GREENWICH, Conn., Feb. 24, 2026 (GLOBE NEWSWIRE) -- Gabelli Funds will host its 17th Annual Specialty Chemicals Symposium in Midtown Manhattan, New York City on Thursday, March 19, 2026. The event will feature discussions with leading companies and organizations across the specialty chemicals ecosystem, with an emphasis on industry dynamics, current trends, and business fundamentals, as well as Specialty Chemicals investing. Attendees will also have the opportunity to participate in one-on-one meetings with ...

Ashland Inc. (NYSE:ASH) is among the 9 Undervalued Chemical Stocks to Buy According to Hedge Funds. Morgan Stanley Adjusts Ashland Inc. (ASH) Model Following Fiscal Q1 Results Ashland Inc. (NYSE:ASH) is one of the best chemical stocks on our list. On February 9, TheFly reported that Morgan Stanley increased its price target for ASH  from $60 to $63 and kept an Equal Weight rating on the shares. Following the company's fiscal first-quarter results, the firm modified, claiming that a minor decrease in FY2 ...

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Core Insights - Ashland Inc. has received approval from the U.S. Environmental Protection Agency for its agrimer eco-coat polymer seed coating, which can now be utilized in both food and non-food pesticide formulations [1][8] - This approval enhances the product's marketability and creates new collaboration opportunities with U.S. customers and partners, allowing growers in the U.S. and authorized regions to buy, sell, and test the product [2][8] - The move signifies a step towards the global commercialization of Ashland's Transformed Vegetable Oils technology, supporting sustainability in agriculture and reflecting the company's commitment to innovation and growth [3] Market Performance - Ashland's stock (ASH) has experienced a decline of 3.7% over the past year, contrasting with the flat performance of the industry [4] - The company currently holds a Zacks Rank of 3 (Hold), while competitors such as Coeur Mining, Inc. (CDE) and Albemarle Corporation (ALB) have higher rankings of 1 (Strong Buy) [5] Competitor Analysis - Coeur Mining's 2025 earnings estimate is 91 cents per share, indicating a year-over-year increase of 405.56%, with shares rising 205% over the past year [6][9] - Albemarle's 2025 loss estimate is 70 cents per share, reflecting a 70.09% year-over-year increase, with shares surging 117.4% [9] - Avino Silver & Gold Mines Ltd. (ASM) has a 2025 earnings estimate of 17 cents per share, indicating a 13.33% year-over-year increase, with shares skyrocketing 640.8% [9]

Core Insights - The U.S. Environmental Protection Agency (EPA) has approved Ashland's agrimer™ eco-coat polymer seed coating under the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA), allowing its use in food and non-food pesticide formulations [1][3] - This approval opens new collaboration opportunities for Ashland with U.S.-based customers and partners, enhancing the commercialization of their Transformed Vegetable Oils (TVO) technology [2][3] - Agrimer™ eco-coat is a biodegradable, microplastic-free seed coating technology that aims to provide superior efficacy while supporting regulatory compliance across the agricultural value chain [4] Company Overview - Ashland Inc. is a global additives and specialty ingredients company focused on environmental, social, and governance (ESG) initiatives, serving various markets including food and beverage, personal care, and pharmaceuticals [5] - The company employs approximately 2,900 professionals, including scientists and engineers, dedicated to developing innovative solutions for complex customer challenges [5]

