(RTTNews) - Ashland Inc. (ASH) reported a narrower first-quarter loss compared to last year, which had been significantly impacted by the non-cash impairment of the Avoca business. The company also updated its outlook for fiscal year 2026.
Net loss for the first quarter was $12 million or $0.26 per share, compared to a loss of $165 million or $3.50 per share in the prior year.
Adjusted income from continuing operations excluding intangibles amortization expense was $0.26 per share compared to $0.28 in the prior year. Analysts expected the company to report earnings of $0.25 per share for the first quarter. Analysts' estimates typically exclude special items.
Sales for the first quarter were $386 million, down five percent from $405 million in the prior-year quarter. The Avoca divestiture reduced sales by approximately $10 million, or two percent. Excluding the action, sales declined three percent year-over-year. Organic sales volumes were mixed with growth in Life Sciences more than offset by declines in Personal Care and Specialty Additives.
Ashland narrowed its full year fiscal 2026 Adjusted EBITDA guidance to a range of $400 to $420 million. The updated outlook reflects approximately $11 million of temporary impacts from the Calvert City startup delay and recent weather-related disruptions, all isolated to the second quarter. While the company expects these impacts to be recoverable over time, the timing of absorption recovery remains uncertain and is reflected in the revised guidance range.
The company projects annual sales to be in the range of $1.835 billion to $1.905 billion, supported by continued momentum in innovation-driven and globalized product line. Analysts expected revenue of $1.86 billion for the quarter.
ASH closed Monday's regular trading at $61.56, up $0.40 or 0.65%. But in after-hours trading, the stock slipped to $60.00, down $1.56 or 2.53%.
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