v3.26.1
Reportable Segment Information
 9 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Reportable Segment Information

NOTE Q – REPORTABLE SEGMENT INFORMATION

Ashland determines its reportable segments based on how operations are managed internally for the products and services sold to customers, including how the results are reviewed by Guillermo Novo, Chair and Chief Executive Officer of the Company, which includes determining resource allocation methodologies used for reportable segments. EBITDA is the primary measures of performance that are reviewed by the chief operating decision maker in assessing each reportable segment's financial performance. Ashland does not aggregate operating segments to arrive at these reportable segments.

Reportable segment business descriptions

Life Sciences is comprised of pharmaceuticals, nutrition, agricultural chemicals, diagnostic films (formerly known as advanced materials) and fine chemicals. Pharmaceutical solutions include controlled release polymers, disintegrants, tablet coatings, thickeners, solubilizers and tablet binders. Nutrition solutions include thickeners, stabilizers, emulsifiers and additives for enhancing mouthfeel, controlling moisture migration, reducing oil uptake and binding structured foods. Customers include pharmaceutical, food, beverage, hospitals and radiologists manufacturers.

Personal Care is comprised of biofunctionals, microbial protectants (preservatives), skin care, sun care, oral care, hair care and household. These businesses have a broad range of natural, nature-derived, biodegradable, and high-performance ingredients for customer-driven solutions to help protect, renew, moisturize and revitalize skin and hair, and provide solutions for toothpastes, mouth washes and rinses, denture cleaning and care for teeth. Personal Care supplies nature-derived rheology ingredients, biodegradable surface wetting agents, performance encapsulates, and specialty polymers for household, industrial and institutional cleaning products. Customers include formulators at large multinational branded consumer products companies and smaller, independent boutique companies. The Avoca business was sold in March 2025. See Note B for additional information.

Specialty Additives is comprised of rheology and performance-enhancing additives serving the architectural coatings, construction, energy, automotive and various industrial markets. Solutions include coatings additives for architectural paints, finishes and lacquers, cement- and gypsum-based dry mortars, ready-mixed joint compounds, synthetic plasters for commercial and residential construction, and specialty materials for industrial applications. Products include rheology modifiers (cellulosic and associative thickeners), foam control agents, surfactants and wetting agents, pH neutralizers, advanced ceramics used in catalytic converters, and

environmental filters, ingredients that aid the manufacturing process of ceramic capacitors, plasma display panels and solar cells, ingredients for textile printing, thermoplastic metals and alloys for welding. Products help improve desired functional outcomes through rheology modification and control, water retention, workability, adhesive strength, binding power, film formation, deposition and suspension and emulsification. Customers include, but are not limited to, global paint manufacturers, electronics and automotive manufacturers, textile mills, the construction industry and welders.

Intermediates is comprised of the production of 1,4 butanediol ("BDO") and related derivatives, including n-methylpyrrolidone. These products are used as chemical intermediates in the production of engineering polymers and polyurethanes, and as specialty process solvents in a wide array of applications including electronics, agriculture, pharmaceuticals, water filtration membranes and more. BDO is also supplied to Life Sciences, Personal Care, and Specialty Additives for use as a raw material.

Unallocated and other generally includes items such as certain significant company-wide restructuring activities, corporate governance costs and legacy costs or activities that relate to divested businesses that are no longer operated by Ashland.

Reportable segment results

Results of Ashland’s reportable segments are presented based on its management and internal accounting structure. The structure is specific to Ashland; therefore, the financial results of Ashland’s reportable segments are not necessarily comparable with similar information for other comparable companies. Ashland allocates all costs to its reportable segments except for certain significant company-wide restructuring activities, certain corporate governance costs and other costs or activities that relate to former businesses that Ashland no longer operates. The service cost component of pension and other postretirement benefits costs is allocated to each reportable segment on a ratable basis; while the remaining components of pension and other postretirement benefits costs are recorded within the other net periodic benefit (income) loss caption of the Statements of Condensed Consolidated Comprehensive Income (Loss). Ashland refines its expense allocation methodologies to the reportable segments from time to time as more refined information becomes available and the industry or market changes. Significant revisions to Ashland’s methodologies are adjusted for all reportable segments on a retrospective basis. There were no material changes in methodology for the three and nine months ended June 30, 2026 or 2025.

Ashland determined that disclosing sales by specific product was impracticable due to the highly customized and extensive portfolio of products offered to customers and since no one product or a small group of products could be aggregated together to represent a majority of revenue within a reportable segment.

