Ashland Global Holdings Inc Q2 2026 Earnings Call - Innovation and Globalization Momentum Outpace Internal Execution Headwinds

Chris Parkinson, Analyst, Wolfe Research3: Good day, and thank you for standing by. Welcome to Ashland’s second quarter 2026 earnings call. I would now like to hand the conference over to your first speaker today, Sandy Klugman, Director of Investor Relations. Please go ahead.

Chris Parkinson, Analyst, Wolfe Research4: Thank you. Hello, everyone, and welcome to Ashland’s second quarter fiscal 2026 earnings conference call and webcast. My name is Sandy Klugman, and I am Ashland’s Director of Investor Relations. Joining me on the call today are Guillermo Novo, Chair and CEO, William C. Whitaker, CFO, as well as our business unit leaders, Alessandra Faccin, Life Sciences and Intermediates, Jim Minicucci, Personal Care, and Dago Caceres, Specialty Additives. Please note that we will be referencing slides during today’s call. We encourage you to follow along with webcast materials available at ashland.com under Investor Relations. Please turn to slide 2. As a reminder, today’s presentation contains forward-looking statements regarding our fiscal 2026 outlook and other matters, as detailed on slide 2 and in our Form 10-Q. These statements are subject to risks and uncertainties that could cause future results to differ materially from today’s projections.

We believe any such statements are based on reasonable assumptions, but there’s no assurance these expectations will be achieved. We will also reference certain adjusted financial metrics, both actual and projected, which are non-GAAP measures. We present these adjusted figures to provide additional insight into our ongoing business performance. GAAP reconciliations are available on our website and in the appendix of these slides. I’ll now hand the call over to Guillermo for his opening remarks.

Guillermo Novo, Chair and Chief Executive Officer, Ashland Global Holdings Inc.: Thanks, Sandy. Welcome to everyone joining us. I’ll start with a brief overview of our second quarter performance. William will review the financials and outlook, followed by a deeper business unit detail with the team. Please turn to slide 5. Overall, second quarter results reflect resilient underlying commercial performance amid stable demand conditions, with pricing and portfolio mix action remaining a central focus across the organization. Life Sciences delivered steady results supported by resilient pharma demand. Injectables, tablet coatings, and high-purity excipients continued to drive growth, marking a 4th consecutive quarter of volume gains. Progress across our innovate and globalized pillars remains strong, with continued adoption of differentiated new product introductions. Personal Care generated broad-based portfolio growth, driven by strong volume gains and execution across biofunctional actives, Care Ingredients, and Microbial Protection.

biofunctional actives delivered robust double-digit year-over-year growth, while Microbial Protection continued to gain share following our globalized investments. Specialty Additives operated in a mixed market environment. Coatings volumes grew year-over-year, reflecting share gains and new product traction, while construction sales remained lower, reflecting deliberate portfolio mix actions and slightly softer demand. Overall results returned to flat year-over-year, which is an important step forward given that we have not yet fully lapped our prior year China impact. Intermediates operated in a stable but trough-level environment, with results impacted by both commercial and operating effects of the Calvert City outage. The team will cover more later, but operational performance was impacted by specific issues during the quarter, all of which are internal and not reflective of underlying demand trends.

Despite these headwinds, commercial execution across much of the portfolio was solid, and we continue to see encouraging demand trends in Q3. Please turn to slide 6. I will now walk through our second quarter results, which reflect disciplined execution across the portfolio in a mixed market environment. Teams remain focused on cost control, operating discipline, and customer service while managing through operational headwinds during the quarter. Structural actions taken over the past several years continue to support the underlying economics of the business, even as near-term performance was pressured by temporary execution challenges. Working capital was a key strength in the quarter, driving strong operating cash flow and reinforcing our focus on cash discipline.

Looking across the portfolio, the quarter demonstrated resilient underlying performance and continued progress in strengthening the business foundation, with demand conditions generally stable across the portfolio and margin pressure primarily driven by specific operational issues rather than end market weakness. Please turn to slide 7. First, our consumer focused businesses, principally Life Sciences and Personal Care, continue to provide stability supported by resilient end market demand. Second, innovation and globalization initiatives are gaining traction with accelerating momentum in higher value applications across the portfolio. Innovation has already exceeded our full year target after 2 quarters, reflecting the strong pipeline execution and commercialization. Third, structural actions taken in prior periods are now embedded across the business, enhancing margin durability and positioning the portfolio to benefit as operating conditions normalize. Teams remain focused on disciplined execution and targeted corrective actions.

Before turning the call over to William, I want to emphasize three themes for this quarter. Resilient consumer-focused demand, accelerating innovation and globalization momentum, and continued commitment on improving execution. I’d like to now turn the call over to William to provide more detailed review of our second quarter financial performance. William?

Chris Parkinson, Analyst, Wolfe Research6: Thank you, Guillermo. Please turn to slide 9. Second quarter sales were $482 million, up 1% year-over-year, reflecting resilient demand conditions across much of the portfolio. Volumes were relatively stable overall, with growth in Personal Care offsetting softness in Intermediates, while Life Sciences delivered steady performance. Pricing declined modestly year-over-year, primarily reflecting carryover impacts from prior period pricing actions, supporting targeted share gain activity generally across the segments. Foreign exchange was a meaningful tailwind, contributing approximately $16 million or 3% to reported sales. Adjusted EBITDA was $98 million, down 9% year-over-year, reflecting approximately $10 million of previously disclosed temporary impacts, including the Calvert City startup delay and weather-related operational disruptions during the quarter. Excluding these discrete items, underlying performance reflected softer pricing, offset by disciplined cost control and foreign exchange benefits, consistent with the resilience we are seeing across the portfolio.

As previously discussed, Calvert City impacted results in the second quarter. Repairs are now complete and the facility is back online. Adjusted EBITDA margin is approximately 20%, down 220 basis points year-over-year, largely reflecting these temporary operational disruptions. Adjusted EPS, excluding intangible amortization, was $0.91, down 8% year-over-year, consistent with the EBITDA decline. Cash generation and conversion was notable strength in the quarter. Cash flow provided by operating activities totaled $50 million, up from $9 million in the prior year, driven by disciplined working capital management, including meaningful inventory reductions. Ongoing free cash flow was $29 million, representing solid conversion, driven by working capital improvements and reduced capital expenditures. We ended the quarter with total available liquidity of approximately $939 million, net debt just over $1 billion, resulting in net leverage of roughly 2.7 times.

The balance sheet remains strong, providing flexibility to support operations, invest in strategic priorities, and maintain disciplined capital allocation. With that, I’ll turn the call over to our business unit leaders for a closer look at segment performance. Alessandra, over to you for Life Sciences.