Financial Performance - Sales for the three months ended December 31, 2025, were $386 million, a decrease of 4.7% compared to $405 million in the same period of 2024[7] - Gross profit for the same period was $105 million, down from $111 million, reflecting a gross margin of 27.2%[7] - Operating loss narrowed to $6 million from a loss of $179 million year-over-year, indicating improved operational efficiency[7] - Net loss for the quarter was $12 million, significantly reduced from a net loss of $165 million in the prior year[7] - The company reported a loss from continuing operations of $14 million for the three months ended December 31, 2025, compared to a loss of $166 million for the same period in 2024[106] - The diluted EPS from continuing operations improved to a loss of $0.30 in Q1 2025 from a loss of $3.51 in Q1 2024, reflecting a positive change of $3.21[148] - Adjusted EBITDA for the three months ended December 31, 2025, was $58 million, compared to $61 million in the same period of 2024, indicating a slight decline[185] - The company reported an EBITDA of $42 million for the three months ended December 31, 2025, compared to a loss of $128 million in the same period of 2024, reflecting a significant improvement[196] Cash and Liquidity - Cash and cash equivalents increased to $304 million from $215 million at the end of the previous quarter, showing improved liquidity[11] - As of December 31, 2025, Ashland had $596 million of remaining borrowing capacity under its 2022 Credit Agreement[63] Assets and Liabilities - Total assets decreased to $4,519 million from $4,611 million, primarily due to changes in current and noncurrent assets[9] - Total current liabilities decreased to $366 million from $423 million, indicating better management of short-term obligations[9] - Ashland's total stockholders' equity decreased to $1.878 billion as of December 31, 2025, down from $2.592 billion in 2024[110] Restructuring and Operational Efficiency - Ashland initiated a restructuring plan in fiscal 2025 to offset impacts from the sale of the Nutraceuticals and Avoca businesses, continuing into fiscal 2026[26] - The total severance expense for the 2025 Restructuring Program was $2 million for the three months ended December 31, 2025, compared to $4 million for the same period in 2024[30] - As of December 31, 2025, the balance for the 2025 Restructuring Program severance liabilities was $4 million, down from $5 million at September 30, 2025[32] - The company continues to refine its expense allocation methodologies for reportable segments as market conditions evolve[123] Segment Performance - Sales in the Life Sciences segment increased to $139 million in Q1 2026, up from $134 million in Q1 2025[114] - Life Sciences segment sales increased to $139 million in 2025 from $134 million in 2024, while Personal Care segment sales remained stable at $123 million[125] - Specialty Additives segment sales were $102 million in 2025, a decrease from $115 million in 2024[125] - The Personal Care segment's operating income remained stable at $11 million, despite a decrease in sales[196] Research and Development - Research and development expenses remained stable at $13 million, reflecting ongoing investment in innovation[7] - Research and development expenses for Life Sciences were $4 million in 2025, consistent with 2024[125] Tax and Compliance - The effective tax rate for the three months ended December 31, 2025, was a benefit of 7%, compared to a benefit of 21% for the same period in 2024[68][69] - The effective tax rate for Q1 2025 was a benefit of 7%, significantly improved from a 21% benefit in Q1 2024, influenced by jurisdictional income mix and discrete tax items[164][165] Environmental and Legal Reserves - Total reserves for asbestos claims were $246 million at December 31, 2025, down from $258 million at September 30, 2025[79] - Ashland estimates that the upper end of reasonably possible future costs for identified environmental remediation sites could reach approximately $485 million[102] - Environmental remediation reserves totaled $226 million as of December 31, 2025, unchanged from September 30, 2025, with $179 million classified as other noncurrent liabilities[98] Other Income and Expenses - The company recorded a pre-tax gain of $2 million from the sale of excess land property during the quarter[21] - Investment income for the three months ended December 31, 2025, was $6 million, compared to $5 million for the same period in 2024[43] - The company reported a net interest and other expense of $8 million for the three months ended December 31, 2025, down from $28 million in 2024[126]

