ASHLAND INC.

Previous wording

Ashland’s sales generated outside of North America were 73% for both the three and six months ended March 31, 2026, and 72% for both the three and six months ended March 31, 2025. Sales by region expressed as a percentage of total consolidated sales were as follows:

Current wording

Ashland’s sales generated outside of North America were 73% for both the three and nine months ended June 30, 2026, and 73% and 72% for the three and nine months ended June 30, 2025, respectively. Sales by region expressed as a percentage of total consolidated sales were as follows:

Previous wording

The three months ended March 31, 2026, saw continuing regulatory activity involving notable changes to U.S. and foreign trade policy, leading to significant uncertainty in the macroeconomic and geopolitical environments. Beginning in the second quarter of fiscal 2025, the U.S. instituted a series of tariffs on imports from China, the E.U., India, and other countries which has resulted in the imposition of retaliatory measures against U.S. goods. As a global business, we are exposed to risks associated with tariffs and other trade conflicts. Such risks may include, but are not limited to, (i) changes to and strains on the global supply chain and our ability to source materials; (ii) increased sourcing and manufacturing costs; (iii) decreased demand for Ashland’s products in affected markets; and (iv) other impacts on Ashland’s ability to operate optimally.

Current wording

The three and nine months ended June 30, 2026, saw continuing regulatory activity involving notable changes to U.S. and foreign trade policy, leading to significant uncertainty in the macroeconomic and geopolitical environments. Beginning in the second quarter of fiscal 2025, the U.S. instituted a series of tariffs on imports from China, the E.U., India, and other countries which has resulted in the imposition of retaliatory measures against U.S. goods. During fiscal 2026, certain previously announced tariff measures have been modified, suspended, challenged, or reversed, while additional trade actions remain under consideration, contributing to continued uncertainty regarding the future trade policy environment and its potential impact on our business. As a global business, we are exposed to risks associated with tariffs and other trade conflicts. Such risks may include, but are not limited to, (i) changes to and strains on the global supply chain and our ability to source materials; (ii) increased sourcing and manufacturing costs; (iii) decreased demand for Ashland’s products in affected markets; and (iv) other impacts on Ashland’s ability to operate optimally.

Previous wording

Ashland does not have manufacturing operations in Iran, Israel, Russia, Ukraine, Venezelua or Belarus. Ashland sells (or previously sold) additives and specialty ingredients to manufacturers in these countries for their use in pharmaceuticals, personal care, and coatings applications. Sales to Russia and Belarus were previously limited and our products were primarily used in products and applications that are essential to the population's well-being and currently support our customers' humanitarian efforts. We have sales controls in place to ensure that future potential sales into the region are only to support critical pharmaceutical or personal hygiene products which are essential for the general population and in accordance with any applicable sanctions. Sales to Israel, Ukraine, Russia, and Belarus represent less than 1% of total consolidated sales and less than 1% of total consolidated assets (related to accounts receivable). Ashland has no sales activity with Iran.

Current wording

Ashland does not have manufacturing operations in Iran, Israel, Russia, Ukraine, Venezuela or Belarus. Ashland sells (or previously sold) additives and specialty ingredients to manufacturers in these countries for their use in pharmaceuticals, personal care, and coatings applications. Sales to Russia and Belarus were previously limited and our products were primarily used in products and applications that are essential to the population's well-being and currently support our customers' humanitarian efforts. We have sales controls in place to ensure that future potential sales into the region are only to support critical pharmaceutical or personal hygiene products which are essential for the general population and in accordance with any applicable sanctions. Sales to Israel, Ukraine, Russia, and Belarus represent less than 1% of total consolidated sales and less than 1% of total consolidated assets (related to accounts receivable). Ashland has no sales activity with Iran.

Previous wording

As previously announced, Ashland initiated a $30 million pre-tax restructuring plan to offset the impact from the Nutraceuticals business sale completed in fiscal 2024, the Avoca business sale completed in fiscal 2025, and other portfolio optimization actions, which were expected to be realized 50 percent in fiscal 2025 and 50 percent in fiscal 2026. See Note D of the Notes to Condensed Consolidated Financial Statements for severance reserves associated with this program.

