Ashland Q1 2026 Ashland Inc Earnings Call | AllMind AI Earnings | AllMind AI
Q1 2026 Ashland Inc Earnings Call
Operator: At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star one one on your telephone. You would then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. I would now like to hand the conference over to Sandy Klugman, Director of Investor Relations. You may begin.
Operator: At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star one one on your telephone. You would then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. I would now like to hand the conference over to Sandy Klugman, Director of Investor Relations. You may begin.
Speaker #1: At this time, all participants are on a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 11 on your telephone.
Speaker #2: Please note that we will be referencing slides during today's call. We encourage you to follow along with the webcast materials available at ashland.com/investorrelations. As a reminder, today's presentation continues forward-looking statements regarding our fiscal 2026 outlook and other matters, as detailed on slide 2 and in our Form 10Q.
Speaker #1: You would then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. I will now like to hand the conference over to Sandy Klugman, Director of Investor Relations.
Speaker #1: You may begin.
Speaker #2: Thank you. Hello, everyone. Welcome to ASHLAND's first quarter fiscal year 2026 earnings conference call and webcast. My name is Sandy Klugman, and I'm ASHLAND's Director of Investor Relations.
Sandy Klugman: Thank you. Hello, everyone. Welcome to Ashland's first quarter fiscal year 2026 earnings conference call and webcast. My name is Sandy Klugman, and I'm Ashland's Director of Investor Relations. Joining me on the call today are Guillermo Novo, Chair and CEO, William Whittaker, CFO, as well as our business unit leaders, Alessandra Faccin, Life Sciences and Intermediates, Jim Minicucci, Personal Care, and Dago Cáceres, Specialty Additives. Please note that we will be referencing slides during today's call. We encourage you to follow along with the webcast materials available at ashland.com under Investor Relations. 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.
Sandy Klugman: Thank you. Hello, everyone. Welcome to Ashland's first quarter fiscal year 2026 earnings conference call and webcast. My name is Sandy Klugman, and I'm Ashland's Director of Investor Relations. Joining me on the call today are Guillermo Novo, Chair and CEO, William Whittaker, CFO, as well as our business unit leaders, Alessandra Faccin, Life Sciences and Intermediates, Jim Minicucci, Personal Care, and Dago Cáceres, Specialty Additives. Please note that we will be referencing slides during today's call. We encourage you to follow along with the webcast materials available at ashland.com under Investor Relations. 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.
Operator: Hello, and thank you for standing by. Welcome to Ashland's Q1 2026 earnings conference call and webcast. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask the question during the session, you will need to press star one one on your telephone. You would then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. I would now like to hand the conference over to Sandy Klugman, Director of Investor Relations. You may begin.
Speaker #2: 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 is no assurance these expectations will be achieved.
Speaker #2: Joining me on the call today are Guillermo Novo, Chair and CEO, William Whitaker, CFO, as well as our Business Unit leaders. Alessandra Faccin, Life Sciences and Intermediates, Jim Minicucci, Personal Care, and Dago Caceres, Specialty Additives.
Speaker #2: 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.
Speaker #2: Please note that we will be referencing slides during today's call. We encourage you to follow along with the webcast materials available at ashland.com under Investor Relations.
Speaker #2: 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.
Sandy Klugman: Thank you. Hello, everyone. Welcome to Ashland's Q1 fiscal year 2026 earnings conference call and webcast. My name is Sandy Klugman, and I'm Ashland's Director of Investor Relations. Joining me on the call today are Guillermo Novo, Chair and CEO, William 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 the webcast materials available at ashland.com under Investor Relations. 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.
Sandy Klugman: Thank you. Hello, everyone. Welcome to Ashland's Q1 fiscal year 2026 earnings conference call and webcast. My name is Sandy Klugman, and I'm Ashland's Director of Investor Relations. Joining me on the call today are Guillermo Novo, Chair and CEO, William 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 the webcast materials available at ashland.com under Investor Relations. 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.
Speaker #2: remarks.
Speaker #3: Thanks, Sandy,
Speaker #2: As a reminder, today's presentation aims forward-looking statements regarding our fiscal 2026 outlook and other matters, as detailed on slide 2 and in our Form 10Q.
Speaker #2: These statements are subject to risk 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 is no assurance these expectations will be achieved.
Sandy Klugman: 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.
Sandy Klugman: 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.
Speaker #2: 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.
Speaker #2: 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: Thanks, Sandy, and welcome to everyone joining us. For today, I'm happy to join this call from Shanghai, China. I begin with our Q1 highlights and how we're advancing our strategic priorities. Later in the call, I'll return to share some of the latest innovation developments, where we continue to see tremendous momentum and opportunities for differentiation. William will review our financial results, operational execution, and outlook, and our business unit leaders will provide additional insight into performance across their segments and markets. Please turn to slide 5. Let's begin with a review of the key business drivers for Q1. We delivered solid results while navigating ongoing demand softness in coatings and construction, supported by strong execution and disciplined cost actions. Life Sciences delivered healthy growth, supported by resilient pharma demand and momentum across our innovate and globalized pillars.
Guillermo Novo: Thanks, Sandy, and welcome to everyone joining us. For today, I'm happy to join this call from Shanghai, China. I begin with our Q1 highlights and how we're advancing our strategic priorities. Later in the call, I'll return to share some of the latest innovation developments, where we continue to see tremendous momentum and opportunities for differentiation. William will review our financial results, operational execution, and outlook, and our business unit leaders will provide additional insight into performance across their segments and markets. Please turn to slide 5. Let's begin with a review of the key business drivers for Q1. We delivered solid results while navigating ongoing demand softness in coatings and construction, supported by strong execution and disciplined cost actions. Life Sciences delivered healthy growth, supported by resilient pharma demand and momentum across our innovate and globalized pillars.
Speaker #3: Sandy, and welcome to everyone joining us. For today, I'm happy to join this call from Shanghai, China. I begin with our first quarter highlights and how we were advancing our strategic priorities.
Sandy Klugman: 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.
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.
Speaker #3: Later in the call, I'll return to share some of the latest innovation developments where we continue to see tremendous momentum and opportunities for differentiation.
Speaker #3: William will review our financial results, operational execution, and outlook. In our Business Unit leaders will provide additional insight into performance across their segments and markets.
Speaker #3: Please turn to slide 5. Let's begin with a review of the key business drivers for the first quarter. We delivered solid results while navigating ongoing demand softness in coatings and constructions, supported by strong execution at disciplined cost actions.
Guillermo Novo: ... Thanks, Sandy, and welcome to everyone joining us. For today, I'm happy to join this call from Shanghai, China. I begin with our Q1 highlights and how we're advancing our strategic priorities. Later in the call, I'll return to share some of the latest innovation developments, where we continue to see tremendous momentum and opportunities for differentiation. William will review our financial results, operational execution, and outlook, and our business unit leaders will provide additional insight into performance across their segments and markets. Please turn to slide five. Let's begin with a review of the key business drivers for Q1. We delivered solid results while navigating ongoing demand softness in coatings and constructions, supported by strong execution and disciplined cost actions. Life science delivered healthy growth, supported by resilient pharma demand and momentum across our innovate and globalized pillars.
Guillermo Novo: ... Thanks, Sandy, and welcome to everyone joining us. For today, I'm happy to join this call from Shanghai, China. I begin with our Q1 highlights and how we're advancing our strategic priorities. Later in the call, I'll return to share some of the latest innovation developments, where we continue to see tremendous momentum and opportunities for differentiation. William will review our financial results, operational execution, and outlook, and our business unit leaders will provide additional insight into performance across their segments and markets. Please turn to slide five. Let's begin with a review of the key business drivers for Q1. We delivered solid results while navigating ongoing demand softness in coatings and constructions, supported by strong execution and disciplined cost actions. Life science delivered healthy growth, supported by resilient pharma demand and momentum across our innovate and globalized pillars.
Speaker #3: Life Science delivered healthy growth, supported by resilient pharma demand and momentum across our innovate and globalize pillars. Injectables, tablet coatings, and high-value cellulose excipients all contributed to year-over-year growth.
Guillermo Novo: Injectables, tablet coatings, and high-value cellulosic excipients all contributed to year-over-year growth. Innovation continued to strengthen performance, with contribution from low-nitrosamine cellulosics, high-purity excipients, and several new product introductions. Personal care delivered stable performance with underlying demand broadly steady. Biofunctional actives grew double digits, and microbial protection continued to gain share as our globalized initiatives supported high-value applications. Softer volumes in core hair and skin care primarily reflected unplanned and isolated customer plant outages. Specialty additives continued to face muted demand, with coatings and construction driving most of the year-over-year decline. Coatings weakness was most pronounced in China and select export markets, while construction softness reflected broader market conditions. Despite lower volumes, cost actions and HTC network benefits drove meaningful margin expansion. Intermediates market conditions were modestly softer, reflecting trough-like dynamics across BDO and its derivatives, which pressured captive BDO transfer pricing.
Guillermo Novo: Injectables, tablet coatings, and high-value cellulosic excipients all contributed to year-over-year growth. Innovation continued to strengthen performance, with contribution from low-nitrosamine cellulosics, high-purity excipients, and several new product introductions. Personal care delivered stable performance with underlying demand broadly steady. Biofunctional actives grew double digits, and microbial protection continued to gain share as our globalized initiatives supported high-value applications. Softer volumes in core hair and skin care primarily reflected unplanned and isolated customer plant outages. Specialty additives continued to face muted demand, with coatings and construction driving most of the year-over-year decline. Coatings weakness was most pronounced in China and select export markets, while construction softness reflected broader market conditions. Despite lower volumes, cost actions and HTC network benefits drove meaningful margin expansion. Intermediates market conditions were modestly softer, reflecting trough-like dynamics across BDO and its derivatives, which pressured captive BDO transfer pricing.
I begin with our first quarter highlights and how we were advancing our strategic priorities. Later in the call, I'll return to share some of the latest Innovation developments. Where we continue to see tremendous momentum and opportunities for differentiation.
Speaker #3: Innovation continued to strengthen performance with contribution from low-nitride cellulosics, high-purity excipients, and several new product introductions. Personal Care delivered stable performance with underlying demand broadly steady.
William will review our financial results, operational execution, and outlook.
In our business, unit leaders will provide additional insight into performance across their segments and markets.
Please turn the slide 5. Let's begin with a review of the key business drivers for the first quarter.
Speaker #3: Biofunctional Actives grew double digits and microbial protection continued to gain share as our globalized initiatives supported high-value applications. Softer volumes in core hair and skin care, primarily reflected unplanned and isolated customer plant outages.
We delivered solid results while navigating ongoing demand softness in coatings and constructions, supported by strong execution and disciplined cost actions.
Guillermo Novo: Injectables, tablet coatings, and high-value cellulosic excipients all contributed to year-over-year growth. Innovation continued to strengthen performance, with contribution from low-nitrate cellulosics, high-purity excipients, and several new product introductions. Personal care delivered stable performance with underlying demand broadly steady. Biofunctional actives grew double digits, and microbial protection continued to gain share as our globalized initiatives supported high-value applications. Softer volumes in core hair care and skin care primarily reflected unplanned and isolated customer plant outages. Specialty additives continued to face muted demand, with coatings and construction driving most of the year-over-year decline. Coatings weakness was most pronounced in China and select export markets, while construction softness reflected broader market conditions. Despite lower volumes, cost actions and HTC network benefits drove meaningful margin expansion. Intermediates market conditions were modestly softer, reflecting trough-like dynamics across BDO and its derivatives, which pressured captive BDO transfer pricing.
Injectables, tablet coatings, and high-value cellulosic excipients all contributed to year-over-year growth. Innovation continued to strengthen performance, with contribution from low-nitrate cellulosics, high-purity excipients, and several new product introductions. Personal care delivered stable performance with underlying demand broadly steady. Biofunctional actives grew double digits, and microbial protection continued to gain share as our globalized initiatives supported high-value applications. Softer volumes in core hair care and skin care primarily reflected unplanned and isolated customer plant outages. Specialty additives continued to face muted demand, with coatings and construction driving most of the year-over-year decline. Coatings weakness was most pronounced in China and select export markets, while construction softness reflected broader market conditions. Despite lower volumes, cost actions and HTC network benefits drove meaningful margin expansion. Intermediates market conditions were modestly softer, reflecting trough-like dynamics across BDO and its derivatives, which pressured captive BDO transfer pricing.
Life science delivered Healthy Growth supported by resilient Pharma demand, and momentum across our innovate and globalized pillars.
Speaker #3: Specialty Additives continued to face muted demand with coatings and construction driving most of the year-over-year decline. Coatings weakness was most pronounced in China, and select export markets.
Injectables, public Coatings, and high-value cellulosic acients all contributed to year-over-year growth.
Innovation continued to strengthen performance, with contribution from low-nitrite cellulose high-purity exceptions and several new product introductions.
Speaker #3: While construction softness reflected broader market conditions. Despite lower volumes, cost actions and HEC network benefits drove meaningful margin expansion. Intermediates market conditions were modestly softer, reflecting trough-like dynamics across BDO and its derivatives.
Personal Care, delivered stable performance with underlying demand, broadly steady.
Functional actives grew double digits and microbial protection continued to gain share, as our globalized initiative supported high-value applications.
Speaker #3: Which pressured captive BDO transfer pricing. The Merchant Business was stable with steady volume and modest pricing pressure resulting in flat sales. Operationally, the team continued to manage through the equipment replacement in Calvert City while delivering solid free cash flow.
Softer volumes in core hair and skin care, primarily reflected unplanned and isolated customer plant outages.
Guillermo Novo: The merchant business was stable, with steady volume and modest pricing pressure resulting in flat sales. Operationally, the team continued to manage through the equipment replacement in Calvert City while delivering solid Free Cash Flow. Although this issue impacted costs and pressured margins across the VP&D chain, customer supply remained uninterrupted. The impact we expected to be contained within Q1 will now extend into Q2, as commissioning of the new unit revealed additional equipment issues that are delaying the startup. We anticipate completing the necessary fixes and bringing the unit online later in the quarter. Although outside Q1, recent weather-related events also have impacted our operations in the Mid-Atlantic. Customer supply remained uninterrupted, but we expect incremental costs, which William will address later in the call, as part of our outlook for the year.
Guillermo Novo: The merchant business was stable, with steady volume and modest pricing pressure resulting in flat sales. Operationally, the team continued to manage through the equipment replacement in Calvert City while delivering solid Free Cash Flow. Although this issue impacted costs and pressured margins across the VP&D chain, customer supply remained uninterrupted. The impact we expected to be contained within Q1 will now extend into Q2, as commissioning of the new unit revealed additional equipment issues that are delaying the startup. We anticipate completing the necessary fixes and bringing the unit online later in the quarter. Although outside Q1, recent weather-related events also have impacted our operations in the Mid-Atlantic. Customer supply remained uninterrupted, but we expect incremental costs, which William will address later in the call, as part of our outlook for the year.
Special at theaters. Continue to face muted demand with coatings and construction driving most of the year-over-year decline.
Coatings weakness was most pronounced in China and select export markets.
Speaker #3: Although this issue impacted costs and pressured margins across the VP&D chain, customer supply remained uninterrupted. The impact we expected to be contained within the first quarter will now extend into the second quarter.
While construction softness reflected broader market conditions,
despite lower volumes cost actions and HTC Network benefits.
Drove, meaningful, margin expansion.
Intermediates market conditions.
Speaker #3: As commissioning of the new unit revealed additional equipment issues, that are delaying the startup. We anticipate competing the necessary fixes and bringing the unit online later in the quarter.
For modestly softer, reflecting trough like Dynamics, across BDO and its derivatives.
Guillermo Novo: The merchant business was stable, with steady volume and modest pricing pressure resulting in flat sales. Operationally, the team continued to manage through the equipment replacement in Calvert City while delivering solid free cash flow. Although this issue impacted costs and pressured margins across the VP&E chain, customer supply remained uninterrupted. The impact we expected to be contained within the first quarter will now extend into the second quarter, as commissioning of the new unit revealed additional equipment issues that are delaying the startup. We anticipate completing the necessary fixes and bringing the unit online later in the quarter. Although outside Q1, recent weather-related events also have impacted our operations in the Mid-Atlantic. Customer supply remained uninterrupted, but we expect incremental costs, which William will address later in the call, as part of our outlook for the year.
The merchant business was stable, with steady volume and modest pricing pressure resulting in flat sales. Operationally, the team continued to manage through the equipment replacement in Calvert City while delivering solid free cash flow. Although this issue impacted costs and pressured margins across the VP&E chain, customer supply remained uninterrupted. The impact we expected to be contained within the first quarter will now extend into the second quarter, as commissioning of the new unit revealed additional equipment issues that are delaying the startup. We anticipate completing the necessary fixes and bringing the unit online later in the quarter. Although outside Q1, recent weather-related events also have impacted our operations in the Mid-Atlantic. Customer supply remained uninterrupted, but we expect incremental costs, which William will address later in the call, as part of our outlook for the year.
Which pressured captive. BDO transfer pricing.
Speaker #3: Although outside Q1, recent weather-related events also have impacted our operations and the Mid-Atlantic. Customer supply remained uninterrupted, but we expect incremental costs, which William will address later in the call, as part of our outlook for the year.
The merchant business was stable with steady volume and modest pricing pressure resulting in flat sales.
Operationally, the team continued to manage through the equipment replacement in Calvert City while delivering solid free cash flow.
Speaker #3: While we saw month-to-month variability, we're excited the quarter we're excited the quarter on a stronger footing with December improving versus November and the momentum continuing in January.
Guillermo Novo: While we saw month-to-month variability, we're excited we exited the quarter on a stronger footing, with December improving versus November, and the momentum continuing in January. Taken together, these results reflect steady execution and continued progress across our strategic priorities. Now I'll turn the call over to William to walk through the Q1 financial performance in more detail. William?
Guillermo Novo: While we saw month-to-month variability, we're excited we exited the quarter on a stronger footing, with December improving versus November, and the momentum continuing in January. Taken together, these results reflect steady execution and continued progress across our strategic priorities. Now I'll turn the call over to William to walk through the Q1 financial performance in more detail. William?
Although this issue impacted costs and pressured margins of the vpnd chain, customer supplier remain uninterrupted.
The impact we expected to be contained within the first quarter will now extend into the second quarter.
Speaker #3: Taken together, these results reflect steady execution and continued progress across our strategic priorities. Now I'll turn the call over to William to walk through the first quarter financial performance in more detail.
As commissioning of the new unit revealed additional equipment issues that are delaying the startup.
We anticipate competing the necessary fixes and bring the unit online later in the quarter.
Speaker #3: William?
Speaker #2: Thank you,
William Whitaker: Thank you, Guillermo. Please turn to slide 6. Our first quarter performance reflects increasing consistency of our operating model. Across the portfolio, the team executed well, advanced our initiatives, and managed through operational impacts while maintaining solid cost discipline. The portfolio and manufacturing optimization actions we took last year are supporting margins through improved mix, lower costs, and a more efficient footprint. Avoca was included in our Q1 results last year, but as we move into Q2, we fully lapped our portfolio actions, providing us with a clear performance baseline going forward. We've also strengthened our working capital performance and delivered strong operating cash flow, a focus area for the team. Altogether, the quarter reflects a strengthening foundation with early signs of improving momentum, indicating that a growth inflection is building as fiscal 2026 unfolds. Please turn to slide 7.
William Whitaker: Thank you, Guillermo. Please turn to slide 6. Our first quarter performance reflects increasing consistency of our operating model. Across the portfolio, the team executed well, advanced our initiatives, and managed through operational impacts while maintaining solid cost discipline. The portfolio and manufacturing optimization actions we took last year are supporting margins through improved mix, lower costs, and a more efficient footprint. Avoca was included in our Q1 results last year, but as we move into Q2, we fully lapped our portfolio actions, providing us with a clear performance baseline going forward. We've also strengthened our working capital performance and delivered strong operating cash flow, a focus area for the team. Altogether, the quarter reflects a strengthening foundation with early signs of improving momentum, indicating that a growth inflection is building as fiscal 2026 unfolds. Please turn to slide 7.
Speaker #2: Guillermo. Please turn to slide 6. Our first quarter performance reflects increasing consistency of our operating model. Across the portfolio, the team executed well, advanced our initiatives, and managed through operational impacts while maintaining solid cost discipline.
Although outside Q1, recent weather-related events also have impacted our operations in the Mid-Atlantic.
Guillermo Novo: While we saw month-to-month variability, we exited the quarter on a stronger footing, with December improving versus November and the momentum continuing in January. Taken together, these results reflect steady execution and continued progress across our strategic priorities. Now I'll turn the call over to William to walk through the Q1 financial performance in more detail. William?
While we saw month-to-month variability, we exited the quarter on a stronger footing, with December improving versus November and the momentum continuing in January. Taken together, these results reflect steady execution and continued progress across our strategic priorities. Now I'll turn the call over to William to walk through the Q1 financial performance in more detail. William?
Customer Supply remain on interrupted but we expect incremental costs which William will address later in the call as part of our outlook for the year.
Speaker #2: The portfolio in manufacturing optimization actions we took last year are supporting margins through improved mix, lower costs, and a more efficient footprint. Evoca was included in our Q1 results last year, but as we move into Q2, we fully lapped our portfolio actions, providing us with a clear performance baseline going forward.
What we saw, month-to-month variability, we’re excited. The quarter makes it to the quarter on a stronger footing.
With December improving versus November, and the momentum continuing in January.
Taken together, these results, reflect steady execution and continued progress across our strategic priorities.
Speaker #2: We've also strengthened our working capital performance and delivered strong operating cash flow. A focus area for the team. Altogether, the quarter reflects a strengthening foundation with early signs of improving momentum indicating that a growth inflection is building as fiscal 2026 unfolds.
William Whitaker: Thank you, Guillermo. Please turn to slide 6. Our Q1 performance reflects increasing consistency of our operating model. Across the portfolio, the team executed well, advanced our initiatives, and managed through operational impacts while maintaining solid cost discipline. The portfolio and manufacturing optimization actions we took last year are supporting margins through improved mix, lower costs, and a more efficient footprint. Avoca was included in our Q1 results last year, but as we move into Q2, we fully lapped our portfolio actions, providing us with a clear performance baseline going forward. We've also strengthened our working capital performance and delivered strong operating cash flow, a focus area for the team. Altogether, the quarter reflects a strengthening foundation with early signs of improving momentum, indicating that a growth inflection is building as fiscal 2026 unfolds. Please turn to slide 7.
William Whitaker: Thank you, Guillermo. Please turn to slide 6. Our Q1 performance reflects increasing consistency of our operating model. Across the portfolio, the team executed well, advanced our initiatives, and managed through operational impacts while maintaining solid cost discipline. The portfolio and manufacturing optimization actions we took last year are supporting margins through improved mix, lower costs, and a more efficient footprint. Avoca was included in our Q1 results last year, but as we move into Q2, we fully lapped our portfolio actions, providing us with a clear performance baseline going forward. We've also strengthened our working capital performance and delivered strong operating cash flow, a focus area for the team. Altogether, the quarter reflects a strengthening foundation with early signs of improving momentum, indicating that a growth inflection is building as fiscal 2026 unfolds. Please turn to slide 7.
Now, I'll turn the call over to William to walk through the first-quarter financial performance in more detail. William.
Thank you GMO. Please turn to slide 6.
Our first quarter performance reflects increasing consistency of our operating model.
Speaker #2: Please turn to First, the consistency of our consumer-facing businesses now roughly 85% of our portfolio continues to provide meaningful stability and resilience. Second, our innovation and globalize initiatives are gaining strong traction with sustained momentum in our highest value applications.
William Whitaker: First, the consistency of our consumer-facing businesses, now roughly 85% of our portfolio, continues to provide meaningful stability and resilience. Second, our innovation and globalized initiatives are gaining strong traction with sustained momentum in our highest value applications. Third, last year's structural actions are fully embedded, improving margin durability and positioning us for stronger leverage as demand recovers. And finally, even in segments experiencing more challenging conditions, our teams remain disciplined and focused on core fundamentals, ensuring we stay well positioned as industry conditions evolve. Overall, the quarter reflects resilient performance as our streamlined portfolio, strengthened cost structure, and disciplined execution continue to support our long-term strategy. With innovation accelerating, globalized expanding, and productivity initiatives progressing, we are well positioned to build momentum throughout the year. And now on to the financial details. Please turn to slide 9.
William Whitaker: First, the consistency of our consumer-facing businesses, now roughly 85% of our portfolio, continues to provide meaningful stability and resilience. Second, our innovation and globalized initiatives are gaining strong traction with sustained momentum in our highest value applications. Third, last year's structural actions are fully embedded, improving margin durability and positioning us for stronger leverage as demand recovers. And finally, even in segments experiencing more challenging conditions, our teams remain disciplined and focused on core fundamentals, ensuring we stay well positioned as industry conditions evolve. Overall, the quarter reflects resilient performance as our streamlined portfolio, strengthened cost structure, and disciplined execution continue to support our long-term strategy. With innovation accelerating, globalized expanding, and productivity initiatives progressing, we are well positioned to build momentum throughout the year. And now on to the financial details. Please turn to slide 9.
Across the portfolio, the team executed well, advanced our initiatives, and managed through operational impacts while maintaining solid cost discipline.
The portfolio and manufacturing optimization actions we took last year are supporting margins through improved mix and lower costs.
And a more efficient footprint.
Speaker #2: Third, last year's structural actions are fully embedded, improving margin durability, and positioning us for stronger leverage as demand recovers. And finally, even in segments experiencing more challenging conditions, our teams remain disciplined and focused on core fundamentals, ensuring we stay well-positioned as industry conditions evolve.
A Voca was included in our Q1 results last year, but as we move into Q2, we fully lapped. Our portfolio actions are providing us with a clear performance baseline going forward.
Operating cash flow. The focus area for the team.
Speaker #2: Overall, the quarter reflects resilient performance as our streamlined portfolio strengthened cost structure and disciplined execution continue to support our long-term strategy. With innovation accelerating, globalize expanding, and productivity initiatives progressing, we are well-positioned to build momentum throughout the year.
Altogether, the quarter reflects a strengthening foundation with early signs of improving momentum, indicating that a growth inflection is building as fiscal 2026 unfolds.
William Whitaker: First, the consistency of our consumer-facing businesses, now roughly 85% of our portfolio, continues to provide meaningful stability and resilience. Second, our innovation and globalization initiatives are gaining strong traction with sustained momentum in our highest value applications. Third, last year's structural actions are fully embedded, improving margin durability and positioning us for stronger leverage as demand recovers. And finally, even in segments experiencing more challenging conditions, our teams remain disciplined and focused on core fundamentals, ensuring we stay well positioned as industry conditions evolve. Overall, the quarter reflects resilient performance as our streamlined portfolio, strengthened cost structure, and disciplined execution continue to support our long-term strategy. With innovation accelerating, globalization expanding, and productivity initiatives progressing, we are well positioned to build momentum throughout the year. And now on to the financial details. Please turn to slide 9.
First, the consistency of our consumer-facing businesses, now roughly 85% of our portfolio, continues to provide meaningful stability and resilience. Second, our innovation and globalization initiatives are gaining strong traction with sustained momentum in our highest value applications. Third, last year's structural actions are fully embedded, improving margin durability and positioning us for stronger leverage as demand recovers. And finally, even in segments experiencing more challenging conditions, our teams remain disciplined and focused on core fundamentals, ensuring we stay well positioned as industry conditions evolve. Overall, the quarter reflects resilient performance as our streamlined portfolio, strengthened cost structure, and disciplined execution continue to support our long-term strategy. With innovation accelerating, globalization expanding, and productivity initiatives progressing, we are well positioned to build momentum throughout the year. And now on to the financial details. Please turn to slide 9.
Please turn to slide 7.
Speaker #2: And now onto the financial details. Please turn to slide 9. Sales for the quarter were $386, down 5% versus last year. The previously announced Evoca divestiture accounted for roughly $10, or about 2% of the decline.
First, the consistency of our consumer-facing businesses. Now, roughly 85% of our portfolio continues to provide meaningful stability and resilience. Second, our innovation and globalization are gaining strong traction with sustained momentum in our highest value applications.
William Whitaker: Sales for the quarter were $386 million, down 5% versus last year. The previously announced Avoca divestiture accounted for roughly $10 million, or about 2% of the decline. Excluding this portfolio action, sales were down 3%, reflecting a mixed demand environment. Life sciences continued to grow, supported by steady demand and ongoing innovation momentum. Personal care remained stable overall and would have grown low single digits, excluding the on-plan customer outages. Specialty additives softened, reflecting broader demand conditions and ongoing competitive intensity. Pricing declined 2%, generally across segments, primarily reflecting carrier adjustments from the prior year. FX contributed a favorable $9 million, or 2%, to sales versus prior year. Moving on to profitability. Adjusted EBITDA was $58 million, down 5% year over year, including a $1 million impact from the Avoca divestiture.
William Whitaker: Sales for the quarter were $386 million, down 5% versus last year. The previously announced Avoca divestiture accounted for roughly $10 million, or about 2% of the decline. Excluding this portfolio action, sales were down 3%, reflecting a mixed demand environment. Life sciences continued to grow, supported by steady demand and ongoing innovation momentum. Personal care remained stable overall and would have grown low single digits, excluding the on-plan customer outages. Specialty additives softened, reflecting broader demand conditions and ongoing competitive intensity. Pricing declined 2%, generally across segments, primarily reflecting carrier adjustments from the prior year. FX contributed a favorable $9 million, or 2%, to sales versus prior year. Moving on to profitability. Adjusted EBITDA was $58 million, down 5% year over year, including a $1 million impact from the Avoca divestiture.
Third, last year's structural actions are fully embedded improving margin durability. And positioning us for stronger. Leverage as demand recovers. And finally,
even in segments,
Speaker #2: Excluding this portfolio action, sales were down 3%, reflecting a mixed demand environment. Life Sciences continued to grow, supported by steady demand and ongoing innovation momentum.
Experience more challenging conditions.
core fundamentals, ensuring we stay well positioned as industry conditions evolve
Speaker #2: Personal Care remained stable overall and would have grown low single digits excluding the unplanned customer outages. Specialty Additives softened, reflecting broader demand conditions and ongoing competitive intensity.
Overall, the quarter reflects resilient performance, as our streamlined portfolio, strength and cost structure, discipline, and execution continue to support our long-term strategy.
Speaker #2: Pricing declined 2%, generally across segments, primarily reflecting carrier adjustments from the prior year. FX contributed a favorable $9 million or 2% to sales versus prior year.
With innovation accelerating, globalized expansion and productivity initiatives progressing, we are well positioned to build momentum throughout the year.
William Whitaker: Sales for the quarter were $386 million, down 5% versus last year. The previously announced Avoca divestiture accounted for roughly $10 million, or about 2% of the decline. Excluding this portfolio action, sales were down 3%, reflecting a mixed demand environment. Life sciences continued to grow, supported by steady demand and ongoing innovation momentum. Personal care remained stable overall and would have grown low single digits, excluding the unplanned customer outages. Specialty additives softened, reflecting broader demand conditions and ongoing competitive intensity. Pricing declined 2%, generally across segments, primarily reflecting carryover adjustments from the prior year. FX contributed a favorable $9 million or 2% to sales versus prior year. Moving on to profitability. Adjusted EBITDA was $58 million, down 5% year-over-year, including a $1 million impact from the Avoca divestiture.
Sales for the quarter were $386 million, down 5% versus last year. The previously announced Avoca divestiture accounted for roughly $10 million, or about 2% of the decline. Excluding this portfolio action, sales were down 3%, reflecting a mixed demand environment. Life sciences continued to grow, supported by steady demand and ongoing innovation momentum. Personal care remained stable overall and would have grown low single digits, excluding the unplanned customer outages. Specialty additives softened, reflecting broader demand conditions and ongoing competitive intensity. Pricing declined 2%, generally across segments, primarily reflecting carryover adjustments from the prior year. FX contributed a favorable $9 million or 2% to sales versus prior year. Moving on to profitability. Adjusted EBITDA was $58 million, down 5% year-over-year, including a $1 million impact from the Avoca divestiture.
And now, on to the financial details. Please turn to slide 9.
Speaker #2: And moving on to profitability. Adjusted EBITDA was $58 million, down 5% year over year, including a $1 million impact from the Evoca divestiture. Excluding that action, Adjusted EBITDA declined 3%, reflecting lower volumes and modest pricing pressure, partially offset by favorable mix, lower SARD, and FX benefits.
Sales for the quarter were $386 million, down 5% versus last year. The previously announced Avoca divestiture accounted for roughly $10 million, or about 2% of the decline.
Excluding this portfolio, action sales were down 3% reflecting a mixed demand environment.
William Whitaker: Excluding that action, adjusted EBITDA declined 3%, reflecting lower volumes and modest pricing pressure, partially offset by favorable mix, lower SAR, and FX benefits. Importantly, the quarter included the anticipated $10 million adjusted EBITDA impact from the Calvert City outage. As Guillermo Novo noted, we had expected the full effect to be recognized in Q1, but some impact will now carry into Q2, which we'll address in our guidance. Raw material costs remain generally stable to favorable, and we continue to benefit from our cost actions across the portfolio. Adjusted EBITDA margins held steady at 15%, with over 250 basis points of compression stemming from the Calvert City outage. Adjusted operating income grew 27% versus prior year, reflecting the stability of the underlying business, as well as reduced depreciation and amortization from our optimization actions.
William Whitaker: Excluding that action, adjusted EBITDA declined 3%, reflecting lower volumes and modest pricing pressure, partially offset by favorable mix, lower SAR, and FX benefits. Importantly, the quarter included the anticipated $10 million adjusted EBITDA impact from the Calvert City outage. As Guillermo Novo noted, we had expected the full effect to be recognized in Q1, but some impact will now carry into Q2, which we'll address in our guidance. Raw material costs remain generally stable to favorable, and we continue to benefit from our cost actions across the portfolio. Adjusted EBITDA margins held steady at 15%, with over 250 basis points of compression stemming from the Calvert City outage. Adjusted operating income grew 27% versus prior year, reflecting the stability of the underlying business, as well as reduced depreciation and amortization from our optimization actions.
Life Sciences continue to grow, supported by steady demand and ongoing innovation momentum.
Speaker #2: Importantly, the quarter included the anticipated $10 million Adjusted EBITDA impact from the Calvert City outage. As Guillermo noted, we had expected the full effect to be recognized in the first quarter, but some impact will now carry into the second quarter, which we'll address in our guidance.
Personal Care remains stable overall and would have grown low single digits, excluding the on-plan customer outages. Specialty additives softened, reflecting broader demand conditions and ongoing competitive intensity.
Pricing declined 2% generally across segments, primarily reflecting carrier adjustments from the prior year.
Speaker #2: Raw material costs remain generally stable to favorable, and we continue to benefit from our cost actions across the portfolio. Adjusted EBITDA margins held steady at 15%, with over $250 basis points of compression stemming from the Calvert City outage.
FX contributed a favorable $9 million, or 2%, to sales versus prior year.
And moving on to profitability.
William Whitaker: Excluding that action, adjusted EBITDA declined 3%, reflecting lower volumes and modest pricing pressure, partially offset by favorable mix, lower SAR, and FX benefits. Importantly, the quarter included the anticipated $10 million adjusted EBITDA impact from the Calvert City outage. As Guillermo noted, we had expected the full effect to be recognized in Q1, but some impact will now carry into Q2, which we'll address in our guidance. Raw material costs remain generally stable to favorable, and we continue to benefit from our cost actions across the portfolio. Adjusted EBITDA margins held steady at 15%, with over 250 basis points of compression stemming from the Calvert City outage. Adjusted operating income grew 27% versus prior year, reflecting the stability of the underlying business, as well as reduced depreciation and amortization from our optimization actions.
Excluding that action, adjusted EBITDA declined 3%, reflecting lower volumes and modest pricing pressure, partially offset by favorable mix, lower SAR, and FX benefits. Importantly, the quarter included the anticipated $10 million adjusted EBITDA impact from the Calvert City outage. As Guillermo noted, we had expected the full effect to be recognized in Q1, but some impact will now carry into Q2, which we'll address in our guidance. Raw material costs remain generally stable to favorable, and we continue to benefit from our cost actions across the portfolio. Adjusted EBITDA margins held steady at 15%, with over 250 basis points of compression stemming from the Calvert City outage. Adjusted operating income grew 27% versus prior year, reflecting the stability of the underlying business, as well as reduced depreciation and amortization from our optimization actions.
Adjusted Eva. That was 58 million down 5% year-over-year, including a $1 million impact from the evoka debaser.
Speaker #2: Adjusted operating income grew 27% versus prior year, reflecting the stability of the underlying business as well as reduced depreciation and amortization from our optimization actions.
Excluding that action, adjusted EBITDA climbed 3%, reflecting lower volumes and modest pricing pressure, partially offset by favorable mix, lower SARD, and FX benefits.
Speaker #2: Adjusted EPS, excluding intangible amortization, was $26, down 7% from the prior year, reflecting lower income. We delivered a strong quarter of cash generation with $125 million of cash provided by operating activities and $26 million of ongoing free cash flow, which excludes the previously disclosed tax refund.
William Whitaker: Adjusted EPS, excluding intangible amortization, was $0.26, down 7% from the prior year, reflecting lower income. We delivered a strong quarter of cash generation, with $125 million of cash provided by operating activities and $26 million of ongoing free cash flow, which excludes the previously disclosed tax refund. Lower working capital and CapEx drove healthy free cash flow conversion of nearly 50% in our seasonally low quarter. We ended the quarter with total liquidity of approximately $900 million, a strong position as we move into the balance of the fiscal year. Net debt was $1.1 billion, and our net leverage remains solid at 2.7 times, providing flexibility to invest in strategic priorities while maintaining disciplined capital allocation. Now, let's turn it to our business unit leaders for a closer look at segment performance. Alessandra, over to you.
William Whitaker: Adjusted EPS, excluding intangible amortization, was $0.26, down 7% from the prior year, reflecting lower income. We delivered a strong quarter of cash generation, with $125 million of cash provided by operating activities and $26 million of ongoing free cash flow, which excludes the previously disclosed tax refund. Lower working capital and CapEx drove healthy free cash flow conversion of nearly 50% in our seasonally low quarter. We ended the quarter with total liquidity of approximately $900 million, a strong position as we move into the balance of the fiscal year. Net debt was $1.1 billion, and our net leverage remains solid at 2.7 times, providing flexibility to invest in strategic priorities while maintaining disciplined capital allocation. Now, let's turn it to our business unit leaders for a closer look at segment performance. Alessandra, over to you.
Importantly, the quarter included the anticipated 10 million adjusted Eva dot impact from the Calvert City outage.
As Jerma noted, we had expected the full effect to be recognized in the first quarter, but some impact will now carry into the second quarter, which we will address in our guidance.
Raw material costs remain generally stable to favorable, and we continue to benefit from our cost actions across the portfolio.
Speaker #2: Lower working capital and CapEx drove healthy free cash flow conversion of nearly 50% in our seasonally low quarter. We ended the quarter with total liquidity of approximately $900 million, a strong position as we move into the balance of the fiscal year.
Adjusted even down margins held steady at 15%, with over 20050 basis, points of compression stemming from the Calbert City outage
Speaker #2: Net debt was $1.1 billion, and our net leverage remained solid at 2.7 times. Providing flexibility to invest in strategic priorities while maintaining disciplined capital allocation.
