Ashland Reports Q1 2026 Earnings with Mixed Results
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Should l Buy ASH?
Source: seekingalpha
- Earnings Performance: Ashland's Q1 non-GAAP EPS of $0.26 beats expectations by $0.01, indicating a slight improvement in profitability, although overall revenue declined by 4.7% year-over-year.
- Revenue and EBITDA: Q1 revenue of $386 million missed market expectations, while adjusted EBITDA of $58 million fell 5% year-over-year, with the Avoca divestiture contributing to a $1 million decline, reflecting competitive pressures in the market.
- Cash Flow and Investment: Operating cash flow stood at $125 million, with ongoing free cash flow at $26 million, indicating stable cash management despite approximately $100 million in capital expenditures impacting free cash flow conversion rates.
- Guidance Adjustment: The company narrowed its fiscal 2026 adjusted EBITDA guidance to $400 million to $420 million, primarily affected by delays in the Calvert City startup and weather-related disruptions, reflecting a cautious outlook on future performance.
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Analyst Views on ASH
Wall Street analysts forecast ASH stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ASH is 64.86 USD with a low forecast of 53.00 USD and a high forecast of 71.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
4 Buy
3 Hold
0 Sell
Moderate Buy
Current: 61.160
Low
53.00
Averages
64.86
High
71.00
Current: 61.160
Low
53.00
Averages
64.86
High
71.00
About ASH
Ashland Inc. is a global additives and specialty ingredients company. The Company serves customers in a wide range of consumer and industrial markets, including architectural coatings, construction, energy, food and beverage, personal care and pharmaceuticals. The Company’s segments include Life Sciences, Personal Care, Specialty Additives, and Intermediates. The Life Sciences segment consists of pharmaceuticals, nutrition, agricultural chemicals, diagnostic films and fine chemicals. The Personal Care segment includes functionals, microbial protectants (preservatives), skin care, sun care, oral care, hair care and household solutions. The Specialty Additives segment consists of rheology and performance-enhancing additives serving the architectural coatings, construction, energy, automotive and various industrial markets. The Intermediates segment consists of the production of 1,4 butanediol (BDO) and related derivatives, including n-methyl pyrrolidone.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Ashland Reports Narrower Q1 Loss Amid Divestiture Impact
- Loss Improvement: Ashland reported a net loss of $12 million or $0.26 per share in Q1, significantly narrowing from last year's $165 million loss or $3.50 per share, indicating effective cost control and business optimization efforts.
- Sales Decline: Q1 sales totaled $386 million, down 5% year-over-year, with the Avoca divestiture reducing sales by approximately $10 million, reflecting challenges in market competition despite growth in innovation-driven product lines.
- Adjusted EBITDA Guidance: The company narrowed its fiscal 2026 adjusted EBITDA guidance to a range of $400 to $420 million, accounting for approximately $11 million in temporary impacts from the Calvert City startup delay and recent weather disruptions, showing confidence in future recovery, although timing remains uncertain.
- Market Reaction: Despite a 0.65% increase in Ashland's stock price to $61.56 during regular trading on Monday, it fell 2.53% to $60.00 in after-hours trading, reflecting investor caution regarding the company's outlook, especially given sales and earnings expectations falling short of analyst projections.
See More
Ashland Reports Q1 2026 Earnings with Mixed Results
- Earnings Performance: Ashland's Q1 non-GAAP EPS of $0.26 beats expectations by $0.01, indicating a slight improvement in profitability, although overall revenue declined by 4.7% year-over-year.
- Revenue and EBITDA: Q1 revenue of $386 million missed market expectations, while adjusted EBITDA of $58 million fell 5% year-over-year, with the Avoca divestiture contributing to a $1 million decline, reflecting competitive pressures in the market.
- Cash Flow and Investment: Operating cash flow stood at $125 million, with ongoing free cash flow at $26 million, indicating stable cash management despite approximately $100 million in capital expenditures impacting free cash flow conversion rates.
- Guidance Adjustment: The company narrowed its fiscal 2026 adjusted EBITDA guidance to $400 million to $420 million, primarily affected by delays in the Calvert City startup and weather-related disruptions, reflecting a cautious outlook on future performance.
See More
Palantir, Teradyne, and Others See Stock Movements After Earnings Reports
- Palantir Earnings Beat: Palantir Technologies reported adjusted earnings of 25 cents per share, exceeding analysts' expectations of 23 cents, with revenue of $1.41 billion surpassing the $1.33 billion estimate, resulting in a nearly 5% stock increase.