Current wording

As previously announced, Ashland initiated a $30 million pre-tax restructuring plan to offset the impact from the Nutraceuticals business sale completed in fiscal 2024, the Avoca business sale completed in fiscal 2025, and other portfolio optimization actions, which were expected to be realized 50 percent in fiscal 2025 and 50 percent in fiscal 2026. These actions are substantially complete. See Note D of the Notes to Condensed Consolidated Financial Statements for severance reserves associated with this program.

Previous wording

Ashland also executed its portfolio optimization actions to further strengthen Ashland’s resilience and improve margins and returns. These previously announced actions include initiatives focused on carboxymethylcellulose ("CMC"), methylcellulose ("MC"), the Nutraceuticals business sale and the Avoca business sale (collectively, "Portfolio Optimization"). Overall, these Portfolio Optimization actions reduced sales and Adjusted EBITDA by approximately $2 million and zero, respectively, for the three months ended March 31, 2026, and approximately $11 million and $1 million, respectively, for the six months ended March 31, 2026, compared to the prior year periods. Operating income (loss) was positively impacted by $2 million and $4 million for the three and six months ended March 31, 2026, respectively, compared to the prior year periods.

Current wording

Ashland also executed its portfolio optimization actions to further strengthen Ashland’s resilience and improve margins and returns. These previously announced actions include initiatives focused on carboxymethylcellulose ("CMC"), methylcellulose ("MC"), the Nutraceuticals business sale and the Avoca business sale (collectively, "Portfolio Optimization"). These actions are substantially complete. Overall, these Portfolio Optimization actions had no impact on sales, Adjusted EBITDA and operating income (loss) for the three months ended June 30,

Previous wording

Ashland is also advancing a multi-year manufacturing network optimization to improve operational cost and strengthen its competitive position. This optimization plan is expected to generate pre-tax savings of $50 million to $55 million with $60 million being achievable as market conditions improve, particularly within China. Ashland realized savings of approximately $10 million and $15 million during the three and six months ended March 31, 2026, compared to the prior year periods.

Current wording

Ashland is also advancing a multi-year manufacturing network optimization to improve operational cost and strengthen its competitive position. This optimization plan is expected to generate pre-tax savings of $50 million to $55 million with $60 million being achievable as market conditions improve, particularly within China. Ashland realized savings of approximately $2 million and $10 million during the three and nine months ended June 30, 2026, respectively, compared to the prior year periods as a result of these multi-year manufacturing network optimizations.

Previous wording

As a result of the loss from continuing operations attributable to Ashland during the six months ended March 31, 2025, the effect of the share-based awards convertible to common stock would be antidilutive and have been excluded from the diluted EPS calculation.

Current wording

As a result of the loss from continuing operations attributable to Ashland during the three and nine months ended June 30, 2025, the effect of the share-based awards convertible to common stock would be antidilutive and have been excluded from the diluted EPS calculation.

Previous wording

Ashland's net income of $16 million ($0.34 diluted EPS) and $31 million ($0.65 diluted EPS) included income from discontinued operations of $1 million ($0.02 diluted EPS) and $1 million ($0.02 diluted EPS) in the three months ended March 31, 2026 and 2025, respectively.

Current wording

Ashland's net income of $16 million ($0.35 diluted EPS) and net loss of $742 million (loss of $16.21 diluted EPS) included loss from discontinued operations of $25 million (loss of $0.54 diluted EPS) and $23 million (loss of $0.51 diluted EPS) in the three months ended June 30, 2026 and 2025, respectively.