William Whitaker: Adjusted EPS, excluding intangible amortization, was $0.26, down 7% from the prior year, reflecting lower income. We delivered a strong quarter of cash generation with $125 million of cash provided by operating activities and $26 million of ongoing free cash flow, which excludes the previously disclosed tax refund. Lower working capital and CapEx drove healthy free cash flow conversion of nearly 50% in our seasonally low quarter. We ended the quarter with total liquidity of approximately $900 million, a strong position as we move into the balance of the fiscal year. Net debt was $1.1 billion, and our net leverage remains solid at 2.7 times, providing flexibility to invest in strategic priorities while maintaining disciplined capital allocation. Now, let's turn it to our business unit leaders for a closer look at segment performance. Alessandra, over to you.
Adjusted EPS, excluding intangible amortization, was $0.26, down 7% from the prior year, reflecting lower income. We delivered a strong quarter of cash generation with $125 million of cash provided by operating activities and $26 million of ongoing free cash flow, which excludes the previously disclosed tax refund. Lower working capital and CapEx drove healthy free cash flow conversion of nearly 50% in our seasonally low quarter. We ended the quarter with total liquidity of approximately $900 million, a strong position as we move into the balance of the fiscal year. Net debt was $1.1 billion, and our net leverage remains solid at 2.7 times, providing flexibility to invest in strategic priorities while maintaining disciplined capital allocation. Now, let's turn it to our business unit leaders for a closer look at segment performance. Alessandra, over to you.
Adjusted operating income grew 27% versus prior year, reflecting the stability of the underlying business as well as reduced depreciation and amortization from our optimization actions.
Speaker #2: Now, let's turn it to our business unit leaders for a closer look at segment performance. Alessandra, over to you.
Adjusted EPS, excluding intangible amortization was 26 Cents, down 7% from the prior year, reflecting lower income.
Speaker #3: Thank you, William. Good morning, everyone. Please turn to slide 10 for Life Sciences. Life Sciences sales were $139 million up 4% from the prior year, driven by resilient pharma demand and continued strength across our innovate and globalize pillars.
Alessandra Faccin: Thank you, William. Good morning, everyone. Please turn to slide 10 for life sciences. Life sciences sales were $139 million, up 4% from the prior year, driven by resilient pharma demand and continued strength across our innovate and globalized pillars. Pharma delivered low single-digit year-over-year growth, making a third consecutive quarter of volume gains. Demand remains strong for our high-value cellulosic excipient, supported by broad customer engagement across regions. Injectables delivered another quarter of strong above-market growth, with continued pipeline expansion and accelerating uptake of recently launched products, reinforcing our confidence in sustainable growth within this high-margin segment. Tablet coatings delivered double-digit year-over-year growth across all regions, with particularly strong momentum in Asia Pacific. In nutrition, recent wins and ongoing commercial activity continue to support improving traction as we move through fiscal 2026.
Alessandra Faccin: Thank you, William. Good morning, everyone. Please turn to slide 10 for life sciences. Life sciences sales were $139 million, up 4% from the prior year, driven by resilient pharma demand and continued strength across our innovate and globalized pillars. Pharma delivered low single-digit year-over-year growth, making a third consecutive quarter of volume gains. Demand remains strong for our high-value cellulosic excipient, supported by broad customer engagement across regions. Injectables delivered another quarter of strong above-market growth, with continued pipeline expansion and accelerating uptake of recently launched products, reinforcing our confidence in sustainable growth within this high-margin segment. Tablet coatings delivered double-digit year-over-year growth across all regions, with particularly strong momentum in Asia Pacific. In nutrition, recent wins and ongoing commercial activity continue to support improving traction as we move through fiscal 2026.
We delivered a strong quarter of cash generation with a 125 million of cash, provided by operating activities and 26 million of ongoing. Free cash flow, which excludes the previously disclosed tax refund.
Lower working capital and capex. Drove healthy free, cash flow conversion of nearly 50% in our seasonally low quarter.
Speaker #3: Pharma delivered low single digit year-over-year growth, making its third consecutive quarter of volume gains. Demand remained strong for our high-value cellulosic excipients, supported by broad customer engagement across regions.
We ended the quarter with total liquidity of approximately $900 million, a strong position as we move into the balance of the fiscal year.
Speaker #3: Injectables delivered another quarter of strong above-market growth with continued pipeline expansion and accelerating uptake of recently launched products. Reinforcing our confidence in sustainable growth within this high-margin segment.
Alessandra Faccin: Thank you, William. Good morning, everyone. Please turn to slide 10 for life sciences. Life sciences sales were $139 million, up 4% from the prior year, driven by resilient pharma demand and continued strength across our innovate and globalized pillars. Pharma delivered low single-digit year-over-year growth, making its third consecutive quarter of volume gains. Demand remains strong for our high-value cellulosic excipient, supported by broad customer engagement across regions. Injectables delivered another quarter of strong above-market growth, with continued pipeline expansion and accelerating uptake of recently launched products, reinforcing our confidence in sustainable growth within this high-margin segment. Tablet coatings delivered double-digit year-over-year growth across all regions, with particularly strong momentum in Asia Pacific. In nutrition, recent wins and ongoing commercial activity continue to support improving traction as we move through fiscal 2026.
Alessandra Faccin: Thank you, William. Good morning, everyone. Please turn to slide 10 for life sciences. Life sciences sales were $139 million, up 4% from the prior year, driven by resilient pharma demand and continued strength across our innovate and globalized pillars. Pharma delivered low single-digit year-over-year growth, making its third consecutive quarter of volume gains. Demand remains strong for our high-value cellulosic excipient, supported by broad customer engagement across regions. Injectables delivered another quarter of strong above-market growth, with continued pipeline expansion and accelerating uptake of recently launched products, reinforcing our confidence in sustainable growth within this high-margin segment. Tablet coatings delivered double-digit year-over-year growth across all regions, with particularly strong momentum in Asia Pacific. In nutrition, recent wins and ongoing commercial activity continue to support improving traction as we move through fiscal 2026.
Net debt was $1.1 billion, and our net leverage remains solid at 2.7 times, providing flexibility to invest in strategic priorities while maintaining disciplined capital allocation. Now, let's turn it to our business unit leaders for a closer look at segment performance. Alessandra, over to you.
Thank you, William. Good morning, everyone. Please turn to slide 10 for Life Sciences.
Speaker #3: Tablet coatings delivered double-digit year-over-year growth across all regions with particularly strong momentum in Asian Pacific. In nutrition, recent wins and ongoing commercial activity continue to support improving traction as we move through fiscal 2026.
Life Sciences sales were $139 million, up 4% from the prior year, driven by a resilient form of demand and continuous strength across our innovative and globalized dealers.
Former delivered. Most single digits year-over-year, growth making is third consecutive quarter of volume gains.
Alessandra Faccin: Pricing was slightly lower year-over-year, in line with expectations and largely reflecting carryover impacts from prior year adjustments, but remained stable sequentially. Foreign exchange provided a $3 million benefit to sales. Turning to innovation, we continue to advance Ashland's leadership in pharmaceutical ingredients. We saw meaningful contributions from our low-nitrite offerings, including the recently launched Plasdone low-nitrite and Benecel low-nitrite grades. In injectables, we launched our new high-purity Vialose sucrose stabilizer for biologics in October. Early customer engagement has been encouraging, with positive technical feedback and a growing commercial pipeline. In addition, multiple new injectable launches are planned for fiscal 2026, each supported by strong pre-launch customer engagement and rising market pool. These advancements reinforce our commitment to delivering high-quality solutions that meet evolving customer needs. Turning to profitability. Adjusted EBITDA was $31 million, up 11% year-over-year.
Alessandra Faccin: Pricing was slightly lower year-over-year, in line with expectations and largely reflecting carryover impacts from prior year adjustments, but remained stable sequentially. Foreign exchange provided a $3 million benefit to sales. Turning to innovation, we continue to advance Ashland's leadership in pharmaceutical ingredients. We saw meaningful contributions from our low-nitrite offerings, including the recently launched Plasdone low-nitrite and Benecel low-nitrite grades. In injectables, we launched our new high-purity Vialose sucrose stabilizer for biologics in October. Early customer engagement has been encouraging, with positive technical feedback and a growing commercial pipeline. In addition, multiple new injectable launches are planned for fiscal 2026, each supported by strong pre-launch customer engagement and rising market pool. These advancements reinforce our commitment to delivering high-quality solutions that meet evolving customer needs. Turning to profitability. Adjusted EBITDA was $31 million, up 11% year-over-year.
Speaker #3: Pricing was slightly lower year-over-year in line with expectations and largely reflecting carryover impacts from prior year adjustments but remained stable sequentially. Foreign exchange provided a $3 million benefit to sales.
Customer engagement across regions.
Injectables deliver another quarter of strong, above-market growth with continued pipeline expansion and accelerating uptake of recently launched products.
Speaker #3: Turning to innovation, we continue to advance ASHLAND's leadership in pharmaceutical ingredients. We saw meaningful contributions from our low-nitrite offering, including the recently launched Plasdon Low Nitrite and Benesal Low Nitrite raids.
Reinforcing our confidence in sustainable growth within this high-margin segment.
Public, codings delivered, double-digit year-over-year, growth across all regions with particularly strong momentum in asia-pacific.
In nutrition.
Speaker #3: In injectables, we launched our new high-purity vial of sucrose stabilizer for biologics in October. Early customer engagement has been encouraging with positive technical feedback and a growing commercial pipeline.
Alessandra Faccin: Pricing was slightly lower year-over-year, in line with expectations and largely reflecting carryover impacts from prior year adjustments, but remained stable sequentially. Foreign exchange provided a $3 million benefit to sales. Turning to innovation, we continue to advance Ashland's leadership in pharmaceutical ingredients. We saw meaningful contributions from our low-nitrite offerings, including the recently launched Plason low nitrite and Benecel low nitrite grades. In injectables, we launched our new high-purity Violo sucrose stabilizer for biologics in October. Early customer engagement has been encouraging, with positive technical feedback and a growing commercial pipeline. In addition, multiple new injectable launches are planned for fiscal 2026, each supported by strong pre-launch customer engagement and rising market pool. These advancements reinforce our commitment to delivering high-quality solutions that meet evolving customer needs. Turning to profitability, adjusted EBITDA was $31 million, up 11% year-over-year.
Pricing was slightly lower year-over-year, in line with expectations and largely reflecting carryover impacts from prior year adjustments, but remained stable sequentially. Foreign exchange provided a $3 million benefit to sales. Turning to innovation, we continue to advance Ashland's leadership in pharmaceutical ingredients. We saw meaningful contributions from our low-nitrite offerings, including the recently launched Plason low nitrite and Benecel low nitrite grades. In injectables, we launched our new high-purity Violo sucrose stabilizer for biologics in October. Early customer engagement has been encouraging, with positive technical feedback and a growing commercial pipeline. In addition, multiple new injectable launches are planned for fiscal 2026, each supported by strong pre-launch customer engagement and rising market pool. These advancements reinforce our commitment to delivering high-quality solutions that meet evolving customer needs. Turning to profitability, adjusted EBITDA was $31 million, up 11% year-over-year.
Recent wins and ongoing commercial activity continue to support improving traction as we move through fiscal 2026.
Speaker #3: In launches are planned for fiscal 2026, each supported by strong pre-launch customer engagement and rising market pool. This advancement reinforced our commitment to delivering high-quality solutions that meet evolving customer needs.
Pricing was slightly lower year-over-year, in line with expectations and largely reflecting carryover impacts from prior year adjustments, but remained stable sequentially.
Foreign exchange provided million dollars of benefits to sales.
Learning to innovation. We continue to advance Echelon's leadership in pharmaceutical ingredients.
Speaker #3: Turning to profitability. Adjusted EBITDA was $31 million, up 11% year-over-year. Margins expanded to 22.3%, a $140 basis point improvement, including a $4 million impact from the Calvert City quarter.
with some meaningful contributions from our low nitrite offering including the recently launched flat down low, nitride and benis, sell low nitrite rates
Alessandra Faccin: Margins expanded to 22.3%, 140 basis points improvement, including a $4 million impact from the Calvert City outage during the quarter. The year-over-year increase was driven by favorable mix, resilient pharma demand, and lower SAR as restructuring benefits continued to flow through, partially offset by modest pricing pressure. Foreign exchange provided an additional $2 million benefit to EBITDA. Life Sciences continues to demonstrate strong operational discipline, resilient end market demand, and consistent progress across both our innovate and globalize agendas. Please turn to slide 11 for intermediates. Intermediates performance remained challenged, consistent with what we expected entering the fiscal year. Sales were $31 million, down 6% versus last year. Merchant sales were $22 million, with steady volumes and modest pricing pressure, resulting in flat year-over-year performance.
Alessandra Faccin: Margins expanded to 22.3%, 140 basis points improvement, including a $4 million impact from the Calvert City outage during the quarter. The year-over-year increase was driven by favorable mix, resilient pharma demand, and lower SAR as restructuring benefits continued to flow through, partially offset by modest pricing pressure. Foreign exchange provided an additional $2 million benefit to EBITDA. Life Sciences continues to demonstrate strong operational discipline, resilient end market demand, and consistent progress across both our innovate and globalize agendas. Please turn to slide 11 for intermediates. Intermediates performance remained challenged, consistent with what we expected entering the fiscal year. Sales were $31 million, down 6% versus last year. Merchant sales were $22 million, with steady volumes and modest pricing pressure, resulting in flat year-over-year performance.
In injectables, we launched our new high-purity Volo sucrose stabilizer for biologics in October.
Speaker #3: outage during the The year-over-year increase was driven by favorable mix, resilient pharma demand, and lower SARD as restructuring benefits continued to flow through, partially offset by modest pricing pressure.
Early customer engagement has been encouraging, with positive technical feedback and a growing commercial pipeline.
In addition, multiple new injectable launches are planned for fiscal 2026, each supported by strong pre-launch CAM customer engagement and a rising market pool.
Speaker #3: Foreign exchange provided an additional $2 million benefit to EBITDA. Life Sciences continues to demonstrate strong operational discipline resilient and market demand, and consistent progress across both our innovate and globalize agendas.
This advancement springs from our commitment to delivering high-quality solutions that meet evolving customer needs.
Turning to profitability.
Alessandra Faccin: Margins expanded to 22.3%, a 140 basis points improvement, including a $4 million impact from the Calvert City outage during the quarter. The year-over-year increase was driven by favorable mix, resilient pharma demand, and lower SAR, as restructuring benefits continued to flow through, partially offset by modest pricing pressure. Foreign exchange provided an additional $2 million benefit to EBITDA. Life sciences continues to demonstrate strong operational discipline, resilient end market demand, and consistent progress across both our innovate and globalized agendas. Please turn to slide 11 for intermediates. Intermediates performance remained challenged, consistent with what we expected entering the fiscal year. Sales were $31 million, down 6% versus last year. Merchant sales were $22 million, with steady volumes and modest pricing pressure, resulting in flat year-over-year performance.
Margins expanded to 22.3%, a 140 basis points improvement, including a $4 million impact from the Calvert City outage during the quarter. The year-over-year increase was driven by favorable mix, resilient pharma demand, and lower SAR, as restructuring benefits continued to flow through, partially offset by modest pricing pressure. Foreign exchange provided an additional $2 million benefit to EBITDA. Life sciences continues to demonstrate strong operational discipline, resilient end market demand, and consistent progress across both our innovate and globalized agendas. Please turn to slide 11 for intermediates. Intermediates performance remained challenged, consistent with what we expected entering the fiscal year. Sales were $31 million, down 6% versus last year. Merchant sales were $22 million, with steady volumes and modest pricing pressure, resulting in flat year-over-year performance.
Adjusted. If that was $31 million up, 11% year-over-year,
In expanded to 22.3%.
Speaker #3: Please turn to slide 11 for intermediates. Intermediates performance remained challenged. Consistent with what we expected entering the fiscal year, sales were $31 million down 6% versus last year.
Uh 140 basis points Improvement, including a 4 million dollars impact from the coward City outage during the quarter.
Speaker #3: Merchant sales were $22 million, with steady volumes and modest pricing pressure resulting in flat year-over-year performance. Captive video sales declined to $9 million, driven by both lower volumes and lower transfer prices.
The year-over-year increase was driven by favorable mix, resilient form of demand, and lower start as restructuring benefits continue to flow through, partially offset by modest pricing pressure.
Foreign exchange provided an additional $1 million benefit to IIDA.
Alessandra Faccin: Captive BDO sales declined to $9 million, driven by both lower volumes and lower transfer prices. Foreign exchange had a negligible impact on sales. Turning to profitability, adjusted EBITDA was $1 million, down from $6 million in the prior year, with margins declining to 3.2% from 18.2%. Margins compressed due to lower pricing, reduced operating leverage, and roughly $2 million of early quarter upstream production impacts from the Calvert City outage. The team remains focused on disciplined commercial execution, cost control, and navigating a market environment that is expected to remain challenged until broader industrial activity improves. Now, I will turn the call over to Jim to discuss personal care. Jim?
Alessandra Faccin: Captive BDO sales declined to $9 million, driven by both lower volumes and lower transfer prices. Foreign exchange had a negligible impact on sales. Turning to profitability, adjusted EBITDA was $1 million, down from $6 million in the prior year, with margins declining to 3.2% from 18.2%. Margins compressed due to lower pricing, reduced operating leverage, and roughly $2 million of early quarter upstream production impacts from the Calvert City outage. The team remains focused on disciplined commercial execution, cost control, and navigating a market environment that is expected to remain challenged until broader industrial activity improves. Now, I will turn the call over to Jim to discuss personal care. Jim?
Speaker #3: Foreign exchange had a negligible impact on sales. Turning to profitability. Adjusted EBITDA was $1 million, down from $6 million in the prior year, with margins declining to 3.2% from $18.2%.
Life Sciences continues to demonstrate strong, operational, discipline resilient, and market demand, and consistent progress. Across both our innovate and globalized agendas
Please turn to slide 11 for intermediates.
Intermediates performance remain challenged consistent with what we expected answering the fiscal year.
Speaker #3: Margins compressed due to lower pricing, reduced operating leverage, and roughly $2 million of early quarter upstream production impacts from the Calvert City outage. The team remains focused on disciplined commercial execution, cost control, and navigating a market environment that is expected to remain challenged until improves.
Sales were 31 million down 6% versus last year.
Alessandra Faccin: Captive BDO sales declined to $9 million, driven by both lower volumes and lower transfer prices. Foreign exchange had a negligible impact on sales. Turning to profitability, adjusted EBITDA was $1 million, down from $6 million in the prior year, with margins declining to 3.2% from 18.2%. Margins compressed due to lower pricing, reduced operating leverage, and roughly $2 million of early quarter upstream production impacts from the Calvert City outage. The team remains focused on disciplined commercial execution, cost control, and navigating a market environment that is expected to remain challenged until broader industrial activity improves. Now, I will turn the call over to Jim to discuss personal care. Jim?
Captive BDO sales declined to $9 million, driven by both lower volumes and lower transfer prices. Foreign exchange had a negligible impact on sales. Turning to profitability, adjusted EBITDA was $1 million, down from $6 million in the prior year, with margins declining to 3.2% from 18.2%. Margins compressed due to lower pricing, reduced operating leverage, and roughly $2 million of early quarter upstream production impacts from the Calvert City outage. The team remains focused on disciplined commercial execution, cost control, and navigating a market environment that is expected to remain challenged until broader industrial activity improves. Now, I will turn the call over to Jim to discuss personal care. Jim?
Merchant sales were $22 million, with steady volumes and modest pricing pressure resulting in flat year-over-year performance.
Captive video sales declined to $9 million, driven by both lower volumes and lower transfer prices.
Foreign exchange had an actual impact on sales.
Speaker #3: call over to Jim to discuss broader industrial activity Now, I will turn the personal care. Jim?
Learning to profitability adjusted, that was million dollars.
Speaker #4: Thank you, Alessandra. I'll now highlight our personal care results. Please turn to slide 12 for personal care. Personal care delivered resilient results underscoring the stability of the portfolio despite mixed market conditions.
Jim Minicucci: Thank you, Alessandra. I'll now highlight our Personal Care results. Please turn to slide 12 for Personal Care. Personal Care delivered resilient results, underscoring the stability of the portfolio despite mixed market conditions. Sales were $123 million, down 8% year-over-year, almost entirely due to the Avoca divestiture, which reduced sales by approximately 7%. With the Avoca divestiture now lapped, we have a clean baseline going forward into Q2. Organic sales declined 1%, reflecting a broadly stable demand environment. Biofunctional actives continued to perform well and delivered another quarter of double-digit growth versus prior-year quarter. Customer expansions and project pipeline conversions are accelerating. Collapeptyl, our 2025 hero product launch, is gaining broad-based market adoption. Collapeptyl mimics 20 collagen sequences in our skin, providing immediate flash hydration and corrects the appearance of both expression and deep wrinkles in the skin.
Jim Minicucci: Thank you, Alessandra. I'll now highlight our Personal Care results. Please turn to slide 12 for Personal Care. Personal Care delivered resilient results, underscoring the stability of the portfolio despite mixed market conditions. Sales were $123 million, down 8% year-over-year, almost entirely due to the Avoca divestiture, which reduced sales by approximately 7%. With the Avoca divestiture now lapped, we have a clean baseline going forward into Q2. Organic sales declined 1%, reflecting a broadly stable demand environment. Biofunctional actives continued to perform well and delivered another quarter of double-digit growth versus prior-year quarter. Customer expansions and project pipeline conversions are accelerating. Collapeptyl, our 2025 hero product launch, is gaining broad-based market adoption. Collapeptyl mimics 20 collagen sequences in our skin, providing immediate flash hydration and corrects the appearance of both expression and deep wrinkles in the skin.
down from $6 million in the prior year, with margins declining to 3.2% from 18.2%,
Margie's compressed due to lower pricing.
Speaker #4: Sales were $123 million down 8% year-over-year, almost entirely due to the Evoca divestiture, which reduced sales by approximately 7%. With the Evoca divestiture now lapped, we have a clean baseline going forward into Q2.
Reduced operation, operating leverage and roughly $2 million of early quarter Upstream production impacts from the Calbert City outage.
Speaker #4: Organic sales declined 1%, reflecting a broadly stable demand environment. Biofunctional actives continue to perform well and delivered another quarter of double-digit growth versus prior year quarter.
The team remains focused on discipline commercial execution, cost control and navigating, a market environment that is expected to remain challenged until broader industrial activity groups.
Jim Minicucci: Thank you, Alessandra. I'll now highlight our personal care results. Please turn to slide 12 for personal care. Personal care delivered resilient results, underscoring the stability of the portfolio despite mixed market conditions. Sales were $123 million, down 8% year over year, almost entirely due to the Avoca divestiture, which reduced sales by approximately 7%. With the Avoca divestiture now lapped, we have a clean baseline going forward into Q2. Organic sales declined 1%, reflecting a broadly stable demand environment. Biofunctional actives continued to perform well and delivered another quarter of double-digit growth versus prior year quarter. Customer expansions and project pipeline conversions are accelerating. CollaPepto, our 2025 hero product launch, is gaining broad-based market adoption. CollaPepto mimics 20 collagen sequences in our skin, providing immediate flash hydration and corrects the appearance of both expression and deep wrinkles in the skin.
Jim Minicucci: Thank you, Alessandra. I'll now highlight our personal care results. Please turn to slide 12 for personal care. Personal care delivered resilient results, underscoring the stability of the portfolio despite mixed market conditions. Sales were $123 million, down 8% year over year, almost entirely due to the Avoca divestiture, which reduced sales by approximately 7%. With the Avoca divestiture now lapped, we have a clean baseline going forward into Q2. Organic sales declined 1%, reflecting a broadly stable demand environment. Biofunctional actives continued to perform well and delivered another quarter of double-digit growth versus prior year quarter. Customer expansions and project pipeline conversions are accelerating. CollaPepto, our 2025 hero product launch, is gaining broad-based market adoption. CollaPepto mimics 20 collagen sequences in our skin, providing immediate flash hydration and corrects the appearance of both expression and deep wrinkles in the skin.
Now, I will turn the call over to Jim to discuss Personal Care. Jim
Speaker #4: Customer expansions and project pipeline conversions are accelerating. Collapeptal, our 2025 hero product launch, is gaining broad-based market adoption. Collapeptal mimics 20 collagen sequences in our skin providing immediate flash hydration and corrects the appearance of both expression and deep wrinkles in the skin.
Thank you, Alessandra. I'll now highlight our Personal Care results. Please turn to slide 12 for Personal Care.
Personal Care delivered resilient results, underscoring the stability of the portfolio despite next market conditions.
Sales were $123 million, down 8% year-over-year, almost entirely due to the Evoca divestiture, which reduced sales by approximately 7%.
Speaker #4: Microbial protection delivered year-over-year volume growth above market, driven by share gains across most regions and customer wins. With a competitive and regional footprint, microbial protection is well positioned to continue executing on a robust opportunity pipeline.
Jim Minicucci: Microbial protection delivered year-over-year volume growth above market, driven by share gains across most regions and customer wins. With a competitive and regional footprint, microbial protection is well positioned to continue executing on a robust opportunity pipeline. Within care ingredients, performance varied by region and segment. In general, most regions performed well, with notable strength in the EMEA region and China. Care ingredients experienced several unplanned customer plant outages in the quarter and softer demand in North America.
Jim Minicucci: Microbial protection delivered year-over-year volume growth above market, driven by share gains across most regions and customer wins. With a competitive and regional footprint, microbial protection is well positioned to continue executing on a robust opportunity pipeline. Within care ingredients, performance varied by region and segment. In general, most regions performed well, with notable strength in the EMEA region and China. Care ingredients experienced several unplanned customer plant outages in the quarter and softer demand in North America.
the book of diversity now lapsed, we have a clean Baseline going forward into Q2
Organic sales declined 1%, reflecting a broadly stable demand environment.
File functional, actives, continue to perform well in delivered, another quarter of double-digit growth versus prior year quarter.
Speaker #4: Within care ingredients, performance varied by region and
Customer expansions in.
Pipeline conversions are accelerating.
Speaker #1: And segment in general . Most regions performed well , with notable strength in the EMEA region and China care ingredients . Experience and China care experienced ingredients several unplanned in the quarter outages customer plant and softer demand in North America .
Jim Minicucci: Microbial Protection delivered year-over-year volume growth above market, driven by share gains across most regions and customer wins. With a competitive and regional footprint, Microbial Protection is well positioned to continue executing on a robust opportunity pipeline. Within Care Ingredients, performance varied by region and segment. In general, most regions performed well, with notable strength in the EMEA region and China. Care Ingredients experienced several unplanned customer plant outages in the quarter and softer demand in North America. Foreign exchange contributed approximately $3 million of favorability to segment sales. For Personal Care, innovation and commercial execution remain a strength, with continued momentum in our globalized platforms and sustained demand for higher-value, differentiated applications. Turning to profitability, adjusted EBITDA was $26 million, compared to $30 million in the prior year. This includes a $1 million EBITDA impact from the Avoca divestiture.
Microbial Protection delivered year-over-year volume growth above market, driven by share gains across most regions and customer wins. With a competitive and regional footprint, Microbial Protection is well positioned to continue executing on a robust opportunity pipeline. Within Care Ingredients, performance varied by region and segment. In general, most regions performed well, with notable strength in the EMEA region and China. Care Ingredients experienced several unplanned customer plant outages in the quarter and softer demand in North America. Foreign exchange contributed approximately $3 million of favorability to segment sales. For Personal Care, innovation and commercial execution remain a strength, with continued momentum in our globalized platforms and sustained demand for higher-value, differentiated applications. Turning to profitability, adjusted EBITDA was $26 million, compared to $30 million in the prior year. This includes a $1 million EBITDA impact from the Avoca divestiture.
William Whitaker: ... Foreign exchange contributed approximately $3 million of favorability to segment sales. For personal care, innovation and commercial execution remain a strength, with continued momentum in our globalized platforms and sustained demand for higher value differentiated applications. Turning to profitability. Adjusted EBITDA was $26 million, compared to $30 million in the prior year. This includes a $1 million EBITDA impact from the Avoca divestiture. Excluding that portfolio action, EBITDA was modestly lower, driven by the more than $4 million Calvert City impact and the demand trends noted earlier, partially offset by mix and cost discipline. EBITDA margins remained healthy at 21.1%, demonstrating the strength of the portfolio and the benefit of ongoing commercial and productivity efforts. Personal care continues to deliver strong performance in our globalized platforms, resilient margins, and meaningful traction in our innovation pipeline.
Jim Minicucci: ... Foreign exchange contributed approximately $3 million of favorability to segment sales. For personal care, innovation and commercial execution remain a strength, with continued momentum in our globalized platforms and sustained demand for higher value differentiated applications. Turning to profitability. Adjusted EBITDA was $26 million, compared to $30 million in the prior year. This includes a $1 million EBITDA impact from the Avoca divestiture. Excluding that portfolio action, EBITDA was modestly lower, driven by the more than $4 million Calvert City impact and the demand trends noted earlier, partially offset by mix and cost discipline. EBITDA margins remained healthy at 21.1%, demonstrating the strength of the portfolio and the benefit of ongoing commercial and productivity efforts. Personal care continues to deliver strong performance in our globalized platforms, resilient margins, and meaningful traction in our innovation pipeline.
Kiptoo mimics 20 collagen sequences in our skin, providing immediate flash hydration incorrect, the appearance of both expression and deep wrinkles in the skin.
Speaker #1: Foreign exchange contributed approximately $3 million of favorability to segment sales for personal care , innovation , and commercial execution remain a strength with continued momentum in our globalized platforms and sustained demand for higher value differentiated applications .
Microbial protection delivered year-over-year volume growth above the market, driven by share gains across most regions in customer wins.
With a competitive and regional footprint.
Microbial Protection is well-positioned to continue executing on a robust opportunity pipeline.
Speaker #1: Turning to profitability . Adjusted EBITDA was $26 million compared to year . This $30 million in the prior includes a $1 million EBITDA impact from the Avoca divestiture .
Within care ingredients, performance varies by region and segments.
In general, most regions performed well, with notable strengths in the AMEA region and China.
Speaker #1: Excluding that portfolio action , EBITDA was modestly lower , driven by the more than $4 million Calvert City Impact in the demand trends noted earlier , partially offset by mix and cost discipline .
Care Ingredients experienced several unplanned customer plant outages in the quarter, and softer demand in North America.
Foreign exchange contributed approximately $3 million of favorability to segment sales.
Speaker #1: EBITDA margins remained healthy at 21.1% , demonstrating strength of the the portfolio and the benefit of ongoing commercial and productivity efforts . Personal care continues to deliver strong performance in our globalized platform's resilient margins and meaningful our traction in innovation pipeline .
For Personal Care, innovation and commercial execution remain a strength, with continued momentum in our globalized platforms and sustained demand for higher-value, differentiated applications.
Turning to profitability.
Adjusted EBITDA was $26 million compared to $30 million in the prior year.
William Whitaker: Now, I'll hand it over to Dago to review the results of Specialty Additives. Dago?
Jim Minicucci: Now, I'll hand it over to Dago to review the results of Specialty Additives. Dago?
Speaker #1: Now , hand it I'll over to Diego to review the results of specialty additives . Diego .
Jim Minicucci: Excluding that portfolio action, EBITDA was modestly lower, driven by the more than $4 million Calvert City impact and the demand trends noted earlier, partially offset by mix and cost discipline. EBITDA margins remained healthy at 21.1%, demonstrating the strength of the portfolio and the benefit of ongoing commercial and productivity efforts. Personal care continues to deliver strong performance in our globalized platforms, resilient margins, and meaningful traction in our innovation pipeline. Now, I'll hand it over to Dago to review the results of specialty additives. Dago?
Excluding that portfolio action, EBITDA was modestly lower, driven by the more than $4 million Calvert City impact and the demand trends noted earlier, partially offset by mix and cost discipline. EBITDA margins remained healthy at 21.1%, demonstrating the strength of the portfolio and the benefit of ongoing commercial and productivity efforts. Personal care continues to deliver strong performance in our globalized platforms, resilient margins, and meaningful traction in our innovation pipeline. Now, I'll hand it over to Dago to review the results of specialty additives. Dago?
This includes a $1 million EBITDA impact from the Evoka divestiture.
Dago Cáceres: Thank you, Jim. Please turn to slide 13. Specialty additives continue to operate in a muted demand environment during Q1. Sales were $102 million, down 11% year-over-year. Coatings and construction accounted for the vast majority of the year-over-year shortfall. In coatings, the decline was led by China, where weak demand and structural overcapacity continued to weigh on results. Additional softness came from export markets in the Middle East, Africa, and India, where competitive intensity remained elevated. North America continued to show muted demand in the coatings market. Outside these regions, coatings demand was relatively stable, with outperformance in Europe and Latin America. Construction volumes were also lower, reflecting soft conditions across the non-structural repair and remodel market, our primary area of exposure. Across other industrial end markets, including energy and performance specialties, demand remained muted but generally stable.
Dago Cáceres: Thank you, Jim. Please turn to slide 13. Specialty additives continue to operate in a muted demand environment during Q1. Sales were $102 million, down 11% year-over-year. Coatings and construction accounted for the vast majority of the year-over-year shortfall. In coatings, the decline was led by China, where weak demand and structural overcapacity continued to weigh on results. Additional softness came from export markets in the Middle East, Africa, and India, where competitive intensity remained elevated. North America continued to show muted demand in the coatings market. Outside these regions, coatings demand was relatively stable, with outperformance in Europe and Latin America. Construction volumes were also lower, reflecting soft conditions across the non-structural repair and remodel market, our primary area of exposure. Across other industrial end markets, including energy and performance specialties, demand remained muted but generally stable.
Speaker #2: Thank you . Jim . Please turn to slide 13 . Specialty additives . Continue to operate in a muted demand environment during the first quarter .
Excluding that portfolio action, even though it was modestly lower, driven by the more than $4 million Calvert City impact in the demand trends noted earlier.
Partially offset by.
And cost discipline.
Speaker #2: Sales were $102 million , down 11% year over year . Coatings and construction accounted for the vast majority of the year over year shortfall in coatings .
Even though margins remained healthy at 21.1% demonstrating, the strength of the portfolio and the benefit of ongoing commercial and productivity efforts.
Speaker #2: The decline was led by China , were weak demand and structural overcapacity continued to wait on results . Additional came from softness export markets in the Middle East , Africa and India , where competitive intensity remained elevated .
Personal Care continues to deliver strong performance in our globalized platforms, resilient margins, and meaningful traction in our innovation pipeline.
Dago Caceres: Thank you, Jim. Please turn to slide 13. Specialty additives continued to operate in a muted demand environment during Q1. Sales were $102 million, down 11% year-over-year. Coatings and construction accounted for the vast majority of the year-over-year shortfall. In coatings, the decline was led by China, where weak demand and structural overcapacity continued to weigh on results… Additional softness came from export markets in the Middle East, Africa, and India, where competitive intensity remained elevated. North America continued to show muted demand in the coatings market. Outside these regions, coatings demand was relatively stable, with outperformance in Europe and Latin America. Construction volumes were also lower, reflecting soft conditions across the non-structural repair and remodel market, our primary area of exposure. Across other industrial end markets, including energy and performance specialties, demand remained muted but generally stable.
Dago Caceres: Thank you, Jim. Please turn to slide 13. Specialty additives continued to operate in a muted demand environment during Q1. Sales were $102 million, down 11% year-over-year. Coatings and construction accounted for the vast majority of the year-over-year shortfall. In coatings, the decline was led by China, where weak demand and structural overcapacity continued to weigh on results… Additional softness came from export markets in the Middle East, Africa, and India, where competitive intensity remained elevated. North America continued to show muted demand in the coatings market. Outside these regions, coatings demand was relatively stable, with outperformance in Europe and Latin America. Construction volumes were also lower, reflecting soft conditions across the non-structural repair and remodel market, our primary area of exposure. Across other industrial end markets, including energy and performance specialties, demand remained muted but generally stable.
Now, I'll hand it over to Dago to review the results of Specialty Additives. Dago.
Thank you, Jim. Uh, please turn to slide 13.
Speaker #2: North America continued to show muted demand in the market outside these regions . Kony's demand was relatively stable , with outperformance in Europe and Latin America .
Specialty, additives. Continue to operate in a muted demand environment during the first quarter.
Sales were $102 million, down 11% year-over-year.
Speaker #2: Construction volumes were also lower , reflecting soft conditions across the nonstructural repair and remodel market . Our primary area of exposure across other industrial and markets , including energy and performance specialties , demand remained muted , but generally stable .
In coatings, the decline was led by China, where weak demand and structural overcapacity continued to weigh on results.
Dago Cáceres: Pricing was modestly lower year-over-year, while foreign exchange contributed approximately $2 million to sales. Importantly, the team continues to execute on operational efficiency initiatives and capture benefits from prior manufacturing optimization actions, including the HEC consolidation, which improved our cost structure and mitigated the impact of lower volumes. Adjusted EBITDA was $50 million, up 15% from the prior year. EBITDA margin improved to 14.7%, a 340 basis point expansion, supported by efficiencies from the consolidated HEC network. The team remains sharply focused on cost discipline and commercial excellence while continuing to advance innovation that helps our customers deliver differentiated solutions in a challenging market. Underscoring the strength of our innovation pipeline, we deliver approximately $5 million in sales from recent product launches this quarter.
Dago Cáceres: Pricing was modestly lower year-over-year, while foreign exchange contributed approximately $2 million to sales. Importantly, the team continues to execute on operational efficiency initiatives and capture benefits from prior manufacturing optimization actions, including the HEC consolidation, which improved our cost structure and mitigated the impact of lower volumes. Adjusted EBITDA was $50 million, up 15% from the prior year. EBITDA margin improved to 14.7%, a 340 basis point expansion, supported by efficiencies from the consolidated HEC network. The team remains sharply focused on cost discipline and commercial excellence while continuing to advance innovation that helps our customers deliver differentiated solutions in a challenging market. Underscoring the strength of our innovation pipeline, we deliver approximately $5 million in sales from recent product launches this quarter.
Speaker #2: Pricing was modestly lower year over year , while foreign exchange contributed approximately 2 million to sales . Importantly , the team continues to execute on operational efficiency initiatives and capture benefits from prior manufacturing optimization actions , including the HTC consolidation , which improved cost structure and mitigated the impact of lower volumes .
Additional softness came from export markets in the Middle East, Africa, and India, where competitive intensity remained elevated.
North America continued to show new demand in the coatings market.
Outside these regions cony's demand, was relatively stable with outperformance in Europe and Latin America.
Speaker #2: Adjusted EBITDA was 15 million , up 15% from the prior year . EBITDA margin improved to 14.7% , a 340 basis point expansion supported by efficiencies from the consolidated HCC network .
Construction volumes were also lower, reflecting soft conditions across the non-structural repair and remortel market—our primary area of exposure.
Dago Caceres: Pricing was modestly lower year-over-year, while foreign exchange contributed approximately $2 million to sales. Importantly, the team continues to execute on operational efficiency initiatives and capture benefits from prior manufacturing optimization actions, including the HEC consolidation, which improved our cost structure and mitigated the impact of lower volumes. Adjusted EBITDA was $50 million, up 15% from the prior year. EBITDA margin improved to 14.7%, a 340 basis point expansion, supported by efficiencies from the consolidated HEC network. The team remains sharply focused on cost discipline and commercial excellence while continuing to advance innovation that helps our customers deliver differentiated solutions in a challenging market. Underscoring the strength of our innovation pipeline, we deliver approximately $5 million in sales from recent product launches this quarter.
Pricing was modestly lower year-over-year, while foreign exchange contributed approximately $2 million to sales. Importantly, the team continues to execute on operational efficiency initiatives and capture benefits from prior manufacturing optimization actions, including the HEC consolidation, which improved our cost structure and mitigated the impact of lower volumes. Adjusted EBITDA was $50 million, up 15% from the prior year. EBITDA margin improved to 14.7%, a 340 basis point expansion, supported by efficiencies from the consolidated HEC network. The team remains sharply focused on cost discipline and commercial excellence while continuing to advance innovation that helps our customers deliver differentiated solutions in a challenging market. Underscoring the strength of our innovation pipeline, we deliver approximately $5 million in sales from recent product launches this quarter.
