Core Insights - The company attributes its 2025 performance to strong sales execution and technical leadership, achieving a 15% local currency adjusted EPS growth despite disruptions in Q4 due to supply chain issues and weather events [1] - The transition from synthetic to natural colors in the U.S. and Canada is identified as the largest commercial opportunity in the company's history, with a significant revenue multiplier effect [1] - Management notes that $100 million in legacy synthetic revenue can convert at a ten-to-one ratio, highlighting the potential for substantial revenue growth [1] Financial Performance - The Color Group experienced a margin expansion of 160 basis points in 2025, driven by a shift towards technically differentiated products and disciplined pricing strategies [1] - The Flavors and Extracts segment faced challenges due to unprecedented weather events in California, resulting in a $3 million inventory loss and disruptions in agricultural harvesting [1] - Results in the Asia Pacific region were temporarily affected by tariff-induced supply chain disruptions, although core business segments outside the affected tariff zones remained robust [1] Strategic Positioning - The company's strategic focus is on being a 'reliable supplier' through significant investments in R&D and production capacity to capture the majority of the conversion market [1]

Financial Data and Key Metrics Changes - For the full year of 2025, the company reported a 3% local currency revenue growth, a 10% local currency adjusted EBITDA growth, and a 15% local currency adjusted EPS growth [5][22] - The overall adjusted EBITDA margin improved by 100 basis points [5] - In the fourth quarter, local currency revenue grew by 2%, while adjusted local currency operating profit remained flat [5][22] Business Line Data and Key Metrics Changes - The Color Group achieved 7.4% local currency revenue growth and 16.9% local currency operating profit growth for the year, with an adjusted EBITDA margin improvement to 23.7% from 22.1% [8][10] - The Flavors and Extracts Group experienced a 1.3% decline in local currency revenue but a 3.4% increase in local currency operating profit, with an adjusted EBITDA margin of 16.7% [10][12] - The Asia Pacific Group delivered 2.4% local currency revenue growth and 3.8% local currency operating profit growth for the year [12][13] Market Data and Key Metrics Changes - The Color Group's performance is driven by strong momentum in natural color conversions, particularly in the U.S., Canada, and parts of Latin America [6][7] - The Flavors and Extracts Group faced challenges due to severe weather events impacting agricultural ingredients, leading to a one-time inventory loss of approximately $3 million [11][12] - The Asia Pacific Group is expected to recover from regional demand disruptions, with a bounce back anticipated in the latter half of 2026 [12][14] Company Strategy and Development Direction - The company is focused on investing in research and development, production capacity, and a resilient supply chain to support customer needs during the natural color conversion process [7][8] - The goal is to capture a substantial portion of the $1 billion sales opportunity from natural color conversions, with significant capital expenditures planned [16][17] - The company anticipates a ramp-up in natural color inventory throughout 2026 and into 2027 [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit growth in the Color Group for 2026, driven by natural color conversions [15][38] - The company expects mid-single to high single-digit revenue growth for the Flavors and Extracts and Asia Pacific Groups in 2026, with a stronger performance anticipated in the second half of the year [15][92] - Management acknowledged that the first half of 2026 may see challenges in profit leverage due to ongoing investments [15][27] Other Important Information - The company plans to invest $150 million to $170 million in capital expenditures for 2026, with a focus on natural color conversion-related investments [16][25] - The adjusted tax rate for the fourth quarter of 2025 was 17.1%, down from 24.9% in the prior year [23] Q&A Session Summary Question: Conversion opportunity and pipeline for 2026 - Management indicated that approximately $5 million in conversion revenue was invoiced in Q3 and Q4 of 2025, with expectations for acceleration in Q3 and Q4 of 2026 as customer deadlines approach [34][37] Question: Impact of FDA changes on conversion timing - Management believes that FDA guidance will not materially change the timing of brand conversions, as customer commitment to conversion is driven by consumer demand [40][75] Question: Operating leverage and investment details - Management acknowledged that investments in technical personnel and R&D are impacting operating leverage, but these investments are necessary for achieving long-term sales goals [42][44] Question: Confidence in flavors and extracts improvement - Management expressed confidence in mid-single-digit revenue growth for the Flavors and Extracts Group, driven by recovery in agricultural ingredients and improved operational efficiency [89][92] Question: Update on Asia Pacific Group's performance - Management expects a return to revenue and profit growth in the Asia Pacific Group as logistical issues stabilize, with mid-single-digit growth anticipated for the year [92][93]

