Key Takeaways IFF posted Q4 adjusted EPS of 80 cents, missing estimates, as sales declined 6.6% y/y.IFF's Taste sales rose 2.1%, while Scent sales increased 5.5% in the quarter.International Flavors expects 2026 sales of $10.5B-$10.8B and adjusted EBITDA of $2.05B-$2.15B.International Flavors & Fragrances Inc. (IFF) reported adjusted earnings of 80 cents per share in fourth-quarter 2025, missing the Zacks Consensus Estimate of 85 cents. The company posted adjusted EPS of 93 cents in the year-ago quarter, in ...

New York-based International Flavors & Fragrances Inc. (IFF) manufactures and markets food, beverage, health and biosciences, scent, and complementary adjacent products. It is valued at a market cap of $19.7 billion. This scent company has lagged behind the broader market over the past 52 weeks. Shares of IFF have declined 9.7% over this time frame, while the broader S&P 500 Index ($SPX) has soared 14.4%. However, on a YTD basis, the stock is up 14.2%, outpacing SPX’s 1.4% return. More News from Barchar ...

International Flavors & Fragrances (NYSE:IFF) Q4 2025 Earnings call February 12, 2026 09:00 AM ET Company ParticipantsDavid Begleiter - DirectorErik Fyrwald - CEOJosh Spector - Executive Director of Chemicals Equity ResearchKevin McCarthy - PartnerLauren Lieberman - Managing DirectorLisa De Neve - Executive DirectorMichael Bender - VP of Investor RelationsMichael DeVeau - EVP and CFOMike Sison - Managing DirectorConference Call ParticipantsChris Parkinson - Managing Director and Senior AnalystFulvio Cazzol ...

International Flavors & Fragrances (NYSE:IFF) Q4 2025 Earnings call February 12, 2026 09:00 AM ET Company ParticipantsDavid Begleiter - DirectorErik Fyrwald - CEOJosh Spector - Executive Director of Chemicals Equity ResearchKevin McCarthy - PartnerLauren Lieberman - Managing DirectorLisa De Neve - Executive DirectorMichael Bender - VP of Investor RelationsMichael DeVeau - EVP and CFOConference Call ParticipantsChristopher Parkinson - Managing Director and Senior AnalystFulvio Cazzol - Equities AnalystGhansh ...

Financial Data and Key Metrics Changes - In Q4 2025, IFF generated revenue of nearly $2.6 billion, with a 1% growth compared to a 6% year-ago comparable, and a 4% increase on a two-year average basis [11] - EBITDA totaled $437 million for Q4, a 7% increase, with an EBITDA margin increase of 90 basis points to 16.9% [11] - For the full year 2025, IFF achieved 7% EBITDA growth with 100 basis points of margin expansion [10] Business Segment Performance Changes - Taste segment sales increased 2% to $588 million, with EBITDA up 17% to $94 million [12] - Health and Biosciences segment sales grew 5% to $589 million, with EBITDA increasing 20% to $155 million [13] - Scent segment delivered sales of $610 million, representing 4% growth, with EBITDA increasing 1% to $106 million [14] - Food ingredients sales were down 4% to $802 million, but EBITDA grew by 10% due to margin improvements [12][14] Market Data and Key Metrics Changes - The performance in North America for the Taste segment showed high single-digit growth, driven by new wins [12] - Health and Biosciences saw strong growth in food biosciences and animal nutrition, both achieving double-digit growth [13] - The Scent segment's fine fragrance grew by 10%, while fragrance ingredients faced pressure due to market softness [14] Company Strategy and Development Direction - IFF is focusing on high-value, innovation-driven businesses, having divested from lower-margin segments [6][8] - The company is optimistic about the sale process for its food ingredients business, aiming to enhance shareholder value [17] - Investments in R&D, commercial capabilities, and manufacturing capacity are prioritized to drive profitable growth [5][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving consistent, profitable growth despite macroeconomic uncertainties [9] - For 2026, IFF expects sales in the range of $10.5 billion to $10.8 billion, representing 1%-4% growth [18] - EBITDA for 2026 is projected to be between $2.05 billion and $2.15 billion, indicating 3%-8% growth [19] Other Important Information - Cash flow from operations totaled $850 million for the full year, with CapEx at approximately 5.5% of sales [14] - The company returned $409 million to shareholders through dividends and share repurchases [15] - The net debt to credit-adjusted EBITDA ratio improved to 2.6 times, down from 3.8 times in 2024 [16] Q&A Session Summary Question: Assumptions around price and volume in 2026 - Management indicated that growth for 2026 is expected to be volume-driven, with incremental margins on volumes around 30%-35% depending on the segment [28][29] Question: Top and bottom end of the 1%-4% currency neutral sales outlook - Management expressed cautious optimism, driven by a strong pipeline and customer focus on volume growth, with expectations for all divisions to grow within the range [31][32] Question: Early interest in the sale of food ingredients - Management confirmed strong interest from both strategic and private equity firms, with optimism about the sale process [36][37] Question: Price dynamics in the scent segment - Management noted that pricing was flat year-over-year, with margin pressure primarily from input costs, and a gradual shift towards higher-value ingredients is expected [40][41] Question: Health and biosciences margin uplift - Strong volume growth and productivity improvements contributed to the margin uplift, with expectations for stabilization and growth in the health business [43][44] Question: Free cash flow expectations for 2026 - Management anticipates meaningful improvement in free cash flow driven by profitability growth and working capital management [46][49] Question: R&D efforts and innovation metrics - Management highlighted a $100 million investment in innovation capabilities, with expected benefits starting in the second half of 2026 [53][56] Question: Reformulation opportunities in the marketplace - Management noted ongoing reformulation trends, with opportunities for IFF to support customers in creating healthier products [82][84]