Across other industrial and markets, including energy and performance. Specialties demand, remain muted, but generally stable.
Pricing was modestly lower year-over-year, while foreign exchange contributed approximately $2 million to sales.
Speaker #2: The team remains sharply focused on cost , discipline and commercial excellence , while continuing to advance innovation that helps our customers deliver differentiated solutions in a challenging market , underscoring the strength of our innovation pipeline .
Speaker #2: We delivered approximately 5 million sales from recent product launches this quarter . Looking ahead , specialty Additives is well positioned to benefit from an eventual recovery supported by disciplined cost management , a more efficient network , and ongoing progress innovation .
Dago Cáceres: Looking ahead, Specialty Additives is well positioned to benefit from an eventual coatings recovery, supported by disciplined cost management, a more efficient manufacturing network, and ongoing innovation, progress. With that, I'll hand it back to William. William?
Dago Cáceres: Looking ahead, Specialty Additives is well positioned to benefit from an eventual coatings recovery, supported by disciplined cost management, a more efficient manufacturing network, and ongoing innovation, progress. With that, I'll hand it back to William. William?
Importantly, the team continues to execute on operational efficiency initiatives and capture benefits from prior manufacturing optimization actions, including the HC consolidation, which improves our cost structure and mitigated the impact of lower volumes.
Adjusted EVA was $15 million, up 15% from the prior year.
Speaker #2: that , I'll With back to hand it William . William .
William Whitaker: Thanks, Dago. Please turn to slide 15. As we move through the first quarter, I wanna highlight the progress we're making across our execute pillar and how our operational transformation continues to support the business. Overall, our total cost savings target of approximately $30 million for fiscal 2026 remains on track. Specifically, our restructuring plan is completed and will be ratably recognized throughout the first half of the fiscal year. We continue to make progress on our network optimization targets. VP&D optimization and small plant consolidation efforts also remain on schedule, with benefits weighted toward the second half. As we talked about last quarter, we are addressing higher than expected unit costs at the consolidated HEC site as we scale operations. Following the Parlin closure and network volume rebalancing, we are delivering productivity improvements and stabilizing operations while strengthening the global HEC network.
William Whitaker: Thanks, Dago. Please turn to slide 15. As we move through the first quarter, I wanna highlight the progress we're making across our execute pillar and how our operational transformation continues to support the business. Overall, our total cost savings target of approximately $30 million for fiscal 2026 remains on track. Specifically, our restructuring plan is completed and will be ratably recognized throughout the first half of the fiscal year. We continue to make progress on our network optimization targets. VP&D optimization and small plant consolidation efforts also remain on schedule, with benefits weighted toward the second half. As we talked about last quarter, we are addressing higher than expected unit costs at the consolidated HEC site as we scale operations. Following the Parlin closure and network volume rebalancing, we are delivering productivity improvements and stabilizing operations while strengthening the global HEC network.
if it a margin improved to 14.7%, a 340 basis, point expansion supported by efficiencies, from the Consolidated agency Network,
Speaker #3: Please turn to Thanks . slide 15 . As we move through the first quarter , I want to highlight the progress we're making across our execute pillar and how our operational transformation continues to support the business .
Sharply focused on call discipline and commercial excellence while continuing to advance innovation that helps our customers deliver differentiated solutions in a challenging market.
Speaker #3: Overall , our total cost savings target of approximately $30 million for fiscal 2020 remains on track . Specifically , our restructuring plan is completed and will be rapidly recognized throughout the first half of the fiscal year .
Dago Caceres: Looking ahead, Specialty Additives is well positioned to benefit from an eventual coatings recovery, supported by disciplined cost management, a more efficient manufacturing network, and ongoing innovation, progress. With that, I'll hand it back to William. William?
Looking ahead, Specialty Additives is well positioned to benefit from an eventual coatings recovery, supported by disciplined cost management, a more efficient manufacturing network, and ongoing innovation, progress. With that, I'll hand it back to William. William?
Underscoring the strength of our innovation pipeline, we delivered approximately 5 million sales from recent product launches this quarter.
Speaker #3: We continue to make progress on our network optimization targets . VP and optimization and small plant consolidation efforts . Also remain on schedule , with benefits weighted toward the second half .
Looking ahead specialty. Additives is well positioned to benefit from an eventual coding recovery supported by discipline cost Management in more efficient. Manufacturing Network and ongoing Innovation uh progress.
William Whitaker: Thanks, Dago. Please turn to slide 15. As we move through the first quarter, I wanna highlight the progress we're making across our execute pillar and how our operational transformation continues to support the business. Overall, our total cost savings target of approximately $30 million for fiscal 2026 remains on track. Specifically, our restructuring plan is completed and will be ratably recognized throughout the first half of the fiscal year. We continue to make progress on our network optimization targets. VP and deoptimization and small plant consolidation efforts also remain on schedule, with benefits weighted toward the second half. As we talked about last quarter, we are addressing higher-than-expected unit costs at the consolidated HEC site as we scale operations. Following the Parlin closure and network volume rebalancing, we are delivering productivity improvements and stabilizing operations while strengthening the global HEC network.
William Whitaker: Thanks, Dago. Please turn to slide 15. As we move through the first quarter, I wanna highlight the progress we're making across our execute pillar and how our operational transformation continues to support the business. Overall, our total cost savings target of approximately $30 million for fiscal 2026 remains on track. Specifically, our restructuring plan is completed and will be ratably recognized throughout the first half of the fiscal year. We continue to make progress on our network optimization targets. VP and deoptimization and small plant consolidation efforts also remain on schedule, with benefits weighted toward the second half. As we talked about last quarter, we are addressing higher-than-expected unit costs at the consolidated HEC site as we scale operations. Following the Parlin closure and network volume rebalancing, we are delivering productivity improvements and stabilizing operations while strengthening the global HEC network.
Speaker #3: As we talked about last quarter , we are addressing higher than expected unit costs at the consolidated HCC site . As we scale operations following the closure and network volume rebalancing , we are delivering productivity improvements and stabilizing network global the HCC operations while strengthening .
With that, I'll hand it back to William. William. William.
Thanks doggo. Please turn the slide, 15.
As we move through the first quarter, I want to highlight the progress, we're making across our execute pillar and how our operational transformation continues to support the business.
William Whitaker: Our total savings target of $50 to 55 million remains intact, with upside to $60 million as China demand improves. Across the network, we're seeing potential for additional productivity improvements and capacity optimizations. This work is ongoing, but the trajectory remains positive. Our priorities with execute remain clear: deliver structural cost improvements, simplify the network, and enhance systems and processes, which include sales and operations planning, standard costing, and forecasting, all of which strengthen planning, accountability, and ultimately, performance. I want to recognize our operations team for managing through isolated challenges this quarter. I will speak to these dynamics further in the outlook. Please turn to slide 16. I'd now like to provide an update on our globalize and innovate platforms. As we move through fiscal 2026, I'm encouraged by the early year momentum we've seen across both pillars....
William Whitaker: Our total savings target of $50 to 55 million remains intact, with upside to $60 million as China demand improves. Across the network, we're seeing potential for additional productivity improvements and capacity optimizations. This work is ongoing, but the trajectory remains positive. Our priorities with execute remain clear: deliver structural cost improvements, simplify the network, and enhance systems and processes, which include sales and operations planning, standard costing, and forecasting, all of which strengthen planning, accountability, and ultimately, performance. I want to recognize our operations team for managing through isolated challenges this quarter. I will speak to these dynamics further in the outlook. Please turn to slide 16. I'd now like to provide an update on our globalize and innovate platforms. As we move through fiscal 2026, I'm encouraged by the early year momentum we've seen across both pillars....
Speaker #3: Our total savings target of 50 to 55 million remains intact , with upside to 60 million as China demand improves across the network , we're seeing potential for additional productivity improvements and capacity optimizations .
Overall, our total cost savings Target of approximately $30 million for fiscal 2026 remains on track.
Speaker #3: This work is ongoing , but the trajectory remains positive . Our priorities with an execution remain clear . Deliver structural cost improvements , simplify the network , and enhance systems and processes , which includes sales and operations planning , standard costing and forecasting , all of which strengthen planning , accountability and ultimately performance .
Specifically our restructuring plan is completed and will be rapidly recognized throughout the first half of the fiscal year. We continue to make progress on our Network optimization targets, VPN the optimization and small plant, consolidation efforts also remain on schedule with Benefits weighted toward the second half.
As we talked about last quarter, we are addressing higher than expected unit costs at the Consolidated HC site. As we scale operations,
William Whitaker: Our total savings target of $50 to 55 million remains intact, with upside to $60 million as China demand improves. Across the network, we're seeing potential for additional productivity improvements and capacity optimizations. This work is ongoing, but the trajectory remains positive. Our priorities with execute remain clear: deliver structural cost improvements, simplify the network, and enhance systems and processes, which include sales and operations planning, standard costing, and forecasting, all of which strengthen planning, accountability, and ultimately, performance. I want to recognize our operations team for managing through isolated challenges this quarter. I will speak to these dynamics further in the outlook. Please turn to slide 16. I'd now like to provide an update on our globalize and innovate platforms. As we move through fiscal 2026, I'm encouraged by the early year momentum we've seen across both pillars.
Our total savings target of $50 to 55 million remains intact, with upside to $60 million as China demand improves. Across the network, we're seeing potential for additional productivity improvements and capacity optimizations. This work is ongoing, but the trajectory remains positive. Our priorities with execute remain clear: deliver structural cost improvements, simplify the network, and enhance systems and processes, which include sales and operations planning, standard costing, and forecasting, all of which strengthen planning, accountability, and ultimately, performance. I want to recognize our operations team for managing through isolated challenges this quarter. I will speak to these dynamics further in the outlook. Please turn to slide 16. I'd now like to provide an update on our globalize and innovate platforms. As we move through fiscal 2026, I'm encouraged by the early year momentum we've seen across both pillars.
Following the Parling closure and network volume rebalancing, we are delivering productivity improvements and stabilizing operations, while strengthening the global HCC network.
Speaker #3: I want to recognize our operations team for managing through isolated challenges this quarter . I will speak to these dynamics further in the outlook .
Speaker #3: Please turn to slide 16 . to provide I'd now like an update on our Globalize and Innovate platforms as we move fiscal 26 .
Our total savings target of $50 million to $55 million remains intact, with upside to $60 million as China demand improves.
Speaker #3: I'm through encouraged by the early year momentum we've seen across both pillars on globalize . We're seeing solid traction supported by increased customer engagement , focused commercial initiatives , and early benefits from our recent investments .
William Whitaker: On globalize, we're seeing solid traction supported by increased customer engagement, focused commercial initiatives, and early benefits from our recent investments. Year to date, we've delivered $3 million of incremental globalized sales towards our $20 million goal for the year, with notable contributions across the portfolio. In aggregate, the globalized business lines grew 8% versus last year. On the innovate side, momentum was even stronger. We delivered $6 million of incremental innovation sales towards our $15 million goal for the year. This reflects the continued strength of our innovation pipeline, particularly in pharma cellulosics, as well as recent commercial introductions across multiple segments. Guillermo will speak to this in more detail shortly, but the team continues to advance a broad and healthy launch pipeline. The early performance across globalize and innovate highlights the strength of these levers and the strategic advantage they bring to our portfolio.
William Whitaker: On globalize, we're seeing solid traction supported by increased customer engagement, focused commercial initiatives, and early benefits from our recent investments. Year to date, we've delivered $3 million of incremental globalized sales towards our $20 million goal for the year, with notable contributions across the portfolio. In aggregate, the globalized business lines grew 8% versus last year. On the innovate side, momentum was even stronger. We delivered $6 million of incremental innovation sales towards our $15 million goal for the year. This reflects the continued strength of our innovation pipeline, particularly in pharma cellulosics, as well as recent commercial introductions across multiple segments. Guillermo will speak to this in more detail shortly, but the team continues to advance a broad and healthy launch pipeline. The early performance across globalize and innovate highlights the strength of these levers and the strategic advantage they bring to our portfolio.
Across the network, we're seeing potential for additional productivity, improvements and capacity optimizations. This work is ongoing, but the trajectory remains positive.
Speaker #3: to Year date , we've delivered $3 million of incremental globalized sales towards our $20 million goal for the year , with notable contributions across the portfolio and aggregate the globalized business lines grew 8% versus last year on the innovate side , was momentum even stronger .
Our priorities with an executable remain clear: deliver structural cost improvements, simplify the network, and enhance systems and processes, which include sales and operations planning standard, costing, and forecasting—all of which strengthened planning accountability and ultimately performance.
I want to recognize our operations team for managing through isolated challenges. This quarter, I will speak to these Dynamics further in the Outlook.
Speaker #3: We delivered 6 million of incremental innovation sales towards our $15 million goal for the year . This reflects the continued strength of our innovation pipeline , particularly in pharma cellulosics , as well as recent commercial introductions across multiple segments .
Please turn to slide 16.
William Whitaker: On globalize, we're seeing solid traction supported by increased customer engagement, focused commercial initiatives, and early benefits from our recent investments. Year to date, we've delivered $3 million of incremental globalized sales towards our $20 million dollar goal for the year, with notable contributions across the portfolio. In aggregate, the globalized business lines grew 8% versus last year. On the innovate side, momentum was even stronger. We delivered $6 million of incremental innovation sales towards our $15 million dollar goal for the year. This reflects the continued strength of our innovation pipeline, particularly in pharma cellulosics, as well as recent commercial introductions across multiple segments. Dermo will speak to this in more detail shortly, but the team continues to advance a broad and healthy launch pipeline. The early performance across globalize and innovate highlights the strength of these levers and the strategic advantage they bring to our portfolio.
On globalize, we're seeing solid traction supported by increased customer engagement, focused commercial initiatives, and early benefits from our recent investments. Year to date, we've delivered $3 million of incremental globalized sales towards our $20 million dollar goal for the year, with notable contributions across the portfolio. In aggregate, the globalized business lines grew 8% versus last year. On the innovate side, momentum was even stronger. We delivered $6 million of incremental innovation sales towards our $15 million dollar goal for the year. This reflects the continued strength of our innovation pipeline, particularly in pharma cellulosics, as well as recent commercial introductions across multiple segments. Dermo will speak to this in more detail shortly, but the team continues to advance a broad and healthy launch pipeline. The early performance across globalize and innovate highlights the strength of these levers and the strategic advantage they bring to our portfolio.
As we move through fiscal '26, I'm encouraged by the early-year momentum we've seen across both pillars.
Speaker #3: Dearmer will speak to this in more detail shortly , but the team continues to advance a broad and healthy launch pipeline . The early performance across globalize and highlights Innovate the strength of these levers and the strategic advantage they bring to our portfolio .
On Globalize, we're seeing solid traction supported by increased customer engagement, focused commercial initiatives, and early benefits from our recent investments.
William Whitaker: While still early in the year, we remain on track to deliver our fiscal 2026 $35 million revenue commitment from Globalize and Innovate. Please turn to slide 17. I will now walk through our updated fiscal 2026 outlook, which reflects a prudent view of market conditions and continued confidence in our ability to execute. For fiscal 2026, we are narrowing our Adjusted EBITDA range to $400 to $420 million. All other elements of our guidance remain unchanged. Let me briefly summarize the assumptions underlying this outlook. Life Sciences and Personal Care remain resilient, supported by stable end markets and momentum across our Globalize and Innovate platforms. Specialty Additives and Intermediates remain mixed, with a coatings recovery expected to be gradual and regionally uneven until broader housing and industrial activity improves.
William Whitaker: While still early in the year, we remain on track to deliver our fiscal 2026 $35 million revenue commitment from Globalize and Innovate. Please turn to slide 17. I will now walk through our updated fiscal 2026 outlook, which reflects a prudent view of market conditions and continued confidence in our ability to execute. For fiscal 2026, we are narrowing our Adjusted EBITDA range to $400 to $420 million. All other elements of our guidance remain unchanged. Let me briefly summarize the assumptions underlying this outlook. Life Sciences and Personal Care remain resilient, supported by stable end markets and momentum across our Globalize and Innovate platforms. Specialty Additives and Intermediates remain mixed, with a coatings recovery expected to be gradual and regionally uneven until broader housing and industrial activity improves.
Year to date, we've delivered $3 million of incremental globalized sales towards our $20 million goal for the year, with notable contributions across the portfolio.
Speaker #3: While still early in the year , we remain on track to deliver our fiscal 20 , 26 , $35 million revenue commitment from Globalize and Innovate .
And aggregate, the Globalized Business Line group is up 8% versus last year.
Speaker #3: Please turn to slide 17 . I will now walk through our updated fiscal 26 outlook , which reflects a prudent view of market conditions and continued confidence in our ability to execute for fiscal 2026 .
On the innovate side, momentum was even stronger. We delivered $6 million of incremental innovation sales towards our $15 million goal for the year.
Speaker #3: We are narrowing our adjusted EBITDA range to 400 to $420 million , all other elements of our guidance remain unchanged . Let me briefly summarize the assumptions underlying this outlook .
This reflects the continued strength of our innovation pipeline, particularly in pharmaceutics, as well as recent commercial introductions across multiple segments.
Demo will speak to this in more detail shortly, but the team continues to advance a broad and healthy launch pipeline.
Speaker #3: Life sciences and personal care remain resilient , supported by stable and markets and momentum across our globalized and innovate platforms . Specialty additives and intermediates remain mixed with a coatings recovery expected to be gradual and regionally uneven until broader housing and industrial activity improves .
William Whitaker: While still early in the year, we remain on track to deliver our fiscal 2026 $35 million revenue commitment from globalize and innovate. Please turn to slide 17. I will now walk through our updated fiscal 2026 outlook, which reflects a prudent view of market conditions and continued confidence in our ability to execute. For fiscal 2026, we are narrowing our adjusted EBITDA range to $400 to $420 million. All other elements of our guidance remain unchanged. Let me briefly summarize the assumptions underlying this outlook. Life Sciences and personal care remain resilient, supported by stable end markets and momentum across our globalize and innovate platforms. Specialty additives and intermediates remain mixed, with a coatings recovery expected to be gradual and regionally uneven until broader housing and industrial activity improves.
While still early in the year, we remain on track to deliver our fiscal 2026 $35 million revenue commitment from globalize and innovate. Please turn to slide 17. I will now walk through our updated fiscal 2026 outlook, which reflects a prudent view of market conditions and continued confidence in our ability to execute. For fiscal 2026, we are narrowing our adjusted EBITDA range to $400 to $420 million. All other elements of our guidance remain unchanged. Let me briefly summarize the assumptions underlying this outlook. Life Sciences and personal care remain resilient, supported by stable end markets and momentum across our globalize and innovate platforms. Specialty additives and intermediates remain mixed, with a coatings recovery expected to be gradual and regionally uneven until broader housing and industrial activity improves.
The early performance across Globalized and Innovate highlights the strengths of these levers and the strategic advantage they bring to our portfolio.
While still early in the year, we remain on track to deliver our fiscal 2026 $35 million revenue commitment from globalized and innovate.
Please turn to slide 17.
William Whitaker: We're seeing healthy demand patterns in consumer-oriented categories to start the Q2. Raw materials are expected to be stable to favorable overall, and supply chains remain reliable. Similar to prior years, we expect a second half-weighted performance. We continue to expect innovate and globalize to drive growth above underlying markets, and our total cost savings target of $30 million remains on track to support margin improvement through the year. As Guillermo discussed, repairs to the Calvert City unit are taking longer than anticipated. What we had initially expected to be contained to the Q1 will now extend into the Q2. In recent weeks, we also experienced brief outages at multiple sites due to adverse weather. While the operations team managed safely without customer disruption, these events resulted in incremental costs and downtime.
William Whitaker: We're seeing healthy demand patterns in consumer-oriented categories to start the Q2. Raw materials are expected to be stable to favorable overall, and supply chains remain reliable. Similar to prior years, we expect a second half-weighted performance. We continue to expect innovate and globalize to drive growth above underlying markets, and our total cost savings target of $30 million remains on track to support margin improvement through the year. As Guillermo discussed, repairs to the Calvert City unit are taking longer than anticipated. What we had initially expected to be contained to the Q1 will now extend into the Q2. In recent weeks, we also experienced brief outages at multiple sites due to adverse weather. While the operations team managed safely without customer disruption, these events resulted in incremental costs and downtime.
Speaker #3: We're seeing healthy demand patterns and consumer oriented categories to start the second quarter . Raw materials are expected to be stable to favorable overall and supply chains remain reliable , similar to prior years , we expect a second half weighted performance .
I will now walk through our updated fiscal 2026 outlook, which reflects a prudent view of market conditions and continued confidence in our ability to execute.
For fiscal 2026. We are narrowing, our adjusted ibida range to 400 to 420 million.
All other elements of our guidance remain on changed.
Speaker #3: We continue to expect innovate and globalize to drive growth above underlying markets , and our total cost savings target of $30 million remains on to track support margin improvement through the year , as Guillermo discussed repairs to the Calvert City unit are taking longer than anticipated .
Let me Briefly summarize the assumptions underlying this Outlook.
Life sciences and personal care remain resilient, supported by stable end markets and momentum across our globalized and innovative platforms.
Speaker #3: What we had initially expected to be contained to the first quarter will now extend into the second . In recent weeks , we also experienced brief outages at multiple sites due to adverse weather .
William Whitaker: We're seeing healthy demand patterns in consumer-oriented categories to start Q2. Raw materials are expected to be stable to favorable overall, and supply chains remain reliable. Similar to prior years, we expect a second half-weighted performance. We continue to expect innovate and globalize to drive growth above underlying markets, and our total cost savings target of $30 million remains on track to support margin improvement through the year. As Guillermo discussed, repairs to the Calvert City unit are taking longer than anticipated. What we had initially expected to be contained to Q1 will now extend into Q2. In recent weeks, we also experienced brief outages at multiple sites due to adverse weather. While the operations team managed safely without customer disruption, these events resulted in incremental costs and downtime.
We're seeing healthy demand patterns in consumer-oriented categories to start Q2. Raw materials are expected to be stable to favorable overall, and supply chains remain reliable. Similar to prior years, we expect a second half-weighted performance. We continue to expect innovate and globalize to drive growth above underlying markets, and our total cost savings target of $30 million remains on track to support margin improvement through the year. As Guillermo discussed, repairs to the Calvert City unit are taking longer than anticipated. What we had initially expected to be contained to Q1 will now extend into Q2. In recent weeks, we also experienced brief outages at multiple sites due to adverse weather. While the operations team managed safely without customer disruption, these events resulted in incremental costs and downtime.
Specialty additives and intermediates remain mixed, with a coatings recovery expected to be gradual and regionally uneven until broader housing and industrial activity improves.
We're seeing healthy demand, patterns, and cons.
Consumer-oriented categories to start the second quarter.
Speaker #3: team While the managed safely without customer disruption , these events resulted in incremental costs and downtime . Our revised outlook reflects approximately impacts from $11 million of temporary the Calvert City start up delay and recent weather related disruptions , all isolated to the second quarter .
Raw materials are expected to be stable to favorable overall, and supply chains remain reliable.
William Whitaker: Our revised outlook reflects approximately $11 million of temporary impacts from the Calvert City startup delay and recent weather-related disruptions, all isolated to Q2. The volume-related impacts, which are roughly two-thirds of the overall total, are fully recoverable, but the timing of absorption recovery is more challenging. VP&D cannot begin recovering absorption until the unit is back at normal operating rates, which will not occur until late Q2. This means recovery can only begin in Q3, with partial flow through the income statement into Q4. For HEC, recovery depends on the seasonal demand lift. Visibility into April through September demand typically firms in March, which creates uncertainty about when and how much recovery can be prudently initiated. Given these timing constraints and the current visibility on seasonal demand, we believe it is prudent to remain more cautious at the top end of the guide.
William Whitaker: Our revised outlook reflects approximately $11 million of temporary impacts from the Calvert City startup delay and recent weather-related disruptions, all isolated to Q2. The volume-related impacts, which are roughly two-thirds of the overall total, are fully recoverable, but the timing of absorption recovery is more challenging. VP&D cannot begin recovering absorption until the unit is back at normal operating rates, which will not occur until late Q2. This means recovery can only begin in Q3, with partial flow through the income statement into Q4. For HEC, recovery depends on the seasonal demand lift. Visibility into April through September demand typically firms in March, which creates uncertainty about when and how much recovery can be prudently initiated. Given these timing constraints and the current visibility on seasonal demand, we believe it is prudent to remain more cautious at the top end of the guide.
Similar to prior years, we expect a second-half weighted performance.
We continue to expect Innovate and Globalized to drive growth above underlying markets, and our total cost savings target of $30 million remains on track to support margin improvement through the year.
Speaker #3: The volume related impacts , which were roughly two thirds of the overall total , are fully recoverable , but the timing of absorption recovery is more challenging .
As Grandma discussed, repairs to the Coward City unit are taking longer than anticipated.
Speaker #3: Bpnd cannot begin recovering absorption until the unit is back at normal operating rates , which will not occur until late Q2 . This means recovery can only begin in Q3 with partial flow through in the income statement into Q4 .
What we had initially expected to be contained to the first quarter will now extend into the second.
In recent weeks we also experienced brief outages at multiple sites due to adverse weather.
Speaker #3: For HCC , recovery depends on the seasonable demand lift visibility into April through September , demand . Typically , firms in March , which creates uncertainty about when and how much recovery can be prudently initiated .
William Whitaker: Our revised outlook reflects approximately $11 million of temporary impacts from the Calvert City startup delay and recent weather-related disruptions, all isolated to Q2. The volume-related impacts, which are roughly two-thirds of the overall total, are fully recoverable, but the timing of absorption recovery is more challenging. VP&E cannot begin recovering absorption until the unit is back at normal operating rates, which will not occur until late Q2. This means recovery can only begin in Q3, with partial flow through in the income statement into Q4. For HEC, recovery depends on the seasonal demand lift. Visibility into April through September demand typically firms in March, which creates uncertainty about when and how much recovery can be prudently initiated. Given these timing constraints and the current visibility on seasonal demand, we believe it is prudent to remain more cautious at the top end of the guide.
Our revised outlook reflects approximately $11 million of temporary impacts from the Calvert City startup delay and recent weather-related disruptions, all isolated to Q2. The volume-related impacts, which are roughly two-thirds of the overall total, are fully recoverable, but the timing of absorption recovery is more challenging. VP&E cannot begin recovering absorption until the unit is back at normal operating rates, which will not occur until late Q2. This means recovery can only begin in Q3, with partial flow through in the income statement into Q4. For HEC, recovery depends on the seasonal demand lift. Visibility into April through September demand typically firms in March, which creates uncertainty about when and how much recovery can be prudently initiated. Given these timing constraints and the current visibility on seasonal demand, we believe it is prudent to remain more cautious at the top end of the guide.
While the operations team managed safely without customer disruption, these events resulted in incremental costs and downtime.
Our revised outlook reflects approximately $11 million of temporary impacts from the Calbert City startup delay and recent weather-related disruptions, all isolated to the second quarter.
Speaker #3: Given these timing constraints and the current visibility on seasonal demand , we believe it is prudent to remain more cautious at the top end of the guide .
William Whitaker: We will continue to manage production, inventory, and Free Cash Flow with discipline, while ensuring uninterrupted customer supply. Overall, our fiscal 2026 guidance reflects balanced planning, disciplined execution, and visibility into the drivers of long-term value creation, even as we manage temporary operational challenges. With that, I'll turn the call over to Guillermo to discuss our technology platforms and leadership priorities. Guillermo?
William Whitaker: We will continue to manage production, inventory, and Free Cash Flow with discipline, while ensuring uninterrupted customer supply. Overall, our fiscal 2026 guidance reflects balanced planning, disciplined execution, and visibility into the drivers of long-term value creation, even as we manage temporary operational challenges. With that, I'll turn the call over to Guillermo to discuss our technology platforms and leadership priorities. Guillermo?
The volume-related impacts, which were roughly two-thirds of the overall total, are fully recoverable, but the timing of absorption recovery is more challenging.
Speaker #3: continue to We will manage production , inventory and free cash flow with discipline while ensuring on interrupted customer supply . Overall , our fiscal 2020 guidance reflects balanced planning , discipline , execution and visibility into the drivers of long term value creation .
VPnD cannot begin recovering absorption until the unit is back at normal operating rates, which will not occur until late Q2. This means recovery can only begin in Q3, with partial flow-through in the income statement into Q4.
Speaker #3: Even as we manage temporary operational challenges . With that , call over to I'll turn the Guillermo to discuss our technology , platforms and leadership priorities .
For HC recovery depends on the seasonal, demand lift.
Guillermo Novo: Thank you, William. Please turn to slide 18. Innovation remains one of the most powerful drivers of long-term value creation at Ashland, and the momentum we're seeing this early in the fiscal 2026 is both exciting and strategically important. This slide highlights just a few of the breakthrough platforms that are reshaping our pipeline and opening new opportunities across multiple end markets. These are not isolated projects. They're scalable technology platforms built on science, customer collaboration, and disciplined execution, each with potential to fuel long-term growth. Since the 2025 Innovation Day, our teams have delivered meaningful progress across multiple platforms. Our TVO technologies continued to advance through early commercial adoption, supported by regulatory filings across all key regions and multiple customer qualification cycles. In ag, our TVO for seed coatings, Agrimer EcoCoat, received US EPA FIFRA approval in 2025 and is also REACH approved.
Guillermo Novo: Thank you, William. Please turn to slide 18. Innovation remains one of the most powerful drivers of long-term value creation at Ashland, and the momentum we're seeing this early in the fiscal 2026 is both exciting and strategically important. This slide highlights just a few of the breakthrough platforms that are reshaping our pipeline and opening new opportunities across multiple end markets. These are not isolated projects. They're scalable technology platforms built on science, customer collaboration, and disciplined execution, each with potential to fuel long-term growth. Since the 2025 Innovation Day, our teams have delivered meaningful progress across multiple platforms. Our TVO technologies continued to advance through early commercial adoption, supported by regulatory filings across all key regions and multiple customer qualification cycles. In ag, our TVO for seed coatings, Agrimer EcoCoat, received US EPA FIFRA approval in 2025 and is also REACH approved.
Speaker #3: Guillermo .
Speaker #4: Thank you . William , please turn to slide 18 . Innovation remains one of the most powerful drivers of long term value creation at Momentum .
Visibility into April through September demand typically firms in March, which creates uncertainty about when and how much recovery can be prudently initiated.
Speaker #4: We're seeing ASHLAND INC. and in the fiscal 2026 is both exciting and strategically important . This slide highlights just a few of the breakthrough platforms that are reshaping our pipeline and opening new opportunities across multiple end markets .
William Whitaker: We will continue to manage production, inventory, and free cash flow with discipline, while ensuring uninterrupted customer supply. Overall, our fiscal 2026 guidance reflects balanced planning, disciplined execution, and visibility into the drivers of long-term value creation, even as we manage temporary operational challenges. With that, I'll turn the call over to Guillermo to discuss our technology platforms and leadership priorities. Guillermo?
We will continue to manage production, inventory, and free cash flow with discipline, while ensuring uninterrupted customer supply. Overall, our fiscal 2026 guidance reflects balanced planning, disciplined execution, and visibility into the drivers of long-term value creation, even as we manage temporary operational challenges. With that, I'll turn the call over to Guillermo to discuss our technology platforms and leadership priorities. Guillermo?
Given these times and constraints in the current visibility on seasonal demand, we believe it is prudent to remain more cautious at the top end of the guide.
We will continue to manage production inventory and free cash flow with discipline while ensuring uninterrupted customer Supply.
Speaker #4: These are not isolated projects . There . Scalable technology platforms built on science , customer collaboration and discipline execution , each with potential to fuel long term growth .
Guillermo Novo: Thank you, William. Please turn to slide 18. Innovation remains one of the most powerful drivers of long-term value creation at Ashland, and the momentum we're seeing this early in the fiscal 2026 is both exciting and strategically important. This slide highlights just a few of the breakthrough platforms that are reshaping our pipeline and opening new opportunities across multiple end markets. These are not isolated projects. They're scalable technology platforms built on science, customer collaboration, and discipline execution, each with potential to fuel long-term growth. Since the 2025 Innovation Day, our teams have delivered meaningful progress across multiple platforms. Our TVO technologies continue to advance through early commercial adoption, supported by regulatory filings across all key regions and multiple customer qualification cycles. In ag, our TVO for seed coatings, Agrimer EcoCoat, received US EPA FIFRA approval in 2025 and is also REACH approved.
Guillermo Novo: Thank you, William. Please turn to slide 18. Innovation remains one of the most powerful drivers of long-term value creation at Ashland, and the momentum we're seeing this early in the fiscal 2026 is both exciting and strategically important. This slide highlights just a few of the breakthrough platforms that are reshaping our pipeline and opening new opportunities across multiple end markets. These are not isolated projects. They're scalable technology platforms built on science, customer collaboration, and discipline execution, each with potential to fuel long-term growth. Since the 2025 Innovation Day, our teams have delivered meaningful progress across multiple platforms. Our TVO technologies continue to advance through early commercial adoption, supported by regulatory filings across all key regions and multiple customer qualification cycles. In ag, our TVO for seed coatings, Agrimer EcoCoat, received US EPA FIFRA approval in 2025 and is also REACH approved.
Overall, our fiscal 2026 guidance reflects balance, planning discipline, execution, and visibility into the drivers of long-term value creation. Even as we manage temporary operational challenges. With that, I'll turn the call over to GMO to discuss our technology platforms and leadership priorities. GMO.
Speaker #4: Since the 2025 Innovation Day , teams our have delivered meaningful progress across multiple platforms . Our TVO technologies continue to advance through early commercial adoption , supported by regulatory filings across all key regions and multiple customer qualification cycles .
Thank you, William. Please turn to slide 18.
Innovation remains one of the most powerful drivers of long-term value creation at Ashland, and the momentum we're seeing this early in fiscal 2026 is both exciting and strategically important.
Speaker #4: In our TVO for seed coatings agreement , Eco code received us EPA approval in 2025 and is also approved . It's performance and sustainability profile have been validated by multiple customer trials , with more trials ongoing .
Markets.
Guillermo Novo: Its performance and sustainability profile have been validated by multiple customer trials, with more trials ongoing. Customers are in the process of filing their own regulatory approvals for their formulated products in different regions. We're also making great progress in the development of a TVO for all oil dispersions in ag formulations. This product would already have regulatory approval, the same as our Agrimer EcoCoat. In personal care, we launched Lubrahands, a TVO-based product for hair conditioning, with great customer feedback, poor customer approvals, and many other testing and formulations. Development of our TVO for hairspray and styling is maturing well, nearing generation one launch, with encouraging customer evaluations underway. Our TVO technology for silicone alternatives have passed preliminary testing with key customers and now is in advanced evaluations. In coatings, we continue to make progress on developing TVO technology for TiO2 efficiency and for UV curing.
Guillermo Novo: Its performance and sustainability profile have been validated by multiple customer trials, with more trials ongoing. Customers are in the process of filing their own regulatory approvals for their formulated products in different regions. We're also making great progress in the development of a TVO for all oil dispersions in ag formulations. This product would already have regulatory approval, the same as our Agrimer EcoCoat. In personal care, we launched Lubrahands, a TVO-based product for hair conditioning, with great customer feedback, poor customer approvals, and many other testing and formulations. Development of our TVO for hairspray and styling is maturing well, nearing generation one launch, with encouraging customer evaluations underway. Our TVO technology for silicone alternatives have passed preliminary testing with key customers and now is in advanced evaluations. In coatings, we continue to make progress on developing TVO technology for TiO2 efficiency and for UV curing.
These are not isolated projects. They're scalable technology platforms built on science, customer collaboration, and disciplined execution, each with the potential to fuel long-term growth.
Speaker #4: Customers are in the process of filing their own regulatory approvals for their formulated products in different regions . We're also making great progress in the development of a TVO for all oral dispersions in AG formulations .
Since the 2015 Innovation Day, our teams have delivered meaningful progress across multiple platforms.
Our TVO technologies continue to advance through early commercial adoption, supported by regulatory filings in all key regions and multiple customer qualification cycles.
Speaker #4: This product would already have regulatory approval . The same as our agreement eco code in personal care . We launched lubricants , a TVO based product for hair conditioning with great customer feedback for customer approvals and many other testing and formulations .
And I our TVO proceed coatings.
Guillermo Novo: Its performance and sustainability profile have been validated by multiple customer trials, with more trials ongoing. Customers are in the process of filing their own regulatory approvals for their formulated products in different regions. We're also making great progress in the development of a TVO for all oil dispersions in ag formulations. This product would already have regulatory approval, the same as our Agrimer EcoCoat. In personal care, we launched Lubrihance, a TVO-based product for hair conditioning, with great customer feedback, four customer approvals, and many other testing and formulations. Development of our TVO for hairspray and styling is maturing well, nearing generation one launch, with encouraging customer evaluations underway. Our TVO technology for silicone alternatives have passed preliminary testing with key customers and now is in advanced evaluations. In coatings, we continue to make progress on developing TVO technology for TiO2 efficiency and for UV curing.
Its performance and sustainability profile have been validated by multiple customer trials, with more trials ongoing. Customers are in the process of filing their own regulatory approvals for their formulated products in different regions. We're also making great progress in the development of a TVO for all oil dispersions in ag formulations. This product would already have regulatory approval, the same as our Agrimer EcoCoat. In personal care, we launched Lubrihance, a TVO-based product for hair conditioning, with great customer feedback, four customer approvals, and many other testing and formulations. Development of our TVO for hairspray and styling is maturing well, nearing generation one launch, with encouraging customer evaluations underway. Our TVO technology for silicone alternatives have passed preliminary testing with key customers and now is in advanced evaluations. In coatings, we continue to make progress on developing TVO technology for TiO2 efficiency and for UV curing.
Eco Code received US EPA Prefer approval in 2025 and is also REACH approved.
its performance and sustainability profile have been validated by multiple customer trials with more trials, ongoing
Speaker #4: Development of our TVO for Hairspray and styling is maturing well and nearing generation one launch with encouraging customer evaluations underway . Our TVO technology for silicone alternatives have passed preliminary testing with key customers , and now is an advanced evaluations encodings .
Customers are in the process of filing their own regulatory approvals for their formulated products, and the different regions.
We're also making great progress in the development of a TVO for all oral dispersions in formulations.
This product would already have regulatory approval, the same as our AGR Eco code.
Speaker #4: We continue to make progress on developing TVO technology for TiO2 efficiency and for UV curing . Based on current performance profiles . All customers are showing strong interest in these technologies .
Guillermo Novo: Based on current performance profiles, all customers are showing strong interest in these technologies. Most other new TVO development projects continue to advance and are demonstrating strong performance and value for our customers. Our super wetting agent platforms, which offers PFAS-free and silicone-free sustainability advantages, achieved another successful launch in industrial and specialty coatings. Our coatings team recently launched a new version of our wetter, Easy-Wet 310, which has broader geographic regulatory approvals and is accelerating commercialization. We've had successful customer trials and feedback on our new super wetter for ag, validating performance benefits with no phytotoxicity relative to the current commercial wetters. We expect to receive US EPA FIFRA feedback this April. In personal care, we're expanding this technology into hair care and home care applications. In hair, we are currently targeting textured hair, where early beta testing feedback has been very positive.