Alessandra Faccin, Business Unit Leader, Life Sciences and Intermediates, Ashland Global Holdings Inc.: Thank you, William. Good morning, everyone. Please turn to slide 10 for Life Sciences. Life Sciences sales were $172 million, flat year-over-year. Results reflected resilient pharmaceutical demand, partially offset by softness in select non-pharma end markets and modest pricing pressure. Pharma delivered low single-digit growth for a fourth consecutive quarter, supported by strength across differentiated cellulose excipients, injectables, and tablet coatings. Outside of pharma, nutrition and other non-pharma markets remained softer, reflecting customer order timing rather than underlying market deterioration. Pricing declined modestly year-over-year, largely reflecting carryover impacts from prior period actions while remaining stable sequentially. Foreign exchange contributed approximately $6 million to sales during the quarter. Looking at our globalized initiatives, injectables continued delivering quarter-over-quarter growth with a record second quarter results. Positive lead indicators on sales pipeline, new product uptake, and new orders signal continued growth momentum in this high-margin segment.

Film coatings continued its double-digit growth trajectory versus prior year, fueling capacity release initiatives. Turning to innovation, growth was supported by expanding adoption of low nitrite oral solid dosage excipients and high-purity injectable and bioprocessing products. New product success in this segment reinforce Ashland’s differentiation in regulated high-value markets fully aligned with our growth strategy. Looking ahead, we have positioned the second half of the year for multiple new product launches across oral solid dose injectables and crop care, supporting sustained growth and portfolio renewal. These initiatives continue to reinforce portfolio differentiation and long-term growth opportunities. Turning to profitability. Adjusted EBITDA was $50 million, down 11% year-over-year. Adjusted EBITDA margin was 29%, reflecting the combined impact of modestly lower pricing and higher costs, including approximately $5 million of weather-related disruption and Calvert City start-up delays during the quarter.

These headwinds were partially offset by favorable mix, disciplined execution and foreign exchange, which contributed approximately $3 million to EBITDA. Importantly, underlying pharma demand remains resilient and recently announced pricing actions are now being implemented across the portfolio. Life Sciences continues to benefit from durable end market fundamentals, strong customer engagement and sustained momentum across our innovate and globalized pillars. Please turn to slide 11 for Intermediates. Intermediates operated in a challenging but stable trough market environment, consistent with expectations entering fiscal year 2026. Demand conditions remained stable, with sales and pricing at trough levels across the BDO value chain. Sales were $35 million, down 5% year-over-year, reflecting continued pressure across the BDO value chain and commercial and operating impacts related to the Calvert City outage.

Merchant sales were $26 million compared to $27 million last year, as relatively steady volumes were partially offset by modest pricing pressure and disciplined commercial actions, including controlled merchant activity. Captive BDO sales were down approximately $1 million year-over-year, primarily reflecting the Calvert City impacts during the quarter. Foreign exchange provided a modest $1 million benefit to sales in the quarter. Turning to profitability. Adjusted EBITDA was $5 million, up from $2 million in the prior year quarter. The improvement reflected disciplined cost management and favorable manufacturing input actions, which more than offset Calvert City-related impacts and ongoing pressure across the BDO value chain. I will turn the call over to Jim to discuss Personal Care.

Jim Minicucci, Business Unit Leader, Personal Care, Ashland Global Holdings Inc.: Thank you, Alessandra. I’ll now highlight our Personal Care results. Please turn to slide 12 for Personal Care. Personal Care delivered resilient results supported by broad-based demand and strong execution across the portfolio. Sales were $150 million, up 3% year-over-year, or 4% on a comparable basis, driven by growth across all three business lines. Biofunctional actives delivered another quarter of double-digit growth, supported by continued adoption of Collapeptyl and customer expansions across Europe and North America. Microbial Protection delivered robust growth across the portfolio and geographies, driven by new customer wins and continued share expansion. Within Care Ingredients, the portfolio remained resilient with strong growth across hair and skincare categories, particularly in Asia Pacific and Latin America. Previously reported customer-specific outages from the prior quarter have now returned to more normalized levels. Foreign exchange contributed approximately $5 million to sales during the quarter.

Turning to innovation. biofunctional actives recently launched Eternight, our 2026 flagship ingredient. Eternight targets key skin longevity markers and was recognized with an industry award at the in-cosmetics Global event earlier this month. Care Ingredients launched a new haircare conditioning polymer from our guar technology, which is already gaining customer adoption. Overall, Personal Care continues to benefit from strong momentum across our globalized and innovate platforms, reinforcing growth in consumer-focused applications. Turning to profitability. Adjusted EBITDA was $43 million compared to $44 million in the prior year quarter. The slight decline was driven by operational outages from weather-related events, which were predominantly offset by volume growth and mix. Adjusted EBITDA margin was approximately 29%, demonstrating the strength of the portfolio and benefit of ongoing commercial and productivity efforts. Foreign exchange contributed approximately $2 million to EBITDA.

In summary, Personal Care delivered robust sales growth across all three business lines, demonstrating strong margin resilience, disciplined execution and meaningful progress across its innovate and globalized initiatives. With that, I’ll turn the call over to Dago to review the results of Specialty Additives.

Dago Caceres, Business Unit Leader, Specialty Additives, Ashland Global Holdings Inc.: Thank you, Jim. Please turn to slide 13. Specialty Additives operated in a mixed demand environment during the 2nd quarter, with performance varying by end market and region. Overall results reflected disciplined commercial execution with targeted pricing actions supporting share gains and specific operational headwinds. Sales were $134 million, flat year-over-year, as volume growth for the 2nd consecutive quarter was largely offset by softer pricing and the lapping of a difficult prior year comparison following share losses in China. Breaking down the segments. Architectural coatings returned to year-over-year growth, supported by share gains and new product traction. Volume trends improved relative to prior quarters as commercial initiatives gained momentum, while underlying demand remained generally flat with continued regional variability. Construction volumes were lower, reflecting deliberate portfolio mix management actions associated with network optimization and relative muted end market demand.

Other end markets were mixed, with volumes growth in performance specialties offset by softer energy demand tied to customer specific impacts in the Middle East. Pricing declined modestly year-over-year, reflecting targeted share gain opportunities. Foreign exchange contributed approximately $4 million to reported sales. Turning to profitability, adjusted EBITDA was $60 million, down from $26 million in the prior year quarter. Adjusted EBITDA margin was 11.9%, reflecting softer pricing and higher manufacturing related costs, including approximately $2 million from weather related disruptions, a discrete bad debt reserve related to a Middle East energy customer, as well as productivity challenges associated with the Hopewell scale up. Notably regarding the HEC scale up, product quality and customer service levels have been maintained and achieving profitable scale remains a key operational focus.

While near term performance has been impacted, these actions are expected to enhance long term reliability and cost efficiency across our cellulosics network. All other sites continue to operate reliably and our global network supported uninterrupted customer supply. Overall, the focus remains on targeted actions to improve operational performance, strengthen cost control and advance differentiation across the applications, positioning the business to benefit as market conditions normalize. With that, I’ll turn the call back to William.

Chris Parkinson, Analyst, Wolfe Research6: Thanks, Dago. Please turn to slide 15. Given recent geopolitical developments in the Middle East, I want to briefly highlight how Ashland is positioned in this environment. Starting with exposure. Ashland’s direct exposure is limited and manageable. The Middle East and North Africa represent approximately 5% of total sales, largely concentrated in Turkey and Egypt, and we have no manufacturing footprint in the region, which significantly reduces operational risk. From a cost perspective, Ashland is structurally advantaged. We are less reliant on petrochemical and energy intensive feedstocks across our portfolio. Energy intensive inputs represent roughly 15% of sales, with the majority sourced from North America, supporting lower cost volatility and more resilient margins as energy prices fluctuate.

