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Sensient Technologies (SXT) lifts Q1 2026 sales, margins and EPS after optimization

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
10-Q

Rhea-AI Filing Summary

Sensient Technologies reported stronger quarterly results, with revenue up to $435.8 million from $392.3 million a year earlier, driven by higher volumes, favorable foreign exchange and pricing. Gross margin improved to 35.0% from 33.6%, reflecting better pricing and volumes, partly offset by higher raw material costs.

Operating income rose to $66.7 million with a margin of 15.3%, compared with $53.5 million and 13.6%, while net earnings increased to $44.2 million and diluted EPS to $1.04 from $0.81. Adjusted metrics benefited from the absence of prior-year Portfolio Optimization Plan costs, and adjusted EBITDA grew to $86.0 million. The company completed its portfolio plan, expects about $8 million in annual cost savings beginning in 2026, and ended the quarter with $38.5 million in cash and $767.8 million of long‑term debt, including new €65 million senior notes used to repay revolver borrowings.

Positive

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Negative

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Insights

Sensient posted double-digit revenue and EPS growth, with cleaner margins after finishing its portfolio optimization plan.

Revenue grew 11.1% to $435.8 million, helped by higher volumes, pricing, and a 3.9% foreign-exchange tailwind. All segments contributed, with Color and Asia Pacific showing especially strong local-currency growth.

Operating income increased to $66.7 million, with margin expanding to 15.3%. The absence of $2.9 million in prior-year Portfolio Optimization Plan charges, plus a $0.4 million gain on the Felinfach property sale, supported cleaner profitability, partially offset by higher performance-based compensation.

Adjusted net earnings rose to $44.2 million, and adjusted diluted EPS reached $1.04, up about 20.9% versus the prior-year adjusted figure. The company completed a roughly $50 million optimization program that is expected to reduce annual operating costs by about $8 million starting in 2026, while debt increased modestly with new €65 million notes refinancing revolver borrowings.

Revenue $435.8M Three months ended March 31, 2026; up from $392.3M
Net earnings $44.2M Three months ended March 31, 2026; up from $34.5M
Diluted EPS $1.04 Three months ended March 31, 2026; prior-year $0.81
Gross margin 35.0% Q1 2026 vs 33.6% in Q1 2025
Operating income $66.7M Q1 2026; operating margin 15.3% vs 13.6% prior year
Adjusted EBITDA $86.0M Q1 2026; up from $74.4M in Q1 2025
New euro notes €65M at 4.00% Senior notes issued March 27, 2026, maturing March 2030
Expected annual cost savings $8M From completed Portfolio Optimization Plan, expected from 2026
Portfolio Optimization Plan financial
"the Board of Directors of the Company approved a plan to undertake an effort to optimize certain production facilities"
Adjusted EBITDA financial
"Adjusted EBITDA, which excludes restructuring and other costs, including the Portfolio Optimization Plan costs"
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.
cash flow hedges financial
"Certain forward exchange contracts have been designated as cash flow hedges"
A cash flow hedge is an accounting label companies use when they enter financial contracts—like currency or interest-rate agreements—to protect expected future cash payments or receipts from unpredictable moves. For investors, it signals that the company is trying to smooth out future cash variability (think of locking in a price to avoid surprises), which can reduce reported profit swings but also means the company has exposure to derivative instruments and their associated risks.
net investment hedges financial
"designated certain foreign currency denominated long-term borrowings as partial hedges of the Company’s foreign currency net asset positions"
A net investment hedge is a financial step a company takes to protect the reported value of its ownership in foreign subsidiaries from swings in exchange rates. By using derivatives or foreign‑currency borrowings to offset translation gains or losses, the company reduces how much its balance sheet and reported equity jump around when currencies move — like locking a price tag on a foreign store so its value in the home currency stays steadier for investors.
Accumulated Other Comprehensive Loss financial
"recorded as foreign currency translation in Accumulated Other Comprehensive Loss (OCL)"
Accumulated other comprehensive loss is the running negative total of certain gains and losses that companies record outside their regular profit-and-loss statement, such as changes in the value of some investments, pension adjustments, or currency translation effects. It matters to investors because it reduces shareholders’ equity and reveals economic swings that haven’t affected reported net income yet — like a side ledger showing pending ups and downs that could influence future cash flow or balance-sheet strength.
segment operating income financial
"evaluates performance based on operating income before share-based compensation ... and income taxes (segment operating income)"
Segment operating income is the profit a company earns from one specific part of its business after subtracting the costs of running that part but before interest, taxes and corporate-level items. For investors, it shows which divisions are actually generating operating profit and lets you compare the health and efficiency of different business “slices,” much like checking the cash a single store in a chain makes before company-wide overhead is applied.
10-Q Quarterly Reports: What Changes Quarter to Quarter →
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 10-Q
(Mark One)
☒
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended:
March 31, 2026
  

OR

☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from
to
  
Commission file number: 001-07626

Sensient Technologies Corporation
(Exact name of registrant as specified in its charter)

Wisconsin
  
39-0561070
(State or other jurisdiction of incorporation or organization)
  
(I.R.S. Employer Identification Number)

777 EAST WISCONSIN AVENUE, MILWAUKEE, WISCONSIN 53202-5304
(Address of principal executive offices)

Registrant’s telephone number, including area code:
(414) 271-6755
Securities registered pursuant to Section 12(b) of the Act:

Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common stock, par value $0.10 per share
SXT
New York Stock Exchange LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for at least the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer   ☒
Accelerated Filer ☐
Non-Accelerated Filer ☐
Smaller Reporting Company ☐
Emerging Growth Company ☐
  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes ☐    No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class
  
Outstanding at April 22, 2026
Common Stock, par value $0.10 per share
  
42,568,960

SENSIENT TECHNOLOGIES CORPORATION
INDEX

     
Page No.
       