Fourth Quarter & Full Year 2025 Earnings Conference Call February 12, 2026 CAUTIONARY STATEMENT This presentation includes statements that are not historical facts and are "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995. Such forward- looking statements are based on management's current assumptions, estimates and expectations, including with respect to our financial and operational outlook (sales, adjusted operating EBITDA and cash flow), portfolio opt ...

International Flavors (IFF) reported $2.59 billion in revenue for the quarter ended December 2025, representing a year-over-year decline of 6.6%. EPS of $0.80 for the same period compares to $0.97 a year ago.The reported revenue represents a surprise of +3.09% over the Zacks Consensus Estimate of $2.51 billion. With the consensus EPS estimate being $0.85, the EPS surprise was -5.37%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to d ...

International Flavors (IFF) came out with quarterly earnings of $0.8 per share, missing the Zacks Consensus Estimate of $0.85 per share. This compares to earnings of $0.97 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -5.37%. A quarter ago, it was expected that this ingredients producer for food, cosmetics and consumer products industries would post earnings of $1.02 per share when it actually produced earnings of $1.05, del ...

Financial Performance - Reported net sales for the full year 2025 were $10.89 billion, a decrease of 5% compared to the prior year, while currency neutral sales increased by 2%[4] - The loss before taxes for the full year was $412 million, and the reported EPS was $(1.46), while adjusted EPS excluding amortization was $4.20[2][7] - For the fourth quarter, reported net sales were $2.59 billion, a decrease of 7% year-over-year, but currency neutral sales increased by 1%[12] - Net sales for Q4 2025 were $2,589 million, a decrease of 7% compared to Q4 2024's $2,771 million, and full-year sales were $10,890 million, down 5% from $11,484 million in 2024[39] - The company reported a net loss of $412 million for 2025, compared to a net income of $308 million in 2024, indicating a significant shift in financial performance[73] EBITDA and Profitability - Adjusted operating EBITDA for the full year was $2.086 billion, with a currency neutral increase of 7% driven by volume growth and productivity gains[4] - The fourth quarter adjusted operating EBITDA was $437 million, with a comparable currency neutral increase of 7% primarily due to productivity gains[12] - Adjusted Operating EBITDA for the twelve months ended December 31, 2025, was $2,086 million, compared to $2,200 million in the previous year, reflecting a decrease of 5.2%[49] - The consolidated Adjusted Operating EBITDA margin for the twelve months ended December 31, 2025, was 19.2%, down from 19.5% in the previous year[49] - Segment Adjusted Operating EBITDA margin for the consolidated results improved to 19.2% in 2025 from 18.7% in 2024[88] Cash Flow and Debt - Cash flow from operations for the full year was $850 million, with free cash flow totaling $256 million[7] - Total debt to trailing twelve months net income at the end of Q4 was 16.2x, while net debt to credit-adjusted EBITDA was 2.6x[7] - The company reported a net cash provided by operating activities of $850 million for 2025, down from $1,070 million in 2024[43] - The company’s long-term debt decreased to $4,740 million in 2025 from $7,564 million in 2024, reflecting a reduction in leverage[41] - Total debt as of December 31, 2025, was $6,026 million, with net debt calculated at $5,436 million after accounting for cash and cash equivalents of $590 million[83] Research and Development - Research and development expenses increased by 2% in Q4 2025 to $174 million, and for the full year, they rose by 3% to $694 million compared to $671 million in 2024[39] - Research and development expenses for the three months ended December 31, 2025, were $175 million, compared to $168 million in the same period of 2024, indicating an increase of 4.2%[46][47] - Research and development expenses totaled $1.071 