $ 1 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 June 30 Service cost $ 1 $ 1 $ 1 $ 1 Interest cost 3 3 — — Expected return on plan assets ( 3 ) ( 2 ) — — Settlement gain ( 2 ) — — — Actuarial gain ( 3 ) — — — Total net periodic benefit costs $ ( 4 ) $ 2 $ 1 $ 1 Nine months ended June 30 Service cost $ 3 $ 3 $ 1 $ 1 Interest cost 9 9 1 1 Expected return on plan assets ( 8 ) ( 7 ) — — Settlement gain ( 2 ) — — — Actuarial gain ( 3 ) — — — Curtailment loss — 1 — — Total net periodic benefit costs $ ( 1 ) $ 6 $ 2 $ 2 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 19 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 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 loss 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: Nine months ended June 30 Years ended September 30 (In thousands) 2026 2025 2025 2024 2023 Open claims - beginning of year 40 41 41 42 44 New claims filed 2 1 2 2 2 Claims settled — — — ( 1 ) ( 1 ) Claims dismissed ( 2 ) ( 2 ) ( 3 ) ( 2 ) ( 3 ) Open claims - end of period 40 40 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 35-year model developed with the assistance of Gnarus. 20 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. Nine months ended June 30 Years ended September 30 (In millions) 2026 2025 2025 2024 2023 Asbestos litigation reserves - beginning of year $ 258 $ 274 $ 274 $ 281 $ 305 Reserve adjustment 31 16 16 24 9 Amounts paid ( 27 ) ( 25 ) ( 32 ) ( 31 ) ( 33 ) Asbestos litigation reserves - end of period (a) $ 262 $ 265 $ 258 $ 274 $ 281 (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 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 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. Nine months ended June 30 Years ended September 30 (In millions) 2026 2025 2025 2024 2023 Insurance receivable - beginning of year $ 95 $ 97 $ 97 $ 95 $ 101 Receivable adjustment 15 5 5 11 3 Amounts collected ( 7 ) ( 6 ) ( 7 ) ( 9 ) ( 9 ) Insurance receivable - end of period (a)(b) $ 103 $ 96 $ 95 $ 97 $ 95 (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 . 21 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: Nine months ended June 30 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 35-year model developed with the assistance of Gnarus. 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. Nine months ended June 30 Years ended September 30 (In millions) 2026 2025 2025 2024 2023 Asbestos litigation reserves - beginning of year $ 177 $ 185 $ 185 $ 191 $ 213 Reserve adjustments 17 10 10 14 ( 2 ) Amounts paid ( 11 ) ( 10 ) ( 18 ) ( 20 ) ( 20 ) Asbestos litigation reserves - end of period (a) $ 183 $ 185 $ 177 $ 185 $ 191 (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 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 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. 22 A progression of activity in the Hercules insurance receivable is presented in the following table. Nine months ended June 30 Years ended September 30 (In millions) 2026 2025 2025 2024 2023 Insurance receivable - beginning of year $ 48 $ 50 $ 50 $ 47 $ 52 Receivable adjustment 7 4 4 6 ( 3 ) Amounts collected ( 2 ) ( 5 ) ( 6 ) ( 3 ) ( 2 ) Insurance receivable - end of period (a)(b) $ 53 $ 49 $ 48 $ 50 $ 47 (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 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 35 -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 $ 375 million for the Ashland asbestos-related litigation (current reserve of $ 262 million) and approximately $ 256 million for the Hercules asbestos-related litigation (current reserve of $ 183 million), depending on the combination of assumptions selected in the various models. While the timeframe used in Ashland’s models for projecting asbestos litigation reserves generally decreases over time based on the expected lifetime of the reserves, these models have been consistently applied between all periods presented. If actual experience is worse than projected, relative to the number of claims filed, the severity of alleged disease associated with those claims or costs incurred to resolve those claims, or actuarial refinement or improvements to the assumptions used within these models are initiated, Ashland may need to further increase the estimates of the costs associated with asbestos claims and these increases could be material over time. 