The team is advancing pricing actions to address cost escalation. Given that additives represent a relatively small share of our customers’ overall cost structure, we expect to be able to recover these increases. From a demand standpoint, visibility remains solid, supported by a strong order book and a portfolio concentrated in resilient consumer facing end markets, including pharma and Personal Care. Based on prior dislocations, we expect security of supply to become increasingly important to our customers. Ongoing geopolitical disruptions, anti-dumping actions, and reassessments of single region sourcings are reinforcing the value of reliable, diversified supply chains, positioning Ashland as a preferred partner for critical applications. Taken together, while the environment remains dynamic, Ashland’s limited exposure, advantaged cost structure, resilient demand profile, and supply chain reliability position us well to manage volatility. Please turn to slide 16.

I’d like to spend a few minutes on our execute agenda with a specific focus on manufacturing, including the challenges we encountered at Hopewell, our progress across the broader commitment, and how this ties to our longer term cost savings targets. Starting with Hopewell. Our HEC scale up has progressed more slowly than planned, which impacted 2nd quarter performance. As Dago mentioned, our product quality and customer service have been maintained. However, productivity, yield and cost performance did not ramp as expected. These challenges are execution related and internal, and we have taken targeted actions to address them, including tightening operating discipline, increasing leadership focus on the site, and advancing specific technical work streams. While productivity has been below expectations, results have stabilized and we are seeing sequential improvement. We continue to take targeted actions, though the financial benefits will take time to flow through the results.

Importantly, the issues at Hopewell do not change the strategic rationale for the consolidation. The site remains critical to simplifying the network and lowering the structural cost base of our cellulosics platform. Outside of Hopewell, manufacturing optimization efforts continue to progress in line with expectations. VP&D and small plant consolidation initiatives remain on track, with benefits weighted towards the second half of fiscal 2026. As a result of timing delays at Hopewell, our fiscal 2026 manufacturing optimization benefit has been reduced by approximately $10 million-$12 million. That reflects delayed realization, not a reduction in the underlying opportunity. Stepping back, our longer term manufacturing optimization targets remain intact.

We continue to expect $50 million to $55 million of sustainable annual cost savings with an opportunity to reach approximately $60 million as China volumes recover. Execute remains a core pillar of our strategy, focused on simplifying the footprint, improving reliability, and strengthening cost competitiveness. While near-term execution has been uneven, the actions underway are designed to ensure we deliver the full value of the program over time. I’ll address how this translates into our outlook and expectations for the remainder of fiscal 2026 in a moment. Please turn to slide 17. I’d now like to briefly update you on the progress across our Globalize and Innovate platforms. Starting with Globalize, performance has accelerated year-over-year, with incremental contribution increasing approximately $8 million to $11 million fiscal year to date.

Globalize businesses delivered double-digit year-over-year growth in the quarter, and incremental sales are ahead of plan to date, reflecting continued traction from prior investments across our regions. Turning to Innovate, momentum has been even stronger. Innovate has already exceeded its full year target after just two quarters, reflecting accelerated commercialization across the portfolio. Performance has been supported by continued strength in high purity pharma excipients with emerging contribution from GLP-1 related applications. In the quarter, Innovate delivered approximately $10 million of incremental sales, taking us past our original $15 million full year target. This reflects the strength and depth of our innovation pipeline, particularly in pharma cellulosics, as well as successful new product introductions across other parts of the portfolio.

Based on the progress to date, strong executions across both platforms reinforce our confidence in delivering our fiscal 2026 $35 million combined revenue commitment from Globalize and Innovate. Please turn to slide 18. I’ll now walk you through our updated fiscal 2026 outlook, which reflects current operating conditions and a prudent view on near-term execution while maintaining confidence in the underlying strength of the portfolio. For fiscal 2026, we are updating our guidance as follows: For sales, $1.835 billion-$1.87 billion, and adjusted EBITDA, $385 million-$400 million. We also expect adjusted EPS growth to be mid-single to high single-digit growth and ongoing free cash flow conversion of approximately 50% of adjusted EBITDA.

The updated outlook reflects softer energy related demand tied to the Middle East conflict, reduced EV driven demand, and slower than anticipated productivity at Hopewell. This is partially offset by resilient demand in core end markets, ongoing price actions, and continued growth across our Globalize and Innovate platforms. In addition, key assumptions underlying the outlook include Life Sciences and Personal Care are expected to remain resilient, supported by stable end market fundamentals, continued portfolio progress, and encouraging early third quarter demand trends. Specialty Additives and Intermediates markets remain stable at trough levels, with any recovery in coatings expected to be gradual and regionally uneven. Raw material logistics costs are trending higher, reflecting geopolitical driven volatility, although recent pricing actions are expected to offset these impacts. Performance remains second half weighted, consistent with historical seasonality.

Given these factors, we believe it is appropriate to remain prudent while continuing to manage production, inventory, and free cash flow with discipline. With that, I’ll now turn the call back to Guillermo to discuss our technology platforms and share some closing thoughts before we open the call for questions. Guillermo.

Guillermo Novo, Chair and Chief Executive Officer, Ashland Global Holdings Inc.: Thank you, William. Innovation remains a core driver of Ashland’s long-term value creation, and the progress we’re seeing in fiscal 2026 reinforces the strength of our pipelines. Slide 19 highlights three innovation platforms that demonstrate how we are translating science into scalable, differentiated growth opportunities across multiple end markets. Importantly, these are scalable technology foundations supported by customer collaboration, regulatory progress, and clear paths to commercialization. Starting with transformed vegetable oil, this platform continues to move towards early co-commercialization. Customer trials are progressing in crop care, regulatory milestones are being achieved, and TVO-based solutions are expanding into Personal Care, coatings, and industrial applications. Turning to super-wetting agents, customer feedback remains strong, particularly in Personal Care. Originally developed within Specialty Additives, this PFAS-free, silicone-free technology is expanding across multiple end markets. Finally, bioresorbable polymers continue to gain momentum across high-value medical applications, including long-acting injectables and medical devices.

Beyond these platforms, we continue to advance adjacent innovation programs across Personal Care and coatings, including new multifunctional starches, pH neutralizers, and next generation rheology solutions with multiple global launches planned in fiscal 2026 and early regulatory progress supporting broader commercialization. Taken together, these platforms demonstrates Ashland’s ability to translate science into scalable growth, combining strong technical capabilities, global manufacturing expansion, and deep customer relationships to support value creation over time. Please turn to slide 20. As we look ahead, I wanted to briefly outline the leadership priorities guiding our actions as we strengthen the foundation of the business. Position Ashland for sustained performance beyond 2026. Our full-year expectations reflect both the underlying strength of our portfolio and the reality that our operating performance this year has fallen short of our standard.