PART I. FINANCIAL INFORMATION:
  
       
 
Item 1.
Financial Statements:
  
   

 
   
Consolidated Statements of Earnings ‑ Three Months Ended March 31, 2026 and 2025.
1
       
   
Consolidated Condensed Statements of Comprehensive Income ‑ Three Months Ended March 31, 2026 and 2025.
2
   

 
   
Consolidated Balance Sheets - March 31, 2026 and December 31, 2025.
3
       
   
Consolidated Statements of Cash Flows ‑ Three Months Ended March 31, 2026 and 2025.
 4
   


   
Consolidated Statements of Shareholders’ Equity ‑ Three Months Ended March 31, 2026 and 2025.
5
       
   
Notes to Consolidated Condensed Financial Statements.
6
       
 
Item 2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations.
 12
   


 
Item 3.
Quantitative and Qualitative Disclosures About Market Risk.
 17
       
 
Item 4.
Controls and Procedures.
 17
       
PART II. OTHER INFORMATION:
  
       
 
Item 1.
Legal Proceedings.
 17
       
 
Item 1A.
Risk Factors.
 17
       
 
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds.
 17
       
 
Item 5.
Other Information
 17
       
 
Item 6.
Exhibits.
 17
       
   
Exhibit Index.
 18
       
   
Signatures.
 19

Index
PART I.
FINANCIAL INFORMATION
ITEM 1.
FINANCIAL STATEMENTS

SENSIENT TECHNOLOGIES CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands except per share amounts)
(Unaudited)

 
Three Months
Ended March 31,
  
   
2026
     2025
  
             
Revenue
  
$
435,834
    
$
392,325
  
Cost of products sold
    
283,146
      
260,548
  
Selling and administrative expenses
    
85,960
      
78,247
  
Operating income
    
66,728
      
53,530
  
Interest expense
    
7,902
      
7,341
  
Earnings before income taxes
    
58,826
      
46,189
  
Income taxes
    
14,656
      
11,727
  
Net earnings
  
$
44,170
    
$
34,462
  
                 
Weighted average number of common shares outstanding:
                
Basic
    
42,294
      
42,197
  
Diluted
    
42,671
      
42,469
  
                 
Earnings per common share:
                
Basic
  
$
1.04
    
$
0.82
  
Diluted
  
$
1.04
    
$
0.81
  
                 
Dividends declared per common share
  
$
0.41
    
$
0.41
  

See accompanying notes to consolidated condensed financial statements.

1
Index
SENSIENT TECHNOLOGIES CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands)
(Unaudited)

 
Three Months
Ended March 31,
  
   
2026
     2025
  
             
Comprehensive income
  
$
40,843
    
$
49,427
  

See accompanying notes to consolidated condensed financial statements.

2
Index
SENSIENT TECHNOLOGIES CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)

Assets  
March 31,
2026
(Unaudited)
    
December 31,
2025
 
Current Assets:
            
Cash and cash equivalents
  
$
38,542
    
$
36,533
  
Trade accounts receivable
    
342,295
      
305,380
  
Inventories
    
681,730
      
678,220
  
Prepaid expenses and other current assets
    
58,971
      
59,717
  
Fixed assets held for sale
     -       1,598  
                 
Total current assets
    
1,121,538
      
1,081,448
  
                 
Other assets
    
102,583
      
102,362
  
Deferred tax assets
    
66,630
      
71,204
  
Intangible assets, net
    
9,893
      
10,121
  
Goodwill
    
436,389
      
439,706
  
Property, Plant, and Equipment:
                
Land
    
34,683
      
34,898
  
Buildings
    
366,934
      
366,797
  
Machinery and equipment
    
850,598
      
858,762
  
Construction in progress
    
90,451
      
78,492
  
     
1,342,666
      
1,338,949
  
Less accumulated depreciation
    
(792,111
)
    
(799,653
)
     
550,555
      
539,296
  
                 
Total assets
  
$
2,287,588
    
$
2,244,137
  
                 
Liabilities and Shareholders’ Equity
                
                 
Current Liabilities:
                
Trade accounts payable
  
$
114,222
    
$
138,344
  
Accrued salaries, wages, and withholdings from employees
    
28,626
      
43,988
  
Other accrued expenses
    
63,163
      
65,652
  
Income taxes
    
17,470
      
15,247
  
Short-term borrowings
    
232
      
352
  
                 
Total current liabilities
    
223,713
      
263,583
  
                 
Deferred tax liabilities
    
13,540
      
13,651
  
Other liabilities
    
39,733
      
40,112
  
Accrued employee and retiree benefits
    
24,163
      
24,045
  
Long-term debt
    
767,558
      
709,232
  
Shareholders’ Equity:
                
Common stock
    
5,396
      
5,396
  
Additional paid-in capital
    
121,971
      
123,668
  
Earnings reinvested in the business
    
1,873,758
      
1,847,014
  
Treasury stock, at cost
    
(608,664
)
    
(612,311
)
Accumulated other comprehensive loss
    
(173,580
)
    
(170,253
)
                 
Total shareholders’ equity
    
1,218,881
      
1,193,514
  
                 
Total liabilities and shareholders’ equity
  
$
2,287,588
    
$
2,244,137
  

See accompanying notes to consolidated condensed financial statements.

3
Index
SENSIENT TECHNOLOGIES CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

 
Three Months
Ended March 31,
  
   
2026
     2025
  
             
Cash flows from operating activities:
            
Net earnings
  
$
44,170
    
$
34,462
  
Adjustments to arrive at net cash provided by operating activities:
                
Depreciation and amortization
    
15,538
      
15,074
  
Share-based compensation expense
    
3,776
      
2,900
  
Net (gain) loss on assets
    
(305
)
    
46
  
Portfolio Optimization Plan costs
     -       831  
Deferred income taxes
    
1,897
      
1,282
  
Changes in operating assets and liabilities:
                
Trade accounts receivable
    
(37,718
)
    
(20,780
)
Inventories
    
(5,360
)
    
7,202
  
Prepaid expenses and other assets
    
(270
)
    
(8,064
)
Accounts payable and other accrued expenses
    
(22,837
)
    
(25,859
)
Accrued salaries, wages, and withholdings from employees
    
(15,273
)
    
(21,665
)
Income taxes
    
2,562
      
4,989
  
Other liabilities
    
203
      
604
  
                 
Net cash used in operating activities
    
(13,617
)
    
(8,978
)
                 
Cash flows from investing activities:
                
Acquisition of property, plant, and equipment
    
(28,737
)
    
(16,854
)
Proceeds from sale of assets
    
2,016
      
7
  
Acquisition of new business
     -       (4,349 )
Other investing activities
    
(200
)
    
(88
)
                 
Net cash used in investing activities
    
(26,921
)
    
(21,284
)
                 
Cash flows from financing activities:
                
Proceeds from additional borrowings
    
140,139
      
66,449
  
Debt payments
    
(76,867
)
    
(10,771
)
Dividends paid
    
(17,426
)
    
(17,376
)
Other financing activities
    
(3,447
)
    
(2,341
)
                 
Net cash provided by financing activities
    
42,399
      
35,961
  
                 
Effect of exchange rate changes on cash and cash equivalents
    
148
      
249
  
                 
Net increase in cash and cash equivalents
    
2,009
      
5,948
  
Cash and cash equivalents at beginning of period
    
36,533
      
26,626
  
                 
Cash and cash equivalents at end of period
  
$
38,542
    
$
32,574
  

See accompanying notes to consolidated condensed financial statements.

