MILWAUKEE--(BUSINESS WIRE)--October 31, 2025--
Sensient Technologies Corporation $(SXT)$, a leading provider of flavors and colors for the food, pharmaceutical, and personal care markets, today reported financial results for the third quarter ended September 30, 2025.
Third Quarter Consolidated Results
-- Reported revenue increased 5.0% to $412.1 million in the third quarter
of 2025 versus last year's third quarter results of $392.6 million. On a
local currency basis(1), revenue increased 3.5%.
-- Reported operating income increased 14.2% to $57.7 million compared to
$50.5 million recorded in the third quarter of 2024. In the third quarter
of 2025, the Company recorded $3.3 million of costs related to its
Portfolio Optimization Plan versus last year's $1.2 million in the third
quarter. Local currency adjusted operating income(1) and local currency
adjusted EBITDA(1) increased 15.7% and 14.3%, respectively, in the third
quarter.
-- Reported earnings per share increased 13.0% to 87 cents in the third
quarter of 2025 compared to 77 cents in the third quarter of 2024. Local
currency adjusted diluted EPS(1) increased 17.5% in the third quarter.
"Sensient's dedication to customer service while continuing to innovate and drive new sales wins has resulted in strong results. I remain very confident about our performance and am excited about the opportunities in front of us, particularly in natural colors," said Paul Manning, Sensient's Chairman, President, and Chief Executive Officer.
Third Quarter Group Results
----------------------------------------------------------------------
Reported Local Currency(1)
Revenue Quarter Year-to-Date Quarter Year-to-Date
---------------- ------- ------------ ---------- ----------------
Flavors &
Extracts -0.2% -0.9% -1.2% -1.0%
Color 9.9% 7.2% 7.9% 7.6%
Asia Pacific 0.7% 5.0% -0.3% 3.9%
Total Revenue 5.0% 3.2% 3.5% 3.2%
Reported Local Currency Adjusted(1)
Operating Income Quarter Year-to-Date Quarter Year-to-Date
---------------- ------- ------------ ---------- ----------------
Flavors &
Extracts 8.4% 7.6% 7.8% 7.6%
Color 26.6% 19.9% 23.8% 19.7%
Asia Pacific 2.5% 7.6% 0.2% 4.9%
Total Operating
Income 14.2% 12.9% 15.7% 14.3%
The Flavors & Extracts Group reported third quarter 2025 revenue of $203.0 million, a decrease of $0.3 million versus the prior year's third quarter. The Group's revenue was unfavorably impacted by lower volumes in agricultural ingredients (formerly natural ingredients). This decline was partially offset by higher prices and volumes in our flavors, extracts, and flavor ingredients product lines. Segment operating income was $28.0 million in the third quarter of 2025, an increase of $2.2 million compared to the prior year's third quarter. The increase in segment operating income was driven by strong profitability of the flavors, extracts, and flavor ingredients product lines despite the decline in the revenue of agricultural ingredients.
The Color Group reported revenue of $178.2 million in the third quarter of 2025, an increase of $16.1 million compared to the prior year's third quarter. The Group's revenue increase was driven by higher prices and strong volume growth in the food and pharmaceutical product lines. Segment operating income was $37.7 million in the third quarter of 2025, an increase of $7.9 million compared to the prior year's third quarter results.
The Asia Pacific Group reported revenue of $42.1 million in the third quarter of 2025, an increase of $0.3 million compared to the prior year's third quarter. Segment operating income was $9.5 million in the quarter, an increase of $0.2 million compared to the prior year's third quarter.
Corporate & Other reported operating expenses of $17.6 million in the third quarter of 2025, compared to $14.5 million of operating expenses reported in the prior year's third quarter. The higher operating expenses were primarily due to higher Portfolio Optimization Plan costs in the quarter. Local currency adjusted operating expenses(1) for Corporate & Other increased $1.0 million compared to the prior year's third quarter, primarily due to higher performance-based compensation costs recorded in 2025.
