Sensient Technologies Corporation Reports Results for the Quarter Ended September 30, 2026

Sensient raised the bottom of its annual earnings outlook, while nine-month operating cash flow declined despite higher profits.

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MILWAUKEE--(BUSINESS WIRE)-- Sensient Technologies Corporation (NYSE: 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, 2026.

Third Quarter Consolidated Results

• Reported revenue increased 10.6% to $455.8 million in the third quarter of 2026 versus last year’s third quarter results of $412.1 million. On a local currency basis⁽¹⁾, revenue increased 10.2%.
• Reported operating income increased 25.5% to $72.4 million compared to $57.7 million recorded in last year’s third quarter. In the third quarter of 2025, the Company recorded $3.3 million of costs related to its Portfolio Optimization Plan versus no costs recorded in the third quarter of 2026 Local currency adjusted operating income⁽¹⁾ and local currency adjusted EBITDA⁽¹⁾ were up 18.6% and 15.4%, respectively, in the third quarter.
• Reported earnings per share increased 29.9% to $1.13 in the third quarter of 2026 compared to 87 cents in the third quarter of 2025. Local currency adjusted diluted EPS⁽¹⁾ increased 17.7% in the third quarter.

“Sensient delivered an exceptional third quarter, with results that reflect the strength of our strategy and unwavering focus on our customers. As we look ahead, I am encouraged by the momentum across our business, the opportunities in our markets, and the investments we are making to support growth. I remain very confident about our performance in 2026 and beyond,” said Paul Manning, Sensient’s Chairman, President, and Chief Executive Officer.

Third Quarter Group Results
		Reported		Local Currency(1)
Revenue		Quarter		Quarter
Flavors & Extracts		3.5%		3.2%
Color		18.1%		17.0%
Asia Pacific		12.4%		14.8%
Total Revenue		10.6%		10.2%
		Reported		Local Currency Adjusted(1)
Operating Income		Quarter		Quarter
Flavors & Extracts		8.8%		8.8%
Color		22.0%		21.1%
Asia Pacific		29.6%		32.4%
Total Operating Income		25.5%		18.6%

The Flavors & Extracts Group reported third quarter 2026 revenue of $210.0 million, an increase of $7.0 million versus the prior year’s third quarter. The Group’s revenue increase was driven primarily by higher prices and volume growth. Segment operating income was $30.5 million in the third quarter of 2026, an increase of $2.5 million compared to the prior year’s third quarter.

The Color Group reported revenue of $210.3 million in the third quarter of 2026, an increase of $32.2 million compared to the prior year’s third quarter. The Group’s revenue increase was driven primarily by strong volume growth. Segment operating income was $46.1 million in the third quarter of 2026, an increase of $8.3 million compared to the prior year’s third quarter results.

The Asia Pacific Group reported revenue of $47.3 million in the third quarter of 2026, an increase of $5.2 million compared to the prior year’s third quarter. The Group’s revenue increase was driven by strong volume growth and higher prices across the Group. Segment operating income was $12.4 million in the quarter, an increase of $2.8 million compared to the prior year’s third quarter.

Corporate & Other reported operating expenses were $16.5 million in the third quarter of 2026, compared to $17.6 million of operating expenses reported in the prior year’s third quarter. Local currency adjusted operating expenses⁽¹⁾ for Corporate & Other increased $2.2 million compared to the prior year’s third quarter. The higher operating expenses were primarily due to higher performance-based compensation costs in the third quarter.

2026 OUTLOOK
Metric		Current Guidance		Prior Guidance
Local Currency Revenue(1)		High Single-Digit to Low Double-Digit Growth		High Single-Digit to Low Double-Digit Growth
Local Currency Adjusted EBITDA(1)		Mid-Teen to High Teen Growth		Mid-Teen to High Teen Growth
Diluted EPS (GAAP)		Between $4.15 and $4.20*		Between $4.10 and $4.20*
Local Currency Adjusted Diluted EPS(1)		Mid-Teen to High Teen Growth		Mid-Teen to High Teen Growth
*Based on current exchange rates, foreign currency impact is expected to be immaterial for the remainder of 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 2026 third quarter financial results at 8:30 a.m. CDT on Friday, October 30, 2026. 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 6, 2026 by calling (855) 669-9658 and using access code 9910787. 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 3, 2026.