4
Index
SENSIENT TECHNOLOGIES CORPORATION
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
(In thousands, except share and per share amounts)
(Unaudited)
Three Months Ended March 31, 2026
   
Common
Stock
      
Additional
Paid-In
Capital
      
Earnings
Reinvested
in the
Business
      
Treasury Stock
      
Accumulated
Other
Comprehensive
(Loss) Income
      
Total
Equity
   
Shares    
Amount
Balances at December 31, 2025
  
$
5,396
    
$
123,668
    
$
1,847,014
      
11,685,819
    
$
(612,311
)
  
$
(170,253
)
  
$
1,193,514
  
Net earnings
    
-
      
-
      
44,170
      
-
      
-
      
-
      
44,170
  
Other comprehensive loss
   
-
      
-
      
-
      
-
      
-
      
(3,327
)
    
(3,327
)
Cash dividends paid – $0.41 per share
    
-
      
-
      
(17,426
)
    
-
      
-
      
-
      
(17,426
)
Share-based compensation
    
-
      
3,776
      
-
      
-
      
-
      
-
      
3,776
  
Non-vested stock issued upon vesting     -       (4,586 )     -       (87,531 )     4,586       -       -  
Benefit plans
     -       729       -       (17,031 )     892       -       1,621  
Other
     -       (1,616 )     -       34,967       (1,831 )     -       (3,447 )
Balances at March 31, 2026
  
$
5,396
    
$
121,971
    
$
1,873,758
      
11,616,224
    
$
(608,664
)
  
$
(173,580
)
  
$
1,218,881
  

Three Months Ended March 31, 2025
                                          
Balances at December 31, 2024
   $ 5,396     $ 117,500     $ 1,782,139       11,779,321     $ (617,210 )   $ (226,839 )   $ 1,060,986  
Net earnings
     -       -       34,462       -       -       -       34,462  
Other comprehensive income
    -       -       -       -       -       14,965       14,965  
Cash dividends paid – $0.41 per share
     -       -       (17,376 )     -       -       -       (17,376 )
Share-based compensation
     -       2,900       -       -       -       -       2,900  
Non-vested stock issued upon vesting
     -       (3,973 )     -       (75,829 )     3,973       -       -  
Benefit plans
     -       394       -       (19,899 )     1,043       -       1,437  
Other
     -       (704 )     -       31,216       (1,636 )     -       (2,340 )
Balances at March 31, 2025
   $ 5,396     $ 116,117     $ 1,799,225       11,714,809     $ (613,830 )   $ (211,874 )   $ 1,095,034  

See accompanying notes to consolidated condensed financial statements.

5
Index
SENSIENT TECHNOLOGIES CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Unaudited)
1.
Accounting Policies

In the opinion of Sensient Technologies Corporation (the Company), the accompanying unaudited consolidated condensed financial statements contain all adjustments (consisting of only normal recurring adjustments) that are necessary to present fairly the financial position of the Company as of March 31, 2026, and the results of operations, comprehensive income, cash flows, and shareholders’ equity for the three months ended March 31, 2026 and 2025. The results of operations for any interim period are not necessarily indicative of the results to be expected for the full year.

The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Expenses are charged to operations in the period incurred.

Recently Adopted Accounting Pronouncements
In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires the Company to disclose specified additional information in its income tax rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. This ASU also requires the Company to disaggregate its income taxes paid disclosure by federal, state, and foreign taxes, with further disaggregation required for significant individual jurisdictions. This ASU is effective for fiscal years beginning after December 15, 2024. The Company adopted this ASU in the fourth quarter of 2025 using a prospective transition method. The Company updated its annual disclosures as a result of adopting this ASU, and the adoption did not have a material impact on the Company’s consolidated financial statements.

Recently Issued Accounting Pronouncements
In November 2024, the FASB issued ASU No. 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40) – Disaggregation of Income Statement Expenses, which will require the Company to disclose disaggregated information about certain income statement expense line items. This ASU is effective for fiscal years beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027. The Company is currently evaluating the potential impact of this standard on its consolidated financial statements and its related disclosures.

Please refer to the notes in the Company’s annual consolidated financial statements for the year ended December 31, 2025, for additional details of the Company’s financial condition and a description of the Company’s accounting policies, which have been continued without change.

2.
Acquisition

On February 14, 2025, the Company acquired Biolie SAS, a natural color extraction business located in France. The Company paid $4.9 million in cash for this acquisition, which is net of $0.2 million in debt assumed. The assets acquired and liabilities assumed were recorded at their estimated fair value as of the acquisition date. The Company acquired net assets of $0.3 million, with the remaining $4.6 million allocated to goodwill. This business is part of the Color segment.

3.
Portfolio Optimization Plan

During the fourth quarter of 2023, the Board of Directors of the Company approved a plan to undertake an effort to optimize certain production facilities and improve efficiencies within the Company (Portfolio Optimization Plan). As part of the Portfolio Optimization Plan, in the Flavors & Extracts segment, the Company evaluated the closure of its manufacturing facility in Felinfach, Wales, United Kingdom, the closure of its sales office in Granada, Spain, and the centralization and elimination of certain selling and administrative positions. In addition, in the Color segment, the Company evaluated the closure of a manufacturing facility in Delta, British Columbia, Canada, the closure of a sales office in Argentina, and centralizing and eliminating certain production positions and selling and administrative positions. The Company reports all costs associated with the Portfolio Optimization Plan in the Corporate & Other segment.