2025 OUTLOOK
Metric Current Guidance Prior Guidance
----------------------- ------------------------ -----------------------
Local Currency Mid-Single-Digit Growth Mid-Single-Digit Growth
Revenue(1)
Local Currency Adjusted Double-Digit Growth High Single-Digit
EBITDA(1) Growth
Diluted EPS (GAAP) Between $3.13 and $3.23* Between $3.13 and $3.23
Local Currency Adjusted Double-Digit Growth High Single-Digit to
Diluted EPS(1) Double-Digit Growth
*Includes approximately 28 cents of Portfolio Optimization Plan costs. Based
on current exchange rates, foreign currency impact is expected to be a slight
tailwind for the year.
------------------------------------------------------------------------------
The Company's guidance is based on current conditions and economic and market trends in the markets in which the Company operates and is subject to various risks and uncertainties as described below.
(1) Please refer to "Reconciliation of Non-GAAP Amounts" at the end of this
release for more information regarding our non-GAAP financial
measures.
USE OF NON-GAAP FINANCIAL MEASURES
The Company's non-GAAP financial measures eliminate the impact of certain items, which, depending on the measure, include: currency movements, depreciation and amortization, Portfolio Optimization Plan costs, and non-cash share-based compensation. These measures are provided to enhance the overall understanding of the Company's performance when viewed together with the GAAP results. Refer to "Reconciliation of Non-GAAP Amounts" at the end of this release.
CONFERENCE CALL
The Company will host a conference call to discuss its 2025 third quarter financial results at 8:30 a.m. CDT on Friday, October 31, 2025. To participate in the conference call, contact Chorus Call Inc. at (844) 492-3726 or (412) 317-1078, and ask to join the Sensient Technologies Corporation conference call. Alternatively, the call can be accessed by using the webcast link that is available on the Investor Information section of the Company's web site at www.sensient.com.
A replay of the call will be available one hour after the end of the conference call through November 7, 2025, by calling (877) 344-7529 and using access code 1491278. An audio replay and written transcript of the call will also be posted on the Investor Information section of the Company's web site at www.sensient.com on or after November 4, 2025.
This release contains statements that may constitute "forward-looking statements" within the meaning of Federal securities laws including in the quote from our Chairman, President, and Chief Executive Officer and under "2025 Outlook" above. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, and other factors concerning the Company's operations and business environment. Important factors that could cause actual results to differ materially from those suggested by these forward-looking statements and that could adversely affect the Company's future financial performance include the following: the Company's ability to manage general business, economic, and capital market conditions, including actions taken by customers in response to such market conditions, and the impact of recessions and economic downturns; the impact of macroeconomic and geopolitical volatility, including inflation and shortages impacting the availability and cost of raw materials, energy, and other supplies, disruptions and delays in the Company's supply chain, and the conflicts between Russia and Ukraine and in the Middle East; industry, regulatory, legal, and economic factors related to the Company's domestic and international business; the effects of tariffs, trade barriers, and disputes; the availability and cost of labor, logistics, and transportation; the pace and nature of new product introductions by the Company and the Company's customers; the Company's ability to anticipate and respond to changing consumer preferences, changing technologies, and changing regulations; the Company's ability to successfully implement its growth strategies; the outcome of the Company's various productivity-improvement and cost-reduction efforts, acquisition and divestiture activities, and Portfolio Optimization Plan; growth in markets for products in which the Company competes; industry and customer acceptance of price increases; actions by competitors; the Company's ability to enhance its innovation efforts and drive cost efficiencies; currency exchange rate fluctuations; and other factors included in "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, and in other documents that the Company files with the SEC. The risks and uncertainties identified above are not the only risks the Company faces. Additional risks and uncertainties not presently known to the Company or that it currently believes to be immaterial also may adversely affect the Company. Should any known or unknown risks and uncertainties develop into actual events, these developments could have material adverse effects on our business, financial condition, and results of operations. This release contains
time-sensitive information that reflects management's best analysis only as of the date of this release. Except to the extent required by applicable laws, the Company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied herein will not be realized.