Financial Performance and Key Metrics - Sales for the quarter were $386 million, down 5% year-over-year, with the Avoca divestiture accounting for approximately $10 million of the decline [18] - Adjusted EBITDA was $58 million, down 5% year-over-year, reflecting lower volumes and modest pricing pressure, with adjusted EBITDA margins holding steady at 15% [19][21] - Adjusted EPS, excluding intangible amortization, was $0.26, down 7% from the prior year [22] - The company ended the quarter with total liquidity of approximately $900 million and net debt of $1.1 billion, maintaining a net leverage of 2.7x [23] Business Segment Performance - Life Sciences sales were $139 million, up 4% year-over-year, driven by resilient pharma demand and strong performance in injectables and tablet coatings [24][25] - Personal Care sales were $123 million, down 8% year-over-year, primarily due to the Avoca divestiture, with organic sales declining 1% [32] - Specialty Additives sales were $102 million, down 11% year-over-year, with coatings and construction driving the decline, particularly in China [38] - Intermediates sales were $31 million, down 6% year-over-year, with captive BDO sales declining due to lower volumes and pricing [30] Market Conditions - Demand in coatings and construction remained soft, particularly in China and select export markets, while personal care showed stable demand overall [8][10] - The company noted that the coatings market is expected to recover gradually, with mixed demand conditions anticipated [49][90] Company Strategy and Industry Competition - The company is focused on executing its strategic priorities, including innovation and global expansion, to drive growth and improve margins [15][46] - Cost actions and operational efficiencies are expected to support margin durability and position the company for stronger leverage as demand recovers [15][44] Management Commentary on Operating Environment and Future Outlook - Management expressed cautious optimism regarding demand recovery in the second quarter, with expectations for improved order volumes [68][70] - The company anticipates that operational challenges, including delays in the Calvert City unit startup, will impact performance but remain manageable [51][52] Other Important Information - The company is on track to achieve total cost savings of approximately $30 million for fiscal 2026, with ongoing productivity improvements expected [42][44] - Innovation remains a key driver of long-term growth, with several new product launches and advancements in technology platforms [54][61] Q&A Session Summary Question: Impact of customer outages on personal care demand - Management confirmed that customer outages were temporary and recoverable, with expectations to regain lost volumes in the second quarter [72][73] Question: Outlook for personal care volumes - Management indicated that with the Avoca divestiture now lapped, positive volume growth is expected as the year progresses [77] Question: China coatings demand outlook - Management noted that while the coatings market in China has faced challenges, there are signs of stabilization, and the company is well-positioned to capitalize on future opportunities [90][92] Question: Risks around global trade issues - Management highlighted Europe as a key area of focus regarding potential trade pressures, with ongoing discussions but no clear decisions yet [97]

Financial Data and Key Metrics Changes - Sales for the quarter were $386 million, down 5% year-over-year, with the Avoca divestiture accounting for approximately $10 million or about 2% of the decline [18] - Adjusted EBITDA was $58 million, down 5% year-over-year, including a $1 million impact from the Avoca divestiture [19] - Adjusted EPS, excluding intangible amortization, was $0.26, down 7% from the prior year [22] - The company ended the quarter with total liquidity of approximately $900 million and net debt of $1.1 billion, with a net leverage of 2.7x [23] Business Line Data and Key Metrics Changes - Life Sciences sales were $139 million, up 4% from the prior year, driven by resilient pharma demand and strong performance in injectables and tablet coatings [24] - Personal Care sales were $123 million, down 8% year-over-year, primarily due to the Evoca divestiture, with organic sales declining 1% [32] - Specialty Additives sales were $102 million, down 11% year-over-year, with coatings and construction driving the decline [38] - Intermediates sales were $31 million, down 6% year-over-year, with captive BDO sales declining due to lower volumes and transfer prices [30] Market Data and Key Metrics Changes - Coatings demand was particularly weak in China and select export markets, while construction softness reflected broader market conditions [10] - The company experienced stable demand in consumer-oriented categories at the start of the second quarter [50] - Foreign exchange contributed a favorable $9 million or 2% to sales versus the prior year [19] Company Strategy and Development Direction - The company is focused on executing its strategic priorities, including innovation and globalized initiatives, to drive growth and margin improvement [15][46] - The total cost savings target of approximately $30 million for fiscal 2026 remains on track, with ongoing network optimization and productivity improvements [42][44] - The company aims to deliver structural cost improvements and enhance systems and processes to strengthen planning and performance [64] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing demand softness in coatings and construction but expressed optimism about improving momentum in Life Sciences and Personal Care [8][50] - The company anticipates a gradual recovery in coatings demand, particularly in China, but expects muted demand to persist for a while [90] - Repairs to the Calvert City unit are taking longer than anticipated, impacting the second quarter outlook [51] Other Important Information - The company is advancing several innovative technology platforms that are expected to drive long-term growth across multiple end markets [54][61] - The company is focused on maintaining uninterrupted customer supply while managing production and inventory with discipline [54] Q&A Session Summary Question: Can you talk about the customer outage impacting demand in Personal Care? - Management confirmed that the outages were on the customer side and not related to supply issues from the company. Most outages have been resolved, and recovery is expected in Q2 [72][73] Question: Should we see volumes start to turn the corner in Personal Care? - Management indicated that with the Evoca divestiture now lapped, they expect to see positive volume growth as the year progresses [77] Question: What is the outlook for coatings demand in China? - Management noted that while the market has been challenging, they expect to see easing in the second half of the year, with efforts focused on commercial discipline and innovation [89][90] Question: Where are the most significant risks around global trade issues? - Management highlighted Europe as a key area of focus due to ongoing discussions about cost competitiveness and plant consolidations [97]