The Company’s Felinfach site was shut down in May 2025, and all production activities have been transferred to other locations. The Company began marketing the Felinfach site for sale in June 2025. As a result, the Company met all of the assets held for sale criteria for the Felinfach land and building assets in June 2025. The Company sold the land and building assets in February 2026 for approximately $2.0 million, resulting in a $0.4 million gain recognized in Selling and Administrative Expenses on the Company’s Consolidated Statements of Earnings. There were no costs associated with the Portfolio Optimization Plan recognized during the three months ended March 31, 2026. The Company has completed all actions contemplated under the Portfolio Optimization Plan.

The total cost of the Portfolio Optimization Plan was approximately $50 million, primarily related to non-cash impairment charges and employee separation costs. We anticipate that the Portfolio Optimization Plan will reduce annual operating costs by approximately $8 million, with the full benefit expected to be achieved beginning in 2026.  The Company reduced headcount by approximately 100 positions, primarily in the Flavors & Extracts and Color segments, related to certain production and selling and administrative positions.

The following table summarizes the Portfolio Optimization Plan expenses by segment for the three months ended March 31, 2025:

 
(In thousands)
  
Flavors &
Extracts
    

Color
    
Consolidated
  
Non-cash charges – Cost of products sold
   $ 855     $
-     $ 855  
Employee separation – Selling and administrative expenses
    
246
    

8
      
254
  
Other production costs – Cost of products sold
     959       -       959  
Other costs – Selling and administrative expenses(1)
    
791
      
5
      
796
  
Total
  
$
2,851
    
$
13
    
$
2,864
  


(1)
Other costs include professional services and other related costs.

4.
Trade Accounts Receivable

Trade accounts receivables are recorded at their face amount, less an allowance for expected losses on doubtful accounts. The allowance for doubtful accounts is calculated based on customer-specific analysis and an aging methodology using historical loss information. The Company believes historical loss information is a reasonable basis for expected credit losses as the Company’s historical credit loss experience correlates with its customer delinquency status. This information is also adjusted for any known current economic conditions. Forecasted economic conditions have not had a significant impact on the current credit loss estimate due to the short-term nature of the Company’s customer receivables; however, the Company will continue to monitor and evaluate the rapidly changing economic conditions. Additionally, as the Company only has one portfolio segment, there are not different risks between portfolios. Specific accounts are written off against the allowance for doubtful accounts when the receivable is deemed no longer collectible.

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Index
The following table summarizes the changes in the allowance for doubtful accounts during the three-month periods ended March 31, 2026 and 2025:

(In thousands)
Three Months Ended March 31, 2026
  
Allowance for
Doubtful Accounts
  
Balance at December 31, 2025
  
$
5,128
  
Provision for expected credit losses
    
478
  
Accounts written off
    
(281
)
Translation and other activity
    
(6
)
Balance at March 31, 2026
  
$
5,319
  

(In thousands)
Three Months Ended March 31, 2025
  
Allowance for
Doubtful Accounts
  
Balance at December 31, 2024
  
$
5,023
  
Provision for expected credit losses
    
354
  
Accounts written off
    
(291
)
Translation and other activity
    
119
  
Balance at March 31, 2025
  
$
5,205
  

5.
Inventories
 
At March 31, 2026, and December 31, 2025, inventories included finished and in-process products totaling $492.2 million and $491.4 million, respectively, and raw materials and supplies of $189.5 million and $186.8 million, respectively.

6.
Debt

On March 27, 2026, the Company issued €65 million of Euro-denominated senior notes under the Amended and Restated Consolidated Note Purchase and Master Note Agreement, maturing in March 2030 and bearing an interest rate of 4.00%. The proceeds were used to repay a portion of the Company’s existing revolving credit facility.
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Index
7.
Fair Value

Accounting Standards Codification 820, Fair Value Measurement, defines fair value for financial assets and liabilities, establishes a framework for measuring fair value in GAAP, and expands disclosures about fair value measurements. The carrying values of the Company’s cash and cash equivalents, trade accounts receivable, trade accounts payable, accrued expenses, and short-term borrowings were approximately the same as the fair values as of March 31, 2026 and December 31, 2025. The net fair value of the forward exchange contracts based on current pricing obtained for comparable derivative products (Level 2 inputs) was an asset of $1.1 million and $0.3 million as of March 31, 2026 and December 31, 2025, respectively. The fair value of the Company’s long-term debt, including current maturities, is estimated using discounted cash flows based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements (Level 2 inputs). The carrying value of the long-term debt at March 31, 2026 and December 31, 2025, was $767.8 million and $709.5 million, respectively. The fair value of the long-term debt at March 31, 2026 and December 31, 2025, was $776.6 million and $720.9 million, respectively.

8.
Segment Information

The Company evaluates performance based on operating income before share-based compensation (except for share-based compensation expense associated with stock grants to certain business unit leaders); restructuring and other charges, including Portfolio Optimization Plan costs; interest expense; and income taxes (segment operating income). Total revenue and segment operating income by business segment and geographic region include both sales to customers, as reported in the Company’s Consolidated Statements of Earnings, and intersegment sales, which are accounted for at prices that approximate market prices and are eliminated in consolidation.

Assets by business segment and geographic region are those assets used in the Company’s operations in each segment and geographic region. Segment assets reflect the allocation of goodwill to each segment. Corporate & Other assets consist primarily of accounts receivables from the securitization program, investments, deferred tax assets, and fixed assets.

The Company determines its operating segments based on information utilized by its chief operating decision maker (CODM) to allocate resources and assess performance. The Company’s CODM is the President and Chief Executive Officer. The CODM uses segment operating income or loss to allocate resources, which includes employees, financial, or capital resources, predominantly in the annual budget and forecasting process. The CODM considers budget-to-actual and year-over-year variances on a monthly basis for segment operating income or loss when allocating capital and personnel resources to the segments. Segment performance is evaluated based on operating income of the respective business units before share-based compensation (except for share-based compensation expense associated with stock grants to certain business unit leaders), restructuring and other charges, including the Portfolio Optimization Plan costs, and other costs (which are reported in Corporate & Other), interest expense, and income taxes.

