Ashland Q3 profit beats on higher volume, pricing; cuts FY EPS forecast

Overview

• US specialty ingredients maker's fiscal Q3 revenue rose 7%, beating analyst expectations

• Adjusted EPS for fiscal Q3 beat consensus

• Company reaffirmed full-year sales and Adjusted EBITDA guidance

Outlook

• Ashland reaffirms full-year 2026 sales guidance of $1,835-$1,870 mln

• Company maintains 2026 Adjusted EBITDA guidance at $385-$400 mln

• Ashland revises adjusted EPS growth outlook to low-to-mid-single digit growth from mid-to-high-single digit growth, reflecting a higher tax rate associated with unfavorable discrete items

Result Drivers

• VOLUME GROWTH - Co said sales volumes rose 6% year-over-year, with gains across all business units

• LIFE SCIENCES DEMAND - Life Sciences segment saw double-digit sales growth, driven by broad-based pharma demand and continued momentum in differentiated products

• PRICING ACTIONS - Co said pricing increased about 1% year-over-year, helping to recover higher raw material costs

Company press release: ID:nGNX7kGfGV

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the diversified chemicals peer group is "buy"

• Wall Street's median 12-month price target for Ashland Inc is $74.00, about 8.8% above its July 28 closing price of $68.01

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads

• July 28 - Repligen Q2 revenue beats estimates on higher orders; raises outlook

• July 28 - Ecolab raises annual profit forecast on pricing, high-tech demand

• July 28 - Sherwin-Williams raises profit forecast, expects higher prices to drive growth

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)