While the market environment remains mixed, the fundamentals of the business continue to provide resilience. Performance in the second quarter was impacted by specific internal manufacturing challenges. These issues are disappointing, but they are internal and within our control, and addressing them is a top priority for the leadership team. We are making targeted disciplined action to improve operational reliability, cost performance, and consistency of execution. At the same time, several elements of our strategy continue to progress. As William highlighted, innovation and globalized momentum remain strong. Cash generation and balance sheet disciplines remain central, supporting resilience in a volatile macro. Portfolio simplification and structural actions are strengthening the foundation for improved performance as execution stabilizes. We move forward, our priorities are clear. Operate safely and reliably with a focus on consistent customer service. Stabilize and improve manufacturing execution.

Execute pricing actions to offset raw material inflation while actively managing supply chain volatility to strengthen resilience. Convert innovation momentum into commercial results using our global platforms. Fiscal 2026 is a year of strengthening the foundation. While near-term manufacturing performance has fallen short of our expectation, the strategy remains sound, and our actions are focused on restoring delivery against our commitments. With a more focused portfolio, resilient end markets, and clear operational roadmap, we are positioned to manage near-term challenges while building towards improved performance in fiscal 2027. I wanna thank our Ashland employees for their continued commitment during a demanding period. I thank our shareholders for their continued engagement and support. Operator, please open the line for Q&A.

Chris Parkinson, Analyst, Wolfe Research3: Thank you. At this time, we will conduct the question-and-answer session. As a reminder, to ask a question, you will need to press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by while we compile the Q&A roster. Our first question comes from Joshua Spector of UBS. Your line is now open.

Joshua Spector, Analyst, UBS: Yeah. Hey, good morning. I was wondering if you could talk a little bit more about price-cost dynamics. You know, I think from the prior energy cycles, you know, you guys have been a bit more of a beneficiary because of some of your back integration, and then it’s just a matter of timing for pricing to catch up. You know, you lowered your sales guidance for a couple different reasons rather than raising it with higher pricing. I’m curious if you could talk about that a bit more around how you expect that to play on the second half, or if that’s a little bit more of a longer duration thing, or if I’m just thinking about it in the wrong context here.

Guillermo Novo, Chair and Chief Executive Officer, Ashland Global Holdings Inc.: Thanks, Josh, for the question. A critical question in this environment. Let me answer first on the pricing and then on how we adjusted some of the guidance. First and foremost, on the pricing we’re moving, we’ve announced each business is executing on that, given cost differences in different regions. You know, it’s region by region, product line by product line that we’re doing it. Like in 2022, we’re moving quickly. You know, we’re not a big part of the cost of our customers. We’re not as petrochemical exposed, so our increases overall to cover costs is not that significant. The quicker we can move, get out of the way of our customers, they got bigger problems that they need to address, you know, that’s our objective.

We are moving in that, and we’re already starting to get some of that benefit, and it’ll start flowing through this month and into the coming months. We’re moving both on price increases and surcharges. That depends on, you know, contracts. We know how we need to move. I think the market understands the dynamics. Obviously, you have to do the dance, with customers on timing, magnets and all that, but we’re making very good progress. If you look at our guidance, I think, you know, it’s a very uncertain environment right now with many things. Our trim of the high end of the sales guidance was really more driven by things we know.

You know, energy and resources, we are seeing it’s not a big part of our overall exposure, but we do have some business in the Middle East, and we’re seeing that coming down both in terms of sales. Also we had, you know, some credit issues, but we believe we’ll recover later on. Right now in this environment, you know, I think it is having a little bit of impact. We’re seeing a lot of delays in the EV projects for Intermediates. That’s basically what’s driving it. On the pricing side, it is an upside. We didn’t put it up or factor that in. There’s still a lot of uncertainty in the macro market.

I think the biggest issues that we’re looking at is: Will demand start picking up again in North America? For example, coatings. North America and Europe, we’re not seeing, you know, any improvement, so we wanna be prudent on that. I would keep the pricing dynamic more of an upside in these numbers.

Joshua Spector, Analyst, UBS: Okay. That’s helpful. Maybe just quickly within Life Sciences, I think, you know, you noted the downturn you saw in nutrition and talked about customer order timing. I know that’s relatively small, but do you have visibility to that coming back? ’Cause I think most of your comments broadly were, you know, demand was more resilient across Life Sciences and Personal Care, that’s kind of the maybe one outlier to that dynamic.

Guillermo Novo, Chair and Chief Executive Officer, Ashland Global Holdings Inc.: Yeah. No. We’re, we’re trying to be transparent on the specific segments. I’ll ask Alessandra to comment. Overall, I-I would say, you know, Life Sciences and Personal Care are moving positively. You know, we-we’re not talking, for example, we’ve lapped all the things, but just to be clear, in the case of Personal Care, as an example, we did have some Avoca sales last year, so the growth is actually a little bit stronger. Overall, all the segments are doing pretty well. Alessandra, if you wanna talk, you know, it’s not a big issue of volume.

Alessandra Faccin, Business Unit Leader, Life Sciences and Intermediates, Ashland Global Holdings Inc.: Yeah. Just talk a little bit about the non-pharma nutrition. We have had, as we talked about, we have had recent wins and the ongoing commercial activity does support the growth that we are projecting for the third and fourth quarter. Josh, it is timing. There was some order timing on nutrition, but we are confident on the wins that we are seeing and the commercial activity. It is just a timing, but we see the improving traction.

Joshua Spector, Analyst, UBS: Okay, thank you.

Chris Parkinson, Analyst, Wolfe Research3: Thank you. Our next question comes from Laurence Alexander of Jefferies. Your line is open.

Chris Parkinson, Analyst, Wolfe Research0: Hey. good morning. This is Kevin Estok for Laurence Alexander. Thank you for taking my question. just on your your revised outlook, so $385 million-$400 million EBITDA, I guess, could you help frame what sort of what needs to go right from here to get to the top end of that range? Maybe particularly around like operations and pricing realization.

Guillermo Novo, Chair and Chief Executive Officer, Ashland Global Holdings Inc.: You know, I think as we said in the other one, pricing is an upside. The net impact of pricing and macro demand outlook, you know, it’s probably mostly in Specialty Additives and Intermediates. You know, there is opportunity for some upside there. Those are the two big things. We’re just being prudent and conservative in terms of not including them at this time, given the uncertainty. We’re listening to our customers. If you look at the coatings customers in North America, Europe, everybody’s being more prudent. I think it’s better to be prudent and perform on the upside if those markets get strength.

Chris Parkinson, Analyst, Wolfe Research0: Okay. Thank you.

Chris Parkinson, Analyst, Wolfe Research6: Kevin, just to add a little bit more, as you think about the range on the guidance, it’s mostly on the sales side. As you look at the lower end of it, that’s a low single-digit year-over-year growth rate. Most of that’s driven by some of the activity on the pricing side, which of course then implies flattish volumes otherwise. As you look on the higher end of it’s closer to a 6%-7% sales growth rate, and it’s balanced across both volume and price. As you look at the volume side, credit to the team, it’s been a really strong start on the Globalize and Innovate, and we expect that to continue. What gets you on the higher end is your delivery growth outside of the Globalize and Innovate.

Chris Parkinson, Analyst, Wolfe Research0: I see. Thank you.