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 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. 23 The following table provides a reconciliation of the changes in the environmental remediation reserves: Nine months ended June 30 (In millions) 2026 2025 Environmental remediation reserves - beginning of year (a) $ 226 $ 221 Disbursements ( 28 ) ( 29 ) Revised obligation estimates and accretion 33 50 Environmental remediation reserves - end of period (a) $ 231 $ 242 (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. 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 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: Three months ended Nine months ended June 30 June 30 (In millions) 2026 2025 2026 2025 Environmental expense $ 21 $ 46 $ 32 $ 49 Accretion 1 1 1 1 Legal expense 1 — 2 1 Total expense 23 47 35 51 Insurance receivable ( 2 ) ( 3 ) ( 3 ) ( 4 ) Total expense, net of receivable activity $ 21 $ 44 $ 32 $ 47 (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 approximately $ 480 million. The largest reserve for any site is 21 % of the environmental remediation reserves as of June 30, 2026. 24 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 June 30, 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 not material as of June 30, 2026 . NOTE M – EARNINGS (LOSS) PER SHARE The following is the computation of basic and diluted earnings (loss) per share ("EPS") from continuing operations attributable to Ashland. Stock appreciation rights and warrants available to purchase shares outstanding for each reporting period whose exercise price was greater than the average market price of Ashland common stock for each applicable period were not included in the computation of 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 at both June 30, 2026 and 2025 . The majority of these shares are for warrants with a strike price of $ 128.66 . Three months ended Nine months ended June 30 June 30 (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 $ 41 $ ( 719 ) $ 42 $ ( 855 ) Denominator Denominator for basic EPS - Weighted-average common shares outstanding 46 46 46 47 Share based awards convertible to common shares (a) — — — — Denominator for diluted EPS - Adjusted weighted-average shares and assumed conversions 46 46 46 47 EPS from continuing operations Basic $ 0.89 $ ( 15.70 ) $ 0.91 $ ( 18.39 ) Diluted (a) 0.89 ( 15.70 ) 0.91 ( 18.39 ) (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. 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 June 30, 2026 , $ 520 million remained available for repurchase under the 2023 Stock Repurchase Program. 25 The following table provides the common stock repurchase activity: Three months ended Nine months ended June 30 June 30 (In millions, except per share data) 2026 2025 2026 2025 Number of shares repurchased — — — 1.50 Weighted-average price per share (a) $ — $ — $ — $ 64.90 Aggregate purchase price (a) $ — $ — $ — $ 100 (a) Includes transaction costs. Stockholder dividends 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 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 June 30 Other comprehensive income Unrealized translation gain $ 4 $ — $ 4 $ 92 $ ( 1 ) $ 91 Unrealized loss on commodity hedges ( 2 ) — ( 2 ) ( 1 ) — ( 1 ) Total other comprehensive income $ 2 $ — $ 2 $ 91 $ ( 1 ) $ 90 Nine months ended June 30 Other comprehensive income (loss) Unrealized translation (loss) gain $ ( 5 ) $ ( 1 ) $ ( 6 ) $ 46 $ — $ 46 Unrealized (loss) gain on commodity hedges ( 2 ) — ( 2 ) 3 ( 1 ) 2 Total other comprehensive income (loss) $ ( 7 ) $ ( 1 ) $ ( 8 ) $ 49 $ ( 1 ) $ 48 26 Summary of equity A reconciliation of changes in equity are as follows: Three months ended Nine months ended June 30 June 30 (In millions, except per share data) 2026 2025 2026 2025 Common stock and paid in capital Balance, beginning of period $ 13 $ 1 $ 7 $ 1 Common shares issued under stock incentive and other plans (a) 5 2 11 8 Common shares purchased under repurchase program (b)(c) — — — ( 6 ) Balance, end of period 18 3 18 3 Retained earnings Balance, beginning of period 2,264 3,048 2,298 3,315 Net income (loss) 16 ( 742 ) 20 ( 877 ) Dividends ( 20 ) ( 20 ) ( 57 ) ( 57 ) Common shares purchased under repurchase program (b)(c) — — — ( 95 ) Other 1 — — — Balance, end of period 2,261 2,286 2,261 2,286 Accumulated other comprehensive loss Balance, beginning of period ( 411 ) ( 490 ) ( 401 ) ( 448 ) Unrealized translation gain (loss) 4 91 ( 6 ) 46 Unrealized (loss) gain on commodity hedges ( 2 ) ( 1 ) ( 2 ) 2 Balance, end of period ( 409 ) ( 400 ) ( 409 ) ( 400 ) Total equity $ 1,870 $ 1,889 $ 1,870 $ 1,889 Cash dividends declared per common share $ 0.420 $ 0.415 $ 1.250 $ 1.225 (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 The components of Ashland’s pre-tax stock-based compensation expense included in continuing operations are as follows: Three months ended Nine months ended June 30 June 30 (In millions) 2026 (a) 2025 (b) 2026 (a) 2025 (b) Stock appreciation rights $ 1 $ — $ 2 $ — Nonvested stock awards 3 2 9 9 Performance share awards 2 1 5 3 $ 6 $ 3 $ 16 $ 12 (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. 27 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 Nine months ended June 30 June 30 (In millions) 2026 2025 2026 2025 Life Sciences North America $ 33 $ 31 $ 92 $ 84 Europe 71 60 188 179 Asia Pacific 56 52 155 151 Latin America & other 20 19 56 54 $ 180 $ 162 $ 491 $ 468 Three months ended Nine months ended June 30 June 30 (In millions) 2026 2025 2026 2025 Personal Care North America $ 39 $ 35 $ 107 $ 116 Europe 59 59 165 163 Asia Pacific 38 34 102 94 Latin America & other 19 19 54 53 $ 155 $ 147 $ 428 $ 426 Three months ended Nine months ended June 30 June 30 (In millions) 2026 2025 2026 2025 Specialty Additives North America $ 48 $ 47 $ 127 $ 133 Europe 48 48 127 130 Asia Pacific 34 30 98 97 Latin America & other 6 6 20 20 $ 136 $ 131 $ 372 $ 380 Three months ended Nine months ended June 30 June 30 (In millions) 2026 2025 2026 2025 Intermediates North America $ 24 $ 21 $ 68 $ 69 Europe 7 9 17 20 Asia Pacific 4 2 12 10 Latin America & other 2 1 6 5 $ 37 $ 33 $ 103 $ 104 28 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 Nine months ended June 30 June 30 (In millions) 2026 2025 2026 2025 Cellulosics 40 % 40 % 40 % 39 % PVP 24 % 25 % 24 % 25 % 64 % 65 % 64 % 64 % 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 $ 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). 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. 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. 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 29 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. 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 (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 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. 