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Reportable Segment Information
 6 Months Ended
Mar. 31, 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. Operating income (loss) before income taxes, depreciation and amortization ("EBITDA") are 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 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 six months ended March 31, 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

 

 

Six months ended

 

 

March 31

 

 

March 31

 

(In millions - unaudited)

2026

 

 

2025

 

 

2026

 

 

2025

 

Sales

 

 

 

 

 

 

 

 

 

 

 

Life Sciences

$

172

 

 

$

172

 

 

$

311

 

 

$

306

 

Personal Care

 

150

 

 

 

146

 

 

 

273

 

 

 

279

 

Specialty Additives

 

134

 

 

 

134

 

 

 

236

 

 

 

249

 

Intermediates

 

35

 

 

 

37

 

 

 

66

 

 

 

71

 

Intersegment sales(a)

 

(9

)

 

 

(10

)

 

 

(18

)

 

 

(21

)

$

482

 

 

$

479

 

 

$

868

 

 

$

884

 

Cost of sales

 

 

 

 

 

 

 

 

 

 

 

Life Sciences

$

109

 

 

$

117

 

 

$

203

 

 

$

208

 

Personal Care

 

88

 

 

 

82

 

 

 

167

 

 

 

169

 

Specialty Additives

 

118

 

 

 

106

 

 

 

206

 

 

 

205

 

Intermediates

 

29

 

 

 

37

 

 

 

58

 

 

 

65

 

Intersegment sales

 

(9

)

 

 

(10

)

 

 

(18

)

 

 

(21

)

 

$

335

 

 

$

332

 

 

$

616

 

 

$

626

 

Selling, general and administrative expense

 

 

 

 

 

 

 

 

 

 

 

Life Sciences

$

20

 

 

$

19

 

 

$

40

 

 

$

40

 

Personal Care

 

21

 

 

 

21

 

 

 

42

 

 

 

41

 

Specialty Additives

 

17

 

 

 

15

 

 

 

33

 

 

 

31

 

Intermediates

 

2

 

 

 

1

 

 

 

4

 

 

 

4

 

   Total operating segments

 

60

 

 

 

56

 

 

 

119

 

 

 

116

 

Unallocated and other

 

19

 

 

 

29

 

 

 

46

 

 

 

46

 

 

$

79

 

 

$

85

 

 

$

165

 

 

$

162

 

Research and development expense

 

 

 

 

 

 

 

 

 

 

 

Life Sciences

$

3

 

 

$

4

 

 

$

7

 

 

$

8

 

Personal Care

 

6

 

 

 

7

 

 

 

11

 

 

 

12

 

Specialty Additives

 

4

 

 

 

3

 

 

 

7

 

 

 

6

 

Intermediates

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

   Total operating segments

 

13

 

 

 

14

 

 

 

25

 

 

 

26

 

Unallocated and other

 

1

 

 

 

—

 

 

 

2

 

 

 

2

 

 

$

14

 

 

$

14

 

 

$

27

 

 

$

28

 

Amortization expense

 

 

 

 

 

 

 

 

 

 

 

Life Sciences

$

5

 

 

$

4

 

 

$

9

 

 

$

8

 

Personal Care

 

8

 

 

 

8

 

 

 

16

 

 

 

19

 

Specialty Additives

 

2

 

 

 

3

 

 

 

5

 

 

 

5

 

Intermediates

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

   Total operating segments

 

15

 

 

 

15

 

 

 

30

 

 

 

32

 

Unallocated and other

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

$

15

 

 

$

15

 

 

$

30

 

 

$

32

 

Equity and other income

 

 

 

 

 

 

 

 

 

 

 

Life Sciences

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Personal Care

 

—

 

 

 

—

 

 

 

1

 

 

 

1

 

Specialty Additives

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Intermediates

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

   Total operating segments

 

—

 

 

 

—

 

 

 

1

 

 

 

1

 

Unallocated and other

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

$

—

 

 

$

—

 

 

$

1

 

 

$

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

Three months ended

 

 

March 31

 

 

March 31

 

(In millions - unaudited)

2026

 

 

2025

 

 

2026

 

 

2025

 

Income (loss) on divestitures, net

 

 

 

 

 

 

 

 

 

 

 

Life Sciences

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Personal Care

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Specialty Additives

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Intermediates

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

   Total operating segments

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Unallocated and other

 

—

 

 

 

18

 

 

 

2

 

 

 

(165

)

 

$

—

 

 

$

18

 

 

$

2

 

 

$

(165

)

Operating income (loss)

 

 

 

 