Chris Parkinson, Analyst, Wolfe Research3: Thank you. Our next question comes from Jeff Zekauskas of J.P. Morgan. Your line is open.

Jeff Zekauskas, Analyst, J.P. Morgan: Thanks very much. If you total up all the one-time events in Specialty Additives in the quarter, how much was that? Do you expect Specialty Additives operating income to grow in the third quarter?

Guillermo Novo, Chair and Chief Executive Officer, Ashland Global Holdings Inc.: Jeff, two comments that I would say in line with the question, but I’ll broaden it a little bit. The bigger year-to-date impact was the Calvert City, which impacted all the business, mostly Life Sciences and Personal Care. That was equipment failure, downtime. I mean, we was just waiting to get the equipment delivered. It was just the lead times. We weren’t, you know, there was nothing that we were doing in that period of time other than waiting. It was more of an absorption impact, and that was the bigger impact for the full year. Obviously, we have a little bit of the weather and all that. Focusing on Calvert and Hopewell, Calvert was the big one.

That plant’s back on stream and producing, didn’t impact sales per se, but a lot of absorption, we’re moving back. Hopewell had some impact in this quarter, but it’s really moving forward. Our production rates are not where we want them to be. The plant is operating, the budget is above our expectation, and the production rates, we’re not producing at the rate we want. Again, from an absorption perspective, those are the big impacts. I would say between the two, I would say $20-ish between the weather and Calvert on the front end, and another $10-ish on Hopewell in the back end, just to be very high level on some of those drivers.

For us, this is, you know, to be very clear. All the other areas are performing per our expectation. If, you know, if would’ve, should’ve, could’ve, but $30 million is an internal issue. It does not reflect some of these, you know, our overall core performance. Overall, this should have been a much better year. We’re very frustrated obviously, as everybody is on our operating performance, but those are internal things. We’re working them. As I said, Calvert’s back online, and we already have the resources, the investments in place going on in Hopewell to get the productivity back in line. The other issue that I would point out in terms of our EBITDA impact is we are not planning to make significant inventory rebuilds. Okay. Given the uncertainty, we are focused right now on specific product lines.

You know, the Calvert City outage did help us bring down inventories and normalize them. There are specific products that we’re gonna build up. Similarly with the HEC, we’ve built up inventories for the Parlin transition, and that is coming. We will build on specific product lines, but it’s not a broad base. We feel very good of all the changes that we made in the sense of timing. We’ve reduced the overall cost structure of the company. Parlin’s out. We’ve reduced the operation of specific units in our VP&E network. All that has reduced our cost base and our need for absorption. That puts us in this uncertain environment in a better, more stable operating environment in terms of our normal production rates that we need to do.

These are specific plant issues that we’re addressing at this moment.

Chris Parkinson, Analyst, Wolfe Research6: Jeff, on the specific question around Specialty Additives operating in EBITDA in the second half, a key piece of the Hopewell adjustment, right, the 10 to 12 Laponite material sits within Specialty Additives. On that basis, I would expect Specialty Additives down year-over-year.

Jeff Zekauskas, Analyst, J.P. Morgan: Okay. Then, in the Intermediates and solvents area, there have been all of these different duties that have been placed on U.S. producers and offshore producers in Europe. Does that affect you? When you think about the EBIT or EBITDA generation of INS, what’s the trajectory from here? Are we going down or up or nobody can tell?

Guillermo Novo, Chair and Chief Executive Officer, Ashland Global Holdings Inc.: Jeff, I would say 2 things, I would split up, you know, our back integration, which is BDO related and the competitive dynamics. BDO, you know, costs are increasing for China overall production. We would expect that if you look at our, you know, we’re in this business to support our VP&D back integration. That should be favorable from a competitive environment perspective because the cost structure for Europe and Asia is going up. We’re mostly U.S.-based natural gas, butane-based, so we’re in a good position. That’s a favorable for the entire company. If you look at specifically Intermediates, we don’t sell a lot of BDO. It’s more the derivatives. You know, we are seeing pricing. The business is operating stably in the trough.

It’s been in the trough now for several quarters, but it’s stable. I think the issue right now is, you know, as price inflation comes, you know, that will drive some improvements. Hopefully given our lower cost structure, that will be an upside potential. Just today, Alessandra was mentioning, you know, the ICIS BDO numbers came up, prices are increasing overall in the U.S., you know, 5% to 6%. There is good momentum to support. I don’t know if you have anything else you would add, Alessandra.

Alessandra Faccin, Business Unit Leader, Life Sciences and Intermediates, Ashland Global Holdings Inc.: Yeah, no. That is right. We announced price increases this month. We are implementing. Guillermo, as you mentioned, right, the cost implications U.S. versus China are different. We do see a market stabilization and less erosions from a pricing standpoint. Prices have started to move up with the cost implications. Availability remains, you know, it is basically this market are different when we look at it, when you compare to other markets that are other segments, right, being impacted by the Middle East conflict. Definitely even though costs are going up, there is still a supply-demand dynamics and not a lot of impact from availability.

The availability is not changing significantly in this market with the Middle East conflict. We are moving forward with prices increases, but, of course, managing the supply-demand dynamics.

Guillermo Novo, Chair and Chief Executive Officer, Ashland Global Holdings Inc.: Jeff, on the margin side, We did slow down Lima as part of the Calvert City because obviously that feeds into the Calvert City, so we had to slow that down. It did have an impact in terms of absorption. All that is now normalizing with Calvert City picking up. The cost side should be more, you know, more normalized as we move forward.

Jeff Zekauskas, Analyst, J.P. Morgan: Okay, great. Thank you very much.

Chris Parkinson, Analyst, Wolfe Research3: Thank you. Our next question comes from Michael Sison of Wells Fargo. Your line is now open.

Chris Parkinson, Analyst, Wolfe Research1: Hey, good morning, guys. Just curious how you think about 2027? I know it’s a little bit early to give any specific guidance, but you know, just directionally, what the run rate should be and what are the put backs that we should see next year?

Guillermo Novo, Chair and Chief Executive Officer, Ashland Global Holdings Inc.: No. Mike, you know, just high level, and then William, if you wanna give other comments. I mean, we’re not ready to talk about 2027, just high level what we’re seeing right now. You know, obviously macro uncertainty is what everybody questions. We don’t have a crystal ball. I would say, you know, if we look at this year, the business mix, we’ve done all the work. It is performing as we expected. All the businesses, obviously, Life Sciences and Personal Care on resilience, we would expect that to continue. You know, Specialty Additives, stable. I think we’re gaining volume.

This coatings as an example, this year we will get volume growth for the year, and that’s about share and going back into the market. I feel very good about what Dago and the team is doing. You know, the response now is much more a high-end response to the market. We’re launching a lot of products with different price points, and we’re not just dropping price. We’re giving customers, hey, choices on different price points of what we can do. We can be competitive. We can get change cost performance. I feel SA is well-positioned to continue to drive share gain. Obviously the expectation would be, you know, the question it would be, is North America and Europe gonna start to improve?