The following table presents various financial information for each reportable segment:

 

 

Three months ended

 

 

Nine months ended

 

 

June 30

 

 

June 30

 

(In millions - unaudited)

2026

 

 

2025

 

 

2026

 

 

2025

 

Sales

 

 

 

 

 

 

 

 

 

 

 

Life Sciences

$

180

 

 

$

162

 

 

$

491

 

 

$

468

 

Personal Care

 

155

 

 

 

147

 

 

 

428

 

 

 

426

 

Specialty Additives

 

136

 

 

 

131

 

 

 

372

 

 

 

380

 

Intermediates

 

37

 

 

 

33

 

 

 

103

 

 

 

104

 

Intersegment sales(a)

 

(11

)

 

 

(10

)

 

 

(29

)

 

 

(31

)

$

497

 

 

$

463

 

 

$

1,365

 

 

$

1,347

 

Cost of sales

 

 

 

 

 

 

 

 

 

 

 

Life Sciences

$

106

 

 

$

103

 

 

$

308

 

 

$

311

 

Personal Care

 

90

 

 

 

87

 

 

 

257

 

 

 

256

 

Specialty Additives

 

110

 

 

 

123

 

 

 

317

 

 

 

328

 

Intermediates

 

32

 

 

 

28

 

 

 

90

 

 

 

93

 

Intersegment sales

 

(11

)

 

 

(10

)

 

 

(29

)

 

 

(31

)

 

$

327

 

 

$

331

 

 

$

943

 

 

$

957

 

Selling, general and administrative expense

 

 

 

 

 

 

 

 

 

 

 

Life Sciences

$

20

 

 

$

18

 

 

$

61

 

 

$

58

 

Personal Care

 

22

 

 

 

21

 

 

 

63

 

 

 

62

 

Specialty Additives

 

17

 

 

 

17

 

 

 

50

 

 

 

49

 

Intermediates

 

2

 

 

 

1

 

 

 

6

 

 

 

4

 

   Total operating segments

 

61

 

 

 

57

 

 

 

180

 

 

 

173

 

Unallocated and other

 

38

 

 

 

49

 

 

 

84

 

 

 

95

 

 

$

99

 

 

$

106

 

 

$

264

 

 

$

268

 

Research and development expense

 

 

 

 

 

 

 

 

 

 

 

Life Sciences

$

4

 

 

$

4

 

 

$

11

 

 

$

12

 

Personal Care

 

6

 

 

 

6

 

 

 

17

 

 

 

19

 

Specialty Additives

 

4

 

 

 

3

 

 

 

10

 

 

 

8

 

Intermediates

 

—

 

 

 

—

 

 

 

1

 

 

 

—

 

   Total operating segments

 

14

 

 

 

13

 

 

 

39

 

 

 

39

 

Unallocated and other

 

1

 

 

 

—

 

 

 

2

 

 

 

2

 

 

$

15

 

 

$

13

 

 

$

41

 

 

$

41

 

Amortization expense

 

 

 

 

 

 

 

 

 

 

 

Life Sciences

$

5

 

 

$

5

 

 

$

14

 

 

$

13

 

Personal Care

 

8

 

 

 

8

 

 

 

25

 

 

 

26

 

Specialty Additives

 

2

 

 

 

2

 

 

 

7

 

 

 

7

 

Intermediates

 

—

 

 

 

—

 

 

 

—

 

 

 

1

 

   Total operating segments

 

15

 

 

 

15

 

 

 

46

 

 

 

47

 

Unallocated and other

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

$

15

 

 

$

15

 

 

$

46

 

 

$

47

 

Equity and other income

 

 

 

 

 

 

 

 

 

 

 

Life Sciences

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Personal Care

 

—

 

 

 

—

 

 

 

1

 

 

 

1

 

Specialty Additives

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Intermediates

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

   Total operating segments

 

—

 

 

 

—

 

 

 

1

 

 

 

1

 

Unallocated and other

 

1

 

 

 

—

 

 

 

1

 

 

 

—

 

 

$

1

 

 

$

—

 

 

$

2

 

 

$

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

Nine months ended

 

 

June 30

 

 

June 30

 

(In millions - unaudited)

2026

 

 

2025

 

 

2026

 

 

2025

 

Goodwill impairment and (income) loss on divestitures, net

 

 

 

 

 

 

 

 

 

 

 

Life Sciences

$

—

 

 

$

375

 

 

$

—

 

 

$

375

 

Personal Care

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Specialty Additives

 

—

 

 

 

331

 

 

 

—

 

 

 

331

 

Intermediates

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

   Total operating segments

 

—

 

 

 

706

 

 

 

—

 

 

 

706

 

Unallocated and other

 

(1

)

 

 

—

 

 

 

(3

)

 

 

165

 

 

$

(1

)

 

$

706

 

 

$

(3

)

 

$

871

 

Operating income (loss)

 

 

 

 

 

 

 

 

 

 

 

Life Sciences

$

45

 

 

$

(343

)

 

$

97

 

 

$

(301

)

Personal Care

 

29

 

 

 

25

 

 

 

67

 

 

 

64

 

Specialty Additives

 

3

 

 

 

(345

)