30 The following table presents various financial information for each reportable segment: Three months ended Nine months ended June 30 June 30 (In millions - unaudited) 2026 2025 2026 2025 Sales Life Sciences $ 180 $ 162 $ 491 $ 468 Personal Care 155 147 428 426 Specialty Additives 136 131 372 380 Intermediates 37 33 103 104 Intersegment sales (a) ( 11 ) ( 10 ) ( 29 ) ( 31 ) $ 497 $ 463 $ 1,365 $ 1,347 Cost of sales Life Sciences $ 106 $ 103 $ 308 $ 311 Personal Care 90 87 257 256 Specialty Additives 110 123 317 328 Intermediates 32 28 90 93 Intersegment sales ( 11 ) ( 10 ) ( 29 ) ( 31 ) $ 327 $ 331 $ 943 $ 957 Selling, general and administrative expense Life Sciences $ 20 $ 18 $ 61 $ 58 Personal Care 22 21 63 62 Specialty Additives 17 17 50 49 Intermediates 2 1 6 4 Total operating segments 61 57 180 173 Unallocated and other 38 49 84 95 $ 99 $ 106 $ 264 $ 268 Research and development expense Life Sciences $ 4 $ 4 $ 11 $ 12 Personal Care 6 6 17 19 Specialty Additives 4 3 10 8 Intermediates — — 1 — Total operating segments 14 13 39 39 Unallocated and other 1 — 2 2 $ 15 $ 13 $ 41 $ 41 Amortization expense Life Sciences $ 5 $ 5 $ 14 $ 13 Personal Care 8 8 25 26 Specialty Additives 2 2 7 7 Intermediates — — — 1 Total operating segments 15 15 46 47 Unallocated and other — — — — $ 15 $ 15 $ 46 $ 47 Equity and other income Life Sciences $ — $ — $ — $ — Personal Care — — 1 1 Specialty Additives — — — — Intermediates — — — — Total operating segments — — 1 1 Unallocated and other 1 — 1 — $ 1 $ — $ 2 $ 1 31 Three months ended Nine months ended June 30 June 30 (In millions - unaudited) 2026 2025 2026 2025 Goodwill impairment and (income) loss on divestitures, net Life Sciences $ — $ 375 $ — $ 375 Personal Care — — — — Specialty Additives — 331 — 331 Intermediates — — — — Total operating segments — 706 — 706 Unallocated and other ( 1 ) — ( 3 ) 165 $ ( 1 ) $ 706 $ ( 3 ) $ 871 Operating income (loss) Life Sciences $ 45 $ ( 343 ) $ 97 $ ( 301 ) Personal Care 29 25 67 64 Specialty Additives 3 ( 345 ) ( 12 ) ( 343 ) Intermediates 3 4 6 6 Total operating segments 80 ( 659 ) 158 ( 574 ) Unallocated and other (b) ( 37 ) ( 49 ) ( 82 ) ( 262 ) Total operating income (loss) $ 43 $ ( 708 ) $ 76 $ ( 836 ) Net interest and other (income) expense ( 8 ) ( 5 ) 19 34 Other net periodic benefit (income) loss ( 5 ) 1 ( 3 ) 4 Income (loss) from continuing operations before income taxes $ 56 $ ( 704 ) $ 60 $ ( 874 ) EBITDA (c) Life Sciences $ 60 $ ( 321 ) $ 140 $ ( 240 ) Personal Care 44 40 113 113 Specialty Additives 18 ( 309 ) 35 ( 276 ) Intermediates 4 7 10 16 Total operating segments 126 ( 583 ) 298 ( 387 ) Unallocated and other ( 36 ) ( 49 ) ( 81 ) ( 262 ) Total EBITDA $ 90 $ ( 632 ) $ 217 $ ( 649 ) Depreciation expense 32 61 95 140 Amortization expense 15 15 46 47 Net interest and other (income) expense ( 8 ) ( 5 ) 19 34 Other net periodic benefit (income) loss ( 5 ) 1 ( 3 ) 4 Income (loss) from continuing operations before income taxes $ 56 $ ( 704 ) $ 60 $ ( 874 ) Depreciation expense Life Sciences (d) $ 10 $ 17 $ 29 $ 48 Personal Care (e) 7 7 21 23 Specialty Additives (e) 13 34 40 60 Intermediates 1 3 4 9 Total operating segments 31 61 94 140 Unallocated and other (f) 1 — 1 — $ 32 $ 61 $ 95 $ 140 32 June 30 September 30 (In millions - unaudited) 2026 2025 Assets Life Sciences $ 1,454 $ 1,498 Personal Care 705 751 Specialty Additives 964 1,020 Intermediates 107 116 Unallocated and other 1,348 1,226 $ 4,578 $ 4,611 Property, plant and equipment - net Life Sciences $ 456 $ 481 Personal Care 100 101 Specialty Additives 462 484 Intermediates 30 30 Unallocated and other 101 105 $ 1,149 $ 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 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). (c) Excludes loss from discontinued operations, net of income taxes and other net periodic benefit (income) loss. See the Statements of Condensed Consolidated Comprehensive Income (Loss) for applicable amounts excluded. (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 . 33 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. 34