We don’t see China improving a lot in the foreseeable future in terms of macro demand in the construction side. You know, we’ve streamlined the manufacturing. You know, I won’t repeat it. This has been a challenging year of internal operating issues. Our cost structure, the footprint changes, all those things make us stronger, more competitive, and we have a lower cost base, so that should continue taking out a lot of these issues that we had this year. That should be an additive to next year’s performance. It should have been additive to this year’s performance. The globalize and innovate continue with good momentum, we’ll still continue to work that.

We continue to improve our systems and processes to give more visibility to our regional management teams as they start driving their P&L. We’re pushing a lot of these activities to the front lines so that they can have more ownership and accountability for driving performance. Our goals moving forward remain, if you look at the, you know, 5, 25, 55. 5% growth as a target overall for the market, plus or minus a few percentage points. Getting back to the 25% EBITDA margins and 55% free cash flow conversion.

Chris Parkinson, Analyst, Wolfe Research6: Mike, we don’t want to get into, you know, we don’t want to be prematurely getting into specifics on 2027, but just a couple of things to keep in mind that we’ve spoken to. One, first half this year as the VLO, right, both the outage as well as the extension, as well as weather, which is a $20 million impact in the first half of this year. Two, the team continues to do a really good job, so we’re focused on Hopewell, of course, because it’s not in line with our expectations. VP&E and the small plant consolidation, all of that work is progressing. You will continue to expect some carryover benefit from that. Hopewell, the team is doing work. We are committing to improving operations, particularly in the second half this year.

You’ll start to get some carryover sequential benefit going into fiscal 2027. This is very dynamic on price raws for right now. That’s a key piece of the carryover next year, some of the pricing activity as well as raw material. You know, to Guillermo’s point, volume growth contribution makes benefit over time as we drive the globalize and innovate. Really, the only piece on the offset side, of course, is that we have to manage cost inflation. I think there are several things that point to a nice recovery going into fiscal 2027, and a lot of it’s in our control.

Chris Parkinson, Analyst, Wolfe Research1: Great. Thank you.

Chris Parkinson, Analyst, Wolfe Research3: Thank you for your question. Our next question comes from Steven Haines of Morgan Stanley. Your line is open.

Chris Parkinson, Analyst, Wolfe Research5: Hey, good morning, everyone. Thanks for taking my question. Wanted to just come back to the price cost dynamic for a second. Is there any way to maybe just put a finer point on the magnitude of how much price you’re expecting to achieve versus how much cost is going up? I’m just a little. Maybe I’m sorry if I missed this somewhere earlier in the call, but is the midpoint of the guidance assuming that that’s neutral this year, or is it expected to be a net positive or net negative? If you could just put a finer point around all that would be helpful. Thank you.

Chris Parkinson, Analyst, Wolfe Research6: Yeah. Thanks, Steven. It’s a good and it’s an important question. I think first of all, let me just anchor on what we’ve said in the call, and then I’ll add some additional color. The good news for us, right, is that we purchased a number of our raws. They are from the U.S., right? Even those that are energy intensive or pet chem derived, a lot of that’s sourced in the U.S. The way that we’ve been sizing this is around the % sales, just to help from your framework perspective. Overall, if we group energy-intensive raws as well as pet chem-linked raw materials and freight, ’cause freight’s obviously moving too, that’s roughly 20% of sales. 15% is the raw material basket, 5 is freight, so 20% overall.

Even though we are well-positioned, we’re of course not immune to what’s going on in the world from a volatility perspective. Some of our processing inputs are up, of course, and it varies a great deal by product line and by region.

If you isolate that 20% exposure of sales and assume it’s up 10%-15%, you’ll get a sense of the increase that we’re seeing on the cost structure. I would say on the raws side, the lag is a bit longer. You do get some favorable price raws benefit in the second half on that basis because of our inventory position. I’d say really the key piece for us is given that magnitude, 10%-15% on that 20% of sales, the team believes it’s a manageable exposure for us, and it’s one that we can manage to cover.

Guillermo Novo, Chair and Chief Executive Officer, Ashland Global Holdings Inc.: Overall, I mean, we’re talking, you know, if you did 20%, put an inflation number to that’s, you know, the raw material, we’re in the single digits. You know, we’ve announced depends by region. There are product lines that are much higher, so I don’t wanna generalize. You know, 3%-8% in general has been sort of the numbers that we’ve been giving, I would say, if I average out some of the numbers. You know, we don’t wanna get into specific. We’re negotiating with customers and all that in the specifics, but, you know, it’s a very doable number for us. You know, we’ve had a good track record in moving that through.

Chris Parkinson, Analyst, Wolfe Research5: Awesome. Thanks for the color. Appreciate it.

Chris Parkinson, Analyst, Wolfe Research3: Thank you. Our next question comes from Chris Parkinson of Wolfe Research. Your line is open.

Chris Parkinson, Analyst, Wolfe Research: Great. Thank you so much. Just a broad-based question. When you look globally at pretty much every one of your competitors and knowing it’s fairly fragmented, but across VP&D, across cellulose, across HEC, essentially every single supplier has been raising price. I’m a bit confused in terms of the disconnect in terms of the customer acceptance or let’s say not acceptances quite yet in terms of that, because it doesn’t seem like anybody’s really budging into kind of the middle part of this year. At the same time, in certain geographies, people are potentially facing even shortages based on the fact that the supply is at fairly low, you know, availability right now. What are you actually hearing from your customers?

Is this a when, not an if, or just how do you kind of characterize the dynamics, you know, heading into the middle of the year? Thank you.

Guillermo Novo, Chair and Chief Executive Officer, Ashland Global Holdings Inc.: I don’t think it’s an if. I mean, things are moving. Like we said, we’re moving across the board. Everybody understands the dynamics of what’s going on and we’re moving. We’re not questioning our need or ability to do the pricing. That’s moving, and we expect that to deliver. What we’re trying to make sure everybody understand is that we are not as petrochemical exposed, so our numbers are not, you know, the necessity. You know, we don’t make, you know, our margin expansion isn’t driven by increasing prices in this kind of environment. We wanna recover our inflation on our margins so that we don’t, you know, don’t get erosion into it. I think our customers know that.

Our overall margin performance is driven by value pricing and by managing our cost structure. Value pricing is going very well, especially as you look at some of the newer products. The price increase we’re invest in inflation is going very well. Obviously, this year, you know, we’ve taken a lot of strategic actions on the cost, but that’s where, you know, I’d say we underperformed in our internal relations with two of the plants.

Chris Parkinson, Analyst, Wolfe Research: Just, like, as a very quick follow-up, just in the Personal Care market, at the beginning of the year, the end of 2025 into 2026, there were some rumblings of, you know, some inventory destocking here and there. At the same time, it does seem like you’re seeing, you know, pretty substantial improvements, especially in some of the biofunctionals. You know, what are you hearing from customers in terms of the balance of the year, in terms of the end market demand, inventory management? It seems like things are back on track, but what is your degree of confidence on that?

Guillermo Novo, Chair and Chief Executive Officer, Ashland Global Holdings Inc.: Jim, do you wanna comment?

