Ashland (NYSE:ASH) Issues Quarterly Earnings Results, Misses Expectations By $0.06 EPS

Key Points

• Ashland reported Q2 EPS of $0.91, missing consensus by $0.06, and the stock fell about 13.3% to $49.42 on heavy volume.
• Revenue rose just 0.6% YoY to $964M, but profitability weakened—net margin was -38.26% and adjusted EBITDA declined ~9% as management blamed Hopewell scale‑up issues, a Calvert City startup delay and weather disruptions.
• The company narrowed FY‑2026 guidance (sales $1,835–1,870M; adjusted EBITDA $385–400M) while reporting improved operating cash flow ($50M) and free cash flow ($29M), which management says supports the balance sheet and buybacks.

Ashland (NYSE:ASH - Get Free Report) issued its quarterly earnings data on Tuesday. The basic materials company reported $0.91 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.97 by ($0.06), Zacks reports. Ashland had a negative net margin of 38.26% and a positive return on equity of 7.58%. The company had revenue of $964.00 million for the quarter, compared to analysts' expectations of $485.66 million. During the same period in the previous year, the firm posted $0.99 earnings per share. The firm's revenue for the quarter was up .6% compared to the same quarter last year.

Ashland Stock Down 13.3%

Ashland stock traded down $7.58 during mid-day trading on Wednesday, hitting $49.42. The company had a trading volume of 1,890,760 shares, compared to its average volume of 677,169. The company has a market capitalization of $2.26 billion, a PE ratio of -3.29, a price-to-earnings-growth ratio of 0.99 and a beta of 0.45. The company has a current ratio of 3.15, a quick ratio of 1.61 and a debt-to-equity ratio of 0.74. Ashland has a 12 month low of $46.29 and a 12 month high of $65.64. The stock's 50 day moving average price is $56.17 and its two-hundred day moving average price is $56.53.

Ashland News Summary

Here are the key news stories impacting Ashland this week:

• Positive Sentiment: Improved cash generation and modest top-line resilience — Ashland reported stronger operating cash flow ($50M) and ongoing free cash flow ($29M), and sales were up modestly year-over-year, driven by Personal Care and steady Life Sciences demand. These cash improvements help support balance-sheet strength and buyback activity. Read More.
• Neutral Sentiment: Updated full‑year guidance — Ashland narrowed FY‑2026 sales to $1,835–$1,870M and adjusted EBITDA to $385–$400M. Guidance reflects a mix of resilient end markets and specific operational delays; the ranges leave room for either upside if Hopewell ramps as planned or further downside if issues persist. Read More.
• Negative Sentiment: EPS and profitability miss driven by operational issues — Reported EPS missed consensus ($0.91 vs. ~$0.97 expected) and adjusted EBITDA fell ~9% YoY. Management cited productivity problems at the Hopewell HEC scale‑up, a Calvert City startup delay and weather-related disruptions as primary drivers of weaker margins and a lower near‑term profit run‑rate. Those operational headwinds are the main reason investors are selling. Read More.
• Negative Sentiment: Mixed profitability signals despite some reported revenue figures — Coverage shows a revenue/metric mix (some aggregations report large total revenue figures versus company “sales” definitions), but net income declined and net margins remain pressured, reinforcing investor concern about near‑term earnings quality. Read More.

Analyst Ratings Changes

A number of brokerages have recently weighed in on ASH. Morgan Stanley set a $63.00 target price on shares of Ashland in a research note on Monday, February 9th. Zacks Research upgraded Ashland from a "strong sell" rating to a "hold" rating in a report on Thursday, February 5th. UBS Group reissued a "buy" rating and set a $73.00 price objective on shares of Ashland in a research report on Wednesday, February 4th. Deutsche Bank Aktiengesellschaft restated a "buy" rating and set a $70.00 target price on shares of Ashland in a report on Wednesday, February 4th. Finally, Evercore set a $62.00 price target on shares of Ashland in a research note on Wednesday, February 18th. Six analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $66.11.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the business. AQR Capital Management LLC lifted its holdings in shares of Ashland by 284.3% during the 2nd quarter. AQR Capital Management LLC now owns 3,454,646 shares of the basic materials company's stock valued at $172,318,000 after buying an additional 2,555,585 shares during the period. Standard Investments LLC increased its position in Ashland by 17.2% during the fourth quarter. Standard Investments LLC now owns 2,625,000 shares of the basic materials company's stock valued at $154,009,000 after acquiring an additional 385,000 shares during the last quarter. Schonfeld Strategic Advisors LLC lifted its holdings in Ashland by 6,371.1% in the fourth quarter. Schonfeld Strategic Advisors LLC now owns 310,677 shares of the basic materials company's stock valued at $18,227,000 after acquiring an additional 305,876 shares during the period. Toronto Dominion Bank purchased a new position in Ashland in the fourth quarter worth about $15,769,000. Finally, Ieq Capital LLC boosted its position in Ashland by 353.0% in the second quarter. Ieq Capital LLC now owns 250,085 shares of the basic materials company's stock worth $12,574,000 after purchasing an additional 194,880 shares during the last quarter. 93.95% of the stock is owned by institutional investors.

Ashland Company Profile

Ashland Inc is a global specialty chemicals company that develops, manufactures and supplies a broad range of performance and process-critical additives, ingredients and technologies. Its portfolio spans performance additives for coatings, adhesives and sealants; specialty ingredients for personal care and pharmaceutical applications; and process aids used in water treatment and other industrial processes. Ashland aims to address customer challenges by delivering tailored solutions that improve product performance, processing efficiency and sustainability outcomes.

Founded in 1924 as the Ashland Oil & Refining Company, the firm gradually expanded into the specialty chemicals sector over the second half of the 20th century.