Financial Data and Key Metrics Changes - For the full year of 2025, the company achieved 3% local currency revenue growth, 10% local currency adjusted EBITDA growth, and 15% local currency adjusted EPS growth [5] - In the fourth quarter of 2025, revenue was $393.4 million, compared to $376.4 million in the same period last year, while operating income was $38.2 million, down from $42 million [22] - Adjusted operating income for Q4 2025 was $44.5 million, compared to $42.9 million in the prior year, indicating flat performance in local currency [23] Business Line Data and Key Metrics Changes - The Color Group delivered 7.4% local currency revenue growth and 16.9% local currency operating profit growth for the year, with an adjusted EBITDA margin improvement to 23.7% from 22.1% [9] - The Flavors and Extracts Group experienced a 1.3% decline in local currency revenue but a 3.4% increase in local currency operating profit, with an adjusted EBITDA margin of 16.7% [11] - The Asia Pacific Group achieved 2.4% local currency revenue growth and 3.8% local currency operating profit growth for the year, although Q4 saw a 1.9% revenue decline [13] Market Data and Key Metrics Changes - The company noted that the natural colors conversion momentum is strong in the U.S., Canada, and parts of Latin America, representing a significant opportunity for growth [8] - The agricultural ingredients business faced challenges due to severe weather events, impacting harvesting activities and leading to a one-time inventory loss of approximately $3 million [12] Company Strategy and Development Direction - The company is focused on investing in research and development, production capacity, and supply chain resilience to support customer needs during the natural color conversion process [9] - The goal is to capture a substantial portion of the $1 billion sales opportunity through natural color conversions, with significant capital expenditures planned for 2026 [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving mid- to double-digit revenue growth in 2026, driven by natural color conversion activities [14] - The company anticipates a challenging profit leverage in the first half of 2026 due to ongoing investments, with expectations for improved performance in the second half [15] Other Important Information - The company plans to invest $150 million to $170 million in capital expenditures in 2026, with a focus on natural color conversion-related investments totaling between $225 million and $250 million from 2025 to 2028 [16] - The adjusted tax rate for Q4 2025 was 17.1%, down from 24.9% in the same period of 2024 [23] Q&A Session Summary Question: How much of the $100 million conversion opportunity was realized in 2025, and what is expected for 2026? - The company invoiced about $5 million in Q3 and Q4 2025, with expectations for acceleration in conversions in 2026 as customer deadlines approach [33][36] Question: How does the FDA's change to the no artificial color designation affect conversion timelines? - Management believes the FDA guidance will not materially change the timing of brand conversions, as customer commitment to conversion is driven by consumer demand [39] Question: What is the outlook for flavors and extracts, and what gives confidence in a rebound? - The flavors and extracts group is expected to see mid-single-digit revenue growth, with confidence stemming from improved agricultural ingredient availability and operational adjustments [87][90]

Sensient Technologies Corporation Fourth Quarter 2025 Earnings Call February 13, 2026 © Sensient Technologies 2026 sensient.com Non-GAAP Financial Measures Within this document, the Company reports certain non-GAAP financial measures, including: (1) adjusted operating income, adjusted net earnings, and adjusted diluted earnings per share, which exclude restructuring and other costs, including the Portfolio Optimization Plan costs, (2) percentage changes in revenue, operating income, and diluted earnings per ...

