IFF Reports Q3 2026 Results & Raises Lower End of FY 2026 Guidance

Executive Summary

International Flavors & Fragrances Inc. (NYSE: IFF) filed Form 8-K under Item 2.02 reporting financial results for the third quarter ended September 30, 2026. The results reflect continuing operations following perimeter adjustments that reclassified the Food Ingredients business and Soy Crush, Concentrates, and Lecithin (SCL) businesses as discontinued operations.

Key Financial Metrics (Continuing Operations)

• Net Sales: Reported net sales stood at $1.94 billion, up 4% year-over-year. On a comparable currency-neutral basis, sales grew 5% driven by solid performance across all segments.
• Operating Profitability:
  • Reported loss before taxes: $(134) million.
  • Adjusted operating EBITDA: $403 million, up 6% year-over-year on a comparable currency-neutral basis, supported by volume growth.
  • Adjusted operating EBITDA margin: 20.8%.
• Earnings Per Share: Reported GAAP diluted EPS was $(0.50), while adjusted EPS excluding amortization reached $0.83.
• Cash Flow & Capital Allocation:
  • Nine-month operating cash flow (continuing and discontinued operations) reached $820 million (+ $288 million YoY).
  • Free cash flow stood at $371 million (+ $245 million YoY).
  • Net debt to credit adjusted EBITDA was 2.75x.
  • Completed $500 million accelerated share repurchase program.

Segment Performance

• Taste: Reported sales were $687 million (+4% reported, +6% comparable currency neutral), driven by broad-based geographic expansion led by Greater Asia. Adjusted EBITDA was $128 million (18.6% margin).
• Health & Biosciences: Reported sales were $566 million (+1% reported, +1% comparable currency neutral), with growth in Food Biosciences and Grain Processing offsetting softness in Health. Adjusted EBITDA was $136 million (24.0% margin).
• Scent: Reported sales were $689 million (+6% reported, +6% comparable currency neutral), supported by high-single-digit expansion in Consumer Fragrances alongside mid-single-digit growth in Fine Fragrance and Fragrance Ingredients. Adjusted EBITDA reached $139 million (20.2% margin).

Full-Year 2026 Guidance Update

IFF raised the bottom end of its full-year guidance ranges:

• Full-Year Sales: Raised to $7.5B–$7.6B (previously $7.4B–$7.6B); comparable currency-neutral sales growth revised to 3%–4% (previously 2%–4%).
• Adjusted Operating EBITDA: Raised to $1.55B–$1.60B (previously $1.53B–$1.60B); comparable currency-neutral adjusted EBITDA growth expected at 5%–8% (previously 4%–8%).
• Foreign Exchange Impact: FX is expected to contribute ~1% to sales growth and ~2% to adjusted EBITDA growth.

Divestiture Progress

The planned separation and divestiture of the Food Ingredients disposal group continues to track according to plan, with expected closing scheduled by the end of the second quarter of 2027.