Guillermo Novo: Based on current performance profiles, all customers are showing strong interest in these technologies. Most other new TVO development projects continue to advance and are demonstrating strong performance and value for our customers. Our super wetting agent platforms, which offers PFAS-free and silicone-free sustainability advantages, achieved another successful launch in industrial and specialty coatings. Our coatings team recently launched a new version of our wetter, Easy-Wet 310, which has broader geographic regulatory approvals and is accelerating commercialization. We've had successful customer trials and feedback on our new super wetter for ag, validating performance benefits with no phytotoxicity relative to the current commercial wetters. We expect to receive US EPA FIFRA feedback this April. In personal care, we're expanding this technology into hair care and home care applications. In hair, we are currently targeting textured hair, where early beta testing feedback has been very positive.
In Personal Care, we launched lubricants—a TVO-based product for hair conditioning—with great customer feedback for customer approvals and many other testing and formulations.
Speaker #4: Most other new TVO development projects continue to advance and are demonstrating strong and performance value for our customers . Our Super Wetting agent platforms , which offers PFAS free and silicone free sustainability advantages , achieved another successful launch in industrial and specialty coatings .
development of our TVO for hairspray and styling is maturing well
Uh, nearing Generation 1 launch, with encouraging customer evaluations underway.
Speaker #4: Our coatings team recently launched a new version of wetter our , easy , Wet 310 , which has broader geographic regulatory approvals and is accelerating commercialization .
Our TVO technology for silicone Alternatives, have passed preliminary testing with key customers and now is an advanced evaluation.
Guillermo Novo: Based on current performance profiles, all customers are showing strong interest in these technologies. Most other new TVO development projects continue to advance and are demonstrating strong performance and value for our customers. Our super-wetting agent platforms, which offers PFAS-free and silicone-free sustainability advantages, achieved another successful launch in industrial and specialty coatings. Our coatings team recently launched a new version of our wetter, Easy Wet 310, which has broader geographic regulatory approvals and is accelerating commercialization. We've had successful customer trials and feedback on our new super wetter for ag, validating performance benefits with no phytotoxicity relative to the current commercial wetters. We expect to receive US EPA PFIRA feedback this April. In personal care, we're expanding this technology into hair care and home care applications. In hair, we are currently targeting textured hair, where early beta testing feedback has been very positive.
Based on current performance profiles, all customers are showing strong interest in these technologies. Most other new TVO development projects continue to advance and are demonstrating strong performance and value for our customers. Our super-wetting agent platforms, which offers PFAS-free and silicone-free sustainability advantages, achieved another successful launch in industrial and specialty coatings. Our coatings team recently launched a new version of our wetter, Easy Wet 310, which has broader geographic regulatory approvals and is accelerating commercialization. We've had successful customer trials and feedback on our new super wetter for ag, validating performance benefits with no phytotoxicity relative to the current commercial wetters. We expect to receive US EPA PFIRA feedback this April. In personal care, we're expanding this technology into hair care and home care applications. In hair, we are currently targeting textured hair, where early beta testing feedback has been very positive.
Speaker #4: We've had successful customer trials and feedback on our new super water for ag , validating performance benefits with no phytotoxicity relative to the current commercial letters .
Encoding. We continue to make progress on developing TVO technology for TiO2 exhibition. And for UV curing, based on current performance profiles, all customers are showing strong interests in these technologies.
Most other new TVO development projects, continue to advance, and are demonstrating, strong performance and value for our customers.
Speaker #4: We expect to receive us . EPA feedback . This April in personal care , we're expanding this technology into hair care and home care applications in hair .
Speaker #4: We are targeting textured hair for early beta testing . Feedback has been very positive in care . We're home advancing the super water technology for dishwash auto applications .
Guillermo Novo: In home care, we're advancing the super wetter technology for auto dishwash applications. In bioresorbable polymers, momentum is building in aesthetic medicine, especially next-generation dermal fillers, with fiscal year 2025 launches and recent customer audits supporting a strong multi-year outlook. We also continue to scale a strong pipeline with preclinical milestone sales for both generic and new drug development programs. We're also excited about the interest and performance feedback we've received in personal care for our new modified starch for rheology control in skin leave-on applications, and we will be launching this product this year. In addition, we're expanding our starch technology into hair styling applications. These platforms are strategically important, each representing a scalable and high-value opportunity that strengthens our ability to compete and win in differentiated markets. They reflect the combined strength of our science, our global reach, and our ability to commercialize meaningful new technologies.
Guillermo Novo: In home care, we're advancing the super wetter technology for auto dishwash applications. In bioresorbable polymers, momentum is building in aesthetic medicine, especially next-generation dermal fillers, with fiscal year 2025 launches and recent customer audits supporting a strong multi-year outlook. We also continue to scale a strong pipeline with preclinical milestone sales for both generic and new drug development programs. We're also excited about the interest and performance feedback we've received in personal care for our new modified starch for rheology control in skin leave-on applications, and we will be launching this product this year. In addition, we're expanding our starch technology into hair styling applications. These platforms are strategically important, each representing a scalable and high-value opportunity that strengthens our ability to compete and win in differentiated markets. They reflect the combined strength of our science, our global reach, and our ability to commercialize meaningful new technologies.
Are super wedding agent platforms, which offers pfas free and silicone free sustainability of managers achieved in other successful launch and Industrial and Specialty. Codings. Our codings team recently launched a new version of our wet easy wet. 310
Which has broader geographic regulatory approvals, and is accelerating commercialization.
Speaker #4: And bioresorbable . Momentum is polymers building in aesthetic medicine , especially next generation dermal fillers with fiscal year 2025 launches and recent customer audits supporting a strong multiyear outlook , we also continue to scale a strong pipeline with pre clinical milestone sales for both generic and new drug development programs also .
We've had successful customer trials and feedback on our new Super Weather for a
Validating performance benefits with no phytotoxicity.
Relative to the current commercial letters. We expect to receive US EPA feedback this April.
Personal Care. We're expanding this technology into hair care and home care applications.
Speaker #4: We're excited about the interest and performance feedback we've received in personal care for our new modified starch for rheology control in skin leave-on applications , and we will be launching this product this year .
Guillermo Novo: In home care, we're advancing the super wetter technology for auto dishwash applications. In bioresorbable polymers, momentum is building in aesthetic medicine, especially next generation dermal fillers, with fiscal year 2025 launches and recent customer audits supporting a strong multi-year outlook. We also continue to scale a strong pipeline with preclinical milestone sales for both generic and new drug development programs. We're also excited about the interest and performance feedback we've received in personal care for our new modified starch, for rheology control in skin leave-on applications, and we will be launching this product this year. In addition, we're expanding our starch technology into hair styling applications. These platforms are strategically important, each representing a scalable and high-value opportunity that strengthens our ability to compete and win in differentiated markets. They reflect the combined strength of our science, our global reach, and our ability to commercialize meaningful new technologies.
In home care, we're advancing the super wetter technology for auto dishwash applications. In bioresorbable polymers, momentum is building in aesthetic medicine, especially next generation dermal fillers, with fiscal year 2025 launches and recent customer audits supporting a strong multi-year outlook. We also continue to scale a strong pipeline with preclinical milestone sales for both generic and new drug development programs. We're also excited about the interest and performance feedback we've received in personal care for our new modified starch, for rheology control in skin leave-on applications, and we will be launching this product this year. In addition, we're expanding our starch technology into hair styling applications. These platforms are strategically important, each representing a scalable and high-value opportunity that strengthens our ability to compete and win in differentiated markets. They reflect the combined strength of our science, our global reach, and our ability to commercialize meaningful new technologies.
In the area we are currently targeting—textured hair—early beta testing feedback has been very positive.
And home care. We're advancing the super whether technology for auto dishwash applications.
Speaker #4: In addition , we're expanding our starch technology into hairstyling applications . These platforms are strategically important . Each representing a scalable and high value opportunity that strengthens our ability to compete and win and differentiate markets .
And by reservable polymers, momentum is building in aesthetic medicine, especially next-generation dermal fillers.
With fiscal year 2025 launches and recent customer audits, supporting a strong multi-year outlook.
Speaker #4: They reflect the combined strength of our science , our global reach , and our ability to commercialize meaningful new technologies . Together , they reinforce why innovation remains a key driver of a long term growth .
Guillermo Novo: Together, they reinforce why innovation remains a key driver of a long-term growth. Lastly, although not part of our new technology platforms, our coatings team is launching a number of new multifunctional HEC products this year that can provide unique cost and performance benefits to our customers, including better cost and use and improved performance. Please turn to slide 19. As we look ahead, I'd like to outline the leadership priorities guiding our execution. While markets are mixed, as anticipated, we enter the year with momentum on several fronts. The business has become significantly more focused, resilient, and better positioned to drive high value growth. Our cost actions are already supporting margin performance, with additional P&L benefits expected as the year progresses. Our innovation platforms and globalized investments continue to gain traction.
Guillermo Novo: Together, they reinforce why innovation remains a key driver of a long-term growth. Lastly, although not part of our new technology platforms, our coatings team is launching a number of new multifunctional HEC products this year that can provide unique cost and performance benefits to our customers, including better cost and use and improved performance. Please turn to slide 19. As we look ahead, I'd like to outline the leadership priorities guiding our execution. While markets are mixed, as anticipated, we enter the year with momentum on several fronts. The business has become significantly more focused, resilient, and better positioned to drive high value growth. Our cost actions are already supporting margin performance, with additional P&L benefits expected as the year progresses. Our innovation platforms and globalized investments continue to gain traction.
We also continue to scale a strong Pipeline with preclinical Milestone sales for both generic and new drug development programs.
Speaker #4: Lastly , although not part of our new technology , platforms , our coding team is launching a number of new multifunctional HPC products this year that can provide and unique performance cost benefits to our customers , including better cost in and use improved performance .
We're also excited about the interest and performance feedback we've received in personal care for our new modified starch for reality control and skin leave-on applications. And we will be launching this product this year.
In addition, we're expanding our starch technology into hairstyling applications.
Speaker #4: Please turn to slide 19 . As we look ahead , I'd like to outline the leadership priorities guiding our execution . While markets are mixed as anticipated , we enter the year with momentum on several fronts .
These platforms are strategically important, each representing a scalable and high-value opportunity that strengthens our ability to compete, win, and differentiate in markets.
Guillermo Novo: Together, they reinforce why innovation remains a key driver of long-term growth. Lastly, although not part of our new technology platforms, our coatings team is launching a number of new multifunctional HTC products this year that can provide unique cost and performance benefits to our customers, including better cost and use and improved performance. Please turn to slide 19. As we look ahead, I'd like to outline the leadership priorities guiding our execution. While markets are mixed, as anticipated, we enter the year with momentum on several fronts. The business has become significantly more focused, resilient, and better positioned to drive higher value growth. Our cost actions are already supporting margin performance, with additional P&L benefits expected as the year progresses. Our innovation platforms and globalized investments continue to gain traction.
Together, they reinforce why innovation remains a key driver of long-term growth. Lastly, although not part of our new technology platforms, our coatings team is launching a number of new multifunctional HTC products this year that can provide unique cost and performance benefits to our customers, including better cost and use and improved performance. Please turn to slide 19. As we look ahead, I'd like to outline the leadership priorities guiding our execution. While markets are mixed, as anticipated, we enter the year with momentum on several fronts. The business has become significantly more focused, resilient, and better positioned to drive higher value growth. Our cost actions are already supporting margin performance, with additional P&L benefits expected as the year progresses. Our innovation platforms and globalized investments continue to gain traction.
Speaker #4: The business has become significantly more focused , resilient , and better positioned to drive high value growth . Our cost actions are already supporting margin performance with additional personnel benefits expected as the year progresses .
They reflect the combined strength of our science, our Global reach, and our ability to commercialize meaningful new technologies together. They reinforce, why Innovation remains a key driver of a long-term growth.
Speaker #4: Our innovation platforms and globalized investments continue to gain traction . Our priorities for the fiscal 2026 are clear deliver on safety , profitable growth , free cash flow Rona and advance .
Guillermo Novo: Our priorities for the fiscal 2026 are clear: deliver on safety, profitable growth, free cash flow, and RONA. Advance our manufacturing optimization and inventory performance. Accelerate innovation, scale our globalized platforms, and foster a productivity-focused culture. Strengthen our systems and process, including leveraging AI to enhance productivity. Prioritize talent development, leadership stability, and organizational strength, and maintain transparent communications and consistent execution in our engagement with our investors. Fiscal 2026 is about converting our transformation into sustained performance. With a more focused and resilient portfolio, disciplined capital allocation, and clear strategic roadmap, Ashland is well positioned to deliver durable value creation for all stakeholders. Despite temporary operational and weather challenges, our strategy, strong execution, and commercial momentum give us confidence in delivering our fiscal 2026 commitments. Thank you to the entire Ashland team for your commitment and execution, and thank you for joining our call today.
Guillermo Novo: Our priorities for the fiscal 2026 are clear: deliver on safety, profitable growth, free cash flow, and RONA. Advance our manufacturing optimization and inventory performance. Accelerate innovation, scale our globalized platforms, and foster a productivity-focused culture. Strengthen our systems and process, including leveraging AI to enhance productivity. Prioritize talent development, leadership stability, and organizational strength, and maintain transparent communications and consistent execution in our engagement with our investors. Fiscal 2026 is about converting our transformation into sustained performance. With a more focused and resilient portfolio, disciplined capital allocation, and clear strategic roadmap, Ashland is well positioned to deliver durable value creation for all stakeholders. Despite temporary operational and weather challenges, our strategy, strong execution, and commercial momentum give us confidence in delivering our fiscal 2026 commitments. Thank you to the entire Ashland team for your commitment and execution, and thank you for joining our call today.
Phones are coding. Scheme is launching a number of new multi-functional HC products this year that can provide unique cost and performance benefits to our customers, including better cost and use and improved performance.
Please turn to slide 19.
Speaker #4: Our manufacturing optimization and inventory performance . Accelerate innovation , scale our globalized platforms and foster a productivity focused culture . Strengthen our systems and including processes , leveraging AI to enhance productivity .
As we look ahead, I'd like to outline the leadership priorities. Guiding our execution while markets are mixed as anticipated. We enter the year with momentum on several fronts. The business has become significantly more focused resilient and better positioned to drive higher value growth.
Speaker #4: Prioritize talent development , leadership stability , and organizational strength and maintain transparent communications and consistent execution in our engagement with our investors . Fiscal 2026 is about converting our transformation into sustained performance with a more focused and resilient portfolio , disciplined capital allocation clear strategic roadmap .
Our cost actions are already supporting margin performance, with additional P&L benefits expected as the year progresses.
Our innovation platforms and globalized investments continue to gain traction.
Guillermo Novo: Our priorities for fiscal 2026 are clear: deliver on safety, profitable growth, free cash flow, and RONA. Advance our manufacturing optimization and inventory performance. Accelerate innovation, scale our globalized platforms, and foster a productivity-focused culture. Strengthen our systems and process, including leveraging AI, to enhance productivity. Prioritize talent development, leadership stability, and organizational strength, and maintain transparent communications and consistent execution in our engagement with our investors. Fiscal 2026 is about converting our transformation into sustained performance. With a more focused and resilient portfolio, disciplined capital allocation, and clear strategic roadmap, Ashland is well positioned to deliver durable value creation for all stakeholders. Despite temporary operational and weather challenges, our strategy, strong execution, and commercial momentum give us confidence in delivering our fiscal 2026 commitments. Thank you to the entire Ashland team for your commitment and execution, and thank you for joining our call today.
Our priorities for fiscal 2026 are clear: deliver on safety, profitable growth, free cash flow, and RONA. Advance our manufacturing optimization and inventory performance. Accelerate innovation, scale our globalized platforms, and foster a productivity-focused culture. Strengthen our systems and process, including leveraging AI, to enhance productivity. Prioritize talent development, leadership stability, and organizational strength, and maintain transparent communications and consistent execution in our engagement with our investors. Fiscal 2026 is about converting our transformation into sustained performance. With a more focused and resilient portfolio, disciplined capital allocation, and clear strategic roadmap, Ashland is well positioned to deliver durable value creation for all stakeholders. Despite temporary operational and weather challenges, our strategy, strong execution, and commercial momentum give us confidence in delivering our fiscal 2026 commitments. Thank you to the entire Ashland team for your commitment and execution, and thank you for joining our call today.
Our priorities for fiscal 2026 are clear: deliver on safety, profitable growth, pre-cast flow, and Rona.
Advanced our manufacturing optimization and inventory performance.
Accelerate innovation.
Speaker #4: Ashland is well positioned to deliver durable creation for all value stakeholders and despite temporary operational and weather challenges , our strategy strong execution and commercial momentum give us confidence in fiscal delivering our 2026 commitments you to .
Scale our globalized platforms and foster a productivity-focused culture.
Strengthen our systems and processes, including leveraging AI to enhance productivity.
Prioritize talent development, leadership stability, and organizational strength.
Speaker #4: the Thank Ashland team for your commitment and execution . And thank you for joining our call today . Operator please open the line for Q&A .
Guillermo Novo: Operator, please open the line for Q&A.
Guillermo Novo: Operator, please open the line for Q&A.
And maintain transparent communications and consistent execution in our engagement with our investors.
This will—2026 is about converting.
Operator: ... Thank you. Ladies and gentlemen, as a reminder to ask the question, please press star one one on your telephone, then wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Josh Spector with UBS. Your line is open.
Operator: ... Thank you. Ladies and gentlemen, as a reminder to ask the question, please press star one one on your telephone, then wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Josh Spector with UBS. Your line is open.
Our transformation into sustained performance.
Speaker #5: you Thank . Ladies and gentlemen , as a reminder to ask the question , please press star one one on your telephone . Then wait for your name to be announced .
Speaker #5: withdraw To your question , please press star one one again . Please stand by while we compile the Q&A roster . Our first question comes from the line of Josh Spector with UBS .
For the more focused and resilient portfolio discipline Capital, allocation and clear strategic roadmap. Ashton is well, positioned to deliver durable value creation for all stakeholders.
[Analyst] (UBS): Yeah. Hi, good morning. I had two questions. First, just specifically on personal care, can you talk about the comments around the customer outage impacting demand? Is that an ongoing issue? Is that resolved? Do we catch up from that? And then second, I mean, Guillermo, in some of your prepared remarks from the release last night, you know, you talked about some optimism, I think, on some of the demand you were seeing building in your second quarter here. Just wondering if you could give more color there, if that's adding to any visibility or if it's still pretty limited. Thanks.
Josh Spector: Yeah. Hi, good morning. I had two questions. First, just specifically on personal care, can you talk about the comments around the customer outage impacting demand? Is that an ongoing issue? Is that resolved? Do we catch up from that? And then second, I mean, Guillermo, in some of your prepared remarks from the release last night, you know, you talked about some optimism, I think, on some of the demand you were seeing building in your second quarter here. Just wondering if you could give more color there, if that's adding to any visibility or if it's still pretty limited. Thanks.
Speaker #5: Your line is open .
And despite temporary operational and weather challenges, our strategy, strong execution and Commercial momentum. Give us confidence in, delivering our fiscal 2026 commitments.
Speaker #6: Yeah . Good Hi . morning . I had two questions . First , just specifically on personal care . Can you talk about the comments around the customer outage impacting demand ?
Guillermo Novo: Operator, please open the line for Q&A.
Operator, please open the line for Q&A.
Operator: Thank you. Ladies and gentlemen, as a reminder to ask the question, please press star one one on your telephone, then wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Josh Spector with UBS. Your line is open.
Operator: Thank you. Ladies and gentlemen, as a reminder to ask the question, please press star one one on your telephone, then wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Josh Spector with UBS. Your line is open.
Thank you to the entire national team for your commitment and execution, and thank you for joining our call today. Operator, please open the line for Q&A.
Speaker #6: Is that an ongoing issue ? Is that resolved ? Do up from we catch that ? And then Guillermo and second , I mean , your prepared some of remarks from the release last night , you talked about some optimism , I think , on some of the demand you were seeing building in your second quarter here , just wondering if you could give more color there , if that's adding to any visibility or if it's still pretty limited ?
Thank you.
Ladies and gentlemen, as a reminder, to ask a question, please press star 1 on your telephone, then wait for your name to be announced.
To withdraw your question, please press star 1 1 again.
Please stand by while we compile the Q&A roster.
Guillermo Novo: Okay. Let me do a quick comment on the demand and then on the PC outage. Jim, I'll pass you to give some comments. So we did start, if you look at Q1, you know, we started the quarter strong in November, and I think like other companies, November was a bit softer. And we did see the pickup really in December and January as William commented, continued to grow. So it's pretty broad-based in terms of life science and personal care. I would say in coatings, it's in line with our expectations. It's I'm not overreading the coatings side because this is still low in the seasonality.
Guillermo Novo: Okay. Let me do a quick comment on the demand and then on the PC outage. Jim, I'll pass you to give some comments. So we did start, if you look at Q1, you know, we started the quarter strong in November, and I think like other companies, November was a bit softer. And we did see the pickup really in December and January as William commented, continued to grow. So it's pretty broad-based in terms of life science and personal care. I would say in coatings, it's in line with our expectations. It's I'm not overreading the coatings side because this is still low in the seasonality.
Speaker #6: Thanks .
Speaker #7: Okay . Let me do a quick comment on on the and demand the then on PC outage . Jim , you to to give some comments .
Josh Spector: Yeah. Hi, good morning. I had two questions. First, just specifically on personal care, can you talk about the comments around the customer outage impacting demand? Is that an ongoing issue? Is that resolved? Do we catch up from that? And then second, I mean, Guillermo, in some of your prepared remarks from the release last night, you know, you talked about some optimism, I think, on some of the demand you were seeing building in your second quarter here. Just wondering if you could give more color there, if that's adding to any visibility or if it's still pretty limited. Thanks.
Josh Spector: Yeah. Hi, good morning. I had two questions. First, just specifically on personal care, can you talk about the comments around the customer outage impacting demand? Is that an ongoing issue? Is that resolved? Do we catch up from that? And then second, I mean, Guillermo, in some of your prepared remarks from the release last night, you know, you talked about some optimism, I think, on some of the demand you were seeing building in your second quarter here. Just wondering if you could give more color there, if that's adding to any visibility or if it's still pretty limited. Thanks.
Our first question comes from the line of Josh Spectre with UBS. Your line is open.
Speaker #7: So we did start . If you look at Q1 , you know , we started the quarter strong in November . And I think like other companies , November was a bit softer .
Speaker #7: And we did see the pickup really in December and January as also as William commented , continued to to grow . So and it's pretty broad based in terms of life science and personal care .
Speaker #7: I would say in , in coatings , it's in line with expectations . This I'm not our overreading the coating side still because low in the seasonality .
Guillermo Novo: Okay. Let me give a quick comment on the demand and then on the PC outage. Jim, I'll pass you to give some comments. So we did start, if you look at Q1, you know, we started the quarter strong in November, and I think like other companies, November was a bit softer. And we did see the pickup really in December and January as also as William commented, continued to grow. So then it's pretty broad-based in terms of life science and personal care. I would say in coatings, it's in line with our expectations. It's. I'm not overreading the coatings side because this is still low in the seasonality.
Guillermo Novo: Okay. Let me give a quick comment on the demand and then on the PC outage. Jim, I'll pass you to give some comments. So we did start, if you look at Q1, you know, we started the quarter strong in November, and I think like other companies, November was a bit softer. And we did see the pickup really in December and January as also as William commented, continued to grow. So then it's pretty broad-based in terms of life science and personal care. I would say in coatings, it's in line with our expectations. It's. I'm not overreading the coatings side because this is still low in the seasonality.
Yeah. Hi, good morning. Um, I had 2 questions first, just specifically on Personal Care. Can you talk about, uh, the comments around the customer outage impacting demand? Is that an ongoing issue? Is that resolved? Do we catch up from that? And then second and the GMO and some of your prepared remarks from the release last night. You know, you talked about some optimism. I think on some of the demand you were seeing building in your second quarter here. Just wondering if you could give more color there, if that's adding to any visibility or if it's still pretty limited. Thanks.
Guillermo Novo: You know, the season really starts to pick up in March, and really April to September is when we see the bigger volume. So it's a bit early, but it's been stable and I would say no big surprises. Overall, right now, we're not trying to overread. No, you know, there's nothing really to change our outlook. So we're pretty confident, and I think over the next two months, we should start picking up. Our order book for February still remains strong, too, so we'll see how that evolves. Obviously, we have now time in China, Chinese New Year and all that. It'll be a weaker February, but into March it should pick up. And then on the PC side, I mean, there are outages.
Guillermo Novo: You know, the season really starts to pick up in March, and really April to September is when we see the bigger volume. So it's a bit early, but it's been stable and I would say no big surprises. Overall, right now, we're not trying to overread. No, you know, there's nothing really to change our outlook. So we're pretty confident, and I think over the next two months, we should start picking up. Our order book for February still remains strong, too, so we'll see how that evolves. Obviously, we have now time in China, Chinese New Year and all that. It'll be a weaker February, but into March it should pick up. And then on the PC side, I mean, there are outages.
Speaker #7: You know , the season really starts to pick up in March and really April to September is when we see the bigger volumes .
Speaker #7: So it's a bit early , but it's it's it's been stable . And I would say no big surprises . So , so overall right now we're not trying to overread no , you know , there's nothing really to change our outlook .
Okay. Oh let me do a quick comment on on the demand and then on the PC uh, outage jimoh. I'll pass you to to give some comments. Um so we we did start. If you look at q1 you know we started a quarter strong in November and I think like other companies November was a bit softer. Um and and we did see the the pickup really uh
Speaker #7: So we're pretty confident and I think over the over the next two months we should start picking up our order book February . for Still remains strong too .
Speaker #7: So we'll see how that evolves . Obviously we have now I'm in China , the Chinese New Year and all that . It'll be a weaker February , but into March it should pick up .
Guillermo Novo: You know, the season really starts to pick up in March, and really April to September is when we see the bigger volume. So it's a bit early, but it's been stable, and I would say no big surprises. So overall, right now, we're not trying to overread. No, you know, there's nothing really to change our outlook. So we're pretty confident, and I think over the next two months, we should start picking up. Our order book for February still remains strong, too, so we'll see how that evolves. Obviously, we have now time in China, Chinese New Year and all that. It'll be a weaker February, but into March, it should pick up. And then on the PC side, I mean, there are outages.
You know, the season really starts to pick up in March, and really April to September is when we see the bigger volume. So it's a bit early, but it's been stable, and I would say no big surprises. So overall, right now, we're not trying to overread. No, you know, there's nothing really to change our outlook. So we're pretty confident, and I think over the next two months, we should start picking up. Our order book for February still remains strong, too, so we'll see how that evolves. Obviously, we have now time in China, Chinese New Year and all that. It'll be a weaker February, but into March, it should pick up. And then on the PC side, I mean, there are outages.
Guillermo Novo: We just had our own outages on things, and so they're temporary and recoverable. But Jim, you want to comment on the outages?
Guillermo Novo: We just had our own outages on things, and so they're temporary and recoverable. But Jim, you want to comment on the outages?
Speaker #7: And then on the PC side , I mean , there are outages . We just had our own outages on things . And so there temporary and recoverable .
Speaker #7: But Jim , you want to comment on on the object .
Jim Minicucci: Thanks. Thanks, Guillermo. Hey, Josh, thank you for the question. So as William had mentioned, you know, excluding those customer outages, the business would have been up low single digits. Specifically in North America, there were several customers that had unplanned outages. The outages were on the customer side, so it was not related to our inability to supply or anything driven from our side, and through conversations with customers, we understand that it was not demand driven, either. The outages all occurred in Q1. Some of them were multi-week, with a couple of them extending over a month, almost two months in one case. They all are back online.
Jim Minicucci: Thanks. Thanks, Guillermo. Hey, Josh, thank you for the question. So as William had mentioned, you know, excluding those customer outages, the business would have been up low single digits. Specifically in North America, there were several customers that had unplanned outages. The outages were on the customer side, so it was not related to our inability to supply or anything driven from our side, and through conversations with customers, we understand that it was not demand driven, either. The outages all occurred in Q1. Some of them were multi-week, with a couple of them extending over a month, almost two months in one case. They all are back online.
Speaker #4: Thanks .
Speaker #1: Thanks , Guillermo . Hey , Josh , thank you for the question . So as William had mentioned , you know , excluding those customer outages , the business would have been up low .
Speaker #1: Single digits , specifically in North America . There were several customers that had unplanned outages . The outages were were on the customer side .
Speaker #1: So it was it was not related to our inability to supply or anything driven from our side and through conversations with customers . We understand that it was not demand driven either .
Uh, February, but they need to March. It should pick up.
Guillermo Novo: We just had our own outages on things, and so they're temporary and recoverable. But Jim, you want to comment on the outages?
We just had our own outages on things, and so they're temporary and recoverable. But Jim, you want to comment on the outages?
Speaker #1: The outages all occurred in Q1 . Some of them were multi-week , with a couple of them extending over over a month . Almost two months .
And then on the PC side, I mean, there are outages; we just had our own outages on things, and so they're temporary, um, and recoverable. Um, Jim, you want to comment on the, uh,
Jim Minicucci: They all came back online before we closed Q1, and we do expect to recover most of it in Q2, and through the balance of the year. So we are starting to recover some of that in Q2, and by the end of the fiscal year, we do expect to recover most of that impact.
Jim Minicucci: They all came back online before we closed Q1, and we do expect to recover most of it in Q2, and through the balance of the year. So we are starting to recover some of that in Q2, and by the end of the fiscal year, we do expect to recover most of that impact.
Speaker #1: In one case , they all are back online . They all came back online before we closed Q1 , and we do expect to to recover most of it in Q3 two and through the balance of the year .
Jim Minicucci: Thanks. Thanks, Guillermo. And Josh, thank you for the question. So as William had mentioned, you know, excluding those customer outages, the business would have been up low single digits. Specifically in North America, there were several customers that had unplanned outages. The outages were on the customer side, so it was not related to our inability to supply or anything driven from our side. And through conversations with customers, we understand that it was not demand driven, either. The outages all occurred in Q1. Some of them were multi-week, with a couple of them extending over a month, almost two months in one case. They all are back online.
Jim Minicucci: Thanks. Thanks, Guillermo. And Josh, thank you for the question. So as William had mentioned, you know, excluding those customer outages, the business would have been up low single digits. Specifically in North America, there were several customers that had unplanned outages. The outages were on the customer side, so it was not related to our inability to supply or anything driven from our side. And through conversations with customers, we understand that it was not demand driven, either. The outages all occurred in Q1. Some of them were multi-week, with a couple of them extending over a month, almost two months in one case. They all are back online.
Speaker #1: So we are starting to recover some of that in Q2 . And by the end of the fiscal year , we do expect to that recover most of most impact .
[Analyst] (UBS): Okay. Thank you.
Josh Spector: Okay. Thank you.
Speaker #6: Okay . Thank you .
Operator: Thank you. Please stand by for our next question. Our next question comes from the line of Michael Sisson with Wells Fargo. Your line is open.
Operator: Thank you. Please stand by for our next question. Our next question comes from the line of Michael Sisson with Wells Fargo. Your line is open.
Speaker #8: Thank you .
Speaker #5: Please stand by for our next question . Our next question comes from the line of Michael Sison with Wells Fargo . Your line is open .
[Analyst] (Wells Fargo): Hey, good morning. For personal care, should we see volume start to turn the corner here in the second or third quarters? That, because I think Avoca is done, right, in terms of the outlook. Do we start to see positive volume growth?
Michael Sisson: Hey, good morning. For personal care, should we see volume start to turn the corner here in the second or third quarters? That, because I think Avoca is done, right, in terms of the outlook. Do we start to see positive volume growth?
Speaker #9: Good Hey . morning . For personal care . For personal care ? Do we . Is should we see volumes start to turn the corner here in the second or third quarter ?
Jim Minicucci: They all came back online before we closed Q1, and we do expect to recover most of it in Q2 and through the balance of the year. So we are starting to recover some of that in Q2, and by the end of the fiscal year, we do expect to recover most of that impact.
They all came back online before we closed Q1, and we do expect to recover most of it in Q2 and through the balance of the year. So we are starting to recover some of that in Q2, and by the end of the fiscal year, we do expect to recover most of that impact.
Speaker #9: that Is . I think a vodka is done right in terms of the outlook . Do we start to see positive volume growth ?
Thanks. Thanks camera. Hey Josh, thank you for the question. So as as William had mentioned, you know, excluding those customer outages, the, the business would have been up low single digits, um, specifically in in North America, they were several customers that, that had unplanned outages, uh, the outages were were on the customer side. So it was, it was not related to our inability to supply or anything driven from our side and through conversations with customers, we understand that it was not demand driven either. Um, the outages all occurred in q1, uh, some of them were multi-week with a couple of them extending over over a month. Almost 2 months, in 1 case, uh they all are back online. They all came back online before we closed, q1 and we do expect to to recover most of it uh, in Q32 and through the balance of the year.
Guillermo Novo: Yeah, so Avoca is done, as Jim said, so that the comps are gonna be cleaner. You know, if we see just the macro on the consumer side, it's behaving resilient overall. Most of our customers are indicating, you know, that it's flat to up in the single digits. So from a volume perspective, we expect to continue to see that as the year progresses. So no big surprise there, Mike.
Guillermo Novo: Yeah, so Avoca is done, as Jim said, so that the comps are gonna be cleaner. You know, if we see just the macro on the consumer side, it's behaving resilient overall. Most of our customers are indicating, you know, that it's flat to up in the single digits. So from a volume perspective, we expect to continue to see that as the year progresses. So no big surprise there, Mike.
Speaker #7: Yeah . So so vodka is done as Jim said . So that from the costs are going to be cleaner . You know , if if we see just a macro on on the consumer side , it's behaving resilient overall .
So we are starting to recover some of that in Q2, uh, and by the end of the fiscal year, we do expect to recover most, most of that impact.
Alessandra Faccin: Okay, thank you.
Josh Spector: Okay, thank you.
Okay, thank you.
Operator: Thank you. Please stand by for our next question. Our next question comes from the line of Michael Sison with Wells Fargo. Your line is open.
Operator: Thank you. Please stand by for our next question. Our next question comes from the line of Michael Sison with Wells Fargo. Your line is open.
Thank you. Please stand by for our next question.
Speaker #7: Most of our customers are indicating , you know , that its flat up in the single digits volume from a perspective . We expect to continue to see that as the year progresses .
Our next question comes from the line of Michael Systems with Wells Fargo. Your line is open.
Michael Sison: Hey, good morning. For personal care, should we see volumes start to turn the corner here in the Q2 or Q3? That, because I think Avoca is done, right? In terms of the outlook, do we start to see positive volume growth?
Michael Sison: Hey, good morning. For personal care, should we see volumes start to turn the corner here in the Q2 or Q3? That, because I think Avoca is done, right? In terms of the outlook, do we start to see positive volume growth?
Speaker #7: So no , no , no . Big surprise there Mike .
[Analyst] (Wells Fargo): Great. Then maybe just revisiting kind of the longer-term outlook, how do you think about, you know, rebuilding EBITDA to higher levels from here?
Michael Sisson: Great. Then maybe just revisiting kind of the longer-term outlook, how do you think about, you know, rebuilding EBITDA to higher levels from here?
Speaker #9: Great . And then then maybe just revisiting kind of the longer term outlook . How do you think about rebuilding EBITDA to higher levels from here ?
Guillermo Novo: Yeah, so Avoca is done, as Jim said, so that from the comps are going to be cleaner. You know, if we see just the macro on the consumer side, it's behaving resilient overall. Most of our customers are indicating, you know, that it's flat to up in the single digits. So from a volume perspective, we expect to continue to see that as the year progresses. So no big surprise there, Mike.
Guillermo Novo: Yeah, so Avoca is done, as Jim said, so that from the comps are going to be cleaner. You know, if we see just the macro on the consumer side, it's behaving resilient overall. Most of our customers are indicating, you know, that it's flat to up in the single digits. So from a volume perspective, we expect to continue to see that as the year progresses. So no big surprise there, Mike.
Hey, good morning. Um, for personal care, for personal care. Do we is, should we see volume? Start to turn the corner here in the second or third quarter is that, um, because I think a Voca is done, right? In terms of the Outlook, do we start to see positive volume growth?
Guillermo Novo: So I think, one, a lot of it has to do, you know, if you look at our strategy, execute, globalize, innovate. Execute is about productivity. We've got a lot of projects going through. There're, you know, we're already seeing the benefits. You see it, you know, with all the impacts on markets and competitive dynamics over the last year. Our margins continue to hold up, and I think that's a reflection of a lot of the productivity actions. So we're already doing that. Obviously, as volumes pick up, you know, we'll have a lot more leverage in terms of our, you know, absorption and most of our key plans. So volume pickup obviously will be very helpful. For now, we continue to remain focused on driving that productivity.
Guillermo Novo: So I think, one, a lot of it has to do, you know, if you look at our strategy, execute, globalize, innovate. Execute is about productivity. We've got a lot of projects going through. There're, you know, we're already seeing the benefits. You see it, you know, with all the impacts on markets and competitive dynamics over the last year. Our margins continue to hold up, and I think that's a reflection of a lot of the productivity actions. So we're already doing that. Obviously, as volumes pick up, you know, we'll have a lot more leverage in terms of our, you know, absorption and most of our key plans. So volume pickup obviously will be very helpful. For now, we continue to remain focused on driving that productivity.
Speaker #7: So I think one a lot of it has to do , you know , if we look at our strategy , execute , globalize , innovate , execute is about productivity .
Speaker #7: We've got a lot of projects going through there . You know , we're already seeing the benefits . You see it . You know with all the the impacts on markets and and competitive dynamics over the last year on margins continue to hold up .
Yeah, so so Voca is done as Jim said. So that from the concert are going to be cleaner, um, you know, if if we see just the macro, uh, on on the consumer side, um, that's behaving resilient overall. Uh, most of our customers are indicating, you know that, uh, it's lot
And the single digits. So from a volume perspective, we expect to continue to see that, uh, as the year progresses.
Speaker #7: And I think that's a reflection of a lot of the productivity actions . So we're already doing that . Obviously as volumes pick up , you know we'll have a lot more in , you know , absorption .
Michael Sison: Great. And then, maybe just revisiting kind of the longer term outlook, how do you think about, you know, rebuilding EBITDA to higher levels from here?
Michael Sison: Great. And then, maybe just revisiting kind of the longer term outlook, how do you think about, you know, rebuilding EBITDA to higher levels from here?
Um, so no. No, no big surprise there, Michael.
Great. And then maybe just revisiting kind of the longer-term outlook.
Um, how do you think about, you know, rebuilding IBA to higher levels from here?
Guillermo Novo: So I think one, a lot of it has to do, you know, if you look at our strategy, execute, globalize, innovate. Execute is about productivity. We've got a lot of projects going through. There are, you know, we're already seeing the benefits. You see it, you know, with all the impacts on markets and competitive dynamics. Over the last year, our margins continue to hold up, and I think that's a reflection of a lot of the productivity action. So we're already doing that. Obviously, as volumes pick up, you know, we'll have a lot more leverage in terms of our, you know, absorption and most of our key plants. So volume pickup obviously will be very helpful. For now, we continue to remain focused on driving that productivity.
Guillermo Novo: So I think one, a lot of it has to do, you know, if you look at our strategy, execute, globalize, innovate. Execute is about productivity. We've got a lot of projects going through. There are, you know, we're already seeing the benefits. You see it, you know, with all the impacts on markets and competitive dynamics. Over the last year, our margins continue to hold up, and I think that's a reflection of a lot of the productivity action. So we're already doing that. Obviously, as volumes pick up, you know, we'll have a lot more leverage in terms of our, you know, absorption and most of our key plants. So volume pickup obviously will be very helpful. For now, we continue to remain focused on driving that productivity.
