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The global additives and specialty ingredients company reported third-quarter sales of $497 million, up 7% from $463 million a year earlier, while reaffirming its full-year fiscal 2026 outlook for sales of $1.835 billion to $1.870 billion and Adjusted EBITDA of $385 million to $400 million.

 

Net income climbed sharply to $16 million, compared with a $742 million loss in the prior-year quarter, while income from continuing operations reached $41 million, or $0.89 per diluted share.

 

Adjusted EBITDA came in at $109 million, representing a 21.9% margin, as stronger volumes and pricing actions were offset by lingering impacts from earlier production challenges, infAshland posted a strong third quarter for fiscal 2026, driven by broad-based demand, higher sales volumes across every business unit and continued momentum in its Life Sciences and Personal Care businesseslationary pressures and normalized incentive compensation.

 

"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."

 

He added: "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.”

 

Ashland reported 6% growth in sales volumes year-over-year, with gains across its entire portfolio.

 

Life Sciences led the performance charge, posting 11% sales growth to $180 million. Growth was fueled by strong pharmaceutical demand, higher sales volumes across major regions and continued expansion in high-purity excipients, injectables and differentiated cellulose products. Adjusted EBITDA increased 11% to $60 million.

 

Personal Care also delivered another strong quarter, with sales rising 5% to $155 million. The segment benefited from growth across skin care, hair care, oral and home care, with biofunctional actives delivering double-digit gains. Adjusted EBITDA increased to $45 million, compared with $41 million in the prior-year quarter.

 

Specialty Additives generated $136 million in sales, up 4% year-over-year, supported by pricing improvements, product mix and gains in coatings and performance specialties. Adjusted EBITDA declined to $20 million, reflecting earlier operational challenges and lower production rates.

 

Intermediates posted the strongest percentage sales increase, with revenue rising 12% to $37 million, helped by improved merchant sales and stronger demand for N-Methyl-2-pyrrolidone (NMP) used in North American electric vehicle battery and energy-storage applications.

 

Ashland generated $121 million in operating cash flow during the quarter, up from $114 million a year earlier, driven primarily by working capital improvements.

 

Ongoing Free Cash Flow reached $103 million, while net leverage improved to 2.4x, returning the company to its long-term target range and increasing financial flexibility.

 

Novo added that Ashland’s strategic initiatives continue to gain momentum.

 

“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.”

 

Ashland maintained its fiscal 2026 sales guidance of $1.835 billion to $1.870 billion and Adjusted EBITDA outlook of $385 million to $400 million.

 

The company revised its adjusted earnings-per-share outlook to low-to-mid-single-digit growth, citing a higher tax rate linked to unfavorable discrete items.

 

Ashland said it expects continued improvement in the fourth quarter as operational performance strengthens and recent pricing actions deliver greater benefits.