Jim Minicucci, Business Unit Leader, Personal Care, Ashland Global Holdings Inc.: Sure. Hey, Chris. In Q1, in the December quarter, as we mentioned, excluding some of the specific customer outages, we were up low single digit, and we continue to see momentum in this quarter as we’re up low to mid single digits. I would unpack that into two parts. There’s the base, and then there’s the actions that we’re driving. If you look at our biofunctional actives, the base continues to perform well, and we’ve had really good success expanding our customer base and getting our new products adopted and repped with customers. Similar in Microbial Protection, the base is holding well, and the team’s done really a phenomenal job converting our pipeline and continuing to gain share in that business line.

Even our Care Ingredients, that was the one that was impacted by the customer outages in Q1. They’re, they’re back online, and that’s gonna continue to flow through the balance of the year. As we look out through the rest of the year, we see the market remaining relatively stable. There’s the things that we’re driving in our globalized business lines that we expect to continue to flow through. We’ll continue to monitor how the base performs through to the balance of the year as it is dynamic, although we still see, you know, fairly robust demand.

Chris Parkinson, Analyst, Wolfe Research: Thank you.

Jim Minicucci, Business Unit Leader, Personal Care, Ashland Global Holdings Inc.: Thank you.

Thank you, Chris. Our next question comes from David Begleiter of Deutsche Bank. Your line is open.

David Begleiter, Analyst, Deutsche Bank: Thank you. Good morning. Guillermo, just on the price cost still, in FQ3, how much of a tailwind is that dynamic? What would you expect as well for FQ4? Thank you.

Guillermo Novo, Chair and Chief Executive Officer, Ashland Global Holdings Inc.: How much? I’m sorry.

David Begleiter, Analyst, Deutsche Bank: How much of a tailwind?

Guillermo Novo, Chair and Chief Executive Officer, Ashland Global Holdings Inc.: That was a good question.

David Begleiter, Analyst, Deutsche Bank: How much of a tailwind, a dollar EBITDA tailwind do you expect price for us to be for you guys in FQ three and FQ four?

Guillermo Novo, Chair and Chief Executive Officer, Ashland Global Holdings Inc.: I mean, for the price raws, the inflation, most of it will start hitting us a bit later. Our issue is getting the pricing in line. I mean, the costs are coming up, and it’ll flow through into our inventories for now. We wanna make sure that we’re getting our costs, our pricing in place to cover that as we move forward. You know, we haven’t really outlined specifics on, you know, the price increases and the flow through, but that’s already starting to come this month. It’s building in, we’ll be reporting more as we go forward. It’s more of a timing issue. We do.

I would say for the spot business, I think we’ll be moving more spot non-contract business. We will be moving in faster. I think we have a lot of contract business, especially if you look at pharma and some of our bigger customers. That’s where we’re working with them on, you know, the timing. We’re not, we’re not uncertain about the magnitude of the increase that we’re getting at this point in time.

David Begleiter, Analyst, Deutsche Bank: Okay.

Guillermo Novo, Chair and Chief Executive Officer, Ashland Global Holdings Inc.: We don’t have a specific number to give you at this point in time.

David Begleiter, Analyst, Deutsche Bank: Right. On the revised EBITDA guidance, was there a change to incentive comp accruals for this year?

Guillermo Novo, Chair and Chief Executive Officer, Ashland Global Holdings Inc.: Not significant. I think the biggest issue would be on the Specialty Additives, obviously. There was some impact on given some of the operating issues, but we’re working it. It’s not a significant impact overall ’cause for the majority of the organization is business by business in terms of the incentive comp.

Chris Parkinson, Analyst, Wolfe Research6: Yeah, that’s right. Thank you.

Chris Parkinson, Analyst, Wolfe Research3: Thank you.

David Begleiter, Analyst, Deutsche Bank: Thank you.

Chris Parkinson, Analyst, Wolfe Research3: Our next question comes from John Roberts of Mizuho. Your line is open.

John Roberts, Analyst, Mizuho: Thank you. What’s the root engineering cause of the Hopewell ramp-up issues? Are you doing something differently there than at other HEC sites?

Guillermo Novo, Chair and Chief Executive Officer, Ashland Global Holdings Inc.: Yes. You know, the whole issue in Hopewell, remember we shut down Parlin. We changed the mix of the plant significantly. We had just brought on some investments in capacity at the end of last year in terms of HEC overall capacity. The mix change is really what is driving the productivity. We’re putting a lot of investments in in terms of enabling the new mix. We’re producing, you know, the products we want, but it’s not at the production rates that we wanted, and I think that’s the biggest issue. The teams are already working on it. The budgets were a little bit higher, and that is, I would say, two things.

One is on our own performance, the other one is we are putting more resources to drive those improvements in the near term.

John Roberts, Analyst, Mizuho: In personal care, there was a range of growth from high single digits in skincare to low single digit in oral care and home care. Is there just more innovation going on in skincare that’s driving that, or is there something else just in the comparisons to cause the unevenness?

Guillermo Novo, Chair and Chief Executive Officer, Ashland Global Holdings Inc.: Let me high level, but then you can comment. It depends on the product line. Obviously, the biofunctional actives and actually micro goes into the skincare and those areas. It’s a product mix and, you know, then it’s the base business. Jim, you can give more color on especially on the base business if you want.

Jim Minicucci, Business Unit Leader, Personal Care, Ashland Global Holdings Inc.: Absolutely. Yeah. John, as you mentioned, I mean, a lot of our innovation and globalized businesses are both focused in skin and in hair, and that is the majority of our Personal Care business. We’re seeing really nice growth in both of those segments. In oral care, we also, as you know, no surprise, we’ve shared it in the past, we do have sometimes order pattern timing. So we are seeing some shift again this year in order pattern timing, fine for the full year. That’s driving some of maybe the lower comps on a prior year basis. You’ll see that step up as we go through the balance of the year in oral and home.

John Roberts, Analyst, Mizuho: Thank you.

Guillermo Novo, Chair and Chief Executive Officer, Ashland Global Holdings Inc.: Thanks.

Jim Minicucci, Business Unit Leader, Personal Care, Ashland Global Holdings Inc.: Thank you.

Chris Parkinson, Analyst, Wolfe Research3: Thank you.

David Begleiter, Analyst, Deutsche Bank: Thank you.

Chris Parkinson, Analyst, Wolfe Research3: Our next question comes from Mike Harrison of Seaport Research Partners. Your line is open.

Chris Parkinson, Analyst, Wolfe Research2: Hi, good morning.

Guillermo Novo, Chair and Chief Executive Officer, Ashland Global Holdings Inc.: Hi.

Chris Parkinson, Analyst, Wolfe Research2: I had a question on Life Sciences. The last time we went through a round of supply chain disruption and kind of an inflationary cycle, you guys ended up picking up some market share kinda temporarily in the pharma space, and then you ended up giving it back. Just curious, could we see that kinda dynamic again, given maybe some of the challenges that your competitors are seeing in Europe and Asia? How would you approach this situation differently to make sure that you’re generating more durable share gain with some of your customers?