- NXP Cautious Outlook: Despite NXP Semiconductors beating fourth-quarter estimates, its first-quarter non-GAAP gross margin guidance of 57% aligned with consensus, leading to a nearly 6% drop in shares.
- Teradyne Strong Guidance: Teradyne issued optimistic guidance for the first quarter, projecting revenue between $1.15 billion and $1.25 billion, significantly above the $935 million expected by analysts, causing a 20% surge in stock price.
- DaVita Strong Performance: DaVita anticipates adjusted earnings between $13.60 and $15 per share for the full year, exceeding the FactSet consensus of $12.82, which led to a 12% increase in shares during after-hours trading.
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Ashland Reports Q1 Sales Decline Amid Mixed Demand Conditions
- Sales Performance Decline: Ashland's Q1 sales totaled $386 million, down 5% year-over-year, with the Avoca divestiture contributing to a $10 million reduction, highlighting ongoing demand weakness in the Specialty Additives segment.
- Ongoing Operating Loss: The company reported a loss from continuing operations of $14 million, or $(0.30) per diluted share, although this marks a significant improvement from last year's loss, indicating persistent market challenges.
- Adjusted EBITDA Decline: Adjusted EBITDA stood at $58 million, reflecting a 5% decrease, with the Avoca divestiture accounting for a $1 million impact, suggesting that efforts in cost management and product mix optimization need further enhancement.
- Strong Cash Flow Performance: Operating cash flows reached $125 million, a substantial improvement from a negative $30 million in the prior year, primarily driven by a $103 million tax refund, which bolstered the company's financial stability.
See More
Ashland Scheduled to Announce Q1 Earnings on February 2nd
- Earnings Announcement Date: Ashland (ASH) is set to release its Q1 2023 earnings on February 2nd after market close, with a consensus EPS estimate of $0.25, reflecting a 10.7% year-over-year decline, which may impact investor sentiment.
- Revenue Expectations: Analysts forecast revenue of $402.21 million, down 0.7% year-over-year, indicating challenges the company faces in the current economic environment that could affect its future growth potential.
- Historical Performance Review: Over the past two years, Ashland has beaten EPS estimates 63% of the time but only 25% for revenue, highlighting volatility in its profitability that may affect investor confidence.
- Estimate Revision Dynamics: In the last three months, there have been no upward revisions to EPS estimates and five downward revisions, while revenue estimates saw two upward and two downward revisions, reflecting a cautious market outlook on Ashland's future performance.
See More
Univar Solutions Partners Exclusively with Ashland to Expand EMEA Market Access
- Market Expansion Partnership: Univar Solutions has formed an exclusive distribution partnership with Ashland, set to launch a range of functional food additives in the EMEA region starting January 1, 2026, aimed at meeting the rising demand for plant-based and alternative protein products, thereby enhancing market competitiveness.
- Product Portfolio Enrichment: This collaboration will introduce various cellulose ethers, including methylcellulose and hydroxypropyl methylcellulose, enhancing food manufacturers' innovation capabilities, particularly in the development of vegan and gluten-free products.
- Customer Value Enhancement: The new partnership will improve product availability and delivery speed, providing specialized expertise and enhanced service support to help clients meet market demands for health, convenience, and quality, thus driving sales growth.
- Technical Support Strengthening: Univar Solutions' Foodology division will leverage its advanced technical centers and market trend knowledge to assist clients in developing innovative recipes that align with consumer tastes, further promoting sustainability and nutritional solutions in the food industry.
See More
Ashland Reports Narrower Q1 Loss Amid Divestiture Impact
- Loss Improvement: Ashland reported a net loss of $12 million or $0.26 per share in Q1, significantly narrowing from last year's $165 million loss or $3.50 per share, indicating effective cost control and business optimization efforts.
- Sales Decline: Q1 sales totaled $386 million, down 5% year-over-year, with the Avoca divestiture reducing sales by approximately $10 million, reflecting challenges in market competition despite growth in innovation-driven product lines.
- Adjusted EBITDA Guidance: The company narrowed its fiscal 2026 adjusted EBITDA guidance to a range of $400 to $420 million, accounting for approximately $11 million in temporary impacts from the Calvert City startup delay and recent weather disruptions, showing confidence in future recovery, although timing remains uncertain.
- Market Reaction: Despite a 0.65% increase in Ashland's stock price to $61.56 during regular trading on Monday, it fell 2.53% to $60.00 in after-hours trading, reflecting investor caution regarding the company's outlook, especially given sales and earnings expectations falling short of analyst projections.
See More
Ashland Reports Q1 2026 Earnings with Mixed Results
- Earnings Performance: Ashland's Q1 non-GAAP EPS of $0.26 beats expectations by $0.01, indicating a slight improvement in profitability, although overall revenue declined by 4.7% year-over-year.