Previous wording

Results for Ashland’s continuing operations, diluted EPS from continuing operations and operating income for the three months ended March 31, 2026 and 2025, included certain key items that were excluded to arrive at Adjusted EBITDA and are quantified in the “Use of Non-GAAP Financial Measures” section below. These pre-tax key items totaled expense of $20 million and $6 million for the three months ended March 31, 2026 and 2025, respectively, impacting continuing operations. Continuing operations was also impacted by favorable tax specific key items for discrete tax items totaling zero and $1 million for the three months ended March 31, 2026 and 2025, respectively.

Current wording

Results for Ashland’s continuing operations, diluted EPS from continuing operations and operating income (loss) for the three months ended June 30, 2026 and 2025, included certain key items that were excluded to arrive at Adjusted EBITDA and are quantified in the “Use of Non-GAAP Financial Measures” section below. These pre-tax key items totaled income of $5 million and expense of $754 million for the three months ended June 30, 2026 and 2025, respectively, impacting continuing operations, including a non-cash goodwill impairment charge of $706 million in the three months ended June 30, 2025 ($375 million for the Life Sciences and $331 million for the Specialty Additives reportable segments). Continuing operations was also impacted by unfavorable tax specific key items for discrete tax items totaling zero and $13 million for the three months ended June 30, 2026 and 2025, respectively.

Previous wording

Excluding these key items, the decrease in continuing operations, diluted EPS from continuing operations and operating income was primarily driven by softer pricing, the Calvert City startup delay and weather-related operational disruptions during the quarter, partially offset by favorable foreign exchange currency and lower selling, general and administrative expenses. In addition, diluted EPS from continuing operations was also impacted by common stock reductions from repurchases of Ashland common stock over the last twelve months. These common stock repurchases reduced the number of weighted average shares from 47 million diluted shares at March 31, 2025 to 46 million diluted shares at March 31, 2026.

Current wording

Excluding these key items, the decrease in continuing operations, diluted EPS from continuing operations and operating income (loss) was primarily driven by unfavorable production costs and higher selling, general and administrative expenses, partially offset by higher sales volumes, price/mix and foreign currency exchange. The number of weighted-average common shares outstanding was 46 million diluted shares at both June 30, 2026 and 2025.

Previous wording

Ashland’s Adjusted EBITDA was $98 million for the three months ended March 31, 2026 compared to $108 million for the three months ended March 31, 2025 (see U.S. GAAP reconciliation under “Use of Non-GAAP Financial

Current wording

Ashland’s Adjusted EBITDA was $109 million for the three months ended June 30, 2026 compared to $113 million for the three months ended June 30, 2025 (see U.S. GAAP reconciliation under “Use of Non-GAAP Financial Measures” below). The $4 million decrease in Adjusted EBITDA was primarily driven by unfavorable production costs and higher selling, general and administrative expenses, partially offset by higher sales volumes, price/mix and foreign currency exchange. Adjusted Diluted EPS from Continuing Operations (non-GAAP) Excluding Intangibles Amortization Expense was also impacted by these factors.

Previous wording

Sales for the three months ended March 31, 2026 increased $3 million compared to the three months ended March 31, 2025. The increase was driven by favorable foreign currency exchange which was partially offset by unfavorable pricing. Portfolio Optimization initiatives had a negative $2 million impact on sales in the three months ended March 31, 2026.

Current wording

Sales for the three months ended June 30, 2026 increased $34 million compared to the three months ended June 30, 2025. The increase was driven by higher volume, favorable foreign currency exchange and price/mix.

Previous wording

Sales for the six months ended March 31, 2026 decreased $16 million compared to the six months ended March 31, 2025. The decrease was driven by unfavorable pricing, lower volume and the impact of the Avoca business sale, which was partially offset by favorable foreign currency exchange. Portfolio Optimization initiatives had a negative $11 million impact on sales in the six months ended March 31, 2026.

Current wording

Sales for the nine months ended June 30, 2026 increased $18 million compared to the nine months ended June 30, 2025. The increase was driven by favorable foreign currency exchange and higher volume, which was partially offset by unfavorable price/mix and the impact of the Avoca business sale. Portfolio Optimization initiatives had a negative $11 million impact on sales in the nine months ended June 30, 2026.

