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• Q1 Sales: $405 million, down 14% year-over-year.

• Adjusted EBITDA: $61 million, down 13% year-over-year.

• Gross Profit Margin: Increased 290 basis points to 28.1%.

• Adjusted EBITDA Margin: 15.1%, up 30 basis points year-over-year.

• Adjusted EPS: $0.28, down 38% from prior year.

• Life Sciences Sales: $134 million, down 33% year-over-year.

• Personal Care Sales: $134 million, up 4% year-over-year.

• Specialty Additives Sales: $115 million, down 6% year-over-year.

• Intermediates Sales: $33 million, flat year-over-year.

• Cash on Hand: $219 million.

• Total Available Liquidity: $815 million.

• Net Debt: $1.1 billion, leverage ratio of approximately 2.4 times.

• Free Cash Flow: Negative $26 million for the quarter.

• Fiscal Year 2025 Sales Outlook: $1.9 billion to $2.05 billion.

• Fiscal Year 2025 Adjusted EBITDA Outlook: $430 million to $470 million.

• Warning! GuruFocus has detected 2 Warning Sign with ASH.

Release Date: January 29, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Ashland Inc (NYSE:ASH) reported a strong performance in Personal Care, achieving its fourth consecutive quarter of over 25% year-over-year EBITDA growth, driven by strong demand in Skin Care and Hair Care.

• The company successfully executed strategic portfolio optimization initiatives, including the divestiture of the Nutraceutical business, which improved long-term profitability.

• Ashland Inc (NYSE:ASH) maintained stable pricing in Specialty Additives, with a significant narrowing of year-over-year decline to just 1%, reflecting disciplined pricing strategy.

• The company is on track with its $90 million cost-saving target, having already achieved $12 million in annual run rate savings from restructuring efforts.

• Ashland Inc (NYSE:ASH) reaffirmed its full-year sales and adjusted EBITDA outlook, demonstrating confidence in achieving its financial targets despite market uncertainties.

Negative Points

• Ashland Inc (NYSE:ASH) experienced a 14% year-over-year decline in Q1 sales, primarily due to portfolio optimization actions, including the Nutraceutical divestiture.

• The Life Sciences segment faced challenges with a 33% decline in sales, impacted by softer pharma markets and customer inventory control measures, particularly in Europe.

• Adjusted EBITDA decreased by 13% year-over-year, driven by loss of gross profit from divestitures and stranded costs from portfolio optimization actions.

• The company faced increased competition and pricing pressure in China, impacting volumes and pricing in local and export markets.

• Currency fluctuations, particularly the depreciation of the euro, yuan, and real, pose a potential headwind for Ashland Inc (NYSE:ASH)'s EBITDA for the remainder of the fiscal year.