- Revenue and EBITDA: Q1 revenue of $386 million missed market expectations, while adjusted EBITDA of $58 million fell 5% year-over-year, with the Avoca divestiture contributing to a $1 million decline, reflecting competitive pressures in the market.
- Cash Flow and Investment: Operating cash flow stood at $125 million, with ongoing free cash flow at $26 million, indicating stable cash management despite approximately $100 million in capital expenditures impacting free cash flow conversion rates.
- Guidance Adjustment: The company narrowed its fiscal 2026 adjusted EBITDA guidance to $400 million to $420 million, primarily affected by delays in the Calvert City startup and weather-related disruptions, reflecting a cautious outlook on future performance.
See More
Palantir, Teradyne, and Others See Stock Movements After Earnings Reports
- Palantir Earnings Beat: Palantir Technologies reported adjusted earnings of 25 cents per share, exceeding analysts' expectations of 23 cents, with revenue of $1.41 billion surpassing the $1.33 billion estimate, resulting in a nearly 5% stock increase.
- NXP Cautious Outlook: Despite NXP Semiconductors beating fourth-quarter estimates, its first-quarter non-GAAP gross margin guidance of 57% aligned with consensus, leading to a nearly 6% drop in shares.
- Teradyne Strong Guidance: Teradyne issued optimistic guidance for the first quarter, projecting revenue between $1.15 billion and $1.25 billion, significantly above the $935 million expected by analysts, causing a 20% surge in stock price.
- DaVita Strong Performance: DaVita anticipates adjusted earnings between $13.60 and $15 per share for the full year, exceeding the FactSet consensus of $12.82, which led to a 12% increase in shares during after-hours trading.
See More
Ashland Reports Q1 Sales Decline Amid Mixed Demand Conditions
- Sales Performance Decline: Ashland's Q1 sales totaled $386 million, down 5% year-over-year, with the Avoca divestiture contributing to a $10 million reduction, highlighting ongoing demand weakness in the Specialty Additives segment.
- Ongoing Operating Loss: The company reported a loss from continuing operations of $14 million, or $(0.30) per diluted share, although this marks a significant improvement from last year's loss, indicating persistent market challenges.
- Adjusted EBITDA Decline: Adjusted EBITDA stood at $58 million, reflecting a 5% decrease, with the Avoca divestiture accounting for a $1 million impact, suggesting that efforts in cost management and product mix optimization need further enhancement.
- Strong Cash Flow Performance: Operating cash flows reached $125 million, a substantial improvement from a negative $30 million in the prior year, primarily driven by a $103 million tax refund, which bolstered the company's financial stability.
See More
Ashland Scheduled to Announce Q1 Earnings on February 2nd
- Earnings Announcement Date: Ashland (ASH) is set to release its Q1 2023 earnings on February 2nd after market close, with a consensus EPS estimate of $0.25, reflecting a 10.7% year-over-year decline, which may impact investor sentiment.
- Revenue Expectations: Analysts forecast revenue of $402.21 million, down 0.7% year-over-year, indicating challenges the company faces in the current economic environment that could affect its future growth potential.
- Historical Performance Review: Over the past two years, Ashland has beaten EPS estimates 63% of the time but only 25% for revenue, highlighting volatility in its profitability that may affect investor confidence.
- Estimate Revision Dynamics: In the last three months, there have been no upward revisions to EPS estimates and five downward revisions, while revenue estimates saw two upward and two downward revisions, reflecting a cautious market outlook on Ashland's future performance.
See More
Univar Solutions Partners Exclusively with Ashland to Expand EMEA Market Access
- Market Expansion Partnership: Univar Solutions has formed an exclusive distribution partnership with Ashland, set to launch a range of functional food additives in the EMEA region starting January 1, 2026, aimed at meeting the rising demand for plant-based and alternative protein products, thereby enhancing market competitiveness.
- Product Portfolio Enrichment: This collaboration will introduce various cellulose ethers, including methylcellulose and hydroxypropyl methylcellulose, enhancing food manufacturers' innovation capabilities, particularly in the development of vegan and gluten-free products.
- Customer Value Enhancement: The new partnership will improve product availability and delivery speed, providing specialized expertise and enhanced service support to help clients meet market demands for health, convenience, and quality, thus driving sales growth.
- Technical Support Strengthening: Univar Solutions' Foodology division will leverage its advanced technical centers and market trend knowledge to assist clients in developing innovative recipes that align with consumer tastes, further promoting sustainability and nutritional solutions in the food industry.
See More