Speaker #7: most of plants . So volume terms of our key leverage obviously will be very helpful . For now . We continue to remain focused on on driving that productivity .
Guillermo Novo: Most of the projects are going very well. I think, though, the one plant that we're, you know, we're putting a lot of effort on because of all the network trends, the HTC network optimization, is our Hopewell plant. They're very busy. There's a lot of activity there. When we closed Parlin, they brought a lot of products. We've had a little bit of cost issues there. So that one, we're gonna continue to focus. And obviously, the storm, that was one of those plants that was hardest hit, so some of those initiatives have been stalled a little bit, just as a result of the storm. But we're focused, we have a clear agenda, and we're gonna continue to drive that. The rest is gonna be the globalize, innovate.
Guillermo Novo: Most of the projects are going very well. I think, though, the one plant that we're, you know, we're putting a lot of effort on because of all the network trends, the HTC network optimization, is our Hopewell plant. They're very busy. There's a lot of activity there. When we closed Parlin, they brought a lot of products. We've had a little bit of cost issues there. So that one, we're gonna continue to focus. And obviously, the storm, that was one of those plants that was hardest hit, so some of those initiatives have been stalled a little bit, just as a result of the storm. But we're focused, we have a clear agenda, and we're gonna continue to drive that. The rest is gonna be the globalize, innovate.
Speaker #7: Most of the projects are going very well . I think the one plant that we're , you know , we're putting a lot of on effort because of all the network , the HCC network optimization is our Hopewell plant .
Speaker #7: They're very busy . There's a lot of activity there . When we close Parlin , they brought a lot of products . We've had a little bit of cost issues there .
Speaker #7: So that one we're going to continue to focus . And obviously the storm that was one of those plants that was hardest hit .
So I think, one, uh, a lot of it has to do—you know, if you look at our, our, our strategy: execute, globalize, innovate. 'Execute' is about productivity. We've got a lot of projects going through. Um, they're, they're, you know, we're, we're already seeing the benefits. You see it, you know, with all the impacts on markets and, and, uh, competitive dynamics over the last year. Our margins continue to hold up, um, and I think that's a reflection of a lot of the productivity action. So we're already doing that. Obviously, as volumes pick up, um, you know, we'll have a lot more leverage in terms of our, uh,
Speaker #7: So some of those initiatives have been stalled a little bit . Just as a result of the storm . we're But focused . We have a clear agenda and we're going to continue to drive that .
Guillermo Novo: Most of the projects are going very well. I think, though, the one plant that we're, you know, putting a lot of effort on because of all the network trends of the HTC network optimization is our Hopewell plant. They're very busy. There's a lot of activity there. When we closed Parland, they brought a lot of products. We've had a little bit of cost issues there, so that one we're gonna continue to focus. And obviously, the storm that was one of the plants that was hardest hit, so some of those initiatives have been stalled a little bit, just as a result of the storm. But we're focused, we have clear agenda, and we're gonna continue to drive that. The rest is gonna be the globalize, innovate.
Most of the projects are going very well. I think, though, the one plant that we're, you know, putting a lot of effort on because of all the network trends of the HTC network optimization is our Hopewell plant. They're very busy. There's a lot of activity there. When we closed Parland, they brought a lot of products. We've had a little bit of cost issues there, so that one we're gonna continue to focus. And obviously, the storm that was one of the plants that was hardest hit, so some of those initiatives have been stalled a little bit, just as a result of the storm. But we're focused, we have clear agenda, and we're gonna continue to drive that. The rest is gonna be the globalize, innovate.
Guillermo Novo: All those are higher margin areas, and the more we can grow, the more we can extend, you know, our margins and our EBITDA. And equally, I would say in Life Science, a lot of the cellulosic growth that we're seeing in our core businesses are all higher margin businesses.
Guillermo Novo: All those are higher margin areas, and the more we can grow, the more we can extend, you know, our margins and our EBITDA. And equally, I would say in Life Science, a lot of the cellulosic growth that we're seeing in our core businesses are all higher margin businesses.
Speaker #7: The rest is going to be the globalised innovate . All those are higher margin areas , and the more we can grow , the more we can we you can extend , know , our margins and and our EBITDA .
Speaker #7: And I would equally , say in life science , a lot of the cellulosic growth that we're seeing in our core businesses are all higher margin businesses .
[Analyst]: Got it. Thank you.
Michael Sisson: Got it. Thank you.
William Whitaker: Mike, just to add, it's William. I think the other key piece, too, to keep in mind is we have the $90 million program outstanding, right? That's the combination of the restructuring and the manufacturing optimization. We got 25 of that in fiscal 2025. We've committed to another 30 in fiscal 2026. That leaves another 35 yet to play out. So that's the other component on top of what Guillermo referenced on the productivity side. I just wanted to make sure you had those levers as well.
William Whitaker: Mike, just to add, it's William. I think the other key piece, too, to keep in mind is we have the $90 million program outstanding, right? That's the combination of the restructuring and the manufacturing optimization. We got 25 of that in fiscal 2025. We've committed to another 30 in fiscal 2026. That leaves another 35 yet to play out. So that's the other component on top of what Guillermo referenced on the productivity side. I just wanted to make sure you had those levers as well.
Speaker #9: Got it .
Speaker #3: Thank you .
Speaker #10: Mike .
Speaker #3: Mike , just to add , it's William , I think the other key piece to to keep in mind is we have the $90 million program outstanding .
You know, absorption and and and most of our key plants. So volume pick up obviously will be very helpful for now we we continue to remain focused on uh on driving that productivity. Most of the projects are going very well. I think that the 1 plant that we're, you know, we're putting a lot of effort on because of all the network trends of the HTC Network optimization is our Hopewell plan. They're very busy. There's a lot of activity there. When when we closed Parliament they brought a lot of products. We've had a little bit of cost uh uh issues there, so that that 1. Uh uh, we're we're going to continue to focus.
Speaker #3: Right . That's the combination of the restructuring and the manufacturing optimization . We got 25 of that in fiscal 25 . We've committed to another 30 in fiscal 26 .
Obviously, the storm—uh, that was one of those plants that was hardest hit. So some of those initiatives have been stalled a little bit. Um, this is as a result of the storm, but we're focused. Uh, we have a clear agenda and we're going to continue to drive that.
Speaker #3: So that leaves another play out . 35 yet to So that's that's the other component on top of what referenced on the productivity side , I just wanted to make sure you had those those levers as well .
Guillermo Novo: All those are higher margin areas, and the more we can grow, the more we can extend, you know, our margins and our EBITDA. And equally, I would say in life science, a lot of the cellulosic growth that we're seeing in our core businesses are all higher margin businesses.
All those are higher margin areas, and the more we can grow, the more we can extend, you know, our margins and our EBITDA. And equally, I would say in life science, a lot of the cellulosic growth that we're seeing in our core businesses are all higher margin businesses.
[Analyst]: Got it. Thank you.
Michael Sisson: Got it. Thank you.
Operator: Thank you.
Operator: Thank you.
[Analyst]: Thanks.
William Whitaker: Thanks.
Speaker #9: Got it . Thank you .
Operator: Our next question comes from the line of John Roberts with Mizuho. Your line is open.
Operator: Our next question comes from the line of John Roberts with Mizuho. Your line is open.
Speaker #8: Thank you , thank you .
Speaker #5: Our next question comes from the line of John Roberts with Mizuho . Your line is open .
[Analyst] (Mizuho): Thank you. On the China coatings demand, is there a line of sight to the bottom so that you'll begin at least comping flat year over year at some point?
John Roberts: Thank you. On the China coatings demand, is there a line of sight to the bottom so that you'll begin at least comping flat year over year at some point?
Michael Sison: Got it. Thank you.
Michael Sison: Got it. Thank you.
Uh the rest is going to be the globalized innovate all those are higher margin areas and the more we can grow. Uh the more we can we can extend uh you know, our margins and and our our ibida. And equally I I would say in life science, a lot of the cellulosic, uh, growth that we're seeing in our core businesses are all higher margin businesses.
Jim Minicucci: And Mike, just to add, it's William. I think the other key piece, too, to keep in mind is we have the $90 million program outstanding, right? That's the combination of the restructuring and the manufacturing optimization. We got 25 of that in fiscal 2025. We've committed to another 30 in fiscal 2026. That leaves another 35 yet to play out. So that's the other component on top of what Guillermo referenced on the productivity side. I just wanted to make sure you had those levers as well.
William Whitaker: And Mike, just to add, it's William. I think the other key piece, too, to keep in mind is we have the $90 million program outstanding, right? That's the combination of the restructuring and the manufacturing optimization. We got 25 of that in fiscal 2025. We've committed to another 30 in fiscal 2026. That leaves another 35 yet to play out. So that's the other component on top of what Guillermo referenced on the productivity side. I just wanted to make sure you had those levers as well.
Speaker #11: Thank you . On the China Coatings demand , is a line of sight there to the bottom so you'll that begin at least comping over year at some flat point year ?
Guillermo Novo: Yeah. So let me get some comments, and then I'll, Dago, if you could comment. I'm here right now in China. I would say, you know, a lot of the impact of the down market started last year, and it's already happened, most of, you know, the impact with our customers. I don't expect that this is gonna improve, you know, that quickly. You know, we see a lot of actions by the government to stimulate, to reenergize the property market, but the reality is it's gonna take a while. I think the issue is, for here, it's gonna be expect muted demand for a while. With the overcapacity, we're gonna continue to see deflationary pressures across the board. Most of that has already happened.
Guillermo Novo: Yeah. So let me get some comments, and then I'll, Dago, if you could comment. I'm here right now in China. I would say, you know, a lot of the impact of the down market started last year, and it's already happened, most of, you know, the impact with our customers. I don't expect that this is gonna improve, you know, that quickly. You know, we see a lot of actions by the government to stimulate, to reenergize the property market, but the reality is it's gonna take a while. I think the issue is, for here, it's gonna be expect muted demand for a while. With the overcapacity, we're gonna continue to see deflationary pressures across the board. Most of that has already happened.
Speaker #7: Yeah . So let me get some comments and then I'll go if you could comment . I'm here right now in in in China I would say a lot of the , the impact of the down market started it's last year and already happened .
Speaker #7: Most of the impact with our customers don't , I expect that this is going to improve . You know , that quickly . You know , the we see a lot of actions by the government to to stimulate to to re-energize the property market .
Activity side, I just wanted to make sure you had those levers as well.
Michael Sison: Got it. Thank you.
Michael Sison: Got it. Thank you.
Operator: Thank you.
Operator: Thank you.
Got it. Thank you.
Michael Sison: Thanks.
Michael Sison: Thanks.
Operator: Our next question comes from the line of John Roberts with Mizuho. Your line is open.
Operator: Our next question comes from the line of John Roberts with Mizuho. Your line is open.
Thank you. Thank
John Roberts: Thank you. On the China coatings demand, is there a line of sight to the bottom so that you'll begin at least comping flat year-over-year at some point?
John Roberts: Thank you. On the China coatings demand, is there a line of sight to the bottom so that you'll begin at least comping flat year-over-year at some point?
Our next question comes from the line of John Roberts with Meyzieu. Your line is open.
Speaker #7: But the reality is it's going to take a while . I think the issue for here is going to be expect muted demand for a while with the You're going to overcapacity .
Guillermo Novo: Yeah. So let me give some comments, and then I'll, Dago, if you could comment. I'm here right now in China. I would say, you know, a lot of the impact of the down market started last year, and it's already happened, most of, you know, the impact with our customers. I don't expect that this is gonna improve, you know, that quickly. You know, we see a lot of actions by the government to stimulate, to reenergize the property market, but the reality is it's gonna take a while. I think the issue is, for here, it's gonna be expect muted demand for a while. With the overcapacity, we're gonna continue to see deflationary pressures across the board. Most of that has already happened.
Guillermo Novo: Yeah. So let me give some comments, and then I'll, Dago, if you could comment. I'm here right now in China. I would say, you know, a lot of the impact of the down market started last year, and it's already happened, most of, you know, the impact with our customers. I don't expect that this is gonna improve, you know, that quickly. You know, we see a lot of actions by the government to stimulate, to reenergize the property market, but the reality is it's gonna take a while. I think the issue is, for here, it's gonna be expect muted demand for a while. With the overcapacity, we're gonna continue to see deflationary pressures across the board. Most of that has already happened.
Speaker #7: we're going to continue to see deflationary pressures across the board . of that has already happened . You know we've been hit hard on on you know in our business here in China .
Um, thank you on the, uh, China codings demand. Is there a line of sight to the bottom so that you'll begin at least comping flat year-over-year at some point?
Guillermo Novo: You know, we've been hit hard, you know, in our business here in China, so we're bottoming out. There's a limit to how much, you know, you can't lose past, but what, when you've lost a business, you can't lose more. So I think what I'm excited now is the team; we've rebalanced the network, so that we're not getting impacted with empty capacity in our plants. We're using this, a very cost-effective plant for us. We're using it for exports now around the world, and especially in the Middle East and Africa. So we're well-positioned.
Guillermo Novo: You know, we've been hit hard, you know, in our business here in China, so we're bottoming out. There's a limit to how much, you know, you can't lose past, but what, when you've lost a business, you can't lose more. So I think what I'm excited now is the team; we've rebalanced the network, so that we're not getting impacted with empty capacity in our plants. We're using this, a very cost-effective plant for us. We're using it for exports now around the world, and especially in the Middle East and Africa. So we're well-positioned.
Speaker #7: So we're bottoming out . There's there's a there's a limit to how much , you can't lose know , you past what you've , what what when you've lost a business , you lose can't more .
Speaker #7: So I think what I'm excited now is the team . We've we've rebalanced the the network so that we're not getting impacted with empty capacity in our plants .
Speaker #7: We're using the the very cost effective plant for us . We're using it for exports . Now around the world and especially in the Middle East and Africa .
Guillermo Novo: Today, just, you know, talking to our teams, they've really done a fantastic job in just looking at our portfolio, using this time to get our plant costs in order, but it also expanding our product line, both into more cost-effective, you know, different performance, the cost of parameters so that we can compete on the low end, and also some higher performance products that we can provide both lower cost and use, but higher performance. So we're expanding our ability to go back into the market in a more constructive way than just price gains as we move forward. But, Dago, do you want to comment on the comps and some of the other things your team is doing?
Guillermo Novo: Today, just, you know, talking to our teams, they've really done a fantastic job in just looking at our portfolio, using this time to get our plant costs in order, but it also expanding our product line, both into more cost-effective, you know, different performance, the cost of parameters so that we can compete on the low end, and also some higher performance products that we can provide both lower cost and use, but higher performance. So we're expanding our ability to go back into the market in a more constructive way than just price gains as we move forward. But, Dago, do you want to comment on the comps and some of the other things your team is doing?
Speaker #7: So well positioned and and today just , you know , talking to our teams have really done a fantastic job . And just looking at our portfolio , using this time to get our plant costs order .
Guillermo Novo: You know, we've been hit hard on our business here in China, so we're bottoming out. There's a limit to how much, you know, you can't lose path, but when you've lost a business, you can't lose more. So I think what I'm excited now is the team. We've rebalanced the network, so that we're not getting impacted with empty capacity in our plants. We're using this, a very cost-effective plant for us. We're using it for exports now around the world, and especially in the Middle East and Africa.
You know, we've been hit hard on our business here in China, so we're bottoming out. There's a limit to how much, you know, you can't lose path, but when you've lost a business, you can't lose more. So I think what I'm excited now is the team. We've rebalanced the network, so that we're not getting impacted with empty capacity in our plants. We're using this, a very cost-effective plant for us. We're using it for exports now around the world, and especially in the Middle East and Africa.
Speaker #7: But it in also expanding our product line both into more cost effective , you know , different performance to cost parameters so that we can compete on the low end .
Yeah, so let me get some comments and then I'll doggo. If you could comment, I'm here right now in in, in China. Uh, I would say, you know, a lot of the, the impact of the down Market, we started last year and it's already happened. Most of, you know, the impact with our customers. Um, I don't expect that this is going to improve, you know, that quickly, you know, the the we see a lot of actions by the government to, to stimulate to to re-energize the property Market. But the reality is it's going to take a while. I think the issue is for here, it's going to be expect muted demand for a while, um, with the over capacity. Uh, you're going to, we're going to continue to see, deflationary pressures across the board. Most of that has already happened. You know, we've been hit hard on on, on, uh, uh, you know, in our business here in China. So we're bottoming him out. There's, there's, uh, there's a limit to how much, you know, you can't lose path, but you got what, what, uh, when when you've lost a business you can't lose more.
Speaker #7: And also some performance higher products that we can provide both lower cost in use but performance . higher we're expanding our ability to go back into the into the in a market more constructive way than just price .
Guillermo Novo: So we're well positioned, and today, just, you know, talking to our teams, they've really done a fantastic job in just looking at our portfolio, using this time to get our plant costs in order, but it also expanding our product line, both into more cost-effective, you know, different performance to cost parameters, so that we can compete on the low end. And also some higher performance products that we can provide both lower cost and use, but higher performance. So we're expanding our ability to go back into the market in a more constructive way than just price games as we move forward. But Dago, do you want to comment on the comps and some of the other things your team is doing?
So we're well positioned, and today, just, you know, talking to our teams, they've really done a fantastic job in just looking at our portfolio, using this time to get our plant costs in order, but it also expanding our product line, both into more cost-effective, you know, different performance to cost parameters, so that we can compete on the low end. And also some higher performance products that we can provide both lower cost and use, but higher performance. So we're expanding our ability to go back into the market in a more constructive way than just price games as we move forward. But Dago, do you want to comment on the comps and some of the other things your team is doing?
Speaker #7: Price gains . As we move forward . But do you want to comment on on the comps and , and some of the other things your team is doing ?
Dago Cáceres: Yeah, sure, Guillermo, and I think you're spot on. So, I mean, the China comps are expected to ease in the second half, probably the second quarter. So we already took the hit versus the last year comps, so we'll be expecting to lap up to the next quarter. So that's number one. The other point that I would like to emphasize is, you know, what is it that we're making to resolve the situation, right? What is it that we're working on? And there's three points I want to emphasize. One is commercial discipline, the other one is productivity, and the third one is innovation. So on commercial discipline, which is a lot of focus on volume-price management to ensure that we do what's right for the business.
Dago Cáceres: Yeah, sure, Guillermo, and I think you're spot on. So, I mean, the China comps are expected to ease in the second half, probably the second quarter. So we already took the hit versus the last year comps, so we'll be expecting to lap up to the next quarter. So that's number one. The other point that I would like to emphasize is, you know, what is it that we're making to resolve the situation, right? What is it that we're working on? And there's three points I want to emphasize. One is commercial discipline, the other one is productivity, and the third one is innovation. So on commercial discipline, which is a lot of focus on volume-price management to ensure that we do what's right for the business.
Speaker #2: Yeah , sure . Guillermo and I think you're spot on . So , I mean , the the China comps are expected to ease in the following the second half , the second quarter .
Speaker #2: So we already took the hit versus the last year comps . So we'll be expecting to lap after the next quarter . So that's number one .
Speaker #2: other The point that I would like to emphasize is , you know , what is it that we're making to to resolve the situation , right .
Um so I think what I'm excited now is the team. We've we've rebalanced the the network, um so that we're not getting impacted with empty capacity in our plans, we're using. This is a very, uh, cost-effective plan for us. We're using it for exports now, uh, around the world and especially in the Middle East and Africa. Um, so well, well, positioned and uh, and today just, you know, talking to our teams. They've really done a fantastic job, um, and just looking at our portfolio using this time to get our plant costs in in order, but it also expanding our product line, both into more, uh, costs effective, uh, you know, different performance stupid costs to the parameters so that we can compete On The Low End. Um, and also some higher performance products that we can provide both uh, lower cost and use but higher
Speaker #2: What is it that we're working on . And there's three points that I to want to emphasize . One is commercial discipline . The other one is productivity .
Speaker #2: And the third one is innovation . So on commercial discipline , which is a lot of focus on volume , price management to ensure that we do what's right business .
Dago Caceres: Yeah, sure, Guillermo, and I think you're spot on. So, I mean, the China comps are expected to ease in the second half, following the Q2. So we already took the hit versus the last year comps, so we'll be expecting to lap up to the next quarter. So that's number one. The other point that I would like to emphasize is, you know, what is it that we're making to resolve the situation, right? What is it that we're working on? And there's three points I want to emphasize. One is commercial discipline, the other one is productivity, and the third one is innovation. So on commercial discipline, which is a lot of focus on volume price management, to ensure that we do what's right for the business.
Dago Caceres: Yeah, sure, Guillermo, and I think you're spot on. So, I mean, the China comps are expected to ease in the second half, following the Q2. So we already took the hit versus the last year comps, so we'll be expecting to lap up to the next quarter. So that's number one. The other point that I would like to emphasize is, you know, what is it that we're making to resolve the situation, right? What is it that we're working on? And there's three points I want to emphasize. One is commercial discipline, the other one is productivity, and the third one is innovation. So on commercial discipline, which is a lot of focus on volume price management, to ensure that we do what's right for the business.
Performance. So we we're, we're expanding, uh, our, our ability to go back into the, into the market, in a more, constructive way than just price price price gains as we move forward. But um, that if you want to comment on on the comps and and some of the other things, your team is doing.
Dago Cáceres: There is also a lot of focus on customer intimacy, just staying very close to customers so that we can deploy our innovation. Productivity, the good news is that Nanjing is a really excellent plant that we have. It's a very strong asset, and they do have very clear productivity improvement targets that we're going after. So I'm very excited about that as well. But probably the best one is really on innovation. We're moving fast. We're moving with urgency. We expect some of the results that we're doing on the innovation on our core products to materialize actually in 2026, which will really help us with the situation. And the intent here is to protect our core portfolio and then basically kind of produce or create products that are, that are made for the China market.
Dago Cáceres: There is also a lot of focus on customer intimacy, just staying very close to customers so that we can deploy our innovation. Productivity, the good news is that Nanjing is a really excellent plant that we have. It's a very strong asset, and they do have very clear productivity improvement targets that we're going after. So I'm very excited about that as well. But probably the best one is really on innovation. We're moving fast. We're moving with urgency. We expect some of the results that we're doing on the innovation on our core products to materialize actually in 2026, which will really help us with the situation. And the intent here is to protect our core portfolio and then basically kind of produce or create products that are, that are made for the China market.
Speaker #2: for the focus is also a lot of And there customer on intimacy , just staying very close to customers so that we can deploy our innovation productivity .
Man, I'm sure the year 1 and I think you're you're spot on. So um, I mean the
The China comps are expected to use in the second half, following the the
Speaker #2: The good news is that Nanjing is a really excellent plant . That we have is a very strong asset , and they do have very clear productivity improvement targets that we're going after .
The second quarter. So, we already took the hit for as simple as the year comes.
So we'll be expecting to lap up to the next, uh, quarter.
Speaker #2: So I'm very excited about well . But best one is really . On innovation . We're moving fast . We're moving with urgency .
Speaker #2: We expect some of the results that we're doing on the innovation , on our core products to materialize . Actually , in 2026 , which will really help us with the situation and the intent here is to protect our core portfolio and and basically kind of produce or create products that are that are made for the China market .
Dago Caceres: And there is also a lot of focus on customer intimacy, just staying very close to customers so that we can deploy our innovation. Productivity, the good news is that Nanjing is a really excellent plant that we have. It's a very strong asset, and they do have very clear productivity improvement targets that we're going after. So I'm very excited about that as well. But probably the best one is really on innovation. We're moving fast, we're moving with urgency. We expect some of the results that we're doing on the innovation on our core products to materialize actually in 2026, which will really help us with the situation. And the intent here is to protect our core portfolio and then basically kind of produce or create products that are, that are made for the China market.
And there is also a lot of focus on customer intimacy, just staying very close to customers so that we can deploy our innovation. Productivity, the good news is that Nanjing is a really excellent plant that we have. It's a very strong asset, and they do have very clear productivity improvement targets that we're going after. So I'm very excited about that as well. But probably the best one is really on innovation. We're moving fast, we're moving with urgency. We expect some of the results that we're doing on the innovation on our core products to materialize actually in 2026, which will really help us with the situation. And the intent here is to protect our core portfolio and then basically kind of produce or create products that are, that are made for the China market.
Dago Cáceres: So very excited about what we are doing here. And last point, I just want to reinforce what Guillermo was saying is, this is a really good plant. This is a plant that I would say, I would call it a global asset, absolutely. The initial intent was to produce in China for China, but this plant can produce for any other parts of the world. So what we're doing is rebalancing. There is opportunities outside of China for sure, that we're going after with a lot of focus.
Dago Cáceres: So very excited about what we are doing here. And last point, I just want to reinforce what Guillermo was saying is, this is a really good plant. This is a plant that I would say, I would call it a global asset, absolutely. The initial intent was to produce in China for China, but this plant can produce for any other parts of the world. So what we're doing is rebalancing. There is opportunities outside of China for sure, that we're going after with a lot of focus.
Speaker #2: So very excited about what we are doing here . And last point , I just want to reinforce what Guillermo was saying is this is a really good plant .
Um, so that number one. The other point that I would like to emphasize is, you know, what is it that we're making to resolve this—the situation, right? Why is it that we're working on that? There are three points that I want to emphasize. One is commercial discipline, the second one is productivity, and the third one is innovation. So, on commercial discipline: it's just a lot of focus on volume and price management to ensure that we do what's right for the business. And there is also a lot of focus on customer intimacy—just staying very close to customers so that we can deploy our innovation.
Speaker #2: a plant This is that I would say I would call it a global asset . Absolutely . Initial to intent was produce in China for China .
Speaker #2: plant can But this produce for any other parts of the world . So what we're doing is . That is rebalancing opportunities outside of China , for sure , that we're going after with with a lot of focus .
[Analyst] (Mizuho): And then, secondly, where are you facing the most risk and uncertainty around global trade issues?
John Roberts: And then, secondly, where are you facing the most risk and uncertainty around global trade issues?
Speaker #11: then And secondly , where are you facing , where are you facing the most risks and uncertainty around global trade issues ?
Guillermo Novo: You know, I think that the area that we're looking at more is what's Europe gonna do? You know, I think the-- there's a lot of push right now for our industry in terms of some of the cost competitors, the plant consolidations. So there's a lot of dialogue going on there, but there's no clear decisions on what they're gonna do. But I would say that's probably the area of focus for us at this point in time. We don't have anything that I would say specific, but we know that this is probably one of the areas of a higher pressure in terms of the regional interests to take some action.
Guillermo Novo: You know, I think that the area that we're looking at more is what's Europe gonna do? You know, I think the-- there's a lot of push right now for our industry in terms of some of the cost competitors, the plant consolidations. So there's a lot of dialogue going on there, but there's no clear decisions on what they're gonna do. But I would say that's probably the area of focus for us at this point in time. We don't have anything that I would say specific, but we know that this is probably one of the areas of a higher pressure in terms of the regional interests to take some action.
Speaker #7: You know , I think that the the , the area that we're looking at is more what's Europe going to do . You know , I think the , the , the there's a of lot push right now for our industry in , in terms of some of the cost competitiveness , the plant consolidations .
Dago Caceres: So very excited about what we are doing here. And last point, I just want to reinforce what Guillermo was saying is, this is a really good plant. This is a plant that I would say, I would call it a global asset, absolutely. Initially, intent was to produce in China for China, but this plant can produce for any other parts of the world. So what we're doing is rebalancing. There is opportunities outside of China for sure, that we're going after with a lot of focus.
So very excited about what we are doing here. And last point, I just want to reinforce what Guillermo was saying is, this is a really good plant. This is a plant that I would say, I would call it a global asset, absolutely. Initially, intent was to produce in China for China, but this plant can produce for any other parts of the world. So what we're doing is rebalancing. There is opportunities outside of China for sure, that we're going after with a lot of focus.
Uh productivity. The good news is that the engine is a really excellent plant that we have is a very strong asset. Um, and they do have very clear, productivity Improvement, targets that we're going after. So I'm very excited about that as well. But probably the best 1 is really on Innovation. We're moving fast. We're moving with urgency. We expect some of the results that we're doing on the Innovation, on our core products to materialize, actually in 2026, which will really help us with the situation. And the intent here is to protect our core portfolio and and basically kind of produce create products that are that are made for the China market. So, very excited about what we are doing here. And last point, I just want to reinforce what we are.
Speaker #7: So there's a lot of dialogue going on there . But there's no clear , you know , decisions on what they're going to do .
Speaker #7: But I would say that's probably the area of focus for us at this point in time . We don't have anything that I would say specific , but we know that this is probably one of the the areas of higher pressure in terms of the regional interests to take some .
Guillermo Novo: And then secondly, where are you facing the most risk and uncertainty around global trade issues? Yeah, I think that the area that we're looking at more is what's Europe gonna do? You know, I think there's a lot of push right now for our industry, in terms of some of the cost competitors, the plant consolidations. So there's a lot of dialogue going on there, but there's no clear decisions on what they're gonna do. But I would say that's probably the area of focus for us at this point in time.
Guillermo Novo: And then secondly, where are you facing the most risk and uncertainty around global trade issues? Yeah, I think that the area that we're looking at more is what's Europe gonna do? You know, I think there's a lot of push right now for our industry, in terms of some of the cost competitors, the plant consolidations. So there's a lot of dialogue going on there, but there's no clear decisions on what they're gonna do. But I would say that's probably the area of focus for us at this point in time.
What I was saying is, this is a really good plant. This is a plant that I would say, I would call it a global asset. Absolutely, the initial intent was to produce in China for China, but this plant can produce for any other parts of the world. So what we're doing is rebalancing—that is, there are opportunities outside of China, for sure, that we're going after with a lot of focus.
And then secondly, where are you facing—where are you facing the most risks and uncertainty around global trade issues?
[Analyst]: Thank you.
John Roberts: Thank you.
Speaker #7: action
Operator: Thank you. Please stand by for our next question. Our next question comes from the line of Chris Parkinson with Wolfe Research. Your line is open.
Operator: Thank you. Please stand by for our next question. Our next question comes from the line of Chris Parkinson with Wolfe Research. Your line is open.
Speaker #11: Thank you
Speaker #11: .
Speaker #8: Thank you .
Speaker #5: Please stand by for our next question . Our next question comes from the line of Chris Parkinson with Wolfe Research . Your line is open .
[Analyst] (Wolfe Research): Great, thank you so much. Just turning back to life sciences, wanna break down the growth algo here now that you're passing, you know, multiple years of, you know, a little bit of choppiness. You know, just but when you take a step back, you know, how are you thinking about, you know, you didn't mention VP&D in the PowerPoint, so I'm kind of curious on what effect, if any, that had on the price mix in the quarter? And then it seems like you're actually gaining pretty decent momentum in, you know, tablets and cellulosics.
Chris Parkinson: Great, thank you so much. Just turning back to life sciences, wanna break down the growth algo here now that you're passing, you know, multiple years of, you know, a little bit of choppiness. You know, just but when you take a step back, you know, how are you thinking about, you know, you didn't mention VP&D in the PowerPoint, so I'm kind of curious on what effect, if any, that had on the price mix in the quarter? And then it seems like you're actually gaining pretty decent momentum in, you know, tablets and cellulosics.
Speaker #12: Great . Thank you so much . Just turning back to life sciences . Want to break down growth algo here ? the Now that you're passing , you know , multiple years of a little bit of choppiness .
Speaker #12: You know , just but when you take a step back , you know , how are you thinking about , you know , you didn't mention Bpnd in the PowerPoint .
Guillermo Novo: We don't have anything that I would say specific, but we know that this is probably one of the areas of a higher pressure in terms of the regional interests to take some action.
We don't have anything that I would say specific, but we know that this is probably one of the areas of a higher pressure in terms of the regional interests to take some action.
Speaker #12: So I'm kind of curious on what effect , if any , that had on the price mix in the quarter . And then it seems like you're actually gaining pretty decent momentum and , you know , tablets and cellulosics .
[Analyst] (Wolfe Research): So, you know, when we look at this for 2026 and then, you know, kind of into 2027, is this finally getting back to just a, a low, kind of like a low single digit, you know, volume growth rate, perhaps a little bit more constructive price mix, you know, getting margins, you know, back up to the prior year's levels? Like, how, how should we be parsing that out? Thank you.
Chris Parkinson: So, you know, when we look at this for 2026 and then, you know, kind of into 2027, is this finally getting back to just a, a low, kind of like a low single digit, you know, volume growth rate, perhaps a little bit more constructive price mix, you know, getting margins, you know, back up to the prior year's levels? Like, how, how should we be parsing that out? Thank you.
Chris Parkinson: Thank you.
John Roberts: Thank you.
Speaker #12: So , you know , when we look at this for 26 and then kind of into 27 , is this finally getting back to just the low kind of like a low single digit volume growth rate , perhaps a little bit more constructive price .
Um, in in terms of some of the the costs competitivehs the the plant consolidations. So there's a lot of, uh, dialogue going on there. Um, but there's no clear, uh, you know, decisions on what they're going to do. Um, but I would say that's probably the the the area of focus for us at this point in time we don't have anything that I would say specific. But we know that this is uh probably 1 of the the areas of a higher pressure, in terms of uh uh the regional uh interests uh to take some action.
Operator: Thank you. Please stand by for our next question. Our next question comes from the line of Chris Parkinson with Wolfe Research. Your line is open.
Operator: Thank you. Please stand by for our next question. Our next question comes from the line of Chris Parkinson with Wolfe Research. Your line is open.
Thank you.
Thank you. Please stand by for our next question.
Chris Parkinson: Great. Thank you so much. Just turning back to life sciences, just wanna break down the growth algo here, now that you're passing, you know, multiple years of, you know, a little bit of choppiness. You know, just that, when you take a step back, you know, how are you thinking about, you know, you didn't mention VP&D in the PowerPoint, so I'm kind of curious on what effect, if any, that had on the price mix in the quarter. And then it seems like you're actually gaining pretty decent momentum in tablets and cellulosics.
Chris Parkinson: Great. Thank you so much. Just turning back to life sciences, just wanna break down the growth algo here, now that you're passing, you know, multiple years of, you know, a little bit of choppiness. You know, just that, when you take a step back, you know, how are you thinking about, you know, you didn't mention VP&D in the PowerPoint, so I'm kind of curious on what effect, if any, that had on the price mix in the quarter. And then it seems like you're actually gaining pretty decent momentum in tablets and cellulosics.
Our next question comes from the line of Chris Parkinson with Wolfe Research. Your line is open.
Speaker #12: getting margins the prior year's up to back levels , like how should we be parsing that out ? Thank you .
Guillermo Novo: Let me quick comment, and then I'll pass it to Alessandra. She can give more detailed color on the business. But I would say just specifically on the VP&D, that's the, you know. The life science business has been fine. That's where we had the issue a while back, and you know the story, one big competitor coming back in and all that, was the biggest issue for us. That has stabilized, right? So the VP&D, I would say, volumes are stable, pricing are stable. That's not the biggest growth driver at this point in time. We wanted to stabilize it, and I think we're seeing that across the world.
Guillermo Novo: Let me quick comment, and then I'll pass it to Alessandra. She can give more detailed color on the business. But I would say just specifically on the VP&D, that's the, you know. The life science business has been fine. That's where we had the issue a while back, and you know the story, one big competitor coming back in and all that, was the biggest issue for us. That has stabilized, right? So the VP&D, I would say, volumes are stable, pricing are stable. That's not the biggest growth driver at this point in time. We wanted to stabilize it, and I think we're seeing that across the world.
Speaker #7: me let me Let quick comment and then it to Alessandro . She can give more detailed color on the business , but I would say just specifically on the VPN , that's the , you know , the lifetime business has been fine .
Speaker #7: That's where we had the the the issue a while back . And , you know , the story . One big competitor coming back in and all that was the biggest issue for us that has stayed right .
Chris Parkinson: So, you know, when we look at this for 2026 and then, you know, kind of into 2027, is this finally getting back to just a, a low, kind of like a low single digit, you know, volume growth rate, perhaps a little bit more constructive price mix, you know, getting margins, you know, back up to the prior year's levels? Like, how, how should we be parsing that out? Thank you.
So, you know, when we look at this for 2026 and then, you know, kind of into 2027, is this finally getting back to just a, a low, kind of like a low single digit, you know, volume growth rate, perhaps a little bit more constructive price mix, you know, getting margins, you know, back up to the prior year's levels? Like, how, how should we be parsing that out? Thank you.
Speaker #7: So so the VPN , I would say volumes are stable , pricing are stable . That's not the biggest growth driver at this point in time .
Speaker #7: We wanted to stabilize it . And I think we're seeing that across the world . That's one of the issues of really driving productivity , making sure that we're going to be competitive and any price that we gave in the past that we're trying to recover it through productivity , asset utilization , all those kinds of things .
Guillermo Novo: That's one of the issues of really driving productivity, making sure that we're gonna be competitive and any price that we gave, in the past, that we're trying to recover through productivity, asset utilization, all those kinds of things. But the team, the broader strategy continues to progress and never really stopped, in terms of, the cellulosics or some of these other areas. But Ale, if you could comment on that and on VP&D as you see things, that would be great.
Guillermo Novo: That's one of the issues of really driving productivity, making sure that we're gonna be competitive and any price that we gave, in the past, that we're trying to recover through productivity, asset utilization, all those kinds of things. But the team, the broader strategy continues to progress and never really stopped, in terms of, the cellulosics or some of these other areas. But Ale, if you could comment on that and on VP&D as you see things, that would be great.
Great, thank you so much. Um, just turning back to life sciences. Um just want to break down the the growth. I'll go here now that you're passing, you know, multiple years of you know, a little bit of choppiness you know. Just but when you take a step back, you know, how are you thinking about, you know, you didn't mention vpnd in in the PowerPoint. So I'm kind of curious on what effect is any of that had on the price mix in the quarter and then seems like you're actually getting pretty decent momentum um and you know tablets and cellular losses. So you know when we look at this for 26 and then you know, kind of in the 27 is this we finally getting back to just the the low kind of like a low single digit, you know, volume growth rate, perhaps a little bit more, constructive price mix um you know and getting margins you know back up to the prior Year's levels. Like, how, how should we be part?
Guillermo Novo: Let me, let me quick comment, and then I'll pass it to Aristana. She can give more detailed color on the business. But I would say just specifically on the VP&D, that's the, you know, the last time business has been fine. That's where we had the issue a while back, and you know the story, one big competitor coming back in and all that, was the biggest issue for us. That has stabilized, right? So the VP&D, I would say, volumes are stable, pricing are stable. That's not the biggest growth driver at this point in time. We wanted to stabilize it, and I think we're seeing that across the world.
Guillermo Novo: Let me, let me quick comment, and then I'll pass it to Aristana. She can give more detailed color on the business. But I would say just specifically on the VP&D, that's the, you know, the last time business has been fine. That's where we had the issue a while back, and you know the story, one big competitor coming back in and all that, was the biggest issue for us. That has stabilized, right? So the VP&D, I would say, volumes are stable, pricing are stable. That's not the biggest growth driver at this point in time. We wanted to stabilize it, and I think we're seeing that across the world.
Thank you.
Speaker #7: But the team , the broader strategy continues to progress and never stopped in terms really of the Cellulosics or some of these other areas .
Speaker #7: But if you could comment on that and on as you VPN , see things be great .
Alessandra Faccin: Yeah, sure. So, we-- looking ahead, looking at the next few quarters, we expect to continue to deliver on the healthy growth. So two aspects, looking at the resilient pharma demand, roughly low single digits. And then we are seeing the momentum across our both innovate and globalize pillars, and that represents around 200 basis points above market on the growth that we are projecting. As Guillermo mentioned, VP&D is expected to be stable. We just concluded the contract negotiations in Europe, and they were mostly aligned with our expectations on share and with modest price pressure on certain portfolios. But net-net, they were in line with our expectations, so we remain very much focused in positioning our globalized, innovate growth strategies and the share gaining opportunities.