Financial Data and Key Metrics Changes - Combined adjusted EBITDA for Q4 2025 was $336.1 million, an increase from $289 million in Q4 2024 and $245 million in Q3 2025 [12] - Total net sales for Q4 2025 reached $1.7 billion, compared to $1.4 billion in Q4 2024 [12] - Gross margins improved to 25.1% in Q4 2025 from 23.5% in Q4 2024 [13] - For the full year 2025, core ingredients EBITDA was $922 million, up from $790 million in 2024 [12] Business Line Data and Key Metrics Changes - Core ingredients EBITDA for Q4 2025 was $278 million, compared to $230 million in Q4 2024 [12] - Feed segment EBITDA improved to $193 million in Q4 2025 from $150 million a year ago, with total sales of $1.13 billion versus $924 million [13] - Food segment total sales for Q4 2025 were $429 million, up from $362 million in Q4 2024 [14] - Fuel segment, specifically Diamond Green Diesel (DGD), achieved $57.9 million in EBITDA for Q4 2025, marking its strongest quarter of the year [8][15] Market Data and Key Metrics Changes - Demand for domestic fats in the U.S. remains robust, supported by favorable agricultural and energy policies [8] - Internationally, the global rendering business in Europe, Canada, and Brazil showed solid year-over-year growth [8] - DGD sold approximately 1 billion gallons in 2025, earning $103.7 million in EBITDA, or $0.21 per gallon [9] Company Strategy and Development Direction - The company aims to be the world's largest and most profitable processor of animal byproducts, focusing on operational excellence and core strengths [5] - Plans to sharpen the portfolio may lead to asset sales, while also exploring opportunities to strengthen and expand core business [10] - The company is optimistic about the policy backdrop for renewable fuels, which is expected to enhance DGD's earning potential [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertainties from evolving renewables public policy and global trade but emphasized a commitment to fundamentals [5] - The outlook for 2026 is encouraging, with positive global demand trends and expectations for improved margins in the fuel segment [8][20] - Management anticipates a modest pullback in Q1 2026 but expects core ingredients adjusted EBITDA to be in the range of $240 million to $250 million [21] Other Important Information - The company recorded an income tax benefit of $11 million for Q4 2025, with an effective tax rate of -15.3% [18] - Restructuring and impairment charges of $58 million were recorded in the quarter [19] - The company ended 2025 with approximately $1.3 billion available on its revolving credit facility [17] Q&A Session Summary Question: Guidance for DGD margins and potential inclusion in future guidance - Management indicated that guidance for DGD will depend on clarity regarding the Renewable Volume Obligation (RVO) [27][28] Question: Sensitivity of the feed business to RVO changes - Management noted that the feed business is sensitive to U.S. and North American feedstock values, which are expected to be supportive [29] Question: Insights on biofuels production and feedstock demand - Management stated that there hasn't been a significant increase in biofuel production yet, and better margins are needed to incentivize more production [33] Question: Expectations for the food business and EBITDA - Management expressed optimism for the collagen and gelatin business, expecting a year similar to or better than the previous year [35] Question: RVO expectations and potential impact on Darling's feed business - Management supports an RVO for advanced biofuels translating to 5.25 billion to 5.61 billion gallons, which would be constructive for margins [40] Question: Rationale for the Potencei Group acquisition - Management highlighted the strategic fit of the Potencei facilities within their existing footprint and the potential for margin enhancement [68] Question: Capital allocation priorities post-leverage targets - Management emphasized that capital allocation will focus on paying down debt, with reassessment following clarity on cash flow from DGD [79]

Core Insights - Burcon Nutrascience Corporation has transitioned from development-stage operations to commercial scale with its Galesburg production facility, achieving 3Q26 revenue of $739,000, which reflects approximately 107% quarter-over-quarter growth driven by protein sales and production activity [1] - The company entered CY2025 without a production facility but met its revenue target by the end of the year, highlighting the rapid commercialization following Galesburg's launch [1] - Management has established staffing and infrastructure, allowing for incremental volume growth with limited additional fixed costs, which supports operating leverage as throughput increases [1] - Approximately 65-70% of expected growth is tied to existing customers, with over 200 active projects in the pipeline, indicating a strong foundation for recurring revenue expansion [1][6] Revenue Performance - Burcon's revenue increased by 1,100% year-over-year, showcasing significant growth potential [6] - The company anticipates double-digit revenue growth in CY26, further indicating a positive outlook for future performance [6]

