A solid +7% bounce in Ashland shares overnight after they delivered a good third-quarter result, with sales and earnings ahead of expectations and full-year guidance maintained.
Sales rose 7% to US$497 million, ahead of consensus of US$485 million, while adjusted EBITDA of US$109 million also beat expectations.
Key highlights:
- Life Sciences sales of US$180 million, ahead of expectations.
- Personal Care revenue of US$155 million.
- Specialty Additives sales of US$136 million.
- FY26 sales guidance maintained at US$1.84–1.87 billion.
- FY26 adjusted EBITDA guidance maintained at US$385–400 million.
The result also came alongside a settlement with activist investor Ancora, which will add two directors to the board and establish a new capital allocation committee. Ancora and fellow activist Cruiser Capital have both pushed Ashland to consider a sale.
Overall, the operating result was solid rather than spectacular, but it strengthens the case that Ashland’s assets are performing better than the share price has implied. With two activists now involved and a formal capital allocation committee established, pressure on the board to unlock value is building.
We continue to hold the stock, with strategic activity now an increasingly important part of the investment case.