Alessandra Faccin: Yeah, sure. So, we-- looking ahead, looking at the next few quarters, we expect to continue to deliver on the healthy growth. So two aspects, looking at the resilient pharma demand, roughly low single digits. And then we are seeing the momentum across our both innovate and globalize pillars, and that represents around 200 basis points above market on the growth that we are projecting. As Guillermo mentioned, VP&D is expected to be stable. We just concluded the contract negotiations in Europe, and they were mostly aligned with our expectations on share and with modest price pressure on certain portfolios. But net-net, they were in line with our expectations, so we remain very much focused in positioning our globalized, innovate growth strategies and the share gaining opportunities.
Speaker #13: Yeah , sure . So so we looking ahead , looking at the next few quarters , we expect to continue to to deliver on the healthy growth .
Guillermo Novo: That's one of the issues of really driving productivity, making sure that we're gonna be competitive, and any price that we gave in the past that we're trying to recover it through productivity, asset utilization, all those kinds of things. But the team, the broader strategy continues to progress and never really stopped in terms of the cellulosic or some of these other areas. But Ale, if you could comment on that and on VP&D as you see things, that would be great.
That's one of the issues of really driving productivity, making sure that we're gonna be competitive, and any price that we gave in the past that we're trying to recover it through productivity, asset utilization, all those kinds of things. But the team, the broader strategy continues to progress and never really stopped in terms of the cellulosic or some of these other areas. But Ale, if you could comment on that and on VP&D as you see things, that would be great.
Speaker #13: So two aspects . Looking at the resilient pharma demand roughly low single digit . And then we are seeing the momentum across our both innovate and globalize pillars .
Speaker #13: And that represents a around 200 basis points above market . On the growth that we are projecting as I mentioned with Paddy , is expected to to be stable with just .
Let me let me quick comment and then I'll pass it to our son if she can give more details uh, color on on the business. But I would say just specifically on the vpnd. Um, that's the, you know, the the the last time the business has been fine, that's where we had the the, the issue a while back. And you know, the story, 1, big competitor coming back in and all that was the biggest issue for us that has stayed, right? So so the vpnd I would say volumes are stable, pricing are stable. That's not the biggest growth driver at this point in time. We wanted to stabilize it. I think we're we're seeing that uh across the world that's 1 of the issues of really driving productivity. Making sure that we're going to be competitive and any price that we gave uh, in the past that we're trying to recover it through productivity asset utilization, all those kinds of things. But the team, the broader strategy continues to progress and never really stopped, uh, in terms of, uh, the selling low 6 or some of these other areas, but I'll you could comment on that. And on be
Alessandra Faccin: Yeah, sure. So, looking ahead, looking at the next few quarters, we expect to continue to deliver on the healthy growth. So two aspects, looking at the resilient pharma demand, roughly low single digits. And then we are seeing the momentum across our both innovate and globalize pillars, and that represents around 200 basis points above market on the growth that we are projecting. As Guillermo mentioned, VP&E is expected to be stable. We just concluded the contract negotiations in Europe, and they were mostly aligned with our expectations on share and with modest price pressure on certain portfolios. But net-net, they were in line with our expectations, so we remain very much focused in positioning our globalized innovate growth strategies and the share gain opportunities.
Alessandra Faccin: Yeah, sure. So, looking ahead, looking at the next few quarters, we expect to continue to deliver on the healthy growth. So two aspects, looking at the resilient pharma demand, roughly low single digits. And then we are seeing the momentum across our both innovate and globalize pillars, and that represents around 200 basis points above market on the growth that we are projecting. As Guillermo mentioned, VP&E is expected to be stable. We just concluded the contract negotiations in Europe, and they were mostly aligned with our expectations on share and with modest price pressure on certain portfolios. But net-net, they were in line with our expectations, so we remain very much focused in positioning our globalized innovate growth strategies and the share gain opportunities.
Pnd. As you see things, that would be great.
Speaker #13: We're just concluded the contract negotiations in Europe , and they were mostly aligned with our expectations on share and with modest price pressure on in very much we portfolios .
Speaker #13: net , line with our they were certain net But focused in positioning our globalized growth innovate strategies and the share gain opportunities . When you look at that , injectables , with deliver up an outstanding first quarter .
Yep, sure, so um, so we’re looking at, looking at the next few quarters. We expect to continue to deliver on the, on healthy growth.
Alessandra Faccin: When you're looking at injectables, we deliver an outstanding Q1, double-digit growth versus prior year. We are seeing a strong uptake on new products. Guillermo talked about this on innovation on his prepared remarks. We're seeing the pipeline expansion and also a very effective regional business development model that we have put in place, which is positioning us to continue to see sustainable above-market growth in the coming quarters. On tablet coatings, specifically, we also saw double-digit growth year-over-year in Q1. The pipeline has expanded significantly, and our production efforts were a focus in the last few quarters, and we are seeing that.
Alessandra Faccin: When you're looking at injectables, we deliver an outstanding Q1, double-digit growth versus prior year. We are seeing a strong uptake on new products. Guillermo talked about this on innovation on his prepared remarks. We're seeing the pipeline expansion and also a very effective regional business development model that we have put in place, which is positioning us to continue to see sustainable above-market growth in the coming quarters. On tablet coatings, specifically, we also saw double-digit growth year-over-year in Q1. The pipeline has expanded significantly, and our production efforts were a focus in the last few quarters, and we are seeing that.
uh, since you asked by looking at the resilient form of demand of, uh, roughly low single digits, and then we are seeing the momentum across our
Speaker #13: Double digit growth versus prior year . We are seeing a strong uptake products . on new Guillermo talked about this . On on on innovation on his prepared remarks .
Whole, innovate, and globalized—uh, pillars—and that represents around 200 basis points above market on the growth that we are projecting. As General mentioned, PND is expected to be stable, with just, uh,
Speaker #13: We are seeing the pipeline expansion and also a very effective regional business development model that we have put in place and which is positioning us to to continue to see sustainable above market growth in the coming quarters .
Speaker #13: On tablet coatings . Specifically , we also saw double digit growth year over year in the first quarter . The pipeline has expanded significantly , and we our production efforts were were a focus in the last quarters .
We just concluded the contract negotiations in Europe, and they were mostly aligned with our expectations on share, with modest price pressure on certain portfolios. But net-net, they were in line with our expectations. So we remain very much focused.
Alessandra Faccin: When you're looking at injectables, we deliver an outstanding first quarter, double-digit growth versus prior year. We are seeing a strong uptake on new products. Guillermo talked about this on innovation on his prepared remarks. We're seeing the pipeline expansion and also a very effective regional business development model that we have put in place, and which is positioning us to continue to see sustainable above-market growth in the coming quarters. On tablet coatings, specifically, we also saw double-digit growth year-over-year in the first quarter. The pipeline has expanded significantly, and our production efforts were a focus in the last few quarters, and you're seeing that.
When you're looking at injectables, we deliver an outstanding first quarter, double-digit growth versus prior year. We are seeing a strong uptake on new products. Guillermo talked about this on innovation on his prepared remarks. We're seeing the pipeline expansion and also a very effective regional business development model that we have put in place, and which is positioning us to continue to see sustainable above-market growth in the coming quarters. On tablet coatings, specifically, we also saw double-digit growth year-over-year in the first quarter. The pipeline has expanded significantly, and our production efforts were a focus in the last few quarters, and you're seeing that.
Alessandra Faccin: We're seeing the good momentum from a production, from a productivity improvement in Wilmington, and also our new, the new sites in Brazil and China, supporting our growth, for the fiscal year 2026. We have a new plant that we announced before in India that is coming up in fiscal 2027. So Guillermo was just in India a few days ago, also visiting the new site, which is coming up in fiscal 2027. So overall, a lot of discipline from a commercial standpoint on price volume management and a focus on repositioning our globalized and innovate growth strategies. We are confident on the growth we're projecting over the next couple of quarters.
Alessandra Faccin: We're seeing the good momentum from a production, from a productivity improvement in Wilmington, and also our new, the new sites in Brazil and China, supporting our growth, for the fiscal year 2026. We have a new plant that we announced before in India that is coming up in fiscal 2027. So Guillermo was just in India a few days ago, also visiting the new site, which is coming up in fiscal 2027. So overall, a lot of discipline from a commercial standpoint on price volume management and a focus on repositioning our globalized and innovate growth strategies. We are confident on the growth we're projecting over the next couple of quarters.
Speaker #13: few seeing momentum from a And we are seeing the good production that we're , from a productivity improvement in Wilmington and also our new the the new sites in Brazil and China supporting our growth for the fiscal year 2026 .
Speaker #13: And we have a new plant that we announced the before in India . That is coming up in fiscal 2027 . So Guillermo was was just in India a few days ago .
Speaker #13: Also visiting the the new site , which is coming up in fiscal 2027 . So overall a lot of discipline from a commercial standpoint .
And positioning our globalized, innovate growth strategies and and uh and the shared gain opportunities. When you look at that injectables with deliver up uh, an outstanding first quarter, the double digit growth versus prior year. We are seeing a strong uptake on your product GMO, talking about this on on on Innovation, on his prepared remarks. We are seeing the pipeline expansion and and also a very effective Regional business development model that we have put in place and which is positioning us to to continue to see sustainable. Both market growth in the coming Quarters, on on tablet, code is specifically. We also saw double digit growth every year in the first quarter, the pipeline has expanded.
Speaker #13: On price , volume management and the focus on in positioning our globalized and innovate growth strategies . And we are we are confident on growth .
Alessandra Faccin: We've seen the good momentum from a productivity improvement in Wilmington and also our new sites in Brazil and China, supporting our growth, for the fiscal year 2026. And we have a new plant that we announced before in India that is coming up in fiscal 2027. So Guillermo was just in India a few days ago, also visiting the new site, which is coming up in fiscal 2027. So overall, a lot of discipline from a commercial standpoint on price volume management and a focus on repositioning our globalized and innovative growth strategies. And we are confident on the growth we're projecting over the next couple of quarters.
We've seen the good momentum from a productivity improvement in Wilmington and also our new sites in Brazil and China, supporting our growth, for the fiscal year 2026. And we have a new plant that we announced before in India that is coming up in fiscal 2027. So Guillermo was just in India a few days ago, also visiting the new site, which is coming up in fiscal 2027. So overall, a lot of discipline from a commercial standpoint on price volume management and a focus on repositioning our globalized and innovative growth strategies. And we are confident on the growth we're projecting over the next couple of quarters.
ended significantly and and we our production efforts were were a focus uh in the last few quarters and you're seeing that uh we're seeing the good momentum from a production from a, a productivity Improvement in wington and also our new um
Speaker #13: We're projecting over the next couple of quarters .
[Analyst] (Wolfe Research): Got it. Thank you. Just as a real quick follow-up and to kind of triangulating some of the things you said to Josh's question. In personal care, it seems like there's a lot of moving parts, and it seems like you're seeing a decent recovery in the biofunctional actives, in addition to some, you know, new product and NPI momentum. You know, is that a functionality of, you know, stronger demand in places like Asia, stabilization in Europe? Is it too? Where is it? Asia? You know, I'm trying to get to, you know, kind of the growth rates, ex the issues you saw in hair care, but it seems pretty constructive, so I'd be kind of curious on how you're thinking about that as we progress through fiscal year 2026. Thank you.
Chris Parkinson: Got it. Thank you. Just as a real quick follow-up and to kind of triangulating some of the things you said to Josh's question. In personal care, it seems like there's a lot of moving parts, and it seems like you're seeing a decent recovery in the biofunctional actives, in addition to some, you know, new product and NPI momentum. You know, is that a functionality of, you know, stronger demand in places like Asia, stabilization in Europe? Is it too? Where is it? Asia? You know, I'm trying to get to, you know, kind of the growth rates, ex the issues you saw in hair care, but it seems pretty constructive, so I'd be kind of curious on how you're thinking about that as we progress through fiscal year 2026. Thank you.
Speaker #12: Thank you . And just as a real quick follow up to kind of triangulating some some of the things you said to , to Josh's question in personal care , it seems like there's a lot , a lot of moving parts , and it seems like you're seeing a decent recovery in the biofunctions and bioactives , in addition to some , you know , new products at NPI , momentum , you know , is that a functionality of , you know , stronger demand in places like Asia in Europe is a , stabilization tour .
Uh, the new sites in Brazil and China, uh, supporting our growth, uh, for the fiscal year 2026.
Speaker #12: It is , say , just , you know , trying to get to kind of the growth rates x , the issues you saw in hair care .
Speaker #12: But it seems pretty constructive . So I'd be kind of curious on how you're thinking about that . As we progress through fiscal year 26 .
Guillermo Novo: Let me make a quick comment, and Jim, if you can talk about the specific regions and biofunctional-
Guillermo Novo: Let me make a quick comment, and Jim, if you can talk about the specific regions and biofunctional-
Speaker #12: Thank you .
Chris Parkinson: Got it. Thank you. And just as a real quick follow-up and to kind of triangulating some of the things you said to Josh's question. In personal care, it seems like there's a lot, a lot of moving parts, and it seems like you're seeing a decent recovery in the biofunctional and bioactives, in addition to some, you know, new products and NPI momentum. You know, is that a functionality of, you know, stronger demand in places like Asia, stabilization in Europe? Is it too? Where is it sourced? You know, I'm trying to get to, you know, kind of the growth rates ex the issues you saw in hair care, but it seems pretty constructive, so I'd be kind of curious on how you're thinking about that as we progress through fiscal year 2026. Thank you.
Chris Parkinson: Got it. Thank you. And just as a real quick follow-up and to kind of triangulating some of the things you said to Josh's question. In personal care, it seems like there's a lot, a lot of moving parts, and it seems like you're seeing a decent recovery in the biofunctional and bioactives, in addition to some, you know, new products and NPI momentum. You know, is that a functionality of, you know, stronger demand in places like Asia, stabilization in Europe? Is it too? Where is it sourced? You know, I'm trying to get to, you know, kind of the growth rates ex the issues you saw in hair care, but it seems pretty constructive, so I'd be kind of curious on how you're thinking about that as we progress through fiscal year 2026. Thank you.
Coming up in fiscal 2027. So overall, um, a lot of discipline from a commercial standpoint on price volume management and and the focus on in positioning our globalized and innovate growth strategies, uh, then we are we are confident on on the growth. We are projecting over the next couple of quarters.
Speaker #7: Make a quick comment . And Jim , if you can talk about the specific regions and biofunctional and all the areas , but just to make one thing clear , you know , if you look at our , our , our core .
Alessandra Faccin: Mm-hmm.
Alessandra Faccin: Mm-hmm.
Guillermo Novo: and all the areas. But just to make one thing clear, you know, if you look at our core personal care business, that's the established business that we've had for a long time. It's pretty stable. You know, the ups and downs are more driven by customer demand, and there's not big shared shifts and things like that. The growth is coming from the new things. Our growth in both biofunctional and microbial protection, and in the core, it's all these new technologies that we're working on that frankly personal care was the first business really in which we were developing the TVOs and all these products. So there is a level of stability. You know, a lot of these, it's up and down.
Guillermo Novo: and all the areas. But just to make one thing clear, you know, if you look at our core personal care business, that's the established business that we've had for a long time. It's pretty stable. You know, the ups and downs are more driven by customer demand, and there's not big shared shifts and things like that. The growth is coming from the new things. Our growth in both biofunctional and microbial protection, and in the core, it's all these new technologies that we're working on that frankly personal care was the first business really in which we were developing the TVOs and all these products. So there is a level of stability. You know, a lot of these, it's up and down.
Speaker #7: Personal care business , that's that's the established business that we've had for a long time . It's pretty stable . You know , ups and downs are more driven by by customer demand than , you know , there's not big shared shifts .
Speaker #7: I that the think growth is coming from the new things . Our globalized , our in both biofunctional and microfiltration and in the core .
Guillermo Novo: Let me make a quick comment, and Jim, if you can talk about the specific regions and biofunctionals in all the areas. But just to make one thing clear, you know, if you look at our core personal care business, that's the established business that we've had for a long time. It's pretty stable. You know, the ups and downs are more driven by customer demand and, you know, there's not big shared shifts, and things like... The growth is coming from the new things, our globalize, our in both biofunctional and microbial protection.
Guillermo Novo: Let me make a quick comment, and Jim, if you can talk about the specific regions and biofunctionals in all the areas. But just to make one thing clear, you know, if you look at our core personal care business, that's the established business that we've had for a long time. It's pretty stable. You know, the ups and downs are more driven by customer demand and, you know, there's not big shared shifts, and things like... The growth is coming from the new things, our globalize, our in both biofunctional and microbial protection.
Got it. Thank you and just as a real quick follow up and to kind of um triangulating. Some some of the things you said to uh to Josh's question uh in Personal Care. Uh seems like there's a lot, a lot of moving parts and it seems like you're seeing a decent recovery in the bio functionals and bioactives in addition to some, uh, you know, new products at NPI momentum, you know, is that a functionality of, you know, a stronger demand in places, like Asia stabilization in Europe? Is it too where it is? Say just you know I'm trying to get to you know, kind of the growth rates X, the issues you saw in air care but it seems pretty constructive. So I'd be kind of curious on how you think about that as we progress through fiscal year 26. Thank you.
Speaker #7: It's all these new technologies that we're working on that that frankly , personal care was the first business really in which we were developing the tvOS and all these products .
Speaker #7: So there is a level of stability . You know , a lot of these , it's up and down . It's the customers that have been buying some same of these products for a long time .
Guillermo Novo: It's the same customers that have been buying some of these products for a long time, and there is a lot of stability there. But, Jim, if you want to comment a little bit more color?
Guillermo Novo: It's the same customers that have been buying some of these products for a long time, and there is a lot of stability there. But, Jim, if you want to comment a little bit more color?
And bye. Bye, functionals and all the areas, but just to make one thing clear. You know, if you look at our—our, our core, uh, uh,
Speaker #7: And there is a lot of stability there . But Jim , if you want to comment a little bit more color , sure .
Jim Minicucci: Sure. Thanks, Guillermo. Hey, Chris. So I, you know, I think we've really been working to make the personal care story as simple as possible, just given all the different pieces and parts of the portfolio. And I think when you look at Q1, you know, we're very happy with Q1. As you mentioned, biofunctional performed extremely well. We have stabilization in our base, which we had talked about in the prior quarter. That base continues to be stable, and we're seeing even some growth there. We're more excited by all the work the team has done to expand the biofunctional portfolio. We've gained a lot of new customers, especially in Europe and in China, and we're getting our new product launches into those customers.
Jim Minicucci: Sure. Thanks, Guillermo. Hey, Chris. So I, you know, I think we've really been working to make the personal care story as simple as possible, just given all the different pieces and parts of the portfolio. And I think when you look at Q1, you know, we're very happy with Q1. As you mentioned, biofunctional performed extremely well. We have stabilization in our base, which we had talked about in the prior quarter. That base continues to be stable, and we're seeing even some growth there. We're more excited by all the work the team has done to expand the biofunctional portfolio. We've gained a lot of new customers, especially in Europe and in China, and we're getting our new product launches into those customers.
Speaker #1: Thanks , Jim . Hey , Chris . So , you know , I think we've really been working to make the personal care story as simple as possible , just given all the different pieces and parts of the portfolio .
Personal care business. That's the established business that we've had for a long time. It's pretty stable—you know, the ups and downs are more driven by customer demand, and, you know, there's not big, shared shifts. I think that the growth is coming from the new things.
Speaker #1: And I think when you look at Q1 , you know , we're very happy with Q1 , as you mentioned , Biofunctional performed extremely well .
Guillermo Novo: And in the core, it's all these new technologies that we're working on that frankly personal care was the first business really in which we were developing the TVOs and all these products. So there is a level of stability. You know, a lot of these, it's up and down. It's the same customers that have been buying some of these products for a long time, and there is a lot of stability there. But Jim, if you want to comment a little bit more color?
And in the core, it's all these new technologies that we're working on that frankly personal care was the first business really in which we were developing the TVOs and all these products. So there is a level of stability. You know, a lot of these, it's up and down. It's the same customers that have been buying some of these products for a long time, and there is a lot of stability there. But Jim, if you want to comment a little bit more color?
Speaker #1: We have stabilization , stabilization in our base , which we had the talked about in . quarter That base continues prior to be stable , and we're seeing even some some growth there .
Speaker #1: We're more by all the excited work the team has done to expand the Biofunctional portfolio . We've gained a lot of new customers , especially in Europe and in China , and we're getting our new product launches into those customers .
Jim Minicucci: As I mentioned, Collapeptyl, it's, you know, I don't want to say a miracle product, but it's something that within three minutes, you already start to feel that hydration. Within a couple hours, you already start to get real, you know, glowing in your skin, and the team's done a great job launching products. And, you know, we feel biofunctional is really moving in the right direction going forward. Microbial protection, it's all about continuing to grow there, convert opportunities, and we've seen really nice growth across all the regions. And then, as Guillermo mentioned, in our care ingredients business, we had the customer outages, specifically in Q1. Aside from that, you know, there's always perhaps some noise as you go into the end of the year, but generally, it's very stable.
Jim Minicucci: As I mentioned, Collapeptyl, it's, you know, I don't want to say a miracle product, but it's something that within three minutes, you already start to feel that hydration. Within a couple hours, you already start to get real, you know, glowing in your skin, and the team's done a great job launching products. And, you know, we feel biofunctional is really moving in the right direction going forward. Microbial protection, it's all about continuing to grow there, convert opportunities, and we've seen really nice growth across all the regions. And then, as Guillermo mentioned, in our care ingredients business, we had the customer outages, specifically in Q1. Aside from that, you know, there's always perhaps some noise as you go into the end of the year, but generally, it's very stable.
Jim Minicucci: Sure. Thanks, Guillermo. Hey, Chris. So I, you know, I think we've really been working to make the personal care story as simple as possible, just given all the different pieces and parts of the portfolio. And I think when you look at Q1, you know, we're very happy with Q1. As you mentioned, biofunctional performed extremely well. We have stabilization in our base, which we had talked about in the prior quarter. That base continues to be stable, and we're seeing even some growth there. We're more excited by all the work the team has done to expand the biofunctional portfolio. We've gained a lot of new customers, especially in Europe and in China, and we're getting our new product launches into those customers.
Jim Minicucci: Sure. Thanks, Guillermo. Hey, Chris. So I, you know, I think we've really been working to make the personal care story as simple as possible, just given all the different pieces and parts of the portfolio. And I think when you look at Q1, you know, we're very happy with Q1. As you mentioned, biofunctional performed extremely well. We have stabilization in our base, which we had talked about in the prior quarter. That base continues to be stable, and we're seeing even some growth there. We're more excited by all the work the team has done to expand the biofunctional portfolio. We've gained a lot of new customers, especially in Europe and in China, and we're getting our new product launches into those customers.
Our globalized... Our, our, uh, uh, in, in both bio functionals and, and micro protection, and in the core. It's all these new technologies that we're working on that, that, uh, frankly, uh, Personal Care was the first business, really, in, in which we were developing the TVOs and, and, and all these products. So, there is a level of stability. You know, a lot of these, it's up and down. It's the same customers that have been buying some of these products for a long time, and there is a lot of stability there. But, uh, Jim, if you want to comment a little bit more color,
Speaker #1: As I mentioned , it's , you know , I don't want to say a miracle product , but it's something that within three , three minutes , you're already starting to feel that hydration within within a couple hours , you already start to to get real , you know , glowing in your skin .
Speaker #1: And the team's done a great job launching products . And , you know , we feel Biofunctional is really moving in the right direction , going forward .
Speaker #1: Microbial protection . It's all about continuing to grow their convert opportunities . And we've seen really nice growth across all the regions . And then , as Guillermo our care mentioned , in ingredients business , we have the customer outages specifically in Q1 .
Speaker #1: Aside from that , you know , there's always perhaps some noise as you go end of the into the year . But generally it's very stable .
Jim Minicucci: As I mentioned, Colapeptil, it's, you know, I don't want to say a miracle product, but it's something that within three minutes, you already start to feel that hydration. Within a couple hours, you already start to get real, you know, glowing in your skin, and the team's done a great job launching products and, you know, we feel biofunctional is really moving in the right direction going forward. Microbial protection, it's all about continuing to grow there, convert opportunities, and we've seen really nice growth across all the regions. And then, as Guillermo mentioned, in our care ingredients business, we had the customer outages, specifically in Q1. Aside from that, you know, there's always perhaps some noise as you go into the end of the year, but generally, it's very stable.
As I mentioned, Colapeptil, it's, you know, I don't want to say a miracle product, but it's something that within three minutes, you already start to feel that hydration. Within a couple hours, you already start to get real, you know, glowing in your skin, and the team's done a great job launching products and, you know, we feel biofunctional is really moving in the right direction going forward. Microbial protection, it's all about continuing to grow there, convert opportunities, and we've seen really nice growth across all the regions. And then, as Guillermo mentioned, in our care ingredients business, we had the customer outages, specifically in Q1. Aside from that, you know, there's always perhaps some noise as you go into the end of the year, but generally, it's very stable.
Jim Minicucci: The team's done a really nice job converting opportunities, especially in skin. You will see, as we go through the balance of the year, oral care will be, I would say, more smooth this year for us over the next three quarters. Sometimes it tends to be a bit more concentrated in a couple quarters. It will be smoother through Q2 to Q4. But overall, you know, I would say Q1, really, it was the customer outages and North America demand that we're continuing to monitor. As I said, a bit of a mixed environment there.
Jim Minicucci: The team's done a really nice job converting opportunities, especially in skin. You will see, as we go through the balance of the year, oral care will be, I would say, more smooth this year for us over the next three quarters. Sometimes it tends to be a bit more concentrated in a couple quarters. It will be smoother through Q2 to Q4. But overall, you know, I would say Q1, really, it was the customer outages and North America demand that we're continuing to monitor. As I said, a bit of a mixed environment there.
Sure, thank thanks camera. Hey, Chris, so I, you know, I think we've really been working to make the personal care story as simple as possible. Just give them all the different pieces and parts of the portfolio. And, and I think, when you look at q1, you know, we're we're very happy with q1. As you mentioned bio, functional performed extremely well. Uh, we have stabilization stabilization in our base, which we had talked about in the prior quarter, That Base continues to be stable. And we're seeing even some, some growth there, we're more excited. By all the work. The team has done to expand the bio functional portfolio. We've gained a lot of new customers, especially in Europe and in China and we're getting our new product launches, uh, into those customers.
Speaker #1: team's done a really The nice job converting opportunities , especially in skin . You will see as through the balance of we go the year care .
Speaker #1: will Oral be , I would say , more smooth this year for us over the next three quarters . Sometimes it tends to be a bit more concentrated in a couple quarters .
Speaker #1: It will be smoother through Q2 to Q4 , but but overall , you know , I would say Q1 really it was customer the outages in North America demand that we're continuing to monitor , as I said , a bit of a mixed environment .
[Analyst]: Helpful colors. Thank you.
ErIc Boyes: Helpful colors. Thank you.
Speaker #1: There .
Speaker #12: Helpful color . Thank you .
Operator: Please stand by for our next question. Our next question comes from the line of Mike Harrison with Seaport Research Partners. Your line is open.
Operator: Please stand by for our next question. Our next question comes from the line of Mike Harrison with Seaport Research Partners. Your line is open.
Speaker #14: Okay .
Speaker #5: Please stand by next for our question . Our next question comes from the line Mike Harrison with Seaport Research Partners . Your land is open .
Jim Minicucci: The team's done a really nice job converting opportunities, especially in skin. You will see, as we go through the balance of the year, oral care will be, I would say, more smooth this year for us over the next three quarters. Sometimes it, it tends to be a bit more concentrated in a couple quarters. It will be smoother through Q2 to Q4. But overall, you know, I would say Q1, really, it was the customer outages and North America demand that we're continuing to monitor, as I said, a bit of a mixed environment there.
The team's done a really nice job converting opportunities, especially in skin. You will see, as we go through the balance of the year, oral care will be, I would say, more smooth this year for us over the next three quarters. Sometimes it, it tends to be a bit more concentrated in a couple quarters. It will be smoother through Q2 to Q4. But overall, you know, I would say Q1, really, it was the customer outages and North America demand that we're continuing to monitor, as I said, a bit of a mixed environment there.
[Analyst] (Seaport Research Partners): Hi, good morning.
Mike Harrison: Hi, good morning.
Guillermo Novo: Morning.
Guillermo Novo: Morning.
[Analyst] (Seaport Research Partners): I was wondering, Alessandra, in life sciences, you mentioned low nitrite cellulosics. Can you help us understand what differentiates those from typical cellulosics, and why that's important?
Speaker #15: Hi . Good morning . Was wondering Alessandra Assis in in life sciences . You mentioned low nitrite cellulosics . Can you help us understand what differentiates those from from typical and why that's cellulosics ?
Mike Harrison: I was wondering, Alessandra, in life sciences, you mentioned low nitrite cellulosics. Can you help us understand what differentiates those from typical cellulosics, and why that's important?
Customers, as I mentioned, call a pep till it's, you know, I don't want to say a miracle product, but it's something that within 3, 3 minutes, you already start to feel that hydration within within a couple hours you already start to, to get real, you know, glowing in your skin and the team's done a great job watching products. And you know, we feel biofunctional is really moving in the right direction, going forward, microbial protection. It's all about continuing to grow their convert opportunities, and, and we've seen really nice growth across all the regions. Um, and then, as gamma mentioned, in our care ingredients business, we had the customer outages specifically in in q1, aside from that, you know, there's always perhaps Some Noise as you go into the end of the year. Uh, but generally it's it's very stable. The team's done a really nice job, converting opportunities, especially in skin. Um, you will see as we go through the balance of the Year. Oral Care will be, I would say more smooth this year for us over the next 3 quarters. Sometimes it, it tends to be a bit more concentrated in a couple of
Speaker #15: important
Guillermo Novo: Well, Alessandra, if you could comment just on the ones that we've already launched and the ones that we continue to launch, and not just cellulosics, but the whole theme of high purity that you guys are working on.
Guillermo Novo: Well, Alessandra, if you could comment just on the ones that we've already launched and the ones that we continue to launch, and not just cellulosics, but the whole theme of high purity that you guys are working on.
Speaker #7: So if you could comment just on the ones that we've already launched and the ones that we continue to launch and , and not just Cellulosics , but the whole theme of high purity guys are working on that you .
William Whitaker: Helpful colors. Thank you.
Chris Parkinson: Helpful colors. Thank you.
Quarters—it will be smoother through, uh, Q2 to Q4. But overall, you know, I would say Q1, really, it was the customer outages in North America demand that we're continuing to monitor. As I said, it's a bit of a mixed environment there.
Helpful colors. Thank you.
Operator: Please stand by for our next question. Our next question comes from the line of Mike Harrison with Seaport Research Partners. Your line is open.
Operator: Please stand by for our next question. Our next question comes from the line of Mike Harrison with Seaport Research Partners. Your line is open.
Please stand by for our next question.
Alessandra Faccin: Yep. Yeah, so we launched the new low nitrite grade for both Plasdone, which is VP&E, and Benecel, you know, cellulosics. So this brings an enhancement of product quality, basically from nitrosamine on the pharma industry, and versus the regulatory requirements, right? And it is the pharma companies overall, across the board, not just large pharmas, but generics. All pharma companies are, are very much focused on that, on bringing the low nitrite grade or excipient to help with the nitrosamine levels on their formulation.
Alessandra Faccin: Yep. Yeah, so we launched the new low nitrite grade for both Plasdone, which is VP&E, and Benecel, you know, cellulosics. So this brings an enhancement of product quality, basically from nitrosamine on the pharma industry, and versus the regulatory requirements, right? And it is the pharma companies overall, across the board, not just large pharmas, but generics. All pharma companies are, are very much focused on that, on bringing the low nitrite grade or excipient to help with the nitrosamine levels on their formulation.
Speaker #8: Yeah .
Speaker #13: Yeah . So so we launched the new low nitrite grades for both Gladstone and which is the PA and , and benzyl cellulosics .
Mike Harrison: Hi, good morning.
Mike Harrison: Hi, good morning.
Our next question comes from the line of Mike Harrison with Seaport Research Partners. Your line is open.
Jim Minicucci: Morning.
Jim Minicucci: Morning.
Mike Harrison: Was wondering, Alessandra, in life sciences, you mentioned low nitrite cellulosics. Can you help us understand what differentiates those from typical cellulosics, and why that's important?
Hi, good morning.
Mike Harrison: Was wondering, Alessandra, in life sciences, you mentioned low nitrite cellulosics. Can you help us understand what differentiates those from typical cellulosics, and why that's important?
Speaker #13: So this brings an enhanced of product quality basically from a nitrosamine on the pharma industry . And versus the regulatory Right . requirements .
Um, was wondering—Alessandra, in, uh, in Life Signs. As you mentioned, low nitrite, cellulose 6. Can you, uh, help us understand, uh, what differentiates those from, from typical cellulose, uh, and why that's important.
Dago Caceres: Well, Alessandra, if you could comment just on the ones that we've already launched and the ones that we continue to launch and the... not just cellulosics, but the whole theme of high purity that you guys are working on.
Guillermo Novo: Well, Alessandra, if you could comment just on the ones that we've already launched and the ones that we continue to launch and the... not just cellulosics, but the whole theme of high purity that you guys are working on.
Speaker #13: And it is the pharma companies overall across the board , not just large pharmas , but generics , pharma companies are are very much focused on that , on bringing the low nitrite grade for excipients to help with the nitrosamine levels on their on their formulations .
Alessandra Faccin: Yep. Yeah, so we launched the new low nitrite grades for both Plastidone, which is VP&E, and Benecel, you know, cellulosics. So this brings an enhancement of product quality, basically from nitrosamine on the pharma industry, and versus the regulatory requirements, right? And it is the pharma companies overall, across the board, not just large pharmas, but generics. All pharma companies are very much focused on that, on bringing the low nitrite grade for excipients to help with the nitrosamine levels on their formulations.
Alessandra Faccin: Yep. Yeah, so we launched the new low nitrite grades for both Plastidone, which is VP&E, and Benecel, you know, cellulosics. So this brings an enhancement of product quality, basically from nitrosamine on the pharma industry, and versus the regulatory requirements, right? And it is the pharma companies overall, across the board, not just large pharmas, but generics. All pharma companies are very much focused on that, on bringing the low nitrite grade for excipients to help with the nitrosamine levels on their formulations.
Well, as a standard, if you could comment just on the ones that we've already launched, and the ones that we continue to launch, and not just selling those six, but the whole theme of the high purity that you guys are working on.
Alessandra Faccin: So that has been a good success for us with the launch on the low nitrosamine, and we see that more and more in our portfolio, expanding into with low nitrosamine grades, not just on cellulosics, to your question, but also on VP&E and other areas.
Alessandra Faccin: So that has been a good success for us with the launch on the low nitrosamine, and we see that more and more in our portfolio, expanding into with low nitrosamine grades, not just on cellulosics, to your question, but also on VP&E and other areas.
Speaker #13: So that has been a good success for us with with the launch on on the low nitrite and and we see that more and more in our , in our portfolio expanding into with , with , with no light right rates , not just on Cellulosics .
The new low nitrite grades for both glass dome and— which is the PND— and Venice cell, no cellulose. So this brings an enhanced product quality.
Speaker #13: And question , to your but also on and and other areas .
[Analyst] (Seaport Research Partners): All right. That's very helpful. And then I was also within the Specialty Additives business, hoping for a little bit more detail on the $5 million of contribution that you're expecting from innovation. Is that mostly the super wetting agent that you referred to on slide 18? Or maybe what product lines or technologies are really starting to show commercial traction within Specialty Additives? Thank you.
Mike Harrison: All right. That's very helpful. And then I was also within the Specialty Additives business, hoping for a little bit more detail on the $5 million of contribution that you're expecting from innovation. Is that mostly the super wetting agent that you referred to on slide 18? Or maybe what product lines or technologies are really starting to show commercial traction within Specialty Additives? Thank you.
Speaker #15: All right . That's very helpful . And was then I also within the specialty additives business was hoping for a little bit more detail on the $5 million of contribution that you're expecting from innovation .
Alessandra Faccin: So that has been a good success for us with the launch on the low nitrite, and we see that more and more in our portfolio, expanding into with low nitrite grades, not just on cellulosics, to your question, but also on VP&E and other areas.
So that has been a good success for us with the launch on the low nitrite, and we see that more and more in our portfolio, expanding into with low nitrite grades, not just on cellulosics, to your question, but also on VP&E and other areas.
Speaker #15: Is that mostly the super wetting agent that you referred on to slide 18 ? Or maybe what what product lines or technologies are really starting to show commercial traction within , specialty additives ?
Uh, basically from a nitrosamine uh on on the Pharma industry and uh, versus the regulatory requirements, right? And it is uh uh the Pharma companies overall across the board, not just large Farmers, but generics all former companies are uh, are very much focused on that on bringing the uh uh, low nitride rate for recipients to help with the nitrosamine levels on on their, on their formulations. Uh, so that has been
Guillermo Novo: Mm-hmm.
Guillermo Novo: Mm-hmm.
Jim Minicucci: Yeah, thanks for the question. So, yeah, I would say it's across the board. It's across the board. So when you look at our strategy for specialty additives, there is a heavy focus, of course, on protecting our rheology modifier participation, and we have new products that are going there. But then there is a big effort right now to go beyond this additive into other additives. So you have deformers, you have wetting agents, you have pH neutralizers, et cetera. And the team has been very focused on expanding our portfolio because it really solidifies the participation that we have with customers. It gives us higher access, and also it enables us to go after other parts of our customers' portfolio.
Jim Minicucci: Yeah, thanks for the question. So, yeah, I would say it's across the board. It's across the board. So when you look at our strategy for specialty additives, there is a heavy focus, of course, on protecting our rheology modifier participation, and we have new products that are going there. But then there is a big effort right now to go beyond this additive into other additives. So you have deformers, you have wetting agents, you have pH neutralizers, et cetera. And the team has been very focused on expanding our portfolio because it really solidifies the participation that we have with customers. It gives us higher access, and also it enables us to go after other parts of our customers' portfolio.
Speaker #15: Thank you .
Speaker #2: Yeah , thanks question . So . I would say it's across the board . It's across the board . So when you look at our strategy for specialty additives , it is a heavy focus .
A, a good success for us with, uh, with the launch on, on the low nitrite. And we see that more and more in our portfolio, uh, expanding into, uh, with, with, uh, with no nitrite grades, not just on T Logics, and to your question, but also, uh, on VPND and, and, and other areas.
Mike Harrison: All right. That's very helpful. Then I was also within the specialty additives business, hoping for a little bit more detail on the $5 million of contribution that you're expecting from innovation. Is that mostly the super wetting agent that you referred to on slide 18? Or maybe what product lines or technologies are really starting to show commercial traction within specialty additives? Thank you.
Mike Harrison: All right. That's very helpful. Then I was also within the specialty additives business, hoping for a little bit more detail on the $5 million of contribution that you're expecting from innovation. Is that mostly the super wetting agent that you referred to on slide 18? Or maybe what product lines or technologies are really starting to show commercial traction within specialty additives? Thank you.
Speaker #2: Of course on protecting our rheology modifier participation . And we have new products that are going there . But then there is a big effort right now to go beyond this additive into other additives .
Speaker #2: So you have you have defoamers , you have wetting agents , you have pH Neutralizers , etc. . And the team has been very focused on expanding our portfolio because he really solidifies the participation that we have with customers .