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 “2026 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, 2025, 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,
				2026				2025			% Change					2026				2025			% Change
Revenue			$	455,841			$	412,109				10.6	%		$	1,353,756			$	1,218,664				11.1	%
Cost of products sold				290,893				270,767				7.4	%			863,321				802,713				7.6	%
Selling and administrative expenses				92,499				83,636				10.6	%			274,558				247,009				11.2	%
Operating income				72,449				57,706				25.5	%			215,877				168,942				27.8	%
Interest expense				8,345				7,328								24,421				22,060
Earnings before income taxes				64,104				50,378								191,456				146,882
Income taxes				15,760				13,422								47,583				37,877
Net earnings			$	48,344			$	36,956				30.8	%		$	143,873			$	109,005				32.0	%
Earnings per share of common stock:
Basic			$	1.14			$	0.87							$	3.40			$	2.58
Diluted			$	1.13			$	0.87							$	3.37			$	2.56
Average common shares outstanding:
Basic				42,353				42,248								42,333				42,231
Diluted				42,831				42,665								42,753				42,570
Results by Segment			Three Months Ended September 30,												Nine Months Ended September 30,
Revenue				2026				2025			% Change					2026				2025			% Change
Flavors & Extracts			$	209,973			$	202,970				3.5	%		$	624,977			$	599,902				4.2	%
Color				210,343				178,156				18.1	%			624,656				525,188				18.9	%
Asia Pacific				47,304				42,082				12.4	%			140,148				126,727				10.6	%
Intersegment elimination				(11,779	)			(11,099	)							(36,025	)			(33,153	)
Consolidated			$	455,841			$	412,109				10.6	%		$	1,353,756			$	1,218,664				11.1	%
Operating Income
Flavors & Extracts			$	30,519			$	28,038				8.8	%		$	87,700			$	81,533				7.6	%
Color				46,054				37,734				22.0	%			142,633				111,508				27.9	%
Asia Pacific				12,364				9,541				29.6	%			34,504				27,926				23.6	%
Corporate & Other				(16,488	)			(17,607	)							(48,960	)			(52,025	)
Consolidated			$	72,449			$	57,706				25.5	%		$	215,877			$	168,942				27.8	%

Sensient Technologies Corporation
(In thousands)
(Unaudited)
Consolidated Condensed Balance Sheets			September 30,				December 31,
				2026				2025
Cash and cash equivalents			$	42,625			$	36,533
Trade accounts receivable				373,755				305,380
Inventories				791,096				678,220
Prepaid expenses and other current assets				75,168				59,717
Fixed assets held for sale				-				1,598
Total Current Assets				1,282,644				1,081,448
Goodwill & intangible assets (net)				443,017				449,827
Property, plant, and equipment (net)				606,429				539,296
Other assets				143,742				173,566
Total Assets			$	2,475,832			$	2,244,137
Trade accounts payable			$	187,501			$	138,344
Short-term borrowings				257				352
Other current liabilities				135,248				124,887
Total Current Liabilities				323,006				263,583
Long-term debt				790,148				709,232
Accrued employee and retiree benefits				23,733				24,045
Other liabilities				52,220				53,763
Shareholders' Equity				1,286,725				1,193,514
Total Liabilities and Shareholders' Equity			$	2,475,832			$	2,244,137