Previous wording

Cost of sales for the three months ended March 31, 2026, increased $3 million compared to the three months ended March 31, 2025. The increase was primarily driven by a $10 million negative combined impact from the Calvert City startup delay and weather-related operational disruptions during the quarter as well as unfavorable foreign exchange currency, partially offset by favorable price/mix. The three months ended March 31, 2026, operating costs were affected by $10 million of other plant optimization costs while the three months ended March 31, 2025 included $13 million of accelerated depreciation for product line optimization activities at manufacturing facilities within Life Sciences reportable segment and $6 million of other plant optimization costs. Gross profit as a percentage of sales decreased 0.2% primarily due to higher operating costs compared to the three months ended March 31, 2025.

Current wording

Cost of sales for the three months ended June 30, 2026, decreased $4 million compared to the three months ended June 30, 2025. The decrease was primarily driven by lower operating costs and favorable price/mix partially offset by higher volumes and unfavorable foreign currency. The three months ended June 30, 2026, included $3 million of other plant optimization costs while the three months ended June 30, 2025 included $27 million of accelerated depreciation for product line optimization activities at manufacturing facilities within Life Sciences, Personal Care and Specialty Additives reportable segments and $3 million of other plant optimization costs. Gross profit as a percentage of sales increased 5.7% compared to the three months ended June 30, 2025 as a result of the sales and cost of sales factors noted above.

Previous wording

Cost of sales for the six months ended March 31, 2026, decreased $10 million compared to the six months ended March 31, 2025. The decrease was primarily driven by the impact of the Avoca business sale, favorable price/mix and lower sales volume, partially offset by unfavorable foreign exchange currency and unfavorable operating costs. The six months ended March 31, 2026, operating costs were affected by $3 million of accelerated depreciation for product line optimization activities at manufacturing facilities within Specialty Additives reportable segment and $15 million of other plant optimization costs while the six months ended March 31, 2025 included $13 million of accelerated depreciation for product line optimization activities at manufacturing facilities within Life Sciences reportable segment and $9 million of other plant optimization costs. Gross profit as a percentage of sales decreased 0.2% primarily due to lower sales volume, higher operating costs and other plant optimization costs compared to the six months ended March 31, 2025.

Current wording

Cost of sales for the nine months ended June 30, 2026, decreased $14 million compared to the nine months ended June 30, 2025. The decrease was primarily driven by favorable price/mix, the divestiture of the Avoca business and lower operating costs, partially offset by higher volumes and unfavorable foreign currency. The nine months ended June 30, 2026, operating costs were affected by $4 million of accelerated depreciation for product line optimization activities at manufacturing facilities within Specialty Additives and Personal Care and $18 million of other plant optimization costs while the nine months ended June 30, 2025 included $40 million of accelerated depreciation for product line optimization activities at manufacturing facilities within Life Sciences, Personal Care and Specialty Additives reportable segments and $12 million of other plant optimization costs. Gross profit as a percentage of sales increased 1.9% compared to the nine months ended June 30, 2025, as a result of the sales and cost of sales factors notes above.

Previous wording

Selling, general and administrative expense for the three months ended March 31, 2026, decreased $6 million compared to the three months ended March 31, 2025, with expenses as a percent of sales decreasing 1.3%. Key drivers of the fluctuation in selling, general and administrative expense compared to the three months ended March 31, 2025, were:

Current wording

Selling, general and administrative expense for the three months ended June 30, 2026, decreased $7 million compared to the three months ended June 30, 2025, with expenses as a percent of sales decreasing 3.0%. Key drivers of the fluctuation in selling, general and administrative expense compared to the three months ended June 30, 2025, were:

Previous wording

$12 million and $3 million in net environmental-related expenses during the six months ended March 31, 2026 and 2025, respectively (see Note L of the Notes to Condensed Consolidated Financial Statements for more information);

