NYSE$ASH

Ashland Inc · Q4 2024 earnings

Q4 2024 earnings · · Investor relations

Briefing

Ashland's Q4 2024 financial performance reflected a sales increase and significant profitability growth driven by volume recovery and portfolio optimization.

Ashland reported a one percent increase in sales to $522 million for the fourth quarter of fiscal year 2024. Net income rose to $16 million, and adjusted EBITDA increased by 68 percent to $124 million, primarily due to sales and production volume recovery, improved product mix, and deflationary raw materials. The company issued its outlook for full-year fiscal 2025 and provided an update on portfolio optimization.

  • Sales increased by one percent to $522 million compared to the prior-year quarter.
  • Net income improved to $16 million, up from a net loss of $4 million in the prior-year quarter.
  • Adjusted EBITDA increased by 68 percent to $124 million, driven by volume recovery and improved product mix.
  • The company repurchased 1.7 million shares and has $620 million remaining under its share repurchase authorization.

Headline financials

Total Revenue

$522M

Previous: $518M+0.8%
EPS (adj)

$1.26

Previous: $0.41+207.3%
Capital Expenditures

-$38M

Previous: $69M-155.1%
Free Cash Flow

$42M

Previous: $61M-31.1%
Net Income

$16M

Previous: -$4M+500.0%
Operating Income

$32M

Previous: -$10M+420.0%
Gross Profit

$154M

Previous: $129M+19.4%
R&D Expense

$13M

No prior period
Stock-Based Comp

$5M

Previous: $5M+0.0%

Revenue & EPS history

Ashland · Revenue · Quarterly

$522M

Q4 2024+0.8%vs Q4 2023
Beat estimate in 4 of 15 quarters(27%)
ActualEstimate

Revenue by segment

Ashland · $530M total across 4 segments · Q4 2023

  • Life Sciences
    $203M-4.7%
  • Personal Care
    $146M-22.3%
  • Specialty Additives
    $144M-23.0%
  • Intermediates
    $37M-42.2%

Forward guidance

For fiscal year 2025, Ashland expects sales to be in the range of $1.90 billion to $2.05 billion, and Adjusted EBITDA to be in the range of $430 million to $470 million.

Tailwinds

  • Continued geopolitical and economic uncertainty results in lower overall growth in most regions.
  • China’s economy will remain challenged for the fiscal year, especially the property market.
  • Increased competitive intensity in China and several export markets result in volume growth being partially offset by additional price erosion.
  • +$45 million in improved first-half absorption when compared to inventory actions in fiscal 2024.
  • +$20 million in realized cost reduction actions.

Headwinds

  • ($30) million from reduced earnings and stranded costs from our nutraceuticals sale and other portfolio optimization actions.
  • ($20) million in negative price carryover from fiscal year 2024.
  • For Avoca, Ashland exited an unprofitable tolling operation and will sell or close the remaining sclareolide business; ($15) million year-over-year EBITDA erosion.
  • ($10) million in variable incentive reset.
  • Continued geopolitical and economic uncertainty results in lower overall growth in most regions.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2024

Historical avgQ4 2024

-0.4%

Avg return

Earnings day

-0.7%

Avg return

5 days after

+0.8%

Avg return

30 days after

45%

29 / 64 earnings

Positive

+15.9%

Q1 2024

Best reaction

-10.2%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+8.4%+6.3%+17.7%
Q1 2026-0.8%+4.2%-6.8%
Q4 2025-1.0%-1.3%+15.5%
Q2 2025-9.9%-11.5%-9.0%
Q1 2025-9.8%-14.4%-14.5%
Q4 2024-5.0%-7.3%-11.2%
Q3 2024-3.2%-6.5%-7.4%
Q2 2024-2.6%-1.2%+2.7%
Q1 2024+15.9%+13.4%+15.9%
Q4 2023-4.8%+0.8%+7.3%
Q3 2023+0.1%+1.3%-6.9%
Q2 2023-10.2%-9.5%-15.0%
Q1 2023+1.5%-1.4%-3.8%
Q4 2022+7.9%+8.0%+11.9%
Q3 2022-2.5%-4.3%+1.5%
Q2 2022+4.7%+3.5%+4.3%
Q1 2022+1.2%-0.8%-5.9%
Q4 2021+1.4%+7.4%+5.3%
Q3 2021-3.9%-3.1%-2.3%
Q2 2021-7.0%-7.3%+1.2%
Q1 2021+1.3%+2.3%+3.0%
Q4 2020-2.4%+3.9%-2.5%
Q3 2020-2.5%-5.2%-5.1%
Q2 2020-0.1%+5.3%+20.8%
Q1 2020+1.1%-1.8%+0.8%
Q4 2019-3.8%-8.6%-3.8%
Q3 2019+0.0%-3.5%-8.7%
Q2 2019-5.4%-4.9%-5.0%
Q1 2019+2.7%+2.0%+1.8%
Q4 2018+9.0%+8.5%+2.6%
Q3 2018+2.5%+3.9%+2.6%
Q2 2018+7.7%+10.6%+17.4%
Q1 2018+0.3%+2.0%-2.2%
Q4 2017-3.6%-3.9%+2.5%
Q3 2017-2.4%-2.3%-4.5%
Q2 2017-1.4%-2.5%+7.6%
Q1 2017+2.1%+2.2%+4.6%
Q4 2016-4.1%-5.3%+1.3%
Q3 2016-6.4%-6.7%-4.3%
Q2 2016-0.7%
Q1 2016-1.9%
Q4 2015-0.1%
Q3 2015-3.2%
Q2 2015-1.4%
Q1 2015+1.3%
Q4 2014+2.9%
Q3 2014-5.1%
Q2 2014+4.5%
Q1 2014-1.0%
Q4 2013-5.8%
Q3 2013+0.4%
Q2 2013-0.1%
Q1 2013+6.9%
Q4 2012+0.4%
Q3 2012-0.4%
Q2 2012+1.5%
Q1 2012+1.3%
Q4 2011-4.8%
Q3 2011+4.0%
Q2 2011+0.8%
Q1 2010+3.1%
Q4 2010-1.2%
Q3 2010-5.7%
Q2 2010+2.8%

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