 

 

 

 

 

 

 

Life Sciences

$

35

 

 

$

28

 

 

$

52

 

 

$

42

 

Personal Care

 

27

 

 

 

28

 

 

 

38

 

 

 

39

 

Specialty Additives

 

(7

)

 

 

7

 

 

 

(15

)

 

 

2

 

Intermediates

 

4

 

 

 

(1

)

 

 

4

 

 

 

2

 

   Total operating segments

 

59

 

 

 

62

 

 

 

79

 

 

 

85

 

Unallocated and other(b)

 

(20

)

 

 

(11

)

 

 

(46

)

 

 

(213

)

   Total operating income (loss)

$

39

 

 

$

51

 

 

$

33

 

 

$

(128

)

Net interest and other expense

 

18

 

 

 

11

 

 

 

26

 

 

 

39

 

Other net periodic benefit loss

 

1

 

 

 

1

 

 

 

2

 

 

 

3

 

Income (loss) from continuing operations before income taxes

$

20

 

 

$

39

 

 

$

5

 

 

$

(170

)

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA(c)

 

 

 

 

 

 

 

 

 

 

 

Life Sciences

$

49

 

 

$

54

 

 

$

80

 

 

$

81

 

Personal Care

 

42

 

 

 

43

 

 

 

68

 

 

 

73

 

Specialty Additives

 

8

 

 

 

23

 

 

 

18

 

 

 

34

 

Intermediates

 

5

 

 

 

2

 

 

 

6

 

 

 

8

 

   Total operating segments

 

104

 

 

 

122

 

 

 

172

 

 

 

196

 

Unallocated and other

 

(20

)

 

 

(11

)

 

 

(46

)

 

 

(213

)

   Total EBITDA

$

84

 

 

$

111

 

 

$

126

 

 

$

(17

)

Depreciation expense

 

30

 

 

 

45

 

 

 

63

 

 

 

79

 

Amortization expense

 

15

 

 

 

15

 

 

 

30

 

 

 

32

 

Net interest and other expense

 

18

 

 

 

11

 

 

 

26

 

 

 

39

 

Other net periodic benefit loss

 

1

 

 

 

1

 

 

 

2

 

 

 

3

 

Income (loss) from continuing operations before income taxes

$

20

 

 

$

39

 

 

$

5

 

 

$

(170

)

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation expense

 

 

 

 

 

 

 

 

 

 

 

Life Sciences(d)

$

9

 

 

$

22

 

 

$

19

 

 

$

31

 

Personal Care

 

7

 

 

 

7

 

 

 

14

 

 

 

15

 

Specialty Additives(e)

 

13

 

 

 

13

 

 

 

28

 

 

 

27

 

Intermediates

 

1

 

 

 

3

 

 

 

2

 

 

 

6

 

   Total operating segments

 

30

 

 

 

45

 

 

 

63

 

 

 

79

 

Unallocated and other

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

$

30

 

 

$

45

 

 

$

63

 

 

$

79

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31

 

 

September 30

 

(In millions - unaudited)

2026

 

 

2025

 

Assets

 

 

 

 

 

Life Sciences

$

1,455

 

 

$

1,498

 

Personal Care

 

714

 

 

 

751

 

Specialty Additives

 

988

 

 

 

1,020

 

Intermediates

 

107

 

 

 

116

 

Unallocated and other

 

1,235

 

 

 

1,226

 

 

$

4,499

 

 

$

4,611

 

Property, plant and equipment - net

 

 

 

 

 

Life Sciences

$

468

 

 

$

481

 

Personal Care

 

95

 

 

 

101

 

Specialty Additives

 

468

 

 

 

484

 

Intermediates

 

30

 

 

 

30

 

Unallocated and other

 

102

 

 

 

105

 

 

$

1,163

 

 

$

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 gain on sale of excess corporate property for the six months ended March 31, 2026, a $8 million gain on sale of excess corporate property for both the three and six months ended March 31, 2025, and a $183 million impairment charge related to the Avoca business for the six months ended March 31, 2025, within the income (loss) on divestitures, net caption of the Statements of Condensed Consolidated Income (Loss).
(c)
Excludes income from discontinued operations, net of income taxes and other net periodic benefit loss. See the Statements of Condensed Consolidated Comprehensive Income (Loss) for applicable amounts excluded.
(d)
Depreciation includes accelerated depreciation of $13 million for Life Sciences for both the three and six months ended March 31, 2025.
(e)
Depreciation includes accelerated depreciation of $3 million for Specialty Additives for the six months ended March 31, 2026.