Current wording

$17 million and $30 million in net environmental-related expenses during the three months ended June 30, 2026 and 2025, respectively (see Note L of the Notes to Condensed Consolidated Financial Statements for more information);

Previous wording

Expense of $3 million and $8 million comprised of key items for severance, lease abandonment and other restructuring costs during the three months ended March 31, 2026 and 2025, respectively; and

Current wording

Expense of $8 million and $7 million comprised of key items for severance, lease abandonment and other restructuring costs during the three months ended June 30, 2026 and 2025, respectively;

Previous wording

Increased income associated with company-owned life insurance contracts and realized cost reductions associated with restructuring actions partially offset by increased bad debt expense, higher variable compensation expense and lower transition services income.

Current wording

Offset by higher variable compensation expense and lower transition services income.

Previous wording

Selling, general and administrative expense for the six months ended March 31, 2026, increased $3 million compared to the six months ended March 31, 2025, with expenses as a percent of sales increasing 0.7%. Key drivers of the fluctuation in selling, general and administrative expense compared to the six months ended March 31, 2025 were:

Current wording

Selling, general and administrative expense for the nine months ended June 30, 2026, decreased $4 million compared to the nine months ended June 30, 2025, with expenses as a percent of sales decreasing 0.6%. Key drivers of the fluctuation in selling, general and administrative expense compared to the nine months ended June 30, 2025 were:

Previous wording

$2 million in net environmental-related expenses during both the three months ended March 31, 2026 and 2025 (see Note L of the Notes to Condensed Consolidated Financial Statements for more information);

Current wording

$28 million and $33 million in net environmental-related expenses during the nine months ended June 30, 2026 and 2025, respectively (see Note L of the Notes to Condensed Consolidated Financial Statements for more information);

Previous wording

Expense of $7 million and $11 million comprised of key items for severance, lease abandonment and other restructuring costs during the six months ended March 31, 2026 and 2025, respectively; and

Current wording

Expense of $15 million and $18 million comprised of key items for severance, lease abandonment and other restructuring costs during the nine months ended June 30, 2026 and 2025, respectively;

Previous wording

Higher variable compensation expense, increased bad debt expense, lower transition services income and unfavorable currency exchange partially offset by increased income associated with company-owned life insurance contracs and realized cost reductions, including the Avoca business sale, associated with restructuring actions.

Current wording

Increased income associated with company-owned life insurance contracts and realized cost reductions, including the Avoca business sale, associated with restructuring actions, offset by higher variable compensation expense, increased bad debt expense and lower transition services income.

Previous wording

Research and development expense is generally consistent between the six months ended March 31, 2026 and 2025.

Current wording

Research and development expense increased mostly due to higher incentive compensation between the three months ended June 30, 2026 and 2025.

Previous wording

Research and development expense is generally consistent between the three months ended March 31, 2026 and 2025.

Current wording

Research and development expense is generally consistent between the nine months ended June 30, 2026 and 2025.

Previous wording

The lower intangibles amortization expense in the six months ended March 31, 2026, is driven by the impact of amortization related to the divested Avoca business in the six months ended March 31, 2025.

Current wording

The lower intangibles amortization expense in the nine months ended June 30, 2026, is driven by the impact of amortization related to the divested Avoca business in the nine months ended June 30, 2025.

Previous wording

Equity and other income is generally consistent between the six months ended March 31, 2026 and 2025.

Current wording

Equity and other income is generally consistent between the three months ended June 30, 2026 and 2025.

Previous wording

Income (loss) on divestitures, net for the three months ended March 31, 2025, primarily relates to a pre-tax gain on sale of $8 million associated with the Avoca business and a pre-tax gain on sale of excess corporate real estate of $11 million, partially offset by $1 million adjustment related to the Nutraceuticals business sale completed in fiscal 2024. See Note B of the Notes to Condensed Consolidated Financial Statements for more information.

Current wording

Income (loss) on divestitures, net for the three months ended June 30, 2026 primarily relates to income related to sales activity of excess corporate real estate. See Note B of the Notes to Condensed Consolidated Financial Statements for more information.