The Company’s three reportable segments are the Flavors & Extracts and Color segments, which are both managed on a product line basis, and the Asia Pacific segment, which is managed on a geographic basis. The Company’s Flavors & Extracts segment produces flavor, extracts, and essential oils products that impart a desired taste, texture, aroma, or other characteristics to a broad range of consumer and other products. The Color segment produces natural and synthetic color systems for foods, beverages, pharmaceuticals, and nutraceuticals; colors, ingredients, and systems for personal care; and technical colors for industrial applications. The Asia Pacific segment is managed on a geographic basis and produces and distributes color, flavor, and essential oils products for the Asia Pacific countries. The Company’s corporate expenses, share-based compensation (except for share-based compensation expense associated with stock grants to certain business unit leaders), restructuring and other charges, including Portfolio Optimization Plan costs as further described in Note 3, Portfolio Optimization Plan, and certain other costs are included in the “Corporate & Other” category.
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Index
Operating results by segment for the periods presented are as follows:

 
(In thousands)
  
Flavors &
Extracts
    
Color
    
Asia Pacific
    
Corporate
& Other
    
Consolidated
  
Three months ended March 31, 2026:
                              
Total segment revenue
  
$
201,825
    
$
198,176
    
$
45,255
    
$
-
    
$
445,256
  
Intersegment revenue
    
(5,719
)
    
(3,654
)
    
(49
)
    
-
      
(9,422
)
Consolidated revenue from external customers
    
196,106
      
194,522
      
45,206
      
-
      
435,834
  
Cost of products sold
    
141,935
      
115,903
      
25,308
      
-
      
283,146
  
Selling and administrative expense
    
27,421
      
36,554
      
8,718
      
13,267
      
85,960
  
Operating income (loss)
    
26,750
      
42,065
      
11,180
      
(13,267
)
    
66,728
  
Interest expense
                                    
7,902
  
Earnings before income taxes
                                  
$
58,826
  
 
                                        
Assets
    
904,103
      
916,596
      
124,640
      
342,249
      
2,287,588
  
Capital expenditures
    
10,452
      
16,764
      
309
      
1,212
      
28,737
  
Depreciation and amortization
    
7,760
      
6,157
      
585
      
1,036
      
15,538
  
 
                                        
Three months ended March 31, 2025:
                                        
Total segment revenue
  
$
193,681
    
$
167,750
    
$
41,901
    
$
-
    
$
403,332
  
Intersegment revenue
    
(5,883
)
    
(5,114
)
    
(10
)
    
-
      
(11,007
)
Consolidated revenue from external customers
    
187,798
      
162,636
      
41,891
      
-
      
392,325
  
Cost of products sold
    
137,934
      
96,437
      
24,363
      
1,814
      
260,548
  
Selling and administrative expense
    
24,875
      
31,347
      
8,086
      
13,939
      
78,247
  
Operating income (loss)
    
24,989
      
34,852
      
9,442
      
(15,753
)
    
53,530
  
Interest expense
                                    
7,341
  
Earnings before income taxes
                                  
$
46,189
  
 
                                        
Assets
    
811,518
      
852,073
      
125,110
      
303,967
      
2,092,668
  
Capital expenditures
    
12,535
      
3,522
      
175
      
622
      
16,854
  
Depreciation and amortization
    
7,640
      
5,936
      
548
      
950
      
15,074
  

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Index
Product Lines

(In thousands)
  
Flavors &
Extracts
    
Color
    
Asia Pacific
    
Consolidated
  
Three months ended March 31, 2026:
                        
Flavors, Extracts & Flavor Ingredients
  
$
138,564
    
$
-
    
$
-
    
$
138,564
  
Agricultural Ingredients
    63,261       -       -       63,261  
Food & Pharmaceutical Colors
    
-
      
151,280
      
-
      
151,280
  
Personal Care
    
-
      
46,896
      
-
      
46,896
  
Asia Pacific
    
-
      
-
      
45,255
      
45,255
  
Intersegment Revenue
    
(5,719
)
    
(3,654
)
    
(49
)
    
(9,422
)
Total revenue from external customers
  
$
196,106
    
$
194,522
    
$
45,206
    
$
435,834
  
 
                                
Three months ended March 31, 2025:
                                
Flavors, Extracts & Flavor Ingredients
  
$
130,181
    
$
-
    
$
-
    
$
130,181
  
Agricultural Ingredients     63,500       -       -       63,500  
Food & Pharmaceutical Colors
    
-
      
124,600
      
-
      
124,600
  
Personal Care
    
-
      
43,150
      
-
      
43,150
  
Asia Pacific
    
-
      
-
      
41,901
      
41,901
  
Intersegment Revenue
    
(5,883
)
     (5,114 )    
(10
)
    
(11,007
)
Total revenue from external customers
  
$
187,798
    
$
162,636
    
$
41,891
    
$
392,325
  

Geographic Markets

(In thousands)
  
Flavors &
Extracts
    
Color
    
Asia Pacific
    
Consolidated
  
Three months ended March 31, 2026:
                        
North America
  
$
158,943
    
$
97,768
    
$
41
    
$
256,752
  
Europe
    
29,400
      
57,018
      
7
      
86,425
  
Asia Pacific
    
2,819
      
20,951
      
43,178
      
66,948
  
Other
    
4,944
      
18,785
      
1,980
      
25,709
  
Total revenue from external customers
  
$
196,106
    
$
194,522
    
$
45,206
    
$
435,834
  
 
                                
Three months ended March 31, 2025:
                                
North America
  
$
149,627
    
$
78,669
    
$
1
    
$
228,297
  
Europe
    
28,157
      
47,723
      
22
      
75,902
  
Asia Pacific
    
4,522
      
16,626
      
40,764
      
61,912
  
Other
    
5,492
      
19,618
      
1,104
      
26,214
  
Total revenue from external customers
  
$
187,798
    
$
162,636
    
$
41,891
    
$
392,325
  

9.
Retirement Plans

The Company’s components of annual benefit cost for the defined benefit plans for the periods presented are as follows:


 
Three Months Ended
March 31,
  
(In thousands)
  
2026
     2025
  
Service cost
  
$
313
    
$
369
  
Interest cost
     444       444  
Expected return on plan assets
    
(278
)
    
(265
)
Recognized actuarial gain
     (39 )     (72 )
Total defined benefit expense
  
$
440
    
$
476
  

The Company’s non-service cost portion of defined benefit expense is recorded in Interest Expense on the Company’s Consolidated Statements of Earnings. The Company’s service cost portion of defined benefit expense is recorded in Selling and Administrative Expenses on the Company’s Consolidated Statements of Earnings.

