Core Insights - The transition from synthetic to natural colors is identified as the largest opportunity in the company's history, with significant investments made in natural color technologies and production capacity [1][5] Financial Performance - In Q4 2025, Sensient reported a 2% local-currency revenue growth, while adjusted local-currency operating profit remained flat due to tariff-related supply chain disruptions and unforeseen weather events [2][3] - For the full year 2025, local-currency revenue grew by 3%, adjusted EBITDA increased by 10%, and adjusted EPS rose by 15% [2][6] - The Color Group achieved a 7.4% increase in local-currency revenue and a 16.9% rise in local-currency operating profit for 2025, with an adjusted EBITDA margin improvement to 23.7% [8] 2026 Outlook - The company anticipates mid-single-digit to double-digit growth in consolidated local-currency revenue and adjusted EBITDA for 2026, with stronger performance expected in the second half of the year [4][11] - Capital expenditures are projected to be between $150 million and $170 million in 2026, with an additional $225 million to $250 million planned for natural color conversion-related investments from 2025 to 2028 [4][12] Segment Performance - The Flavors & Extracts Group experienced a 1.3% decline in local-currency revenue for 2025, while local-currency operating profit rose by 3.4% [14] - The Asia Pacific Group saw a 2.4% increase in local-currency revenue for 2025, but faced a 1.9% decline in Q4 revenue due to tariff-driven supply chain disruptions [14] Investment and Strategy - The company is focused on accelerating natural color conversions, expecting invoiced amounts to increase significantly in H2 2026, with a target of $1 billion in natural color sales [5][6] - Management is investing in technical resources and commercial capacity to meet customer conversion timelines and avoid delays [13]