Financial Data and Key Metrics Changes - For the nine months ended December 31, 2025, consolidated revenue was $2.21 billion, a decrease from $2.25 billion in the prior year period [8] - Operating income was $183.4 million compared to $190 million for the same period last year [8] - Net income was $75.9 million versus $85.7 million for the same period last year [8] - For the third quarter of fiscal year 2026, consolidated revenue was $861.3 million, down from $937.2 million in the same quarter of last year [9] - Operating income was $82 million compared to $104.1 million for the third quarter of the last fiscal year [9] - Net income was $33.2 million versus $59.6 million for the third quarter of last fiscal year [9] Business Segment Data and Key Metrics Changes - In the tobacco operations segment, revenue was $1.94 billion compared to $2 billion in the prior year period, with segment operating income at $185 million versus $194.4 million [8] - In the ingredients operations segment, revenue was $265.2 million compared to $249 million in the prior year period, but segment operating income fell to $1.4 million from $7.9 million [8] - For the third quarter, tobacco operations segment revenue was $779.9 million compared to $853.9 million in the same quarter last year, with segment operating income at $84 million versus $102.6 million [9] - Ingredients operations segment revenue was $81.3 million compared to $83.3 million in the third quarter last year, with a segment operating loss of $0.1 million compared to an operating income of $3.7 million in the same quarter last year [9] Market Data and Key Metrics Changes - The company noted that customer demand for tobacco styles remained firm, transitioning into an oversupply environment [4] - The ingredients segment faced market headwinds due to broader softness in the consumer packaged goods sector, which affected sales and margins [5][6] Company Strategy and Development Direction - The company is focused on diversifying into food and beverage ingredients, having made three acquisitions in 2020 and 2021 to build a broad product portfolio [11] - Investments have been made in commercial sales, R&D, and production capabilities to support the growth of Universal Ingredients [12] - The company aims to leverage its new resources to convert customer interest into sales and improve margins [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the transition to an oversupply environment in the tobacco market, emphasizing the company's resilience [11] - The company is committed to scaling its ingredients business despite inflationary pressures and tariff impacts [13] - Management highlighted progress in sustainability initiatives, including a significant increase in renewable electricity consumption [14] Other Important Information - The company refinanced and upsized its corporate credit facility, significantly expanding liquidity and improving financial flexibility [10] - As of December 31, 2025, net debt was $995 million compared to $945 million at the same point last year [10] Q&A Session Summary Question: Impact of tariffs and market weakness on ingredients business - Management noted that market headwinds, product mix, and higher fixed costs have impacted the ingredients segment, with inflationary pressures affecting customer demand and pricing [18][19][22] Question: Performance of the tobacco segment - Management indicated that despite a solid quarter, comparisons to last year's extraordinary results are challenging, but current year-to-date numbers remain strong [24][25] Question: Customer inventory levels and duration positions - Management stated that customer inventory levels vary, with some customers restoring durations while others maintain tighter durations [34] Question: Revenue breakdown by volume, price, and new customer wins - Management did not provide a specific breakdown but acknowledged that product mix impacts revenue [38] Question: Anticipation of pricing catching up with higher costs - Management expressed optimism that continued sales could help mitigate the impact of higher-cost inventory in the coming quarters [39] Question: Inventory write-downs in the ingredients segment - Management confirmed some write-downs occurred, primarily in the dark air-cured space [40] Question: CFO announcement clarification - Management clarified that the previous CFO offer was withdrawn, and a new CFO was appointed [42] Question: Tax rate guidance - Management indicated that the tax rate is expected to be between 28% and 32%, slightly higher due to recent changes in certain countries [49]