Previous wording

Income (loss) on divestitures, net for the six months ended March 31, 2026, primarily relates to a pre-tax gain on sale of excess corporate real estate while the three months ended March 31, 2025, primarily relates to a $183 million impairment charge, a pre-tax gain on sale of $8 million associated with the Avoca business and a pre-tax gain on sale of excess corporate real estate of $11 million, partially offset by $1 million adjustment related to the Nutraceuticals business sale completed in fiscal 2024. See Note B of the Notes to Condensed Consolidated Financial Statements for more information.

Current wording

Income (loss) on divestitures, net for the nine months ended June 30, 2026, primarily relates to sales activity and a pre-tax gain on sale of excess corporate real estate while the three months ended June 30, 2025, primarily relates to a $183 million impairment charge, a pre-tax gain on sale of $8 million associated with the Avoca business and a pre-tax gain on sale of excess corporate real estate of $11 million, partially offset by $1 million adjustment related to the Nutraceuticals business sale completed in fiscal 2024. See Note B of the Notes to Condensed Consolidated Financial Statements for more information.

Previous wording

Net interest and other expense increased by $7 million during the three months ended March 31, 2026, compared to the three months ended March 31, 2025. Interest expense and interest income are generally consistent between the three months ended March 31, 2026 and 2025. Investment securities expense of $2 million and income of $6 million included realized losses of $5 million and gains of $3 million for the three months ended March 31, 2026 and 2025, respectively, and was the primary change. See Note E of the Notes to Condensed Consolidated Financial Statements for more information.

Current wording

Net interest and other (income) expense increased by $3 million during the three months ended June 30, 2026, compared to the three months ended June 30, 2025. Interest expense and interest income are generally consistent between the three months ended June 30, 2026 and 2025. Investment securities income of $23 million and $22 million included realized gains of $20 million and $19 million for the three months ended June 30, 2026 and 2025, respectively. Other financing costs decreased $2 million due to lower losses on receivable sales and was the primary change. See Note E of the Notes to Condensed Consolidated Financial Statements for more information.

Previous wording

Net interest and other expense decreased by $13 million during the six months ended March 31, 2026, compared to the six months ended March 31, 2025. Interest expense and interest income are generally consistent between the six months ended March 31, 2026 and 2025. Investment securities income of $5 million and expense of $7 million included realized losses of $3 million and $14 million for the six months ended March 31, 2026 and 2025, respectively, and was the primary change. See Note E of the Notes to Condensed Consolidated Financial Statements for more information.

Current wording

Net interest and other (income) expense decreased by $15 million during the nine months ended June 30, 2026, compared to the nine months ended June 30, 2025. Interest expense and interest income are generally consistent between the nine months ended June 30, 2026 and 2025. Investment securities income of $28 million and $15 million included realized gains of $18 million and $5 million for the nine months ended June 30, 2026 and 2025, respectively, and was the primary change. See Note E of the Notes to Condensed Consolidated Financial Statements for more information.

Previous wording

Other net periodic benefit loss for the three months ended March 31, 2026, primarily included interest cost of $3 million, which was partially offset by expected return on plan assets of $2 million. Other net periodic benefit loss for the three months ended March 31, 2025, primarily included interest cost of $4 million, which was partially offset by expected return on plan assets of $3 million. See Note K of the Notes to Condensed Consolidated Financial Statements for more information.

Current wording

Other net periodic benefit income for the three months ended June 30, 2026, primarily included an actuarial gain of $3 million, expected return on plan assets of $3 million and a settlement gain of $2 million, which was partially offset by interest cost of $3 million. Other net periodic benefit loss for the three months ended June 30, 2025, primarily included interest cost of $3 million, which was partially offset by expected return on plan assets of $2 million. See Note K of the Notes to Condensed Consolidated Financial Statements for more information.