10.
Derivative Instruments and Hedging Activity

The Company may use forward exchange contracts and foreign currency denominated debt to manage its exposure to foreign exchange risk in order to reduce the effect of fluctuating foreign currencies on short-term foreign currency denominated intercompany transactions, non-functional currency raw material purchases, non-functional currency sales, and other known foreign currency exposures. These forward exchange contracts generally have maturities of less than 18 months. The Company’s primary hedging activities and their accounting treatment are summarized below.

Forward exchange contracts – Certain forward exchange contracts have been designated as cash flow hedges. The Company had $57.5 million and $49.9 million of forward exchange contracts designated as cash flow hedges outstanding as of March 31, 2026 and December 31, 2025, respectively, which are recorded in Other Accrued Expenses on the Company’s Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025, respectively. For the three months ended March 31, 2026 and 2025, the amounts reclassified into net earnings in the Company’s Consolidated Statements of Earnings that offset the underlying transactions’ impact on earnings in the same period were not material. In addition, the Company utilizes forward exchange contracts that are not designated as cash flow hedges. The results of these transactions were not material to the financial statements.

Net investment hedges – The Company has designated certain foreign currency denominated long-term borrowings as partial hedges of the Company’s foreign currency net asset positions. As of March 31, 2026 and December 31, 2025, the total value of the Company’s net investment hedges, which included Euro denominated long-term debt, was $304.4 million and $309.5 million, respectively. Changes in the fair value of this debt attributable to changes in the spot foreign exchange rate are recorded in foreign currency translation in Accumulated Other Comprehensive Loss (OCL). For the three months ended March 31, 2026 and 2025, the impact of foreign exchange rates on these debt instruments decreased debt by $5.1 million and increased debt by $12.8 million, respectively, which has been recorded as foreign currency translation in OCL.

11.
Income Taxes

The effective income tax rates for the three months ended March 31, 2026 and 2025 were 24.9% and 25.4%, respectively. The effective tax rates for the three months ended March 31, 2026 and 2025 were both impacted by changes in estimates associated with the finalization of prior year foreign tax items and the mix of foreign earnings.

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Index
12.
Accumulated Other Comprehensive Loss

The following table summarizes the changes in OCL during the three-month periods ended March 31, 2026 and 2025:

(In thousands)
  
Cash Flow
Hedges (1)
    
Pension
Items (1)
    
Foreign
Currency
Items
    
Total
  
Balances at December 31, 2025
  
$
30
    
$
(3,392
)
  
$
(166,891
)
  
$
(170,253
)
Other comprehensive income (loss) before reclassifications
    
1,047
      
-
      
(4,137
)
    
(3,090
)
Amounts reclassified from OCL    
(208
)
    
(29
)
    
-
      
(237
)
Balances at March 31, 2026
  
$
869
    
$
(3,421
)
  
$
(171,028
)
  
$
(173,580
)

(In thousands)
  
Cash Flow
Hedges (1)
    
Pension
Items (1)
    
Foreign
Currency
Items
    
Total
  
Balances at December 31, 2024
  
$
(310
)
  
$
(2,348
)
  
$
(224,181
)
  
$
(226,839
)
Other comprehensive income before reclassifications
    
1,008
      
-
      
14,200
      
15,208
  
Amounts reclassified from OCL    
(189
)
    
(54
)
    
-
      
(243
)
Balances at March 31, 2025
  
$
509
    
$
(2,402
)
  
$
(209,981
)
  
$
(211,874
)


(1)
Cash Flow Hedges and Pension Items are net of tax.

13.
Commitments and Contingencies


The Company is subject to various claims and litigation arising in the normal course of business. The Company establishes reserves for claims and proceedings when it is probable that liabilities exist and reasonable estimates of loss can be made. While it is not possible to predict the outcome of these matters, based on our assessment of the facts and circumstances now known, we do not believe that these matters, individually or in the aggregate, will have a material adverse effect on our financial position. However, actual outcomes may be different from those expected and could have a material effect on our results of operations or cash flows in a particular period.

14.
Subsequent Event

On April 23, 2026, the Company announced its quarterly dividend of $0.41 per share would be payable on June 1, 2026.
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Index
ITEM 2.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

FORWARD-LOOKING STATEMENTS

This report contains forward-looking statements that reflect management’s current assumptions and estimates of future economic circumstances, industry conditions, Company performance, and financial results. Forward-looking statements include statements in the future tense, statements referring to any period after March 31, 2026, and statements including the terms “expect,” “believe,” “anticipate,” and other similar terms that express expectations as to future events or conditions. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for such forward-looking statements. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, and other factors that could cause actual events to differ materially from those expressed in the forward-looking statements. A variety of factors could cause the Company’s actual results and experience to differ materially from the anticipated results. These factors and assumptions include, among others, 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 the matters discussed under Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. Except to the extent required by applicable law, 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 therein will not be realized.

OVERVIEW

Revenue
Revenue was $435.8 million and $392.3 million for the three months ended March 31, 2026 and 2025, respectively. The increase in revenue was primarily due to higher volumes, the favorable impact of foreign exchange rates that increased revenue by approximately 4%, and favorable pricing.

Gross Margin
The Company’s gross margin was 35.0% and 33.6% for the three months ended March 31, 2026 and 2025, respectively. For the three months ended March 31, 2025, Portfolio Optimization Plan costs totaling $1.8 million decreased gross margin by 50 basis points. See Portfolio Optimization Plan below for further information. The Company’s gross margin was further impacted by the favorable pricing and higher volumes, partially offset by higher raw material costs.

