Ashland Inc. (NYSE: ASH) reported second quarter fiscal 2026 sales of $482 million, up 1% from the prior-year quarter, according to the company's earnings announcement. The specialty chemicals company posted net income of $16 million, or $0.34 per diluted share, down from $31 million in the prior year.

The company's adjusted EBITDA declined 9% to $98 million, representing a 20% margin. Income from continuing operations was $15 million, or $0.32 per diluted share, compared to $30 million, or $0.63 per share, in the same quarter last year.

Ashland updated its full-year fiscal 2026 sales guidance to $1.835-$1.870 billion and adjusted EBITDA guidance to $385-$400 million. The revised outlook reflects productivity challenges at the company's Hopewell manufacturing facility and softer energy-related demand tied to the Middle East conflict.

The Life Sciences segment generated $172 million in sales, flat compared to the prior year. Personal Care sales increased 3% to $150 million, driven by double-digit growth in biofunctional actives. Specialty Additives sales remained flat at $134 million, while Intermediates sales declined 5% to $35 million.

Operating cash flows totaled $50 million, up from $9 million in the prior-year quarter, primarily due to working capital improvements. The company's ongoing free cash flow was $29 million compared to negative $6 million in the prior year.

Chief Executive Officer Guillermo Novo cited operational headwinds from the ramp-up at the Hopewell facility and disruptions from winter storms and supply chain issues related to Middle East geopolitical tensions. The company completed repairs at its Calvert City facility during the quarter.

Average diluted shares outstanding decreased to 46 million from 47 million in the prior year, reflecting share repurchase activity. The company expects fiscal 2026 savings from its manufacturing optimization program to be reduced by approximately $10-$12 million due to delayed benefits from the Hopewell facility.