Previous wording

Other net periodic benefit loss for the six months ended March 31, 2026, primarily included interest cost of $7 million, which was partially offset by expected return on plan assets of $5 million. Other net periodic benefit loss for the six months ended March 31, 2025, primarily included interest cost of $7 million and a $1 million curtailment loss, which was partially offset by expected return on plan assets of $5 million. See Note K of the Notes to Condensed Consolidated Financial Statements for more information.

Current wording

Other net periodic benefit income for the nine months ended June 30, 2026, primarily included expected return on plan assets of $8 million, an actuarial gain of $3 million and a settlement gain of $2 million, which was partially offset by interest cost of $10 million. Other net periodic benefit loss for the nine months ended June 30, 2025, primarily included interest cost of $10 million and a $1 million curtailment loss, which was partially offset by expected return on plan assets of $7 million. See Note K of the Notes to Condensed Consolidated Financial Statements for more information.

Previous wording

Ashland’s effective tax rate in any interim period is subject to adjustments related to discrete items and the mix of domestic and foreign operating results. The effective tax rate was 25% for the three months ended March 31, 2026, and was primarily impacted by jurisdictional income mix and a net $1 million from favorable tax discrete items primarily related to equity compensation adjustments and changes in uncertain tax positions.

Current wording

Ashland’s effective tax rate in any interim period is subject to adjustments related to discrete items and the mix of domestic and foreign operating results. The effective tax rate was 27% for the three months ended June 30, 2026, and was primarily impacted by jurisdictional income mix and a net $3 million from unfavorable tax discrete items primarily related to cash repatriation and changes in uncertain tax positions.

Previous wording

The effective tax rate was 80% for the six months ended March 31, 2026, and was primarily impacted by jurisdictional income mix and a net $1 million from unfavorable tax discrete items primarily related to equity compensation adjustments and changes in uncertain tax positions.

Current wording

The effective tax rate was 30% for the nine months ended June 30, 2026, and was primarily impacted by jurisdictional income mix and a net $4 million from unfavorable tax discrete items primarily related to equity compensation adjustments and changes in uncertain tax positions.

Previous wording

The effective tax rate during the three and six months ended March 31, 2025 was significantly impacted by the following tax specific key items:

Current wording

The effective tax rate during the three and nine months ended June 30, 2025 was significantly impacted by the following tax specific key items:

Previous wording

The activity for Performance Adhesives and Valvoline represents subsequent adjustments that were made in conjunction with tax related reserves.

Current wording

The activity for Distribution represents subsequent adjustments that were made in conjunction with environmental related reserves. Asbestos-related litigation activity primarily relates to Ashland's annual update.

Previous wording

The activity for Water Technologies, Performance Adhesives and Valvoline represents represents subsequent adjustments that were made in conjunction with environmental and tax related reserves.

Current wording

The activity for Performance Adhesives, Distribution, Water Technologies and Valvoline represents subsequent adjustments that were made in conjunction with environmental and tax related reserves. Asbestos-related litigation activity primarily relates to Ashland's annual update.

Previous wording

Total other comprehensive income (loss), net of tax, for the three months ended March 31, 2026, decreased $63 million compared to the three months ended March 31, 2025, primarily as a result of the following:

Current wording

Total other comprehensive income (loss), net of tax, for the three months ended June 30, 2026, decreased $88 million compared to the three months ended June 30, 2025, primarily as a result of the following:

Previous wording

For the six months ended March 31, 2026 and 2025, the change in unrealized gain (loss) from foreign currency translation adjustments resulted in losses of $10 million and $45 million, respectively. The fluctuations in unrealized translation gains and losses are primarily due to translating foreign subsidiary financial statements from local currencies to U.S. Dollars.

Current wording

For the three months ended June 30, 2026 and 2025, the change in unrealized gain (loss) from foreign currency translation adjustments resulted in gains of $4 million and $91 million, respectively. The fluctuations in unrealized translation gains and losses are primarily due to translating foreign subsidiary financial statements from local currencies to U.S. Dollars.