Selling and Administrative Expenses
Selling and administrative expense as a percent of revenue was 19.7% and 19.9% for the three months ended March 31, 2026 and 2025, respectively. For the three months ended March 31, 2026, selling and administrative expenses were decreased by $0.4 million, or approximately 10 basis points as a percent of revenue, from the gain on the sale of the Felinfach land and building assets. For the three months ended March 31, 2025, selling and administrative expenses were increased by Portfolio Optimization Plan costs totaling $1.1 million, which increased selling and administrative expenses as a percent of revenue by approximately 20 basis points. See Portfolio Optimization Plan below for further information.

Operating Income
Operating income was $66.7 million and $53.5 million for the three months ended March 31, 2026 and 2025, respectively. Operating margins were 15.3% and 13.6% for the three months ended March 31, 2026 and 2025, respectively. Portfolio Optimization Plan costs decreased operating margins by approximately 80 basis points for the three months ended March 31, 2025. The increase in operating margin was primarily due to favorable pricing and higher volumes, partially offset by higher raw material costs and higher performance-based executive compensation costs incurred in 2026.

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Index
Interest Expense
Interest expense was $7.9 million and $7.3 million for the three months ended March 31, 2026 and 2025, respectively. The increase in expense was primarily due to an increase in the average outstanding debt balance.

Income Taxes
The effective income tax rates for the three months ended March 31, 2026 and 2025 were 24.9% and 25.4%, respectively. The effective tax rates for the three months ended March 31, 2026 and 2025 were both impacted by changes in estimates associated with the finalization of prior year foreign tax items and the mix of foreign earnings.

Acquisition
On February 14, 2025, the Company acquired Biolie SAS, a natural color extraction business located in France. The Company paid $4.9 million in cash for this acquisition, which is net of $0.2 million in debt assumed. The assets acquired and liabilities assumed were recorded at their estimated fair value as of the acquisition date. The Company acquired net assets of $0.3 million, with the remaining $4.6 million allocated to goodwill. This business is part of the Color segment.

Portfolio Optimization Plan
During the fourth quarter of 2023, the Board of Directors of the Company approved a plan to undertake an effort to optimize certain production facilities and improve efficiencies within the Company (Portfolio Optimization Plan). As part of the Portfolio Optimization Plan, in the Flavors & Extracts segment, the Company evaluated the closure of its manufacturing facility in Felinfach, Wales, United Kingdom, the closure of its sales office in Granada, Spain, and the centralization and elimination of certain selling and administrative positions. In addition, in the Color segment, the Company evaluated the closure of a manufacturing facility in Delta, British Columbia, Canada, the closure of a sales office in Argentina, and centralizing and eliminating certain production positions and selling and administrative positions. The Company reports all costs associated with the Portfolio Optimization Plan in the Corporate & Other segment.

The Company’s Felinfach site was shut down in May 2025, and all production activities have been transferred to other locations. The Company began marketing the Felinfach site for sale in June 2025. As a result, the Company met all of the assets held for sale criteria for the Felinfach land and building assets in June 2025, which have been recorded as the only balance in Fixed assets held for sale on the Company’s Consolidated Balance Sheet at December 31, 2025. The Company sold the land and building assets in February 2026 for approximately $2.0 million, resulting in a $0.4 million gain recognized in Selling and Administrative Expenses on the Company’s Consolidated Statements of Earnings. The Company has completed all actions contemplated under the Portfolio Optimization Plan.

For the three months ended March 31, 2025, the Company incurred costs of $2.9 million related to the Portfolio Optimization Plan recorded in Corporate & Other, primarily for dual plant operating costs, non-cash inventory charges, professional services, and employee separation costs. The Company did not incur any costs related to the Portfolio Optimization Plan for the three months ended March 31, 2026.

NON-GAAP FINANCIAL MEASURES

Within the following tables, 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 share on an adjusted local currency basis, which eliminate the effects that result from translating its international operations into U.S. dollars and restructuring and other costs, including the Portfolio Optimization Plan costs, and (3) adjusted EBITDA, which excludes restructuring and other costs, including the Portfolio Optimization Plan costs, and non-cash share based compensation expense.

The Company has included each of these non-GAAP measures in order to provide additional information regarding our underlying operating results and comparable year-over-year 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 report. 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 the Company believes 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.

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Index
   
Three Months Ended March 31,
  
(In thousands except per share amounts)
  
2026
    
2025
    
% Change
  
Operating Income (GAAP)
  
$
66,728
    
$
53,530
      
24.7
%
Portfolio Optimization Plan costs – Cost of products sold
    
-
      
1,814
          
Portfolio Optimization Plan costs – Selling and administrative expenses
    
-
      
1,050
          
Adjusted operating income
  
$
66,728
    
$
56,394
      
18.3
%
                         
Net Earnings (GAAP)
  
$
44,170
    
$
34,462
      
28.2
%
Portfolio Optimization Plan costs, before tax
    
-
      
2,864
          
Tax impact of Portfolio Optimization Plan costs(1)
    
-
      
(702
)
        
Adjusted net earnings
  
$
44,170
    
$
36,624
      
20.6
%
                         
Diluted Earnings Per Share (GAAP)
  
$
1.04
    
$
0.81
      
28.4
%
Portfolio Optimization Plan costs, net of tax
    
-
      
0.05
          
Adjusted diluted earnings per share
  
$
1.04
    
$
0.86
      
20.9
%
                         
Operating Income (GAAP)
  
$
66,728
    
$
53,530
      
24.7
%
Depreciation and amortization
    
15,538
      
15,074
          
Share-based compensation expense
    
3,776
      
2,900
          
Portfolio Optimization Plan costs, before tax
    
-
      
2,864
          
Adjusted EBITDA
  
$
86,042
    
$
74,368
      
15.7
%

   
(1) Tax impact adjustments were determined based on the nature of the underlying non-GAAP adjustments and their relevant jurisdictional tax rates.
 
Portfolio Optimization Plan costs are discussed under “Portfolio Optimization Plan” above and Note 3, Portfolio Optimization Plan, in the Notes to the Consolidated Financial Statements included in this report.
 
Note: Earnings per share calculations may not foot due to rounding differences.
 
  
The following table summarizes the percentage change for the results of the three months ended March 31, 2026, compared to the results for the three months ended March 31, 2025, in the respective financial measures.