All right. That's very helpful and and then I was also within the specialty, additives business was hoping for a little bit more detail on the 5 million dollars uh of contribution that you're expecting from Innovation. Um, is is that mostly the super wedding agent uh that that you referred to on slide 18 or
Jim Minicucci: Mm-hmm.
Dago Caceres: Yeah, thanks for the question. So, yeah, I would say it's across the board. It, it's across the board. So when you look at our strategy for specialty additives, there is a heavy focus, of course, on protecting our rheology modifier participation, and we have new products that are going there. But then there is a big effort right now to go beyond this additive into other additives. So you have deformers, you have wetting agents, you have pH neutralizers, et cetera. And the team has been very focused on expanding our portfolio because it really solidifies the participation that we have with customers. It, it give us higher access, and also it enables us to go after other parts of our customers' portfolio. For instance, we're very strong in architectural coatings.
Dago Caceres: Yeah, thanks for the question. So, yeah, I would say it's across the board. It, it's across the board. So when you look at our strategy for specialty additives, there is a heavy focus, of course, on protecting our rheology modifier participation, and we have new products that are going there. But then there is a big effort right now to go beyond this additive into other additives. So you have deformers, you have wetting agents, you have pH neutralizers, et cetera. And the team has been very focused on expanding our portfolio because it really solidifies the participation that we have with customers. It, it give us higher access, and also it enables us to go after other parts of our customers' portfolio. For instance, we're very strong in architectural coatings.
Speaker #2: It gives us higher access and also it enables us to go after other parts of our customers portfolio . For instance , we're very strong in architectural coatings .
Maybe what product lines or technologies are really starting to show commercial traction, especially within additives. Thank you.
Yeah, thanks for the question. So,
Dago Cáceres: ... For instance, we're very strong in architectural coatings. We know our customers also have participation in industrial coatings. This is really a great opportunity to branch out and to really solidify our position there. So when you look at the sales and what we're working on for this year, because we have very, very good targets, very strong targets for innovation, really, the focus is going to be on, number one, solidifying our position in and differentiating in, rheology modification, both synthetic and cellulosic. Number two, continue to expand our additives. So you're going to see a lot of that, and super wetting agents are included there. But then strategically and longer term, very much, excited about the progress we're making with our, platform technologies, in particular, TVO and TiO2 spacer, et cetera, where we do expect to see some good traction this year.
Dago Cáceres: ... For instance, we're very strong in architectural coatings. We know our customers also have participation in industrial coatings. This is really a great opportunity to branch out and to really solidify our position there. So when you look at the sales and what we're working on for this year, because we have very, very good targets, very strong targets for innovation, really, the focus is going to be on, number one, solidifying our position in and differentiating in, rheology modification, both synthetic and cellulosic. Number two, continue to expand our additives. So you're going to see a lot of that, and super wetting agents are included there. But then strategically and longer term, very much, excited about the progress we're making with our, platform technologies, in particular, TVO and TiO2 spacer, et cetera, where we do expect to see some good traction this year.
Speaker #2: We know our customers also have participation in industrial coatings . This is really a great opportunity to branch out and to really solidify our position there .
Speaker #2: So when you look at the sales and what we're working on for this year , because we have very , very good targets , very strong targets for innovation , really the focus is going to be on number one , solidifying our position in and differentiating in rheology modification .
Speaker #2: Both synthetic and cellulosic . Number two , continue to expand our additives . So you're going to see a lot of that . And super wetting agents are included there .
Speaker #2: But then strategically and longer term very much excited about the progress we're making with our platform technologies in particular TVO and TiO2 , spacer , etc.
Dago Caceres: We know our customers also have participation in industrial coatings. This is really a great opportunity to branch out and to really solidify our position there. So when you look at the sales and what we're working on for this year, because we have very, very good targets, very strong targets for innovation, really the focus is going to be on, number one, solidifying our position in and differentiating in, rheology modification, both synthetic and cellulosic. Number two, continue to expand our additives. So you're going to see a lot of that, and super wetting agents are included there. But then strategically and longer term, very much, excited about the progress we're making with our, platform technologies, in particular, TVO and TiO2 spacer, et cetera, where we do expect to see some good traction this year. And I...
We know our customers also have participation in industrial coatings. This is really a great opportunity to branch out and to really solidify our position there. So when you look at the sales and what we're working on for this year, because we have very, very good targets, very strong targets for innovation, really the focus is going to be on, number one, solidifying our position in and differentiating in, rheology modification, both synthetic and cellulosic. Number two, continue to expand our additives. So you're going to see a lot of that, and super wetting agents are included there. But then strategically and longer term, very much, excited about the progress we're making with our, platform technologies, in particular, TVO and TiO2 spacer, et cetera, where we do expect to see some good traction this year. And I...
Speaker #2: , where we do expect to see some good traction this year .
Guillermo Novo: And Mike, I wanted to highlight it. In my comments, I talked a little bit on the regulatory, if you noticed, on a lot of these same innovations, not just the innovation and the customer, but the regulatory side. When you're, when you bring in new products to market in today's world, you have to deal with all the, you know, approvals for selling these products in ag and REACH in Europe. And I think the, the coatings team and, the specialty has done a wonderful job. The Easy-Wet 310, we launched an Easy-Wet 300. It's working well, but given its profile, we have certain requirements in terms of the regulatory needs.
Guillermo Novo: And Mike, I wanted to highlight it. In my comments, I talked a little bit on the regulatory, if you noticed, on a lot of these same innovations, not just the innovation and the customer, but the regulatory side. When you're, when you bring in new products to market in today's world, you have to deal with all the, you know, approvals for selling these products in ag and REACH in Europe. And I think the, the coatings team and, the specialty has done a wonderful job. The Easy-Wet 310, we launched an Easy-Wet 300. It's working well, but given its profile, we have certain requirements in terms of the regulatory needs.
Speaker #7: And Mike , I wanted to highlight in my comments , I talked a little bit on the regulatory . If you notice on a lot of these innovations , not just the innovation and the customer , but the regulatory side .
Um, yeah, I would say it's, uh, across the board. It's across the board. So, when you look at our strategy for specialty additives, there is a heavy focus, of course, on, uh, protecting our rheology modifier participation. And we have new products that are going there, but then there is a big effort right now to go beyond, as I said, into other items. So you have—you have the thickeners, you have wetting agents, you have pH neutralizers, etc. And the team has been very focused on expanding our portfolio because it really solidifies the participation that we have with customers. It—it gives us higher access, and also, it enables us to go after other parts of our, uh, customers', uh, portfolio. For instance, we're very strong in architectural coatings; we know our customers also have participation in industrial coatings. This is really a great opportunity to branch out and to really solidify our position there. So, when you look at the sales and what we're working on for this year, because we have very
Speaker #7: When you're when you're bringing in new products to today's market in world , have to you deal with all the approvals for selling these products and AG and reach in Europe .
Speaker #7: And I think , the , the the coatings team and the the specialty has done a wonderful job . The easy web . 310 we launched at 300 .
Speaker #7: It's working well , but given its profile , we have certain requirements in terms of the regulatory needs . So they they were able to go in , modify it enough so that no performance was was changed .
Uh previous Target is very strong targets for Innovation really. The focus is going to be on number 1 solidifying, our position in and differentiating in uh reality modification both synthetic and cellulosic. Number 2 continue to expand our additives. So you're going to see a lot of that and super wedding ages are included there, but then strategically and longer term very much. Uh, excited about the progress. We're making with our, uh, platform Technologies, in particular TVO and tio2 spacer Etc, where we do expect to see some contraction this year.
Dago Caceres: And, Mike, I wanted to highlight it. In my comments, I talked a little bit on the regulatory, if you notice, on a lot of these innovations, not just the innovation and the customer, but the regulatory side. When you're, when you bring in new products to market in today's world, you have to deal with all the, you know, approvals for selling these products in ag and reach in Europe. And I, I think the, the, the coatings team and, and, that's it, the specialty additives team has done a wonderful job. The Easy Wet 310, we launched Easy Wet 300. It's working well, but given its profile, we have certain requirements in terms of the regulatory, needs. So they, they were able to go in, modify it, enough so that no performance was, was changed, but
And, Mike, I wanted to highlight it. In my comments, I talked a little bit on the regulatory, if you notice, on a lot of these innovations, not just the innovation and the customer, but the regulatory side. When you're, when you bring in new products to market in today's world, you have to deal with all the, you know, approvals for selling these products in ag and reach in Europe. And I, I think the, the, the coatings team and, and, that's it, the specialty additives team has done a wonderful job. The Easy Wet 310, we launched Easy Wet 300. It's working well, but given its profile, we have certain requirements in terms of the regulatory, needs. So they, they were able to go in, modify it, enough so that no performance was, was changed, but
Guillermo Novo: So they were able to go in, modify it, enough so that no performance was changed, but it now allows us to accelerate the commercialization because it meets much more of the regulatory requirements around the world. So, you know, strategizing as we develop these products and making sure that we're within certain areas to accelerate commercialization within regulatory is really important, and the team's done a very good, very good job there. So that launch will really help us get traction on commercialization.
Guillermo Novo: So they were able to go in, modify it, enough so that no performance was changed, but it now allows us to accelerate the commercialization because it meets much more of the regulatory requirements around the world. So, you know, strategizing as we develop these products and making sure that we're within certain areas to accelerate commercialization within regulatory is really important, and the team's done a very good, very good job there. So that launch will really help us get traction on commercialization.
and, and
Speaker #7: But it now allows us to , to accelerate the commercialization because it meets much more of the regulatory requirements around the world . So , you know , strategizing as we develop these products and sure that we're we're making within certain areas to accelerate commercialization , within regulatory is really important and very good , very good job there .
comments, I talked a little bit on the regulatory, if you notice on a lot of these Innovations, not just the Innovation and the customer, but the regulatory side. When you're, when you're bringing in new products to Market in today's world, you have to deal with all the, you know, approvals for selling these products and
Speaker #7: So that launch will really help us get traction on commercialization .
[Analyst]: All right. Thanks very much.
Mike Harrison: All right. Thanks very much.
Operator: Thank you. Our next question comes from the line of John McNulty with BMO. Your line is open.
Operator: Thank you. Our next question comes from the line of
Speaker #15: right . All Thanks very much .
Speaker #8: Thank Thanks . you .
Operator: John McNulty with BMO. Your line is open.
Speaker #5: Our next question comes from the line of John McNulty . McNulty with BMO . Your line is open .
Guillermo Novo: ... it now allows us to accelerate the commercialization because it meets much more of the regulatory requirements around the world. So, you know, strategizing as we develop these products and making sure that we're within certain areas to accelerate commercialization within regulatory is really important, and the team's done a very good, very good job there. So that launch will really help us get traction on commercialization. All right, thanks very much. Thanks.
Guillermo Novo: ... it now allows us to accelerate the commercialization because it meets much more of the regulatory requirements around the world. So, you know, strategizing as we develop these products and making sure that we're within certain areas to accelerate commercialization within regulatory is really important, and the team's done a very good, very good job there. So that launch will really help us get traction on commercialization.
[Analyst] (BMO Capital Markets): Hi, good morning. This is Bhavesh for John. Just one question for me. So recently, we saw that an oral dose GLP-1 drug was approved by the FDA. Can you speak to whether your life sciences platform has exposure to this line of, the, the oral dose medication? And if yes, help us think about the potential for demand pull for this one. Thank you.
John McNulty: Hi, good morning. This is Bhavesh for John. Just one question for me. So recently, we saw that an oral dose GLP-1 drug was approved by the FDA. Can you speak to whether your life sciences platform has exposure to this line of, the, the oral dose medication? And if yes, help us think about the potential for demand pull for this one. Thank you.
Speaker #16: Hi . Good morning . This is Bhavesh for John . Just one question for me . So recently we saw that an oral dose GLP one drug was approved by the FDA .
And can reach in Europe. And I, I think the, the uh, the coding's team and, and uh, that's it. The specialty of C has done a wonderful job, the Easy Web 310. We launched these two at 300, it's working well, but given its profile, we have certain requirements in terms of the regulatory, uh, needs. So they, they were able to go in, modify it, uh, enough so that no performance was, was changed, but it now allows us to, to accelerate the commercialization because it meets much more...
Speaker #16: Can you speak to whether your life sciences platform has exposure to this line of the oral dose medication ? And if yes , help us think about the potential for demand pull for this one .
Guillermo Novo: Alessandra, you want to comment on that?
Guillermo Novo: Alessandra, you want to comment on that?
Speaker #16: Thank you .
Alessandra Faccin: Yeah, sure. So, so thinking about looking at the, GLP-1, so both the oral GLP-1 and oral biologics, present a significant opportunity for, for Ashland. And our VP&D portfolio is especially relevant to, to this space as it is our tablet coatings. When you think about, the, the high, you know, high volume, high throughput needed for the, the types of, demand that we're talking about, so our high solids coatings, Aquarius Genesis, is, is also especially relevant for that. So currently, we have multiple active projects with some of the biggest pharma players in this space. In addition, we are doubling down on innovation in this area, as we have identified a pipeline with over 80 emerging opportunities. And one of those, innovations is our sodium caprate, which is a formulation enhancer that we target to launch over the summer.
Speaker #7: Do you want to comment on that ?
Alessandra Faccin: Yeah, sure. So, so thinking about looking at the, GLP-1, so both the oral GLP-1 and oral biologics, present a significant opportunity for, for Ashland. And our VP&D portfolio is especially relevant to, to this space as it is our tablet coatings. When you think about, the, the high, you know, high volume, high throughput needed for the, the types of, demand that we're talking about, so our high solids coatings, Aquarius Genesis, is, is also especially relevant for that. So currently, we have multiple active projects with some of the biggest pharma players in this space. In addition, we are doubling down on innovation in this area, as we have identified a pipeline with over 80 emerging opportunities. And one of those, innovations is our sodium caprate, which is a formulation enhancer that we target to launch over the summer.
Mike Harrison: All right, thanks very much. Thanks.
Speaker #13: Yeah , sure . So so thinking about looking at the GLP one . So both the oral GLP one and oral biologics presents a significant opportunity for for ASHLAND INC. .
Operator: Thank you. Our next question comes from the line of John McNulty with BMO. Your line is open.
Operator: Thank you. Our next question comes from the line of John McNulty with BMO. Your line is open.
More of the regulatory requirements around the world. So, you know, strategizing as we develop these products and making sure that we're we're within certain areas to accelerate commercialization within regulatory is really important and it seems done about very good, very good job there. So that launch will really help us uh, get traction on commercialization
All right, thanks very much.
Thank you.
Bhavesh Lodaya: Hi, good morning. This is Bhavesh for John. Just one question for me. Recently, we saw that an oral dose GLP-1 drug was approved by the FDA. Can you speak to whether your life sciences platform has exposure to this line of the oral dose medication? And if yes, help us think about the potential for demand pull for this one. Thank you.
Bhavesh Lodaya: Hi, good morning. This is Bhavesh for John. Just one question for me. Recently, we saw that an oral dose GLP-1 drug was approved by the FDA. Can you speak to whether your life sciences platform has exposure to this line of the oral dose medication? And if yes, help us think about the potential for demand pull for this one. Thank you.
Our next question comes from the line of John monki with BMO. Your line is open.
Speaker #13: And our VP and portfolio is relevant especially to to this space as it is our tablet coatings . When you think about the the you know , high volume , high throughput needed for the types of demand that we're talking about .
I good morning. This is bhavesh for John. Uh, just 1 question for me.
Speaker #13: So our high solids coatings Aquarius , Genesis is is also especially relevant for that . So currently we have multiple active projects with some of the biggest pharma players in this space .
Goes glp1. Drug was approved by the FDA. Can you speak to whether your life sciences platform has exposure to this line of the oral dose medication and if yes uh, help us think about the potential for demand pole for this 1. Thank you.
Guillermo Novo: Alessandra, you want to comment on that?
Guillermo Novo: Alessandra, you want to comment on that?
You want to comment on that?
Alessandra Faccin: Yeah, sure. So, so thinking about looking at the GLP-1, so both the oral GLP-1 and oral biologics present a significant opportunity for Ashland. And our VP&E portfolio is especially relevant to this space, as it is our tablet coatings. When you think about the high, you know, high volume, high throughput needed for the types of demand that we're talking about, so our high solids coatings, Aquarius Genesis, is also especially relevant for that. So currently, we have multiple active projects with some of the biggest pharma players in this space. In addition, we are doubling down on innovation in this area, as we have identified a pipeline with over 80 emerging opportunities. And one of those innovations is our sodium caprate, which is a formation enhancer that we target to launch over the summer.
Alessandra Faccin: Yeah, sure. So, so thinking about looking at the GLP-1, so both the oral GLP-1 and oral biologics present a significant opportunity for Ashland. And our VP&E portfolio is especially relevant to this space, as it is our tablet coatings. When you think about the high, you know, high volume, high throughput needed for the types of demand that we're talking about, so our high solids coatings, Aquarius Genesis, is also especially relevant for that. So currently, we have multiple active projects with some of the biggest pharma players in this space. In addition, we are doubling down on innovation in this area, as we have identified a pipeline with over 80 emerging opportunities. And one of those innovations is our sodium caprate, which is a formation enhancer that we target to launch over the summer.
Speaker #13: In addition , we are doubling down on innovation in this area as we have identified a pipeline with over 80 emerging opportunities and one of those innovations is sodium cap our rate , which is a permeation enhancer that we target to launch over the summer .
Alessandra Faccin: We already have received multiple customer samples requests and are working with several customers on that upcoming launch for this summer. So in summary, yes, GLP-1 formulations and the overall biologics represent a significant opportunity for Ashland, and our VP&E portfolio is of particular interest and as well, our new innovation programs.
Alessandra Faccin: We already have received multiple customer samples requests and are working with several customers on that upcoming launch for this summer. So in summary, yes, GLP-1 formulations and the overall biologics represent a significant opportunity for Ashland, and our VP&E portfolio is of particular interest and as well, our new innovation programs.
Speaker #13: We already have received customer samples , requests and multiple are working with several customers on on that upcoming launch for for this summer .
Speaker #13: in So summary , yes , GLP one formulations and the overall overall oral biologics represent a significant opportunity for ASHLAND INC. and our portfolio VP of particular interest .
Speaker #13: And as well , our new innovation programs .
[Analyst] (BMO Capital Markets): Thank you.
John McNulty: Thank you.
Operator: Please stand by for our next question. Our next question comes from the line of Carl Vandenberg with Deutsche Bank. Your line is open.
Operator: Please stand by for our next question. Our next question comes from the line of Carl Vandenberg with Deutsche Bank. Your line is open.
Uh, yeah, sure. So, uh, so thinking about looking at the, uh, glp1. So, both the row glp1 and oral fee logic, uh, present a significant opportunity for, for Ashlan and our VP and Dio is especially relevant to to this space. As it is our tablet coding. When you think about, um, the the high, you know, high volume High throughput needed for the the types of Demands that we are talking about. So our high solid coding is Aquarius, Genesis is uh is also special in relevant for that. So currently, we have multiple active projects with some of the biggest Pharma players in the space. In addition, we are doubling down on innovation in this area as we have identified the pipeline with over 80 emerging opportunities.
Speaker #17: Thank you .
Speaker #5: stand by Please for our next question . Our next question comes from the line of Carl Vandenberg with your line is open .
Alessandra Faccin: We already have received multiple customer samples requests and are working with several customers on that upcoming launch for this summer. So in summary, yes, GLP-1 formulations and the overall oral biologics represent a significant opportunity for Ashland. And our VP&E portfolio is of particular interest and as well, our new innovation programs.
We already have received multiple customer samples requests and are working with several customers on that upcoming launch for this summer. So in summary, yes, GLP-1 formulations and the overall oral biologics represent a significant opportunity for Ashland. And our VP&E portfolio is of particular interest and as well, our new innovation programs.
Dago Cáceres: Hi, this is Dave Begleiter. Guillermo, you mentioned improving momentum in January. Can you talk about... And you do have some easy comps in Q2 across all three segments. So what does that mean for volume growth in those segments year-over-year?
ErIc Boyes: Hi, this is Dave Begleiter. Guillermo, you mentioned improving momentum in January. Can you talk about... And you do have some easy comps in Q2 across all three segments. So what does that mean for volume growth in those segments year-over-year?
Speaker #18: Hi . This is David Begleiter . Guillermo . You mentioned improving momentum in January . Can you talk about and you do have some easy comps in Q2 across all three segments .
Speaker #18: So what does that mean for volume growth in those segments year over year ?
Guillermo Novo: You know, as we said, it'll be in line with what we had been forecasting. So, personal care and life sciences, it's in the low single digits, and anything over that, we need to grow through some of the innovation. But the order book is in line with our forecasts or our updated forecasts on what we're doing, so no big surprise there. Same thing, you know, in SA, we're seeing the same thing. All the orders are coming in line. It's gonna be still challenged versus prior year because of China and some of the dynamics there. But within North America, Europe actually did very well for us. But you know, I'd just be cautious.
Guillermo Novo: You know, as we said, it'll be in line with what we had been forecasting. So, personal care and life sciences, it's in the low single digits, and anything over that, we need to grow through some of the innovation. But the order book is in line with our forecasts or our updated forecasts on what we're doing, so no big surprise there. Same thing, you know, in SA, we're seeing the same thing. All the orders are coming in line. It's gonna be still challenged versus prior year because of China and some of the dynamics there. But within North America, Europe actually did very well for us. But you know, I'd just be cautious.
Speaker #7: You know , said , it'll as we be in line with what we had been forecasting . So so personal care and life science .
And one of those, uh, innovations is our sodium caprate, which is a formation enhancer that we target to launch over the summer. We already have, uh, received multiple customer sample requests and are working with, uh, uh, several customers on, on that upcoming launch for this summer. So, in summary, uh, yes, GLP-1 formulations and overall, overall auto biologics represent, uh, a significant opportunity for Ashland and our VPND portfolio is of particular interest. And as well, our, our new, uh, innovation programs.
Bhavesh Lodaya: Thank you.
Bhavesh Lodaya: Thank you.
Operator: Please stand by for our next question. Our next question comes from the line of Carl Vandenberg with Deutsche Bank. Your line is open.
Operator: Please stand by for our next question. Our next question comes from the line of Carl Vandenberg with Deutsche Bank. Your line is open.
Thank you.
Please stand by for our next question.
Speaker #7: It's in low the single digits . You anything over that we need to grow through some of the innovation . But we're the the order book is in line with our forecasts or our updated forecast on what we're doing .
Our next question comes from the line of call Vandenberg with drank. Your line is open.
David Begleiter: Hi, this is David Begleiter. Guillermo, you mentioned improving momentum in January. Can you talk about and you do have some easy comps in Q2 across all three segments. So what does that mean for volume growth in those segments year-over-year?
David Begleiter: Hi, this is David Begleiter. Guillermo, you mentioned improving momentum in January. Can you talk about and you do have some easy comps in Q2 across all three segments. So what does that mean for volume growth in those segments year-over-year?
Speaker #7: So no big surprise there . Same thing . You know , in SA we're seeing the same thing . All the orders are coming in line .
In January.
Can you talk about, and do you have, some easy comps?
Speaker #7: It's going to be still versus challenge prior year because of China . And some of the dynamics there . But if you look at North America , Europe actually did very well for us .
Uh in Q2 across all 3, segments.
Guillermo Novo: You know, as we said, it'll be in line with what we have been forecasting. Personal care and life science, it's in the low single digits, and anything over that, we need to grow through some of the innovation. But the order book is in line with our forecasts or our updated forecasts on what we're doing, so no big surprise there. Same thing, you know, in SA, we're seeing the same thing. All the orders are coming in line. It's gonna be still challenged versus prior year because of China and some of the dynamics there. But within North America, Europe actually did very well for us. But you know, I'd just be cautious.
So, what does that mean for Vine growth in those segments year over year?
Guillermo Novo: You know, as we said, it'll be in line with what we have been forecasting. Personal care and life science, it's in the low single digits, and anything over that, we need to grow through some of the innovation. But the order book is in line with our forecasts or our updated forecasts on what we're doing, so no big surprise there. Same thing, you know, in SA, we're seeing the same thing. All the orders are coming in line. It's gonna be still challenged versus prior year because of China and some of the dynamics there. But within North America, Europe actually did very well for us. But you know, I'd just be cautious.
Guillermo Novo: In SA, I'm not going to really be positive or negative until we start getting closer to the bigger season. You know, these months don't mean as much in terms of what the full year is gonna come out. But for us, it's reassuring that January and the order book for February remains strong.
Guillermo Novo: In SA, I'm not going to really be positive or negative until we start getting closer to the bigger season. You know, these months don't mean as much in terms of what the full year is gonna come out. But for us, it's reassuring that January and the order book for February remains strong.
Speaker #7: But I'd I'd just be cautious in say , I'm not going to to really be positive or negative until we start getting closer to the the bigger season .
Speaker #7: You these these know , months don't mean as much in terms of what the full year is going to come out . But but for us , it's it's reassuring that January and the order book for February strong .
[Analyst]: ... Got it. And in terms of the first half outages, how much of that $20 million plus do you get back in the second half of the year?
ErIc Boyes: ... Got it. And in terms of the first half outages, how much of that $20 million plus do you get back in the second half of the year?
Speaker #18: Got it . And in terms of the
Speaker #18: first half outages remains that much of how , $20 million plus do you get second half of the year back in the .
Guillermo Novo: We're working, we were gonna start working on the first part this quarter, but obviously that's getting delayed. Most of the issues were in the VP&D side in Q1. That's why we're being a little bit more cautious. In theory, all of it is recoverable. The issue is when we want to recover it. In VP&D, as William said, if we start at the end of the-- and again, we're working... Just to be clear, we're working to get it done as quickly as possible. We're expecting by, you know, the second half of the quarter, if we can get a few-- every week counts in terms of being able to improve our performance.
Guillermo Novo: We're working, we were gonna start working on the first part this quarter, but obviously that's getting delayed. Most of the issues were in the VP&D side in Q1. That's why we're being a little bit more cautious. In theory, all of it is recoverable. The issue is when we want to recover it. In VP&D, as William said, if we start at the end of the-- and again, we're working... Just to be clear, we're working to get it done as quickly as possible. We're expecting by, you know, the second half of the quarter, if we can get a few-- every week counts in terms of being able to improve our performance.
Speaker #7: So so we're working . We were going to start working on the first part this quarter . But obviously that's getting delayed . Most of the the issues were in the VPN side in in the Q1 .
Guillermo Novo: In SA, I'm not going to to really be positive or negative until we start getting closer to the bigger season. You know, these months don't mean as much in terms of what the full year is gonna come out. But for us, it's reassuring that January and the order book for February remains strong.
In SA, I'm not going to to really be positive or negative until we start getting closer to the bigger season. You know, these months don't mean as much in terms of what the full year is gonna come out. But for us, it's reassuring that January and the order book for February remains strong.
Speaker #7: Now that's why we're being a little bit more cautious in theory . All of it is is recoverable . The issue is when we want to recover it .
Speaker #7: So in VPN , as William said , if we start at the end of and again , we're we're working . Just to be clear , we're working to get it done as quickly as possible .
Well, I I you know, I as we said it'll be uh, in line with what we had been forecasting. So so uh personal care and and life science. It's in the, in the low single digits, you know, anything over that, we need to grow through some of the Innovation, but we're the, the order book is in line with our forecasts or our updated forecasts and what we're doing. So no big surprise there. Same thing you know in in the essay we're seeing the same thing, all the orders are coming in line. Um it's going to be still challenged versus prior year because of China and and uh some of the the Dynamics there. But if you go to North America, Europe actually did very well for us. Um, but I'd be and I just be cautious an essay. I'm not going to to really be positive or negative until we start getting closer to the the bigger season. Um, you know, these these months don't mean as much in terms of what the full year is going to come out. Um, but but for
David Begleiter: Got it. In terms of the first half outages, how much of that $20 million plus do you get back in the second half of the year?
David Begleiter: Got it. In terms of the first half outages, how much of that $20 million plus do you get back in the second half of the year?
It's, it's uh, reassuring that January and the order book for February, it remains strong.
Speaker #7: We're expecting by , you know , the second half of the quarter , if we can get a few every week counts in terms of being able to improve our performance .
Guillermo Novo: So we're working, we were gonna start working on the first part, this quarter, but obviously, that's getting delayed. Most of the issues were in the VP&E side in the Q1. Now that's why we're being a little bit more cautious. In theory, all of it is recoverable. The issue is when we want to recover it. So in VP&E, as William said, if we start at the end of the... And again, we're working, just to be clear, we're working to get it done as quickly as possible. We're expecting by, you know, the second half of the quarter, if we can get every week counts in terms of being able to improve our performance.
Guillermo Novo: So we've given ourselves some room there in terms of the timing of when the unit will come on stream. But in our current forecast, it would be at the end of this quarter, which means we, as William said, we need to get most of that in the third quarter to impact this year. If not, if we do it in the fourth quarter, we'll recover it, but it'll flow into next year. So VP&D is an issue of getting the plant started, and then we can start getting the recovery of the absorption part. There are other costs, especially around the storm, that are costs, energy costs that went up, and other repair costs with the freeze.
Guillermo Novo: So we've given ourselves some room there in terms of the timing of when the unit will come on stream. But in our current forecast, it would be at the end of this quarter, which means we, as William said, we need to get most of that in the third quarter to impact this year. If not, if we do it in the fourth quarter, we'll recover it, but it'll flow into next year. So VP&D is an issue of getting the plant started, and then we can start getting the recovery of the absorption part. There are other costs, especially around the storm, that are costs, energy costs that went up, and other repair costs with the freeze.
Guillermo Novo: So we're working, we were gonna start working on the first part, this quarter, but obviously, that's getting delayed. Most of the issues were in the VP&E side in the Q1. Now that's why we're being a little bit more cautious. In theory, all of it is recoverable. The issue is when we want to recover it. So in VP&E, as William said, if we start at the end of the... And again, we're working, just to be clear, we're working to get it done as quickly as possible. We're expecting by, you know, the second half of the quarter, if we can get every week counts in terms of being able to improve our performance.
Got it. In terms of the first half outages, how much of the million dollars plus do you get back in the second half of the year?
Speaker #7: So we've given ourselves some some room there in terms of the timing of when the unit will come on stream . But in our current forecast , it would be at the end of the of this quarter , which means said , we need we , as William to get most of that in third the quarter to impact this year , if not , if we do it in the fourth quarter , we'll recover it , but it'll flow next into year .
So, so we're working. Uh, we're going to start working on the first part, um, this quarter. But obviously that's getting delayed, most of the, the issues were in the vpnd side in uh in the q1. Um, now that's why we're being a little bit more cautious in theory, all of it is Ari is recoverable. The issue is when
Speaker #7: So VPN is an issue of getting the plan started , and then we can start getting the recovery of the absorption part . There are other costs , especially that are offs and energy costs that went up .
Guillermo Novo: So we've given ourselves some room there in terms of the timing of when the unit will come on stream. But in our current forecast, it would be at the end of this quarter, which means we, as William said, we need to get most of that in Q3 to impact this year. If not, if we do it in Q4, we'll recover it, but it'll flow into next year. So VP&E is an issue of getting the plant started, and then we can start getting the recovery of the absorption part. There are other costs, this especially around the storm, that are costs, energy costs that went up, and other repair costs with the freeze.
So we've given ourselves some room there in terms of the timing of when the unit will come on stream. But in our current forecast, it would be at the end of this quarter, which means we, as William said, we need to get most of that in Q3 to impact this year. If not, if we do it in Q4, we'll recover it, but it'll flow into next year. So VP&E is an issue of getting the plant started, and then we can start getting the recovery of the absorption part. There are other costs, this especially around the storm, that are costs, energy costs that went up, and other repair costs with the freeze.
Guillermo Novo: I mean, not huge items, but items that have added up that we that are gonna be more of a headwind. I think, as William said, two thirds was absorption, one third was cost. ATC is a choice. I think there, I'll be honest, I'm being very conservative. Until we start seeing the season, we can always produce more whenever we want. I think this is a time of being prudent, like we've done in other years. I'm very open of the balance sheet is something we need to look at, not just the P&L. We're not here just to hit one quarter results. This is a long term. We wanna do the right thing for the long term for the company.
Guillermo Novo: I mean, not huge items, but items that have added up that we that are gonna be more of a headwind. I think, as William said, two thirds was absorption, one third was cost. ATC is a choice. I think there, I'll be honest, I'm being very conservative. Until we start seeing the season, we can always produce more whenever we want. I think this is a time of being prudent, like we've done in other years. I'm very open of the balance sheet is something we need to look at, not just the P&L. We're not here just to hit one quarter results. This is a long term. We wanna do the right thing for the long term for the company.
Speaker #7: And other repair costs with with the freeze . I mean , not huge items , but but items that have added up that we are going to be more of that that a headwind .
Speaker #7: I think as William said , two thirds was absorption , one third was was cost . ATC is a choice . I think they're I'll be honest , I'm being very conservative until we start seeing the season .
Uh, we want to recover it, so in vpnd, as as William said, if we start at the end of the. And and again, we we're, we're working just to be clear. We're working to get it done as quickly as possible. Um, we're expecting by, you know, the the second half of the quarter if we can get a few every week counts, in terms of being able to improve our our performance. So we've given ourselves some some room there. Um, in in terms of the timing of, when the the the unit will come on stream, um, but in our current forecast, it would be at the end of the of this, uh,
Speaker #7: We can always produce more whenever we want . I think this is a time of being prudent , like we've we've done in other years .
Speaker #7: I'm very of open the balance sheet something we is need to look at , not just the PNL . We're not here just to hit one quarter results .
Speaker #7: This is a long term . We want to do the right thing for the long term , for the company . I think having a solid balance sheet cash is king , in a lot of these times of uncertainty .
Guillermo Novo: I mean, not huge items, but items that have added up that we are gonna be more of a headwind. I think, as William said, 2/3 was absorption, 1/3 was cost. ATC is a choice. I think there, I'll be honest, I'm being very conservative. Until we start seeing the season, we can always produce more whenever we want. I think this is a time of being prudent, like we've done in other years. I'm very open of the balance sheet is something we need to look at, not just the P&L. We're not here just to hit one quarter results. This is, you know, long term. We wanna do the right thing for the long term for the company.
I mean, not huge items, but items that have added up that we are gonna be more of a headwind. I think, as William said, 2/3 was absorption, 1/3 was cost. ATC is a choice. I think there, I'll be honest, I'm being very conservative. Until we start seeing the season, we can always produce more whenever we want. I think this is a time of being prudent, like we've done in other years. I'm very open of the balance sheet is something we need to look at, not just the P&L. We're not here just to hit one quarter results. This is, you know, long term. We wanna do the right thing for the long term for the company.
Guillermo Novo: I think having a solid balance sheet, cash is king in a lot of these times of uncertainty, so we're gonna be a little bit more prudent. Again, if the season starts in March, that's probably when we would start making that decision. That means, again, that Q3 would be the critical quarter to rebuild the inventory.
Guillermo Novo: I think having a solid balance sheet, cash is king in a lot of these times of uncertainty, so we're gonna be a little bit more prudent. Again, if the season starts in March, that's probably when we would start making that decision. That means, again, that Q3 would be the critical quarter to rebuild the inventory.
Speaker #7: So we're going to be a little more prudent again , if the season starts in March , that's probably when we would start making that decision .
Speaker #7: That means , again , that third quarter would be the critical quarter to to rebuild it into it .
[Analyst]: Thank you.
ErIc Boyes: Thank you.
Operator: Thank you. Please stand by for our next question. Our next question comes from the line of Laurence Alexander with Jefferies. Your line is open.
Operator: Thank you. Please stand by for our next question. Our next question comes from the line of Laurence Alexander with Jefferies. Your line is open.
Speaker #18: Thank you .
Speaker #8: you Thank .
Speaker #5: Please stand by for our next question . Our next question comes from the line of Laurence Alexander with Jefferies . Your line is open .
[Analyst] (Jefferies): Hi, this is Daniel Rizzo for Laurence Alexander. Thanks for taking my question. You know, you mentioned injectable launches and some of the new products, but just in general, I was wondering how long it takes a new product to ramp up to mid-cycle and then to peak sales? You know, just a timeframe.
Laurence Alexander: Hi, this is Daniel Rizzo for Laurence Alexander. Thanks for taking my question. You know, you mentioned injectable launches and some of the new products, but just in general, I was wondering how long it takes a new product to ramp up to mid-cycle and then to peak sales? You know, just a timeframe.
Speaker #11: Hi .
Speaker #19: This is one for Lawrence . Thanks for taking my question . I was just , you know , you mentioned injectable launches and some of the new products , but just in general , I was wondering how long a it takes product to new ramp up to peak mid-cycle and then to sales .
Guillermo Novo: I think, having a solid balance sheet, cash is king in a lot of these times of uncertainty, so we're gonna be a little bit more prudent. Again, if the season starts in March, that's probably when we would start making that decision. That means, again, that Q3 would be the critical quarter to rebuild the inventory.
I think, having a solid balance sheet, cash is king in a lot of these times of uncertainty, so we're gonna be a little bit more prudent. Again, if the season starts in March, that's probably when we would start making that decision. That means, again, that Q3 would be the critical quarter to rebuild the inventory.
Getting the recovery of the absorption part. There are other costs this especially around the storm that are costs, energy costs that went up and um and other repair costs with with the freeze, I mean, not huge items. But but items that have added up that we that that are going to be more of a headwind. I think is William said 2/3 was absorption, 1/3 was, uh, was cost. AC is a choice. I think they're. Uh, I'll be honest. I'm being very conservative. Um, until we start seeing the season, we can always produce more whenever we want. I, I think if this is a time of being prudent like we've we've done in other years. Um I'm very open of the balance sheet, is something we need to look at. Not just the p&l we're not here just to hit 1 quarter results. This is a long term. We want to do the right thing for the long term, for the company. I think, uh, uh, having a solid balance sheet, cash is King.
Guillermo Novo: It really varies by product line. But like we've said before, we're talking about everything we're doing. We wanna show, we wanna be very transparent. But reality, when these approvals come, they take time. If you go into the example, I would use a personal care, if customer X approves and it's a big brand, you know, they have in next, you know, 2027, I'm gonna reformulate. They approve now, but they launch in 2027 or 2026. They have dates on which they're doing. So our issue is make sure that we get the approvals, get everything ready before those launch dates. So we have roadmaps of when all these big brands are doing reformulation. We're working with our customers, and it's very important to hit those dates. Coatings is a little bit different.
Guillermo Novo: It really varies by product line. But like we've said before, we're talking about everything we're doing. We wanna show, we wanna be very transparent. But reality, when these approvals come, they take time. If you go into the example, I would use a personal care, if customer X approves and it's a big brand, you know, they have in next, you know, 2027, I'm gonna reformulate. They approve now, but they launch in 2027 or 2026. They have dates on which they're doing. So our issue is make sure that we get the approvals, get everything ready before those launch dates. So we have roadmaps of when all these big brands are doing reformulation. We're working with our customers, and it's very important to hit those dates. Coatings is a little bit different.
Speaker #19: You know , just the time frame . .
Speaker #7: It it really varies by by product line . But like we've said before , we're talking about everything we're doing . We want to show we want to be very transparent , but reality when these approvals come , they take time .
Dago Caceres: Thank you.
David Begleiter: Thank you.
And a lot of these times of uncertainty, so we, we're, we're going to be a little bit more fruitful again. If the season starts in March, that's probably when we would start making that decision. Um, that means again that third quarter would be the critical quarter to rebuild it.
Operator: Thank you. Please stand by for our next question. Our next question comes from the line of Lawrence Alexander with Jefferies. Your line is open.
Operator: Thank you. Please stand by for our next question. Our next question comes from the line of Lawrence Alexander with Jefferies. Your line is open.
Thank you.