ABOUT SENSIENT TECHNOLOGIES
Sensient Technologies Corporation is a leading global manufacturer and marketer of colors, flavors, and other specialty ingredients. Sensient uses advanced technologies and robust global supply chain capabilities to develop specialized solutions for food and beverages, as well as products that serve the pharmaceutical, nutraceutical, and personal care industries. Sensient's customers range in size from small entrepreneurial businesses to major international manufacturers representing some of the world's best-known brands. Sensient is headquartered in Milwaukee, Wisconsin.
www.sensient.com
Sensient Technologies Corporation
(In thousands, except percentages and per share amounts)
(Unaudited)
Consolidated
Statements of
Earnings Three Months Ended September 30, Nine Months Ended September 30,
----------------------------------- ---------------------------------------
2025 2024 % Change 2025 2024 % Change
------------ --------- ---------- -------------- ----------- ----------
Revenue $412,109 $392,613 5.0% $1,218,664 $1,180,808 3.2%
Cost of products
sold 270,767 262,209 3.3% 802,713 793,133 1.2%
Selling and
administrative
expenses 83,636 79,884 4.7% 247,009 238,092 3.7%
------- ------- --------- ---------
Operating income 57,706 50,520 14.2% 168,942 149,583 12.9%
Interest expense 7,328 7,696 22,060 22,394
------- ------- --------- ---------
Earnings before
income taxes 50,378 42,824 146,882 127,189
Income taxes 13,422 10,134 37,877 32,627
------- ------- --------- ---------
Net earnings $ 36,956 $ 32,690 13.0% $ 109,005 $ 94,562 15.3%
======= ======= ========= =========
Earnings per share
of common stock:
Basic $ 0.87 $ 0.78 $ 2.58 $ 2.24
======= ======= ========= =========
Diluted $ 0.87 $ 0.77 $ 2.56 $ 2.23
======= ======= ========= =========
Average common
shares
outstanding:
Basic 42,248 42,159 42,231 42,139
======= ======= ========= =========
Diluted 42,665 42,429 42,570 42,377
======= ======= ========= =========
Results by
Segment Three Months Ended September 30, Nine Months Ended September 30,
----------------------------------- ---------------------------------------
Revenue 2025 2024 % Change 2025 2024 % Change
----------------- ------------ --------- ---------- -------------- ----------- ----------
Flavors & Extracts $202,970 $203,279 (0.2%) $ 599,902 $ 605,584 (0.9%)
Color 178,156 162,080 9.9% 525,188 489,805 7.2%
Asia Pacific 42,082 41,778 0.7% 126,727 120,664 5.0%
Intersegment
elimination (11,099) (14,524) (33,153) (35,245)
------- ------- --------- ---------
Consolidated $412,109 $392,613 5.0% $1,218,664 $1,180,808 3.2%
======= ======= ========= =========
Operating Income
------------------
Flavors & Extracts $ 28,038 $ 25,862 8.4% $ 81,533 $ 75,749 7.6%
Color 37,734 29,806 26.6% 111,508 92,987 19.9%
Asia Pacific 9,541 9,307 2.5% 27,926 25,963 7.6%
Corporate & Other (17,607) (14,455) (52,025) (45,116)
------- ------- --------- ---------
Consolidated $ 57,706 $ 50,520 14.2% $ 168,942 $ 149,583 12.9%
======= ======= ========= =========
Sensient Technologies Corporation
(In thousands)
(Unaudited)
Consolidated Condensed Balance Sheets September 30, December 31,
2025 2024
--------------- --------------
Cash and cash equivalents $ 42,669 $ 26,626
Trade accounts receivable 323,387 290,087
Inventories 653,718 600,302
Prepaid expenses and other current assets 51,728 44,871
Fixed assets held for sale 1,595 -
----------- ----------
Total Current Assets 1,073,097 961,886
Goodwill & intangible assets (net) 449,902 423,658
Property, plant, and equipment (net) 518,489 491,587
Other assets 168,053 146,663
----------- ----------
Total Assets $ 2,209,541 $ 2,023,794
=========== ==========
Trade accounts payable $ 122,878 $ 139,052
Short-term borrowings 777 19,848
Other current liabilities 110,033 111,739
----------- ----------
Total Current Liabilities 233,688 270,639
Long-term debt 711,177 613,523
Accrued employee and retiree benefits 27,031 24,499
Other liabilities 57,484 54,147
Shareholders' Equity 1,180,161 1,060,986
----------- ----------
Total Liabilities and
