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NEW YORK - Ashland Inc. (NYSE:ASH), currently trading near its 52-week low at $47.91, announced Tuesday that a production unit at its Calvert City, Kentucky manufacturing facility is currently offline following an equipment-related incident that occurred earlier this month. According to InvestingPro analysis, the company appears undervalued based on its Fair Value metrics, with 8 additional key insights available to subscribers.
According to the company’s press release, repairs to the affected unit will require fabrication and installation of new equipment, with work expected to be completed during the first quarter of fiscal 2026. The extended timeline is primarily due to lead times for sourcing necessary parts.
Despite the shutdown of one production unit, the facility remains partially operational with damage confined to upstream operations. Ashland stated it does not anticipate any impact on customer deliveries or sales commitments during the outage period, citing sufficient finished goods inventory and ongoing production from unaffected units. The company’s strong liquidity position, evidenced by a current ratio of 2.68 and liquid assets exceeding short-term obligations, supports its operational flexibility during this period.
The specialty ingredients company expects the primary impact to be operational, including repair costs and absorption-related inefficiencies. Financial estimates indicate minimal impact on Adjusted EBITDA for fiscal 2025, with an approximate $10 million carryover impact in fiscal 2026, depending on final repair timing.
Ashland is coordinating production and inventory across its network to maintain efficient operations and optimize working capital during the repair period. The company plans to provide its next update on repair status and operational impact during its fourth-quarter earnings release.
Ashland Inc. manufactures additives and specialty ingredients for various industries including architectural coatings, construction, energy, food and beverage, personal care, and pharmaceutical markets. With annual revenue of $1.87 billion and EBITDA of $347 million, the company maintains a stable 3.49% dividend yield. For comprehensive analysis and detailed metrics, access the full company research report available on InvestingPro, covering over 1,400 US stocks with expert insights and actionable intelligence.
In other recent news, Ashland Inc. reported its fiscal third-quarter 2025 earnings, with an adjusted EPS of $1.04, missing the forecasted $1.24. Revenue also fell short of expectations, coming in at $463 million compared to the projected $476.58 million. Despite these misses, Ashland’s stock experienced a notable surge following the earnings announcement. Additionally, Ashland’s board of directors declared a quarterly cash dividend of $0.415 per share, payable on September 15, 2025, to shareholders of record as of September 1, 2025. On the analyst front, Morgan Stanley initiated coverage on Ashland with an Equalweight rating and a $60 price target, while BMO Capital raised its price target to $61 based on a higher 2026 EBITDA estimate. Conversely, Argus lowered its price target to $65, citing demand challenges and inflationary pressures affecting recent earnings, although it maintains a Buy rating. These developments reflect a mix of financial results and varied analyst perspectives on Ashland’s future performance.
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