Sensient Technologies Corporation
(In thousands, except per share amounts)
(Unaudited)
Consolidated Statements of Cash Flows
Nine Months Ended September 30,
				2026				2025
Cash flows from operating activities:
	Net earnings		$	143,873			$	109,005
	Adjustments to arrive at net cash provided by operating activities:
	Depreciation and amortization			47,680				45,890
	Share-based compensation expense			13,762				10,584
	Net (gain) loss on assets			(39	)			166
	Portfolio Optimization Plan costs			-				2,107
	Deferred income taxes			17,090				3,899
	Changes in operating assets and liabilities:
	Trade accounts receivable			(71,188	)			(19,716	)
	Inventories			(117,230	)			(35,609	)
	Prepaid expenses and other assets			(10,299	)			(9,160	)
	Trade accounts payable and other accrued expenses			45,089				(10,973	)
	Accrued salaries, wages, and withholdings			5,962				(9,781	)
	Income taxes			(1,139	)			(5,076	)
	Other liabilities			1,759				1,927
Net cash provided by operating activities				75,320				83,263
Cash flows from investing activities:
	Acquisition of property, plant, and equipment			(105,775	)			(57,788	)
	Proceeds from sale of assets			2,032				397
	Acquisition of new business			-				(4,867	)
	Other investing activities			(536	)			1,260
Net cash used in investing activities				(104,279	)			(60,998	)
Cash flows from financing activities:
	Proceeds from additional borrowings			180,065				125,619
	Debt payments			(88,310	)			(84,662	)
	Dividends paid			(52,315	)			(52,196	)
	Other financing activities			(4,411	)			(2,648	)
Net cash provided by (used in) financing activities				35,029				(13,887	)
Effect of exchange rate changes on cash and cash equivalents				22				7,665
Net increase in cash and cash equivalents				6,092				16,043
Cash and cash equivalents at beginning of period				36,533				26,626
Cash and cash equivalents at end of period			$	42,625			$	42,669
Supplemental Information
Nine Months Ended September 30,				2026				2025
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, 2026 and 2025 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,
				2026				2025			% Change					2026				2025			% Change
Operating income (GAAP)			$	72,449			$	57,706				25.5	%		$	215,877			$	168,942				27.8	%
Portfolio Optimization Plan costs – Cost of products sold				-				649								-				4,252
Portfolio Optimization Plan costs – Selling and administrative expenses				-				2,674								-				5,274
Adjusted operating income			$	72,449			$	61,029				18.7	%		$	215,877			$	178,468				21.0	%
Net earnings (GAAP)			$	48,344			$	36,956				30.8	%		$	143,873			$	109,005				32.0	%
Portfolio Optimization Plan costs, before tax				-				3,323								-				9,526
Tax impact of Portfolio Optimization Plan costs(1)				-				649								-				(868	)
Adjusted net earnings			$	48,344			$	40,928				18.1	%		$	143,873			$	117,663				22.3	%
Diluted earnings per share (GAAP)			$	1.13			$	0.87				29.9	%		$	3.37			$	2.56				31.6	%
Portfolio Optimization Plan costs, net of tax				-				0.09								-				0.20
Adjusted diluted earnings per share			$	1.13			$	0.96				17.7	%		$	3.37			$	2.76				22.1	%
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				2026			Adjustments(2)					2026				2025			Adjustments(2)					2025
Flavors & Extracts			$	30,519			$	-			$	30,519			$	28,038			$	-			$	28,038
Color				46,054				-				46,054				37,734				-				37,734
Asia Pacific				12,364				-				12,364				9,541				-				9,541
Corporate & Other				(16,488	)			-				(16,488	)			(17,607	)			3,323				(14,284	)
Consolidated			$	72,449			$	-			$	72,449			$	57,706			$	3,323			$	61,029
Results by Segment			Nine Months Ended September 30,
											Adjusted												Adjusted
Operating Income				2026			Adjustments(2)					2026				2025			Adjustments(2)					2025
Flavors & Extracts			$	87,700			$	-			$	87,700			$	81,533			$	-			$	81,533
Color				142,633				-				142,633				111,508				-				111,508
Asia Pacific				34,504				-				34,504				27,926				-				27,926
Corporate & Other				(48,960	)			-				(48,960	)			(52,025	)			9,526				(42,499	)
Consolidated			$	215,877			$	-			$	215,877			$	168,942			$	9,526			$	178,468
(2) Adjustments consist of Portfolio Optimization Plan costs.