Shareholders' Equity $ 2,209,541 $ 2,023,794
=========== ==========
Sensient Technologies Corporation
(In thousands, except per share amounts)
(Unaudited)
Consolidated Statements of Cash Flows
Nine Months Ended September 30,
2025 2024
--------- ------------
Cash flows from operating activities:
Net earnings $109,005 $ 94,562
Adjustments to arrive at net
cash provided by operating
activities:
Depreciation and
amortization 45,890 45,185
Share-based compensation
expense 10,584 6,980
Net loss (gain) on assets 166 (210)
Portfolio Optimization Plan
costs 2,107 1,406
Deferred income taxes 3,899 (11,117)
Changes in operating assets
and liabilities:
Trade accounts receivable (19,716) (32,138)
Inventories (35,609) 14,902
Prepaid expenses and
other assets (9,160) 221
Trade accounts payable
and other accrued
expenses (10,973) (4,664)
Accrued salaries, wages,
and withholdings (9,781) 16,769
Income taxes (5,076) 854
Other liabilities 1,927 3,011
------- --------
Net cash provided by operating
activities 83,263 135,761
------- --------
Cash flows from investing activities:
Acquisition of property, plant,
and equipment (57,788) (36,088)
Proceeds from sale of assets 397 338
Acquisition of new business (4,867) -
Other investing activities 1,260 (1,444)
------- --------
Net cash used in investing activities (60,998) (37,194)
------- --------
Cash flows from financing activities:
Proceeds from additional
borrowings 125,619 134,432
Debt payments (84,662) (154,219)
Dividends paid (52,196) (52,034)
Other financing activities (2,648) (3,317)
------- --------
Net cash used in financing activities (13,887) (75,138)
------- --------
Effect of exchange rate changes on cash
and cash equivalents 7,665 (15,394)
------- --------
Net increase in cash and cash
equivalents 16,043 8,035
Cash and cash equivalents at beginning
of period 26,626 28,934
------- --------
Cash and cash equivalents at end of
period $ 42,669 $ 36,969
======= ========
Supplemental Information
Nine Months Ended September 30, 2025 2024
--------- ------------
Dividends paid per share $ 1.23 $ 1.23
Sensient Technologies Corporation
(In thousands, except percentages and per share amounts)
(Unaudited)
Reconciliation of Non-GAAP Amounts
The Company's results for the three and nine months ended September 30, 2025 and 2024 include adjusted operating
income, adjusted net earnings, and adjusted diluted earnings per share, which, in each case, exclude Portfolio
Optimization Plan costs.
Three Months Ended September 30, Nine Months Ended September 30,
------------------------------------------- ----------------------------------------------
2025 2024 % Change 2025 2024 % Change
--------- ------------------ ------------ ------------ ------------------ ------------
Operating income
(GAAP) $ 57,706 $ 50,520 14.2% $168,942 $ 149,583 12.9%
Portfolio
Optimization
Plan costs --
Cost of
products sold 649 209 4,252 523
Portfolio
Optimization
Plan costs --
Selling and
administrative
expenses 2,674 1,002 5,274 5,252
------- --- -------- --- ------- --- ---------
Adjusted operating
income $ 61,029 $ 51,731 18.0% $178,468 $ 155,358 14.9%
======= === ======== === ======= === =========
Net earnings (GAAP) $ 36,956 $ 32,690 13.0% $109,005 $ 94,562 15.3%
Portfolio
Optimization
Plan costs,
before tax 3,323 1,211 9,526 5,775
Tax impact of
Portfolio
Optimization
Plan costs(1) 649 (17) (868) (586)
------- --- -------- ------- --- ---------
Adjusted net
earnings $ 40,928 $ 33,884 20.8% $117,663 $ 99,751 18.0%
======= === ======== === ======= === =========
Diluted earnings
per share (GAAP) $ 0.87 $ 0.77 13.0% $ 2.56 $ 2.23 14.8%
Portfolio
Optimization
Plan costs, net
of tax 0.09 0.03 0.20 0.12
------- --- -------- --- ------- --- ---------
Adjusted diluted
earnings per
share $ 0.96 $ 0.80 20.0% $ 2.76 $ 2.35 17.4%
======= === ======== === ======= === =========
Note: Earnings per share calculations may not foot due to rounding differences.
(1) Tax impact adjustments were determined based on the nature of the underlying non-GAAP adjustments and their
relevant jurisdictional tax rates.
