-- Sales of $497 million, up seven percent from the prior-year quarter 
 
   -- Income from continuing operations of $41 million, or $0.89 per diluted 
      share 
 
   -- Adjusted Income from Continuing Operations Excluding Intangibles 
      Amortization Expense of $47 million, or $1.02 per diluted share 
 
   -- Net income of $16 million, or $0.35 per diluted share 
 
   -- Sales volumes rose six percent from the prior-year quarter, with gains 
      achieved across all business units 
 
   -- Adjusted EBITDA of $109 million, down four percent from the prior-year 
      quarter, primarily reflecting growth in Life Sciences and Personal Care, 
      more than offset by lower Specialty Additives and Intermediates earnings 
 
   -- Cash flows provided by operating activities of $121 million; Ongoing Free 
      Cash Flow2 of $103 million 
 
   -- Reaffirming full--year fiscal 2026 sales guidance of $1,835-$1,870 
      million and Adjusted EBITDA guidance of $385-$400 million 

WILMINGTON, Del., July 28, 2026 (GLOBE NEWSWIRE) -- Ashland Inc. $(ASH)$ today announced financial results(1) for the third quarter of fiscal year 2026, which ended June 30, 2026, and reaffirmed its full-year fiscal 2026 sales and Adjusted EBITDA outlook. Ashland, a global additives and specialty ingredients company, holds leadership positions in high-quality, consumer-focused markets including pharmaceuticals, personal care and architectural coatings.

"Ashland's third-quarter results reflected broad-based demand and strong commercial execution across the portfolio," said Guillermo Novo, chair and chief executive officer, Ashland. "Sales increased seven percent year-over-year, with growth achieved across all business units and regions. Our teams continued to successfully recover higher raw material costs through pricing actions, preserving margins while maintaining strong customer relationships. Life Sciences delivered double-digit sales gains, benefiting from broad demand across pharma and continued progress from our globalize and innovate strategies. Personal Care generated another quarter of strong performance, led by momentum in biofunctional actives, high-single-digit growth in skin care, and favorable contributions from hair care and microbial protection. Specialty Additives benefited from continued growth in coatings and performance specialties driven by share gains and strong commercial momentum. In Intermediates, merchant sales increased, reflecting improving NMP demand for battery-related applications."

Novo continued, "Our third quarter results reflected continued progress on the initiatives that are strengthening our operations and positioning the company for improved profitability over time. Plant operations improved during the quarter and profitability increased sequentially, and we recognize there is still work to do and expect continued progress as we advance our operational priorities and investments to improve reliability and throughput across the network."

"Our globalize and innovate strategies continued to exceed our targets, driven by strong customer engagement, innovation execution and momentum across our differentiated portfolio," Novo said. "We also generated healthy cash flow in the quarter, supported by disciplined inventory management. Importantly, we ended the quarter with net leverage of 2.4x, returning to our long-term target range and further strengthening our financial flexibility. As operational performance continues to improve and production increasingly aligns with demand, we expect greater flexibility across the network and an improving profitability profile. We are also expanding the reach of our technology platforms, creating new opportunities to deliver differentiated solutions, deepen customer engagement and support long-term value creation. While the macroeconomic environment remains uncertain, we remain focused on the factors within our control, including commercial execution, operating performance, cash generation and productivity."

Third-quarter sales were $497 million, up seven percent from $463 million in the prior-year quarter. Sales volumes increased across all business units. Pricing increased by approximately one percent led by strength in Specialty Additives and Life Sciences. Foreign currency movements contributed a favorable $3 million, or one percent, to sales.

Net income was $16 million, up from a loss of $742 million in the prior year. Income from continuing operations was $41 million, or $0.89 per diluted share, compared to a loss of ($15.70) last year. Adjusted Income from Continuing Operations Excluding Intangibles Amortization Expense was $47 million, down from $48 million, or $1.02 per diluted share versus $1.04 in the prior year. Adjusted Operating Income was $63 million, down from $65 million last year. Adjusted EBITDA was $109 million, representing a 21.9 percent margin, down four percent from $113 million in the prior-year quarter, as favorable volumes and pricing actions were more than offset by the lingering impact of lower production rates experienced earlier in the fiscal year, inflationary cost pressures, and the normalization of incentive compensation from a low prior-year base. Foreign currency movements contributed a favorable $1 million to Adjusted EBITDA.

Average diluted shares outstanding were 46 million in the third quarter, flat versus 46 million in the prior-year quarter.

Cash flows provided by operating activities were $121 million, up from $114 million in the prior-year quarter, driven primarily by working capital improvements. Ongoing Free Cash Flow totaled $103 million versus $108 million in the prior--year quarter as ongoing free cash flow conversion rates remained above 90% in both periods.

Reportable Segment Performance

To aid in the understanding of Ashland's ongoing business performance, the results of Ashland reportable segments are described below on an adjusted basis. In addition, EBITDA and Adjusted EBITDA are reconciled to operating income in Table 4. Free Cash Flow, Ongoing Free Cash Flow and Adjusted Operating Income are reconciled in Table 6 and Adjusted Income from Continuing Operations, Adjusted Diluted Earnings Per Share and Adjusted Diluted Earnings Per Share Excluding Intangible Amortization Expense are reconciled in Table 7 of this news release. These adjusted results are considered non-GAAP financial measures. For a full description of the non-GAAP financial measures used, see the "Use of Non-GAAP Measures" section that further describes these adjustments below.

Life Sciences

Sales for the Life Sciences segment totaled $180 million in the third quarter, an increase of 11 percent compared to the prior-year quarter. Performance was driven by higher sales volumes, led by broad-based pharma demand across all major regions and product categories, continued strength in high-purity excipients and injectables, and customer order timing during the quarter. Pharma achieved double-digit sales growth, representing its fifth consecutive quarter of year-over-year volume gains, while Ashland's innovate strategy continued to support momentum in differentiated cellulose grades, injectables and low-nitrite products. Prices increased year-over-year following previously announced pricing actions, and foreign currency movements contributed a favorable impact of approximately $1 million to segment sales.

Adjusted Operating Income for the quarter was $45 million, up from $40 million in the prior--year quarter. Adjusted EBITDA totaled $60 million, representing a 33 percent margin and an 11 percent increase versus $54 million last year. The year--over--year increase was driven primarily by higher volumes and favorable pricing and product mix, partially offset by higher SARD. Foreign currency movements had a negligible impact on Adjusted EBITDA in the quarter. Life Sciences continues to benefit from resilient pharma demand, broad-based volume growth, and strong commercial execution, supported by ongoing momentum across its globalize and innovate strategies.

Personal Care

Personal Care sales in the third quarter were $155 million, an increase of five percent compared to $147 million in the prior-year quarter. Performance was driven by strong volume growth across end markets and regions, including high-single-digit growth in skin care, mid-single-digit growth in hair care and low-single-digit growth in oral and home care. Care Ingredients delivered solid gains, biofunctional actives delivered strong double-digit growth and microbial protection delivered favorable growth supported by double-digit volume gains. Performance was led by the Americas and China and supported by continued progress across Ashland's globalize and innovate strategies. Pricing improved sequentially during the quarter, while foreign currency movements contributed approximately $1 million to segment sales.

Adjusted Operating Income was $30 million, up from $26 million in the prior--year period. Adjusted EBITDA was $45 million, compared to $41 million in the prior-year quarter, representing a margin of 29 percent. Improved profitability was driven primarily by higher sales volumes and favorable product mix, partially offset by lower pricing. Personal Care delivered strong margins while continuing to advance targeted commercial and innovation initiatives across the portfolio.

Specialty Additives