Financial Data and Key Metrics Changes - For the nine months ended December 31, 2025, consolidated revenue was $2.21 billion, a decrease from $2.25 billion in the prior year period [8] - Operating income was $183.4 million compared to $190 million for the same period last year [8] - Net income was $75.9 million versus $85.7 million for the same period last year [8] - For the third quarter of fiscal year 2026, consolidated revenue was $861.3 million, down from $937.2 million in the same quarter of last year [9] - Operating income was $82 million compared to $104.1 million for the third quarter of the last fiscal year [9] - Net income was $33.2 million versus $59.6 million for the third quarter of last fiscal year [9] Business Segment Data and Key Metrics Changes - In the tobacco operations segment, revenue was $1.94 billion compared to $2 billion in the prior year period, with segment operating income at $185 million versus $194.4 million last year [8] - In the ingredients operations segment, revenue was $265.2 million compared to $249 million in the prior year period, but segment operating income fell to $1.4 million from $7.9 million last year [8] - For the third quarter, tobacco operations segment revenue was $779.9 million compared to $853.9 million in the same quarter of last year, with segment operating income at $84 million versus $102.6 million last year [9] - Ingredients operations segment revenue was $81.3 million compared to $83.3 million in the third quarter last year, with a segment operating loss of $0.1 million compared to an operating income of $3.7 million last year [9] Market Data and Key Metrics Changes - The company noted that customer demand for tobacco remained firm following years of undersupply, but the market is transitioning into an oversupply environment [4] - The ingredients segment faced market headwinds due to broader softness in the consumer packaged goods sector, which affected sales and margins [5][6] - Tariff impacts were more pronounced during this quarter, affecting both direct and indirect costs [19] Company Strategy and Development Direction - The company is focused on diversifying into food and beverage ingredients, having made three acquisitions in 2020 and 2021 to build a broad product portfolio [11] - Investments have been made in commercial sales, R&D, and production capabilities to support the growth of Universal Ingredients [12] - The company aims to leverage its new resources to grow Universal Ingredients and convert customer interest into sales [12][13] - Sustainability priorities are being advanced, with a commitment to achieve net-zero greenhouse gas emissions across the value chain by 2050 [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the transition to an oversupply environment in the tobacco market, emphasizing the company's resilience [11] - The company is focused on increasing sales to absorb fixed costs from growth investments in the ingredients business [13] - Management acknowledged the challenges posed by inflationary pressures and tariffs but remains optimistic about future sales and margin recovery [19][39] Other Important Information - The company refinanced and upsized its corporate credit facility, significantly expanding liquidity and improving financial flexibility [7][10] - As of December 31, 2025, net debt was $995 million compared to $945 million at the same point last year [10] Q&A Session Summary Question: Impact of tariffs and market weakness on ingredients business - Management noted that market headwinds, product mix, and higher fixed costs have impacted the ingredients segment, with inflationary pressures affecting customer demand and pricing [18][22] Question: Performance of the tobacco segment - Management indicated that despite a solid quarter, comparisons to last year's extraordinary results are challenging, but current year-to-date numbers are strong [24][25] Question: Customer inventory levels - Management stated that customer inventory levels vary, with some customers restoring durations while others maintain tighter levels [34] Question: Inventory write-downs in the ingredients segment - Management confirmed that there were some write-downs, primarily in the dark air-cured space, but more significant write-downs occurred in the tobacco segment [40][41] Question: CFO announcement clarification - Management clarified that the previous CFO offer was withdrawn, and a new CFO has been appointed [42][43] Question: Tax rate guidance - Management indicated that the tax rate is expected to be between 28% and 32%, slightly higher due to recent changes in certain countries [49]

Core Insights - Ingredion Incorporated has been recognized as a Top Employer in eight countries, including the United States for the first time in 2026, highlighting its commitment to a people-centric growth culture [1][2][3] Group 1: Recognition and Awards - The company has received Top Employer certification in Thailand, India, China, Germany, the United Kingdom, Malaysia, Singapore, and the United States [1][3] - Ingredion has maintained its Top Employer status in Singapore and Thailand for six consecutive years, while China, Germany, Malaysia, and the UK have been recognized for four years [3] Group 2: Company Overview - Ingredion is a leading global provider of ingredient solutions with annual net sales of approximately $7.4 billion in 2024, serving customers in nearly 120 countries [4] - The company specializes in turning grains, fruits, vegetables, and other plant-based materials into value-added ingredient solutions for various markets, including food, beverage, and industrial sectors [4]

Core Insights - Ingredion Incorporated has been named to the 2026 FORTUNE World's Most Admired Companies list for the 16th time, highlighting its leadership in innovation, operational excellence, and sustainability [1][2]. Company Overview - Ingredion is a leading global provider of ingredient solutions, serving customers in nearly 120 countries with annual net sales of approximately $7.4 billion in 2024 [4]. - The company transforms grains, fruits, vegetables, and other plant-based materials into value-added ingredient solutions for various markets, including food, beverage, animal nutrition, brewing, and industrial sectors [4]. - Ingredion operates innovation centers globally and employs over 11,000 people, focusing on co-creating with customers to enhance the quality of life [4]. Recognition and Reputation - The FORTUNE World's Most Admired Companies list is considered a definitive report card on corporate reputation, evaluated by top executives, directors, and analysts based on nine key attributes [2]. - Ingredion's recognition reflects the commitment of its employees to create value for customers and improve the taste of healthy foods [2][3].