Results by Segment Three Months Ended September 30,
-------------------------------------------------------------------------------------------
Adjusted Adjusted
Operating Income 2025 Adjustments(2) 2025 2024 Adjustments(2) 2024
------------------ --------- ------------------ ------------ ------------ ------------------ ------------
Flavors & Extracts $ 28,038 $ - $ 28,038 $ 25,862 $ - $ 25,862
Color 37,734 - 37,734 29,806 - 29,806
Asia Pacific 9,541 - 9,541 9,307 - 9,307
Corporate & Other (17,607) 3,323 (14,284) (14,455) 1,211 (13,244)
------- --- -------- --- ------- ------- --- --------- -------
Consolidated $ 57,706 $ 3,323 $ 61,029 $ 50,520 $ 1,211 $ 51,731
======= === ======== === ======= ======= === ========= =======
Results by Segment Nine Months Ended September 30,
-------------------------------------------------------------------------------------------
Adjusted Adjusted
Operating Income 2025 Adjustments(2) 2025 2024 Adjustments(2) 2024
------------------ --------- ------------------ ------------ ------------ ------------------ ------------
Flavors & Extracts $ 81,533 $ - $ 81,533 $ 75,749 $ - $ 75,749
Color 111,508 - 111,508 92,987 - 92,987
Asia Pacific 27,926 - 27,926 25,963 - 25,963
Corporate & Other (52,025) 9,526 (42,499) (45,116) 5,775 (39,341)
------- --- -------- --- ------- ------- --- --------- -------
Consolidated $168,942 $ 9,526 $178,468 $149,583 $ 5,775 $155,358
======= === ======== === ======= ======= === ========= =======
(2) Adjustments consist of Portfolio Optimization Plan costs.
Sensient Technologies Corporation
(Unaudited)
Reconciliation of Non-GAAP Amounts - Continued
The following table summarizes the percentage change in the 2025
results compared to the 2024 results for the corresponding periods.
Three Months Ended September 30,
---------------------------------------------------
Foreign Local
Exchange Currency
Revenue Total Rates Adjustments(3) Adjusted
-------- ----------- --------------- -----------
Flavors &
Extracts (0.2%) 1.0% N/A (1.2%)
Color 9.9% 2.0% N/A 7.9%
Asia Pacific 0.7% 1.0% N/A (0.3%)
Total Revenue 5.0% 1.5% N/A 3.5%
Operating Income
Flavors &
Extracts 8.4% 0.6% 0.0% 7.8%
Color 26.6% 2.8% 0.0% 23.8%
Asia Pacific 2.5% 2.3% 0.0% 0.2%
Corporate &
Other 21.8% 0.0% 13.9% 7.9%
Total Operating
Income 14.2% 2.4% (3.9%) 15.7%
Diluted Earnings
Per Share 13.0% 2.6% (7.1%) 17.5%
Adjusted EBITDA 16.3% 2.0% N/A 14.3%
Nine Months Ended September 30,
---------------------------------------------------
Foreign Local
Exchange Currency
Revenue Total Rates Adjustments(3) Adjusted
-------- ----------- --------------- -----------
Flavors &
Extracts (0.9%) 0.1% N/A (1.0%)
Color 7.2% (0.4%) N/A 7.6%
Asia Pacific 5.0% 1.1% N/A 3.9%
Total Revenue 3.2% 0.0% N/A 3.2%
Operating Income
Flavors &
Extracts 7.6% 0.0% 0.0% 7.6%
Color 19.9% 0.2% 0.0% 19.7%
Asia Pacific 7.6% 2.7% 0.0% 4.9%
Corporate &
Other 15.3% 0.0% 7.3% 8.0%
Total Operating
Income 12.9% 0.6% (2.0%) 14.3%
Diluted Earnings
Per Share 14.8% 0.5% (2.3%) 16.6%
Adjusted EBITDA 13.2% 0.4% N/A 12.8%
(3) Adjustments consist of Portfolio Optimization Plan costs.
Sensient Technologies Corporation
(In thousands, except percentages)
(Unaudited)
Reconciliation of Non-GAAP Amounts - Continued
The following table summarizes the reconciliation between Operating Income (GAAP) and
Adjusted EBITDA for the three and nine months ended September 30, 2025 and 2024.
(MORE TO FOLLOW) Dow Jones Newswires
October 31, 2025 06:55 ET (10:55 GMT)