billion, reflecting a focus on innovation across segments[50] Strategic Initiatives and Divestitures - The company is in the process of divesting its Food Ingredients segment to sharpen strategic focus and improve financial flexibility[3] - The company incurred restructuring and other charges of $70 million for the full year 2025, a significant increase of 141% compared to $29 million in 2024[39] - Business divestiture costs were approximately $35 million in Q4 2025, down from $56 million in Q4 2024, indicating improved cost management[62] - The company is undergoing a phased restructuring initiative aimed at optimizing its legal entity framework, which includes costs related to entity realignment[51] - Business divestiture costs for 2025 were approximately $125 million, while costs for 2024 were around $220 million, indicating a reduction in divestiture-related expenses[76] Segment Performance - The Taste segment reported sales of $588 million in Q4 2025, a 2.6% increase from $573 million in Q4 2024, with an operating EBITDA margin of 16.0%[88] - Health & Biosciences segment sales increased to $589 million in Q4 2025, compared to $550 million in Q4 2024, with an operating EBITDA margin of 26.3%[88] - The Scent segment achieved sales of $610 million in Q4 2025, up from $578 million in Q4 2024, with an operating EBITDA margin of 17.4%[88] - The Pharma Solutions segment reported a significant decline in sales, down 65% year-over-year, reflecting the impact of divestitures[96] Future Outlook - The company expects full year 2026 sales to be in the range of $10.5 billion to $10.8 billion, with adjusted operating EBITDA projected between $2.05 billion and $2.15 billion[14] - Comparable currency neutral sales growth for 2026 is expected to be between 1% to 4%, with adjusted operating EBITDA growth anticipated to be 3% to 8% year-over-year[15] - Future outlook includes continued investment in strategic initiatives and productivity programs to enhance operational efficiency[51] - The company anticipates continued growth in the Taste and Health & Biosciences segments, driven by new product innovations and market expansion strategies[88]

Core Insights - International Flavors & Fragrances Inc. (IFF) is set to report its fourth-quarter 2025 results on February 11, with sales expected to be $2.51 billion, reflecting a 9.7% decline year-over-year [1][6] - The earnings estimate is pegged at 85 cents per share, indicating a year-over-year decrease of 12.4% [1][6] - IFF has a history of beating earnings estimates, achieving an average surprise of 9.5% over the past four quarters [3][6] Sales and Earnings Estimates - The Zacks Consensus Estimate for IFF's sales is $2.51 billion, down 9.7% from the previous year [1][6] - Earnings per share (EPS) is estimated at 85 cents, unchanged over the past 60 days [1] - The company has an Earnings ESP of +3.50%, suggesting a potential earnings beat [4] Segment Performance Projections - The Taste segment's sales are projected to decline by 0.8% year-over-year to $572 million, with adjusted operating EBITDA expected to grow by 29.3% to $113 million [10] - The Food Ingredients segment is anticipated to see a 2.7% decrease in sales to $797 million, with adjusted operating EBITDA declining by 2.7% to $98 million [10] - The Scent segment's sales are expected to decrease by 2% to $567 million, with operating EBITDA projected to rise by 1% to $107 million [11] - The Health & Biosciences segment is projected to have sales of $542 million, reflecting a 1.5% decrease, and operating EBITDA is expected to decline by 4% to $131 million [12] Cost and Margin Considerations - IFF has experienced volume growth and productivity gains, but high raw material costs and additional expenses related to labor, shipping, and cleaning are likely to have pressured margins [6][8] - Despite pricing actions and cost-reduction efforts, these factors are expected to negatively impact margins in the upcoming quarter [8] Stock Performance - Over the past year, IFF shares have decreased by 9.1%, contrasting with the industry's growth of 1.7% [13]