Guillermo Novo, Chair and Chief Executive Officer, Ashland Global Holdings Inc.: Mike, let me high level and Alessandra Faccin, if you have anything specific, but just at a high level. I mean, in this level of uncertainty with the war, all the, you know, news and analysis that we’re getting would be, "Hey, if this persists, the cost structures for China or Asia in general, India would also be impacted, and also for Europe would increase." We are one of the few large producers in that product line from the Western world, and we’re U.S.-based. There’s not a lot of other production at our scale in the U.S. Most of our competitors are either in Europe or in China. There is an opportunity.

I think as Alessandra said, there is not a shortage at this point in time. That would be not an issue of cost. I think it would be more of an issue of availability, especially for Europe and for China. There is an opportunity that that could evolve as we move forward. I think what would we do? Obviously, I think, one, just this risk reinforces for customers the need to be balanced in terms of their supplier base and having, you know, a balance and a U.S.-based and good energy cost, good position from a cost structure is obviously a favorable reminder for everybody, and I think that plays well for us.

Obviously, we can do is, if that scenario starts to play out, there’s things that we can do in terms of contracts and, and how we wanna play it. I think importantly, we would, we would also be very clear with everybody on what’s, you know, what are some of these share shifts that are permanent versus, you know, that would be transitory. We would maximize our performance as orders come in. If you wanna... Anything else you would add, Alessandra?

Alessandra Faccin, Business Unit Leader, Life Sciences and Intermediates, Ashland Global Holdings Inc.: As Guillermo mentioned, there is not a shortage at this time, but we are seeing as we have the largest, the broadest, portfolio, from an excipient standpoint in pharma industry. We’re a reliable, high-quality supplier. Definitely we have seen in the last month, I mean, customers nervous about their business continuity plans, you know, BCP plans, and looking at dual sourcing. That opens opportunities for where we didn’t, you know, we didn’t have participation. Definitely, you know, we see this as there are opportunities, and as Guillermo mentioned, making this more with you know, long term as far as agreements.

Definitely, we expect to see Life Sciences, specifically pharma, continue to deliver healthy growth in the second half of the year and going forward. We see the resilience of the pharma demand, and we are working on, you know, basically capitalizing on the momentum of our globalized innovate, which are areas where we have opportunities to grow our market share. Definitely the disruption, we don’t see a shortage, but it does bring us opportunities from a as our customers work on their BCP plans.

Guillermo Novo, Chair and Chief Executive Officer, Ashland Global Holdings Inc.: Yeah. One last thing, Mike, just on your comment, but broader than just the VP&D question. I mean, there’s a lot of uncertainty, and depending on how these things go, there’s a lot of upside that can come in Intermediates. I mean, shortages. If things get worse, there’s a lot of upside. We don’t have a crystal ball. We don’t think it’s prudent just to be overly positive, you know, with the guidance that we’re giving, especially on the revenue and the core businesses, the core performance of the business portfolio. I think we’re in a healthy growth, healthy momentum, you know, we don’t wanna be, you know, overly optimistic and surprised on that side of the equation, we’re being transparent about it.

I think, on the EBITDA side, same thing. If that picks up, it’ll translate into greater EBITDA. Again, we’re gonna be more conservative. I think acknowledging our internal issues, but we’re very pleased with all the broader external macro issues. We do recognize that there is upside on pricing impact and that there is upside on if demand tightness increases.

Chris Parkinson, Analyst, Wolfe Research2: Thanks very much.

Guillermo Novo, Chair and Chief Executive Officer, Ashland Global Holdings Inc.: Thanks.

Chris Parkinson, Analyst, Wolfe Research3: Thank you, Mike. Our last question comes from John McNulty of BMO. Your line is now open.

John McNulty, Analyst, BMO: Yeah, thanks for taking my question. I just wanted to revisit the commentary around the innovate part of your kind of mid-year progress. I think you were looking for $15 million for the year, and you’re at $16 already. I think you did $6 in the first quarter of sales. That means $10 in the second. Clearly, things are coming in, I think, better than what you expected, and you’re on pace for, you know, potentially coming in double what the, what the target was gonna be. I guess, can you help us to think about where you expect to end the year in terms of a run rate? Just so we can think about how some of that innovation may drive growth as we look into 2027.

Guillermo Novo, Chair and Chief Executive Officer, Ashland Global Holdings Inc.: I think the way you described it is sort of how we see it. I mean, this is a cumulative metric for the year. If we already gain the business and it’s at a certain run rate, if it continues, we will continue with that level of performance. That’s sort of our expectation. As a reminder, I mean, we’re from a dollar perspective, it’s a lot of the core innovations that we’ve been working on and it’s a very, very healthy growth. Most, you know, I would say right now, pharma and Personal Care are driving a lot of it. We’re launching a lot of new products, so I think there’s the opportunity is for continued momentum there, both with core in the near term.

I would highlight that I’m very excited on the progress that the team is making on some of the new platforms in significant projects, be it especially in Personal Care and in the Specialty Additives. You know, in Life Sciences would be more ag pharma takes it to longer pipelines, so it’s gonna take a little bit longer for those things to take off. All of them, you know, we’re really confident. We’ve proven the value, the technical and performance value of these platforms. The teams are now really working on product development, specific customer projects to tailor the technologies for them. You know, both in the near term, but more importantly, in the long term, we see continued momentum there.

John McNulty, Analyst, BMO: Great. Thanks very much for the color.

Chris Parkinson, Analyst, Wolfe Research3: Thank you. I am showing no further questions at this time. I would now like to turn it back to the CEO, Guillermo Novo, for closing remarks.

Guillermo Novo, Chair and Chief Executive Officer, Ashland Global Holdings Inc.: Thank you everyone for your time and your interest. Just wanted to reiterate the three big points that we made. From the business side, we’re really happy with the overall performance of the businesses, the market trends. You know, be it Resilient, Life Sciences, Personal Care, stable. Specialty Additives with growing momentum around share gains. Intermediates stable in the trough with opportunities depending on market dynamics to improve. Globalize and innovate, very strong. Competitive dynamics have been, continue to be strong, but stable, that is giving us room to really start to drive our own agenda moving forward. We haven’t seen any significant pre-buying of our things. Overall, the business side of things are moving, you know, probably stronger, on the stronger side of our expectations.

We are moving on pricing, and there is upside in terms of the financial impact there. We’re muting that a little bit just with caution on demand outlook in core markets that we don’t have a crystal ball, and we’re not seeing the immediate recovery. Coatings North America, Europe, as big examples. We’re following the lead of our customers and what they’re saying. Lastly, it’s the real issue for the outlook changes that we have is more our operating performance and our manufacturing. 3 issues that have impacted us, 2 are behind us. Calvert City, the equipment failure and the delays in getting the replacement equipment, which impacted our absorption. Weather impacts. Right now the big focus for us is Hopewell and getting it back on productivity.

We are frustrated with that part of the performance, but we’re working on it. That’s in our control. It does not represent a view of the broader portfolio or all the bigger strategic actions. We’re confident that we will be overcoming that in the near future. Thank you for your time. We look forward to connecting with you after and answering any other questions you may have. Thank you.

Chris Parkinson, Analyst, Wolfe Research3: Thank you for your participation in today’s conference. This does conclude the program, and you may now disconnect.