Thank you.
Speaker #7: If you go into the would example , I use a a personal care customer . X approves and it's a big brand . You know , they have in next , you know , 2027 .
Please stand by for our next question.
Dan Rizzo: Hi, this is Dan Rizzo, for Lawrence. Thanks for taking my question. I was just, you know, you mentioned injectable launches and some of the new products, but just in general, I was wondering how long it takes a new product to ramp up to mid-cycle and then to peak sales? You know, just the timeframe.
Dan Rizzo: Hi, this is Dan Rizzo, for Lawrence. Thanks for taking my question. I was just, you know, you mentioned injectable launches and some of the new products, but just in general, I was wondering how long it takes a new product to ramp up to mid-cycle and then to peak sales? You know, just the timeframe.
Speaker #7: I'm going to reformulate . They approved now but they launch in 2027 or 2026 . They have dates on which they're doing . So our issue is make sure that we get the approvals , get everything ready those before launch dates .
Guillermo Novo: It really varies by product line, but like we've said before, we're talking about everything we're doing. We wanna show, we wanna be very transparent, but reality, when these approvals come, they take time. If you go into the example, I would use a personal care; if customer X approves and it's a big brand, you know, they have in next, you know, 2027, I'm gonna reformulate. They approve now, but they launch in 2027 or 2026. They have dates on which they're doing. So our issue is make sure that we get the approvals, get everything ready before those launch dates. So we have roadmaps of when all these big brands are doing reformulation. We're working with our customers, and it's very important to hit those dates. Coatings is a little bit different.
Our next question comes from the line of Lawrence. Alexander Jeffries. Your line is open. Hi. Uh, this is Dennis 1 for Lawrence. Thanks for taking my question. Um, I was just, you know, you mentioned injectable launches and some of the new products but just in general, I was wondering how long it takes a new product to ramp up to mid cycle and then to Peak sales, uh, you know, just the time frame
Guillermo Novo: It really varies by product line, but like we've said before, we're talking about everything we're doing. We wanna show, we wanna be very transparent, but reality, when these approvals come, they take time. If you go into the example, I would use a personal care; if customer X approves and it's a big brand, you know, they have in next, you know, 2027, I'm gonna reformulate. They approve now, but they launch in 2027 or 2026. They have dates on which they're doing. So our issue is make sure that we get the approvals, get everything ready before those launch dates. So we have roadmaps of when all these big brands are doing reformulation. We're working with our customers, and it's very important to hit those dates. Coatings is a little bit different.
Speaker #7: So we have roadmaps of when all these big brands are doing reformulation . We're working with our customers and it's very important to hit those those dates coatings is a little bit different .
Guillermo Novo: They can move a little bit more quickly, but again, they do a lot more testing. Extra, you know, they like it, they want it, but then they, some testing. So everybody has their norms on how they work through. I would say the pharma is really partnering with them across their entire development, you know, cycle. So when they're ready to launch, you know, you go with them. But that's depending if it's a generic, could be three to five years. If it's a new drug, you know, you're looking at longer pipeline. But we-- That's with the importance of having strong pipelines.
Guillermo Novo: They can move a little bit more quickly, but again, they do a lot more testing. Extra, you know, they like it, they want it, but then they, some testing. So everybody has their norms on how they work through. I would say the pharma is really partnering with them across their entire development, you know, cycle. So when they're ready to launch, you know, you go with them. But that's depending if it's a generic, could be three to five years. If it's a new drug, you know, you're looking at longer pipeline. But we-- That's with the importance of having strong pipelines.
Speaker #7: can move a They little bit more But again quickly . they do a lot more testing . You know they like it , they want it , but then they .
Speaker #7: Some testing . So everybody has their nuance how they how they work on through . I would say the pharma is really partnering with them across their entire development .
Speaker #7: You know , cycle . But when they're ready to launch , you know , you will go there . But that's a depending if it's a generic , be it could 3 to 5 years .
It really varies uh, by by product line. But like we've said before, uh, we're talking about everything, we're doing, we want to show, we want to be very transparent, but reality, when when these approvals come, they take time, if you go into the example, I would use a, a personal care, uh, it customer X approves and it's a big brand, you know, they have and next, you know, 2027, I'm going to reformulate the approved now but they launched in 2027 or 2026, they, they have dates.
Speaker #7: If it's if it's a a new new drug , you know , your longer pipeline . But we that's the importance of having strong pipelines .
Guillermo Novo: What we've been doing last few years is built the pipelines, and that's what I'm excited about, that the technologies them have now advanced, that they are in pipelines, we're getting validation. So it's really now going into, you know, our customers thinking, "We like these technologies. When are we gonna commercialize, or are we gonna commercialize this year, next year?" It's a very different conversation as we move forward.
Guillermo Novo: What we've been doing last few years is built the pipelines, and that's what I'm excited about, that the technologies them have now advanced, that they are in pipelines, we're getting validation. So it's really now going into, you know, our customers thinking, "We like these technologies. When are we gonna commercialize, or are we gonna commercialize this year, next year?" It's a very different conversation as we move forward.
Guillermo Novo: They can move a little bit more quickly, but again, they do a lot more testing. You know, they like it, they want it, but then they some testing. So everybody has their norms on how they work through. I would say the pharma is really partnering with them across their entire development, you know, cycle. So when they're ready to launch, you know, you go with them, but that's depending if it's a generic, could be 3 to 5 years. If it's a new drug, you know, you're in a longer pipeline. But we -- that's the importance of having strong pipelines.
They can move a little bit more quickly, but again, they do a lot more testing. You know, they like it, they want it, but then they some testing. So everybody has their norms on how they work through. I would say the pharma is really partnering with them across their entire development, you know, cycle. So when they're ready to launch, you know, you go with them, but that's depending if it's a generic, could be 3 to 5 years. If it's a new drug, you know, you're in a longer pipeline. But we -- that's the importance of having strong pipelines.
Speaker #7: And what we've been doing the last few years is built the pipeline . And that's what I'm excited about that the technologies have now advanced that they are in pipelines .
On which they're doing. So our issue is to make sure that we get the approvals, get everything ready before those launch dates. So we have roadmaps of when all these big brands are doing reformulation. We're working with our customers, and it's very important to hit those dates. Coding is a little bit different. They can move a little bit more quickly, but again, they do a lot more testing. You know, they like it, they want it, but then they have some tests.
Speaker #7: getting We're validation . So it's really now going into , you know , our customers thinking we like these technologies . When are we going to commercialize ?
Speaker #7: Are we going to commercialize this year or next year . So it's a very different conversation as we move forward
[Analyst] (Jefferies): Great. Thank you very much.
Laurence Alexander: Great. Thank you very much.
Operator: Thank you. Please stand by for our next question. Our next question comes from the line of Eric Boyes with Evercore ISI. Your line is open.
Operator: Thank you. Please stand by for our next question. Our next question comes from the line of Eric Boyes with Evercore ISI. Your line is open.
Speaker #7: .
Speaker #19: .
Speaker #8: Thank .
Speaker #8: you Thank you very much
Speaker #5: by for our next Please stand question . Our next question comes from the line of Eric Boyce with Evercore . Your line is open .
So everybody has their Nuance on how they how they they work through. I would say through the Pharma is really partnering with them across the their entire uh, development, uh, uh, you know cycle, but when they're ready to launch, you know, you you will go with them, but that's a depending, if it's a generic, it could be 3 to 5 years. If it's, if it's a a, um,
[Analyst]: Thank you, and good morning. First, could you please provide an update on the contract price renewals that I think recently occurred around year-end? How might, when those renewals go into effect, impact kind of price by segment in fiscal Q2 and for the balance of the year? Thanks.
ErIc Boyes: Thank you, and good morning. First, could you please provide an update on the contract price renewals that I think recently occurred around year-end? How might, when those renewals go into effect, impact kind of price by segment in fiscal Q2 and for the balance of the year? Thanks.
Speaker #20: Thank you and good morning . First , could you please provide an update on the contract price renewals that I think recently occurred around year end ?
Guillermo Novo: What we've been doing last few years is built the pipelines, and that's what I'm excited about, that the technologies them have now advanced, that they are in pipelines. We're getting validation. So it's really now going into, you know, our customers thinking, "We like these technologies. When are we gonna commercialize, or are we gonna commercialize this year, next year?" So it's a very different conversation as we move forward.
What we've been doing last few years is built the pipelines, and that's what I'm excited about, that the technologies them have now advanced, that they are in pipelines. We're getting validation. So it's really now going into, you know, our customers thinking, "We like these technologies. When are we gonna commercialize, or are we gonna commercialize this year, next year?" So it's a very different conversation as we move forward.
Speaker #20: And how might when those renewals go into effect impact kind of price by segment in fiscal two ? Q and for the balance of the year , thanks .
Guillermo Novo: I think most of them, as Alessandra said, I think are mostly completed, or in final form. In pharma, it's mostly in Europe, and that's pretty advanced. So I think we're mostly done on there. I think, you know, the only ones, and David, you can comment, in some regions, we have some now that are ongoing, Middle East, Africa, India, that are going now in the March, April timeframe. But most of the other ones are already done. But that or any other contracts?
Guillermo Novo: I think most of them, as Alessandra said, I think are mostly completed, or in final form. In pharma, it's mostly in Europe, and that's pretty advanced. So I think we're mostly done on there. I think, you know, the only ones, and David, you can comment, in some regions, we have some now that are ongoing, Middle East, Africa, India, that are going now in the March, April timeframe. But most of the other ones are already done. But that or any other contracts?
Speaker #7: I think most of them , as Alessandro said , I think are mostly completed . We're in , we're in final form in , in in pharma , it's mostly in Europe .
A new new drug, you know, you're you're in like a longer pipeline, um, but we we that's what the importance of having strong pipelines. And what we've been doing last year is is built the pipeline and that's what I'm excited about that. The technologies that have now enhanced that they are in pipelines, we're getting validation. Um, so it's really now going into, you know, our customers thinking, we like these Technologies. When are we going to commercialize or are we going to commercialize this to your next year? So it's a very different conversation.
Dan Rizzo: Great, thank you very much.
Dan Rizzo: Great, thank you very much.
Speaker #7: And that's pretty advanced . So I think we're , we're we're on mostly done I there . think know , the , you only ones you can comment in some regions we have some now that are ongoing .
Operator: Thank you. Please stand by for our next question. Our next question comes from the line of Eric Boyce with Evercore. Your line is open.
Operator: Thank you. Please stand by for our next question. Our next question comes from the line of Eric Boyce with Evercore. Your line is open.
Thank you very much.
Thank you. Please stand by for our next question.
Eric Boyce: Thank you, and good morning. First, could you please provide an update on the contract price renewals that I think recently occurred around year-end, and how might, when those renewals go into effect, impact kind of price by segment in fiscal Q2 and for the balance of the year? Thanks.
Eric Boyce: Thank you, and good morning. First, could you please provide an update on the contract price renewals that I think recently occurred around year-end, and how might, when those renewals go into effect, impact kind of price by segment in fiscal Q2 and for the balance of the year? Thanks.
Our next question comes from the line of Eric Boyce with Evercore. Your line is open.
Speaker #7: East , Africa , India that are going now in the March , most of the time April other frame . But ones are already done .
Uh, thank you and good morning. First, could you please provide an update on the contract price renewals? I think those recently occurred around year-end, and how might—
Dago Cáceres: Yeah, that's-- No, I mean, in the case of coatings and the large contracts, I would say North America and Europe, they just follow the calendar year, so those contracts are done, and I guess the results are as expected. Other areas in Asia, actually, the contracts were finalized in October. That's actually their cycle, October to October. We're only missing areas in Middle East, Africa, and India, where we have a couple of strategic customers, and that will be April. So the contracts are finalized, we're valid, starting in early April. So that's the only one that is remaining. We're negotiating as we speak, and we expect to finalize some of those contracts pretty soon.
Dago Cáceres: Yeah, that's-- No, I mean, in the case of coatings and the large contracts, I would say North America and Europe, they just follow the calendar year, so those contracts are done, and I guess the results are as expected. Other areas in Asia, actually, the contracts were finalized in October. That's actually their cycle, October to October. We're only missing areas in Middle East, Africa, and India, where we have a couple of strategic customers, and that will be April. So the contracts are finalized, we're valid, starting in early April. So that's the only one that is remaining. We're negotiating as we speak, and we expect to finalize some of those contracts pretty soon.
Speaker #7: But any other contracts ?
Speaker #2: mean , in the No , I case of coatings and a large contracts , I would say North America and Europe , they just follow the calendar year .
Guillermo Novo: I think most of them, as Alessandro said, I think are mostly completed, or in final form in pharma. It's mostly in Europe, and that's pretty advanced. So I think we're mostly done on there. I think, you know, the only ones, and, Dado, you can comment, in some regions, we have some now that are ongoing, Middle East, Africa, India, that are going now in the March, April timeframe. But most of the other ones are already done. But, Dado, any other contracts?
Guillermo Novo: I think most of them, as Alessandro said, I think are mostly completed, or in final form in pharma. It's mostly in Europe, and that's pretty advanced. So I think we're mostly done on there. I think, you know, the only ones, and, Dado, you can comment, in some regions, we have some now that are ongoing, Middle East, Africa, India, that are going now in the March, April timeframe. But most of the other ones are already done. But, Dado, any other contracts?
When those renewals go into effect impact kind of price by segments and fiscal 2q and for the balance of the year, thanks.
Speaker #2: So those contracts are done . And I guess the results are as expected . Other areas in Asia actually the contracts were finalized in October .
Speaker #2: That's actually their cycle , October to October . We're only missing areas in Middle East , Africa , India where we have a couple of strategic customers .
Speaker #2: And that would be April . So the contracts are finalized or are valid . Starting in April . early So that's the only one that is remaining .
Speaker #2: We're negotiating negotiating as we speak . And we expect to to finalize some of those contracts pretty soon .
So, you did, uh, we're we're in final form in, uh, in in Pharma, it's mostly in Europe and, and that's pretty Advanced. Uh, so I think we're we're, uh, we're mostly done on there. I think, uh, you know, the only ones, uh, and do you can comment, uh, in in some regions, we have some now that are ongoing Middle East Africa, India that are going now, and in the March, uh, April time frame, but most of the other ones are already done.
Dago Caceres: Yeah, No, I mean, in the case of coding some of the large contracts, I would say North America and Europe, they just follow the calendar year, so those contracts are done, and I guess the results are as expected. Other areas in Asia, actually, the contracts were finalized in October. That's actually their cycle, October to October. We're only missing areas in Middle East, Africa, and India, where we have a couple of strategic customers, and that will be April. So the contracts are finalized, we are valid, starting in early April. So that's the only one that is remaining. We're negotiating as we speak, and we expect to finalize some of those contracts pretty soon.
Dago Caceres: Yeah, No, I mean, in the case of coding some of the large contracts, I would say North America and Europe, they just follow the calendar year, so those contracts are done, and I guess the results are as expected. Other areas in Asia, actually, the contracts were finalized in October. That's actually their cycle, October to October. We're only missing areas in Middle East, Africa, and India, where we have a couple of strategic customers, and that will be April. So the contracts are finalized, we are valid, starting in early April. So that's the only one that is remaining. We're negotiating as we speak, and we expect to finalize some of those contracts pretty soon.
[Analyst]: Okay, great. And then, as a follow-up, are any further asset sales, maybe in additives or intermediates, under consideration, either now or previously? And if not, and I suspect not, could you remind on why that may not make strategic sense? Thank you.
ErIc Boyes: Okay, great. And then, as a follow-up, are any further asset sales, maybe in additives or intermediates, under consideration, either now or previously? And if not, and I suspect not, could you remind on why that may not make strategic sense? Thank you.
But have any other contract.
Speaker #20: great . And Okay , then as a follow up , are any further asset sales maybe in additives or intermediates under consideration either now or previously .
Speaker #20: And if not , could you on why strategic sense . Thank you that not and I suspect may remind not make .
Guillermo Novo: So we have done a lot of the changes already in terms of selling the parts of the business that we didn't see fit, and most of them were standalone parts. We've consolidated some of the product lines that we didn't like, that we couldn't sell, and we have the assets that we can repurpose. That was more of our CMC asset in the US and MC asset in Europe, and I think the timing of that was very good. We shut down a plant and consolidated. So all those actions are done. We're gonna do some more optimization.
Guillermo Novo: So we have done a lot of the changes already in terms of selling the parts of the business that we didn't see fit, and most of them were standalone parts. We've consolidated some of the product lines that we didn't like, that we couldn't sell, and we have the assets that we can repurpose. That was more of our CMC asset in the US and MC asset in Europe, and I think the timing of that was very good. We shut down a plant and consolidated. So all those actions are done. We're gonna do some more optimization.
Speaker #7: done a we've lot of these So we've changes already in terms of selling the parts of the business that we didn't see fit .
Um, I would say North America and Europe. They just follow the calendar year, so those contracts are done, and I guess the results are as expected. Uh, other areas in Asia, actually the contracts, uh, were finalized in October. That's actually their cycle—October to October. We're only missing areas in Near East Africa, India, where we have a couple of strategic customers, and that would be April.
Speaker #7: And most of them were standalone We've parts . consolidated some of the product lines that we didn't like that we couldn't sell , and we have the assets that we can repurpose .
Speaker #7: That was more of our CMC asset in the US and MC asset in in , in Europe . And I think the timing of that good .
Eric Boyce: Okay, great. And then as a follow-up, are any further asset sales, maybe in additives or intermediates, under consideration either now or previously? And if not, and I suspect not, could you remind on why that may not make strategic sense? Thank you.
Eric Boyce: Okay, great. And then as a follow-up, are any further asset sales, maybe in additives or intermediates, under consideration either now or previously? And if not, and I suspect not, could you remind on why that may not make strategic sense? Thank you.
So the contracts are finalized where are valid starting in uh, early, April. So that's the only 1 that is remaining. We're negotiating negotiating as we speak and uh I mean respect to uh to finalize some of those contracts pretty soon.
Speaker #7: was very We shut down a plant and consolidated . So all those actions are done . We're going to do some more optimization .
Guillermo Novo: It's more around the productivity, where it would be more units within a plant, you know, that we're streamlining so that we can, instead of having a lot of equipment and not having them utilized, really focus and invest on the ones that are higher end, that can give us the best cost, but that wouldn't involve a sale. The rest of the business is integrated, and this is the part, you know, everybody... Do you wanna just be lifesaver? It's the same plants that supply across multiple areas. Frankly speaking, just from my past experience with other companies, been all this artificially cutting up things hasn't worked out that well. So for us, we like the portfolio we have. It is integrated.
Guillermo Novo: It's more around the productivity, where it would be more units within a plant, you know, that we're streamlining so that we can, instead of having a lot of equipment and not having them utilized, really focus and invest on the ones that are higher end, that can give us the best cost, but that wouldn't involve a sale. The rest of the business is integrated, and this is the part, you know, everybody... Do you wanna just be lifesaver? It's the same plants that supply across multiple areas. Frankly speaking, just from my past experience with other companies, been all this artificially cutting up things hasn't worked out that well. So for us, we like the portfolio we have. It is integrated.
Speaker #7: It's more around the productivity where it would be more units within a plant . You know , that we're streamlining so that we can instead of having a lot of of a lot equipment and not having them utilized really focus and invest on the ones that are higher end , that can give us the best cost .
Guillermo Novo: So we've done a lot of the changes already in terms of selling the parts of the business that we didn't see fit, and most of them were standalone parts. We've consolidated some of the product lines that we didn't like, that we couldn't sell, and we have the asset that we can repurpose. That was more of our CMC asset in the US and MC asset in Europe, and I think the timing of that was very good. We shut down a plant and consolidated. So all those actions are done. We're gonna do some more optimization.
Guillermo Novo: So we've done a lot of the changes already in terms of selling the parts of the business that we didn't see fit, and most of them were standalone parts. We've consolidated some of the product lines that we didn't like, that we couldn't sell, and we have the asset that we can repurpose. That was more of our CMC asset in the US and MC asset in Europe, and I think the timing of that was very good. We shut down a plant and consolidated. So all those actions are done. We're gonna do some more optimization.
Speaker #7: But that wouldn't involve a sale . The rest of the business is integrated and the part this is everybody . Do you want to just be like , we it's the same plant that supply across multiple areas .
Okay. Great. And then as a follow-up um are any further asset sales maybe in additives or intermediate to under consideration either now or previously. And if not and I suspect not, could you remind on why that may not make strategic sense. Thank you. So, so we we we've done a lot of the changes already. Uh, in terms of selling, uh, the parts of the business that we didn't see fit and most of them were Standalone Parts, we've Consolidated some of the product lines that we didn't like that. We couldn't sell and we have the assets that we we can repurpose that was more of our CMC asset in the US and MC asset in in uh
Speaker #7: Frankly speaking , just from my past experience with other companies and all this artificially cutting up things haven't worked out that well . So for us , we like the portfolio .
Guillermo Novo: It's more around the productivity, where it would be more units within a plant, you know, that we're streamlining so that we can, instead of having a lot of equipment and not having them utilized, really focus and invest on the ones that are higher end, that can give us the best cost, but that wouldn't involve a sale. The rest of the business is integrated. This is the part, you know, everybody, do you want to just be lifestyle? It's the same plants that supply across multiple areas. Frankly speaking, just from my past experience with other companies, been all this artificially cutting up things haven't worked out that well. So for us, we like the portfolio we have. It is integrated.
It's more around the productivity, where it would be more units within a plant, you know, that we're streamlining so that we can, instead of having a lot of equipment and not having them utilized, really focus and invest on the ones that are higher end, that can give us the best cost, but that wouldn't involve a sale. The rest of the business is integrated. This is the part, you know, everybody, do you want to just be lifestyle? It's the same plants that supply across multiple areas. Frankly speaking, just from my past experience with other companies, been all this artificially cutting up things haven't worked out that well. So for us, we like the portfolio we have. It is integrated.
Guillermo Novo: We feel that between the high quality pharma, personal care, and architectural coatings being, you know, it is being impacted, but it's tended historically to be more consumer oriented. We see that stability in North America and Europe. I would say what's happening in Asia is a little bit different than norm. We like those. We think, you know, focusing on additives, low cost and use, high value and use, can allow us the differentiation, and we can leverage the scale across the asset. So we think that integration is critical, and we don't think there's value in artificially
Guillermo Novo: We feel that between the high quality pharma, personal care, and architectural coatings being, you know, it is being impacted, but it's tended historically to be more consumer oriented. We see that stability in North America and Europe. I would say what's happening in Asia is a little bit different than norm. We like those. We think, you know, focusing on additives, low cost and use, high value and use, can allow us the differentiation, and we can leverage the scale across the asset. So we think that integration is critical, and we don't think there's value in artificially
Speaker #7: We have . It is integrated . We feel that between the high quality of pharma personal care and architectural coatings being , you know , it is being impacted , its but tended historically to be more consumer oriented .
Speaker #7: We see that stability in North America and Europe . say what's I would happening in Asia is a little bit different than Norm .
In Europe and I think the timing of that was very good. We shut down the Plant and Consolidated. So all those actions are are are done. We're going to do some more optimization, it's more around the productivity where it would be more units within a plant. You know, that we're, we're streamlining so that we can instead of having a, a lot of a lot of equipment and not having them. Utilize really focused, uh, and invest on the ones that are higher end, that can give us the best cost, but that wouldn't involve a sale. The rest of the business is integrated
Speaker #7: We like We think , you know , focusing on additives , low cost in use , high value in use . Can to allow us differentiation and we can leverage the the scale up across the asset .
This is the part, you know, everybody, you want to just be life head. We have the same plants that supply.
Speaker #7: So we think that integration is and we critical don't think there's value artificially in picking it up .
Guillermo Novo: We feel that between the high quality pharma, personal care, and architectural coatings being, you know, it is being impacted, but it's tended historically to be more consumer oriented. We see that stability in North America and Europe. I would say what's happening in Asia is a little bit different than the norm. We like those. We think, you know, focusing on additives, low cost and use, high value and use, can allow us a differentiation and we can leverage the scale across the asset. So we think that integration is critical, and we don't think there's value in artificially
We feel that between the high quality pharma, personal care, and architectural coatings being, you know, it is being impacted, but it's tended historically to be more consumer oriented. We see that stability in North America and Europe. I would say what's happening in Asia is a little bit different than the norm. We like those. We think, you know, focusing on additives, low cost and use, high value and use, can allow us a differentiation and we can leverage the scale across the asset. So we think that integration is critical, and we don't think there's value in artificially
[Analyst]: Thank you. Please stand by for our next question. Our next question comes from the line of Steven Haynes with Morgan Stanley. Your line is open.
ErIc Boyes: Thank you. Please stand by for our next question. Our next question comes from the line of Steven Haynes with Morgan Stanley. Your line is open.
Speaker #8: Thank you .
Speaker #5: Please stand by for our next question . Our next question comes from the line of Steven Haynes with Morgan Stanley . Your line is .
[Analyst] (Morgan Stanley): Hey, good morning, and thanks for squeezing me in here. Just wanted to ask on your, your execute slide. You got the $30 million, I think, of restructuring, and then there's the additional productivity that currently says still TBD. I've been hopping with between calls, so apologies if I missed this, but have you kind of outlined the timeline and, and maybe how to think about, like, what that uplift could look like relative to the cost savings that you've already kind of disclosed and quantified for us all? Thank you.
Steven Haynes: Hey, good morning, and thanks for squeezing me in here. Just wanted to ask on your, your execute slide. You got the $30 million, I think, of restructuring, and then there's the additional productivity that currently says still TBD. I've been hopping with between calls, so apologies if I missed this, but have you kind of outlined the timeline and, and maybe how to think about, like, what that uplift could look like relative to the cost savings that you've already kind of disclosed and quantified for us all? Thank you.
Speaker #17: Hey . Good morning and thanks for squeezing me in here . Just wanted to ask on your execute slide . You've got the 30 million , I think of restructuring .
Speaker #17: And then there's the additional productivity that currently says still TBD . I've been popping between calls , so apologies if I missed this , but have you kind of outlined the timeline and maybe how to think about what that uplift could look like relative to the cost savings that you've already kind of disclosed and quantified for us all ?
Multiple areas. Frankly Speaking, just from my past experience with other companies and all this artificially cutting up, things haven't worked, have that. Well, so for us, we'd like the portfolio, we have it is integrated. We feel that between the high quality Pharma, uh, personal care and Architectural, codings being, you know, it is being impacted, but it's headed historically to be more consumer oriented. We see that stability in North, America and Europe? I would say, what's happening in Asia is a little bit different, um, than than Norm. Uh, we like those, we think, you know, focusing on additives low cost in use high value in use can allow us to differentiate, and we can Leverage The, the scale, um, uh, across these assets. So we, we think that integration is, uh, critical.
Operator: Thank you. Please stand by for our next question. Our next question comes from the line of Steven Haynes with Morgan Stanley. Your line is open.
Operator: Thank you. Please stand by for our next question. Our next question comes from the line of Steven Haynes with Morgan Stanley. Your line is open.
Critical and we don't think there's value in artificially, pick it up.
Thank you.
Guillermo Novo: We're working through that. We've done a lot of network optimization as we've looked at, for example, in our acetylenic chain between the two plants in Texas City and Calvert City. We had units that were overcapacity, they've been in overcapacity for a long time. We've consolidated, shut some down, put all our volume on the more productive units, so that's driving our costs and productivity. As we looked across other production units, what we're finding is that there is an opportunity to continue to drive. Again, if we have, as a simple example, core reactors and they're over- or underutilized, can we concentrate on one or two, put our volumes there, invest in those reactors to get more throughputs, reduce cycle times, those kinds of things we're doing.
Guillermo Novo: We're working through that. We've done a lot of network optimization as we've looked at, for example, in our acetylenic chain between the two plants in Texas City and Calvert City. We had units that were overcapacity, they've been in overcapacity for a long time. We've consolidated, shut some down, put all our volume on the more productive units, so that's driving our costs and productivity. As we looked across other production units, what we're finding is that there is an opportunity to continue to drive. Again, if we have, as a simple example, core reactors and they're over- or underutilized, can we concentrate on one or two, put our volumes there, invest in those reactors to get more throughputs, reduce cycle times, those kinds of things we're doing.
Speaker #17: Thank you .
Please stand by for our next question.
Speaker #7: So we're that . We've done a lot of working through network optimization as we looked example , at , for in our Acetylenic chain between the two plants in Texas City , Calvert City , we had units that over capacity .
Steven Haynes: Hey, good morning, and thanks for squeezing me in here. Just wanted to ask on your execute slide. You got the $30 million, I think, of restructuring, and then there's the additional productivity that currently says still TBD. I've been hopping between calls, so apologies if I missed this, but have you kind of outlined the timeline and maybe you had to think about, like, what that uplift could look like relative to the cost savings that you've already kind of disclosed and quantified for us all? Thank you.
Steven Haynes: Hey, good morning, and thanks for squeezing me in here. Just wanted to ask on your execute slide. You got the $30 million, I think, of restructuring, and then there's the additional productivity that currently says still TBD. I've been hopping between calls, so apologies if I missed this, but have you kind of outlined the timeline and maybe you had to think about, like, what that uplift could look like relative to the cost savings that you've already kind of disclosed and quantified for us all? Thank you.
Our next question comes from the line of Stephen Haynes with Morgan Stanley. Your line is open.
Hey, good morning, and uh, thanks for squeezing me in here. Um,
Speaker #7: They've been over capacity for a long time . We've consolidated , shut them down , put all our our The more productive units .
Speaker #7: So that's driving our costs . And productivity . As we looked at across other production units , what we're finding is that there is an opportunity to to continue to drive .
Speaker #7: So again , if we have I simple example core reactors and there are over underutilized , can we concentrate on 1 or 2 .
Guillermo Novo: So we're working through that. We've done a lot of network optimization as we looked at, for example, in our acetylenic chain between the two plants in Texas City, Calvert City. We had units that overcapacity, they've been in overcapacity for a long time. We've consolidated, shut some down, put all our volume on the more productive units, so that's driving our costs and productivity. As we looked at across other production units, what we're finding is that there is an opportunity to continue to drive. So, again, if we have, as I think, a simple example, core reactors and they're over, underutilized, can we concentrate on 1 or 2, put our volumes there, invest in those reactors to get more throughputs, reduce cycle times, those kinds of things we're doing.
Guillermo Novo: So we're working through that. We've done a lot of network optimization as we looked at, for example, in our acetylenic chain between the two plants in Texas City, Calvert City. We had units that overcapacity, they've been in overcapacity for a long time. We've consolidated, shut some down, put all our volume on the more productive units, so that's driving our costs and productivity. As we looked at across other production units, what we're finding is that there is an opportunity to continue to drive. So, again, if we have, as I think, a simple example, core reactors and they're over, underutilized, can we concentrate on 1 or 2, put our volumes there, invest in those reactors to get more throughputs, reduce cycle times, those kinds of things we're doing.
Just wanted to ask on your your execute slide. You got the 30 million I think of uh restructuring. And then there's the additional productivity that currently says still TBD. Um, I've been popping with between calls so apologies if I missed this but um, have you kind of outlined the timeline and and maybe had to think about like what that uplift could look like relative to uh the cost savings that you've already kind of uh, disclosed and Quantified for us all. Thank you.
Speaker #7: What our volumes there that's in those reactors to get more throughput , reduce cycle times . Those kinds of things we're doing . So some of them were already doing we're planning out how much we can get others we create the the productivity .
Guillermo Novo: So some of them we're already doing. We're planning out how much we can get. Others, we create the productivity, but the benefit will come as volumes pick up. So the issue is, you know, productivity, you can't wait to have the volume to do it. You do it, and as the volume comes, you're just gonna be able to leverage it, but it allows us to reduce costs as we do some of these changes. So that's the part that we're trying to calculate. And obviously, you know, this, the storm and all that, right now, our engineers and everybody's have been a little bit distracted over the last few weeks. But we continue to work, and throughout the year, we will be defining that.
Guillermo Novo: So some of them we're already doing. We're planning out how much we can get. Others, we create the productivity, but the benefit will come as volumes pick up. So the issue is, you know, productivity, you can't wait to have the volume to do it. You do it, and as the volume comes, you're just gonna be able to leverage it, but it allows us to reduce costs as we do some of these changes. So that's the part that we're trying to calculate. And obviously, you know, this, the storm and all that, right now, our engineers and everybody's have been a little bit distracted over the last few weeks. But we continue to work, and throughout the year, we will be defining that.
Speaker #7: But the benefit will come as volumes pick up . So so the issue is , you know , productivity . You can't wait to do the volume comes , volume to do it .
Speaker #7: But the benefit will come as volumes pick up . So so the issue is , you know , productivity . You can't wait to do the volume comes , it .
Speaker #7: You you're just going to be able to But leverage it reduce costs as we do some of these changes . So that's we're trying to calculate the part that .
So, we're working through that. We've done a lot of network optimization as as as as we looked at, for example, in our acetylenic chain between the 2 plants. In Texas City Calbert City, we had units that over capacity they've been over capacity for a long time. Uh, We've Consolidated truck comes down, uh, but all our, our our volume on the more productive units. So, that's driving our costs and productivity, as we looked at across other production units, what we're finding is that there is an opportunity, um, to, to continue to drive. So, you know, again, if we have
Speaker #7: And obviously you know , this the storm and all that . Right now our engineers and everybody's have bit distracted been a little over over the last few weeks .
Speaker #7: But we continue to work . And throughout the year we will be defining that . And our , our our view is going to be continue to do what we're doing now .
Guillermo Novo: Our view is gonna be continue to do what we're doing now, be very transparent as to the goals that we want to commit to. You know, tell you what we're gonna do, and then we'll be held accountable to deliver on those targets.
Guillermo Novo: So some of them we're already doing. We're planning out how much we can get. Others, we create the productivity, but the benefit will come as volumes pick up. So the issue is, you know, productivity, you can't wait to have the volume to do it. You do it, and as the volume comes, you're just gonna be able to leverage it, but it allows us to reduce costs as we do some of these changes. So that's the part that we're trying to calculate. And obviously, you know, this, the storm and all that, right now, our engineers and everybody's have been a little bit distracted over the last few weeks, but we continue to work, and throughout the year, we will be defining that.
So some of them we're already doing. We're planning out how much we can get. Others, we create the productivity, but the benefit will come as volumes pick up. So the issue is, you know, productivity, you can't wait to have the volume to do it. You do it, and as the volume comes, you're just gonna be able to leverage it, but it allows us to reduce costs as we do some of these changes. So that's the part that we're trying to calculate. And obviously, you know, this, the storm and all that, right now, our engineers and everybody's have been a little bit distracted over the last few weeks, but we continue to work, and throughout the year, we will be defining that.
Guillermo Novo: Our view is gonna be continue to do what we're doing now, be very transparent as to the goals that we want to commit to. You know, tell you what we're gonna do, and then we'll be held accountable to deliver on those targets.
Speaker #7: Be very transparent as to the goals that we want commit to . You know , tell you what we're going to do . And we'll be then held accountable to deliver on on those targets .
[Analyst]: Thank you. Ladies and gentlemen, I'm showing no further questions in the queue. I would now like to turn the call back over to Guillermo Novo for closing remarks.
Operator: Thank you. Ladies and gentlemen, I'm showing no further questions in the queue. I would now like to turn the call back over to Guillermo Novo for closing remarks.
Speaker #17: Understood . Thank you .
Speaker #8: Thank you .
Speaker #5: Ladies and gentlemen . I'm showing no further questions in the queue . I will now like to turn the call back over to Guillermo Novo for closing remarks .
Guillermo Novo: Well, thank you everyone for participating in the call. We really appreciate it. We're very excited, you know, that the portfolio is in difficult times performing as we expected. We will continue to drive our strategy. We believe that that's gonna be the best way to do it... generate significant valuation and create optionality for us to really drive our strategy of profitable growth. So we look forward to seeing all of you in the near future and having more discussions on National. Thank you for your interest.
Guillermo Novo: Well, thank you everyone for participating in the call. We really appreciate it. We're very excited, you know, that the portfolio is in difficult times performing as we expected. We will continue to drive our strategy. We believe that that's gonna be the best way to do it... generate significant valuation and create optionality for us to really drive our strategy of profitable growth. So we look forward to seeing all of you in the near future and having more discussions on National. Thank you for your interest.
Speaker #7: thank you Well , everyone for participating in the call . We really appreciate it . We're very you know , that the of , excited portfolio is in difficult times performing as we expected .
Guillermo Novo: Our view is gonna be continue to do what we're doing now, be very transparent as to the goals that we want to commit to. You know, tell you what we're gonna do, and then we'll be held accountable to deliver on those targets.
Our view is gonna be continue to do what we're doing now, be very transparent as to the goals that we want to commit to. You know, tell you what we're gonna do, and then we'll be held accountable to deliver on those targets.
Speaker #7: We will continue to drive our strategy . We believe that that's going to be the best way to generate significant value creation and create optionality for us to really drive our strategy , profitable growth .
Steven Haynes: Understood. Thank you.
Steven Haynes: Understood. Thank you.
As we do some of these changes. So that's the part that we're trying to to calculate and obviously, you know, this uh, the storm and all that right now are engineers and everybody's uh have been a little bit distracted over over the the last few weeks. Um, but we continue to work and throughout the year we will be defining that and our our our our view is going to be continued to do what we're doing now. Be very transparent as to the goals that we want to commit to uh, you know, tell you what, we're going to do and then we'll be held accountable to deliver on uh, on those targets.
Speaker #7: So we look forward to seeing all of you in the near future and having more discussions on Ashland . Thank you for your interest .
Operator: Thank you. Ladies and gentlemen, I'm showing no further questions in the queue. I will now like to turn the call back over to Guillermo Novo for closing remarks.
Operator: Thank you. Ladies and gentlemen, I'm showing no further questions in the queue. I will now like to turn the call back over to Guillermo Novo for closing remarks.
Understood, thank you.
Thank you.
[Analyst]: Ladies and gentlemen, that concludes today's conference call. Thank you for your participation. You may now disconnect.
Operator: Ladies and gentlemen, that concludes today's conference call. Thank you for your participation. You may now disconnect.
Guillermo Novo: Well, thank you everyone for participating in our call. We really appreciate it. We're very excited of, you know, that the portfolio is in difficult times performing as we expected. We will continue to drive our strategy. We believe that that's gonna be the best way to generate significant valuation and create optionality for us to really drive our strategy of profitable growth. So we look forward to seeing all of you in the near future and having more discussions on Nashua. Thank you for your interest.
Guillermo Novo: Well, thank you everyone for participating in our call. We really appreciate it. We're very excited of, you know, that the portfolio is in difficult times performing as we expected. We will continue to drive our strategy. We believe that that's gonna be the best way to generate significant valuation and create optionality for us to really drive our strategy of profitable growth. So we look forward to seeing all of you in the near future and having more discussions on Nashua. Thank you for your interest.
Ladies and gentlemen, I'm showing no further questions in the queue. I would now like to turn the call back over to Grandma Nova for closing remarks.
Operator: Ladies and gentlemen, that concludes today's conference call. Thank you for your participation. You may now disconnect.
Operator: Ladies and gentlemen, that concludes today's conference call. Thank you for your participation. You may now disconnect.
Well, thank you, everyone, uh, for participating in the call. Uh, we really appreciate it. Uh, we're very excited—uh, you know, the portfolio is, in difficult times, performing, uh, as we expected. We will continue to drive our strategy. We believe that that's going to be the best way to generate significant value and create optionality for us to really drive, uh, our strategy, uh, of profitable growth. So, we look forward to seeing all of you in the near future and having, uh, more discussions on National. Thank you for your interest.
Ladies and gentlemen, that concludes today's conference call. Thank you for your participation. You may now disconnect