Sensient Technologies Corporation
(In thousands, except percentages and per share amounts)
(Unaudited)
Reconciliation of Non-GAAP Amounts - Continued
The following table summarizes the percentage change in the 2026 results compared to the 2025 results for the corresponding periods.
			Three Months Ended September 30, 2026
Revenue			Total			Foreign Exchange Rates			Adjustments(3)			Local Currency Adjusted
Flavors & Extracts			3.5	%		0.3	%		N/A			3.2	%
Color			18.1	%		1.1	%		N/A			17.0	%
Asia Pacific			12.4	%		(2.4	%)		N/A			14.8	%
Total Revenue			10.6	%		0.4	%		N/A			10.2	%
Operating Income
Flavors & Extracts			8.8	%		0.0	%		0.0	%		8.8	%
Color			22.0	%		0.9	%		0.0	%		21.1	%
Asia Pacific			29.6	%		(2.8	%)		0.0	%		32.4	%
Corporate & Other			(6.4	%)		0.0	%		(21.8	%)		15.4	%
Total Operating Income			25.5	%		0.1	%		6.8	%		18.6	%
Diluted Earnings Per Share			29.9	%		0.0	%		12.2	%		17.7	%
Adjusted EBITDA			15.6	%		0.2	%		N/A			15.4	%
			Nine Months Ended September 30, 2026
Revenue			Total			Foreign Exchange Rates			Adjustments(3)			Local Currency Adjusted
Flavors & Extracts			4.2	%		1.3	%		N/A			2.9	%
Color			18.9	%		3.2	%		N/A			15.7	%
Asia Pacific			10.6	%		0.0	%		N/A			10.6	%
Total Revenue			11.1	%		2.0	%		N/A			9.1	%
Operating Income
Flavors & Extracts			7.6	%		0.9	%		0.0	%		6.7	%
Color			27.9	%		3.8	%		0.0	%		24.1	%
Asia Pacific			23.6	%		0.0	%		0.0	%		23.6	%
Corporate & Other			(5.9	%)		0.0	%		(21.1	%)		15.2	%
Total Operating Income			27.8	%		2.9	%		6.7	%		18.2	%
Diluted Earnings Per Share			31.6	%		3.1	%		9.3	%		19.2	%
Adjusted EBITDA			18.0	%		2.3	%		N/A			15.7	%
(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 months and nine months ended September 30, 2026 and 2025.
			Three Months Ended September 30,											Nine Months Ended September 30,
				2026				2025			% Change				2026			2025		% Change
Operating income (GAAP)			$	72,449			$	57,706			25.5	%		$	215,877		$	168,942		27.8	%
Depreciation and amortization				16,252				15,556							47,680			45,890
Share-based compensation expense				4,382				3,945							13,762			10,584
Portfolio Optimization Plan costs, before tax				-				3,323							-			9,526
Adjusted EBITDA			$	93,083			$	80,530			15.6	%		$	277,319		$	234,942		18.0	%
The following table summarizes the reconciliation between Debt (GAAP) and Net Debt, and Operating Income (GAAP) and Credit Adjusted EBITDA for the trailing twelve months ended September 30, 2026 and 2025.
			September 30,
Debt				2026				2025
Short-term borrowings			$	257			$	777
Long-term debt				790,148				711,177
Credit Agreement adjustments(4)				(24,933	)			(27,992	)
Net Debt			$	765,472			$	683,962
Operating income (GAAP)			$	254,063			$	210,938
Depreciation and amortization				62,888				61,034
Share-based compensation expense				17,124				13,688
Portfolio Optimization Plan costs, before tax				6,280				10,382
Other non-operating gains(5)				(1,071	)			(495	)
Credit Adjusted EBITDA			$	339,284			$	295,547
Net Debt to Credit Adjusted EBITDA			2.3x				2.3x
(4) Adjustments include cash and cash equivalents, as described in the Company's Fourth Amended and Restated Credit Agreement (Credit Agreement), and certain letters of credit and hedge contracts.
(5) Adjustments consist of certain financing transaction costs, certain non-financing interest items, and gains and losses related to certain non-cash, non-operating, and/or non-recurring items as described in the Credit Agreement.
We have included each of these non-GAAP measures in order to provide additional information regarding our underlying operating results and comparable period-over-period performance. Such information is supplemental to information presented in accordance with GAAP and is not intended to represent a presentation in accordance with GAAP. These non-GAAP measures should not be considered in isolation. Rather, they should be considered together with GAAP measures and the rest of the information included in this release and our SEC filings. Management internally reviews each of these non-GAAP measures to evaluate performance on a comparative period-to-period basis and to gain additional insight into underlying operating and performance trends, and we believe the information can be beneficial to investors for the same purposes. These non-GAAP measures may not be comparable to similarly titled measures used by other companies.

Category: Earnings

Source: Sensient Technologies Corporation

View source version on businesswire.com: https://www.businesswire.com/news/home/20261029016095/en/

David Plautz
(414) 347-3706
investor.relations@sensient.com

Source: Sensient Technologies Corporation

Key Terms

adjusted ebitda financial

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

gaap financial

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

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non-gaap financial measures financial

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.