Financial Data and Key Metrics Changes - Sales for the quarter were $386 million, down 5% year-over-year, with the Avoca divestiture accounting for approximately $10 million or about 2% of the decline [10] - Adjusted EBITDA was $58 million, down 5% year-over-year, including a $1 million impact from the Avoca divestiture [11] - Adjusted EPS, excluding intangible amortization, was $0.26, down 7% from the prior year [12] Business Line Data and Key Metrics Changes - Life Sciences sales were $139 million, up 4% from the prior year, driven by resilient pharma demand and strength in high-value cellulosic excipients [14] - Personal Care sales were $123 million, down 8% year-over-year, primarily due to the Evoca divestiture, with organic sales declining 1% [18] - Specialty Additives sales were $102 million, down 11% year-over-year, with coatings and construction driving the decline [23] Market Data and Key Metrics Changes - Coatings demand was particularly weak in China and select export markets, while construction softness reflected broader market conditions [5] - Life Sciences continued to grow, supported by steady demand and ongoing innovation momentum [10] - Specialty Additives faced muted demand, particularly in coatings and construction [5] Company Strategy and Development Direction - The company is focused on executing its strategic priorities, including innovation and globalized initiatives, to drive growth and improve margins [4] - The total cost savings target of approximately $30 million for fiscal 2026 remains on track, with ongoing efforts in network optimization and productivity improvements [25] - The company aims to deliver structural cost improvements and enhance systems and processes to strengthen performance [26] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing demand softness in coatings and construction but expressed optimism about improving momentum in Life Sciences and Personal Care [4] - The outlook for fiscal 2026 has been narrowed to an adjusted EBITDA range of $400 million to $420 million, reflecting a prudent view of market conditions [28] - Temporary impacts from operational challenges, including delays in the Calvert City unit startup and weather-related disruptions, are expected to affect the second quarter [30] Other Important Information - The company reported strong cash generation with $125 million from operating activities and $26 million of ongoing free cash flow [12] - Total liquidity at the end of the quarter was approximately $900 million, with net debt at $1.1 billion and net leverage at 2.7x [12] Q&A Session Summary Question: Can you talk about the customer outage impacting demand in Personal Care? - Management confirmed that the outages were on the customer side and not related to supply issues from the company. Most outages have been resolved, and recovery is expected in Q2 [43][44] Question: Should we see volumes start to turn the corner in Personal Care? - Management indicated that with the Evoca divestiture now lapped, they expect to see positive volume growth as the year progresses, with most customers indicating flat to low single-digit growth [48] Question: On the China coatings demand, is there a line of sight to the bottom? - Management noted that while the market has been challenging, they expect to see easing in the second half of the year, with efforts focused on commercial discipline, productivity, and innovation [61][62]

earnings conference call first quarter fiscal 2026 — February 3, 2026 Forward-Looking Statements — This presentation contains forward-looking statements 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," "s ...