 

 

(12

)

 

 

(343

)

Intermediates

 

3

 

 

 

4

 

 

 

6

 

 

 

6

 

   Total operating segments

 

80

 

 

 

(659

)

 

 

158

 

 

 

(574

)

Unallocated and other(b)

 

(37

)

 

 

(49

)

 

 

(82

)

 

 

(262

)

   Total operating income (loss)

$

43

 

 

$

(708

)

 

$

76

 

 

$

(836

)

Net interest and other (income) expense

 

(8

)

 

 

(5

)

 

 

19

 

 

 

34

 

Other net periodic benefit (income) loss

 

(5

)

 

 

1

 

 

 

(3

)

 

 

4

 

Income (loss) from continuing operations before income taxes

$

56

 

 

$

(704

)

 

$

60

 

 

$

(874

)

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA(c)

 

 

 

 

 

 

 

 

 

 

 

Life Sciences

$

60

 

 

$

(321

)

 

$

140

 

 

$

(240

)

Personal Care

 

44

 

 

 

40

 

 

 

113

 

 

 

113

 

Specialty Additives

 

18

 

 

 

(309

)

 

 

35

 

 

 

(276

)

Intermediates

 

4

 

 

 

7

 

 

 

10

 

 

 

16

 

   Total operating segments

 

126

 

 

 

(583

)

 

 

298

 

 

 

(387

)

Unallocated and other

 

(36

)

 

 

(49

)

 

 

(81

)

 

 

(262

)

   Total EBITDA

$

90

 

 

$

(632

)

 

$

217

 

 

$

(649

)

Depreciation expense

 

32

 

 

 

61

 

 

 

95

 

 

 

140

 

Amortization expense

 

15

 

 

 

15

 

 

 

46

 

 

 

47

 

Net interest and other (income) expense

 

(8

)

 

 

(5

)

 

 

19

 

 

 

34

 

Other net periodic benefit (income) loss

 

(5

)

 

 

1

 

 

 

(3

)

 

 

4

 

Income (loss) from continuing operations before income taxes

$

56

 

 

$

(704

)

 

$

60

 

 

$

(874

)

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation expense

 

 

 

 

 

 

 

 

 

 

 

Life Sciences(d)

$

10

 

 

$

17

 

 

$

29

 

 

$

48

 

Personal Care(e)

 

7

 

 

 

7

 

 

 

21

 

 

 

23

 

Specialty Additives(e)

 

13

 

 

 

34

 

 

 

40

 

 

 

60

 

Intermediates

 

1

 

 

 

3

 

 

 

4

 

 

 

9

 

   Total operating segments

 

31

 

 

 

61

 

 

 

94

 

 

 

140

 

Unallocated and other(f)

 

1

 

 

 

—

 

 

 

1

 

 

 

—

 

 

$

32

 

 

$

61

 

 

$

95

 

 

$

140

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30

 

 

September 30

 

(In millions - unaudited)

2026

 

 

2025

 

Assets

 

 

 

 

 

Life Sciences

$

1,454

 

 

$

1,498

 

Personal Care

 

705

 

 

 

751

 

Specialty Additives

 

964

 

 

 

1,020

 

Intermediates

 

107

 

 

 

116

 

Unallocated and other

 

1,348

 

 

 

1,226

 

 

$

4,578

 

 

$

4,611

 

Property, plant and equipment - net

 

 

 

 

 

Life Sciences

$

456

 

 

$

481

 

Personal Care

 

100

 

 

 

101

 

Specialty Additives

 

462

 

 

 

484

 

Intermediates

 

30

 

 

 

30

 

Unallocated and other

 

101

 

 

 

105

 

 

$

1,149

 

 

$

1,201

 

 

 

 

 

 

 
(a)
Intersegment sales from Intermediates are accounted for at prices that approximate market value. All other intersegment sales are accounted for at cost.
(b)
Includes a $2 million excess land sale contract termination fee income for both the three and nine months ended June 30, 2026, a $8 million gain on sale and a $183 million impairment charge related to the Avoca business for both the nine months ended June 30, 2025, within the income (loss) on divestitures, net caption of the Statements of Condensed Consolidated Income (Loss).
(c)
Excludes loss from discontinued operations, net of income taxes and other net periodic benefit (income) loss. See the Statements of Condensed Consolidated Comprehensive Income (Loss) for applicable amounts excluded.
(d)
Depreciation includes accelerated depreciation of $8 million and $21 million for Life Sciences for the three and nine months ended June 30, 2025, respectively.
(e)
Depreciation includes accelerated depreciation of $1 million for Personal Care and $3 million for Specialty Additives for the nine months ended June 30, 2026, and $19 million for both the three and nine months ended June 30, 2025.
(f)
Depreciation includes accelerated depreciation of $1 million for Unallocated and other for both the three and nine months ended June 30, 2026.