 
  
Three Months Ended March 31, 2026
  
   
Total
    
Foreign
Exchange
Rates
    
Adjustments(1)
    
Local
Currency
Adjusted
  
Revenue
                        
Flavors & Extracts
    
4.2
%
    
2.5
%
    
N/A
      
1.7
%
Color
    
18.1
%
    
5.8
%
    
N/A
      
12.3
%
Asia Pacific
    
8.0
%
    
3.3
%
    
N/A
      
4.7
%
Total Revenue
    
11.1
%
    
3.9
%
    
N/A
      
7.2
%
                                 
Operating Income
                                
Flavors & Extracts
    
7.0
%
    
1.9
%
    
0.0
%
    
5.1
%
Color
    
20.7
%
    
7.5
%
    
0.0
%
    
13.2
%
Asia Pacific
    
18.4
%
    
3.9
%
    
0.0
%
    
14.5
%
Corporate & Other
    
(15.8
%)
    
0.0
%
    
(18.7
%)
    
2.9
%
Total Operating Income
    
24.7
%
    
6.5
%
    
6.0
%
    
12.2
%
Diluted Earnings per Share
    
28.4
%
    
7.4
%
    
7.0
%
    
14.0
%
Adjusted EBITDA
    
15.7
%
    
5.3
%
    
N/A
      
10.4
%

 
(1)   
Adjustments consist of Portfolio Optimization Plan costs.

Note: Refer to table above for a reconciliation of these non-GAAP measures.
14
Index
SEGMENT INFORMATION

The Company determines its operating segments based on information utilized by its chief operating decision maker to allocate resources and assess performance. Segment performance is evaluated on operating income before share-based compensation (except for share-based compensation expense associated with stock grants to certain business unit leaders), restructuring and other costs, including the Portfolio Optimization Plan costs, and other costs (which are reported in Corporate & Other), interest expense, and income taxes.

The Company’s reportable segments consist of the Flavors & Extracts, Color, and Asia Pacific segments.

Flavors & Extracts
Flavors & Extracts segment revenue was $201.8 million and $193.7 million for the three months ended March 31, 2026 and 2025, respectively, an increase of approximately 4%. The increase was primarily a result of higher revenue in Flavors, Extracts & Flavor Ingredients due to foreign exchange rates that increased segment revenue by approximately 3%, favorable pricing, and higher volumes.

Flavors & Extracts segment operating income was $26.8 million and $25.0 million for the three months ended March 31, 2026 and 2025, respectively, an increase of approximately 7%. The higher segment operating income was primarily a result of higher operating income in Flavors, Extracts & Flavor Ingredients, primarily due to higher selling prices and volumes, partially offset by higher manufacturing and other costs. Foreign exchange rates increased segment operating income by approximately 2%. Segment operating income as a percent of revenue was 13.3% in the current quarter compared to 12.9% in the prior year’s comparable quarter.

Color
Color segment revenue was $198.2 million and $167.8 million for the three months ended March 31, 2026 and 2025, respectively, an increase of approximately 18%. The increase was a result of higher revenue in Food & Pharmaceutical Colors and Personal Care. The higher revenue in Food & Pharmaceutical Colors was due to higher volumes, including higher volumes associated with natural colors conversion activity, higher selling prices, and the favorable impact of foreign exchange rates. The higher revenue in Personal Care was primarily due to the favorable impact of foreign exchange rates and higher selling prices. Foreign exchange rates increased segment revenue by approximately 6%.

Color segment operating income was $42.1 million and $34.9 million for the three months ended March 31, 2026 and 2025, respectively, an increase of approximately 21%. The higher segment operating income was primarily a result of higher operating income in Food & Pharmaceutical Colors, primarily due to higher volumes and selling prices and the favorable impact of foreign exchange rates that increased segment operating income by approximately 8%, partially offset by higher raw material costs and manufacturing and other costs. Segment operating income as a percent of revenue was 21.2% and 20.8% for the three months ended March 31, 2026 and 2025, respectively.

Asia Pacific
Asia Pacific segment revenue was $45.3 million and $41.9 million for the three months ended March 31, 2026 and 2025, respectively, an increase of approximately 8%. The increase was due to higher selling prices and volumes and the favorable impact of foreign exchange rates that increased segment revenue by approximately 3%.

Asia Pacific segment operating income was $11.2 million and $9.4 million for the three months ended March 31, 2026 and 2025, respectively, an increase of approximately 18%. The increase was primarily due to higher selling prices and the favorable impact of foreign exchange rates, which increased segment operating income by approximately 4%. Segment operating income as a percent of revenue was 24.7% in the current quarter and 22.5% in the prior year’s comparable quarter.

Corporate & Other
The Corporate & Other operating expense was $13.3 million and $15.8 million for the three months ended March 31, 2026 and 2025, respectively. The lower operating expense was primarily due to Portfolio Optimization Plan costs totaling $2.9 million in the three months ended March 31, 2025. See the Portfolio Optimization Plan section above for further information.

15
Index
LIQUIDITY AND FINANCIAL CONDITION

Financial Condition
The Company’s financial position remains strong. The Company is in compliance with its loan covenants calculated in accordance with applicable agreements as of March 31, 2026. The Company expects to increase its existing indebtedness in the short-term to further support the increased cash requirements for operations and capital expenditures associated with the natural colors conversion activity. In the long-term, the Company anticipates that its cash flow from operations and debt capacity can be used to meet anticipated future cash requirements for operations, capital expenditures, and dividend payments, as well as potential acquisitions and stock repurchases. The Company’s contractual obligations consist primarily of operational commitments, which we expect to continue to be able to satisfy through cash generated from operations, and debt. The Company has various series of notes outstanding that mature from 2026 through 2030. The Company believes that it has the ability to refinance or repay these obligations through a combination of cash flow from operations, issuance of additional notes, and sufficient borrowing capacity under the Company’s revolving credit facility, which matures in 2030.

As a result of our ability to manage the impact of inflation through pricing and other actions, the impact of inflation was not material to the Company’s financial position and its results of operations for the three months ended March 31, 2026. The Company has experienced increased costs for certain inputs, such as raw materials, energy, shipping and logistics, packaging, and labor-related costs. We continue to expect to manage these impacts in the near term, but persistent, accelerated, or expanded inflationary conditions, including any heightened inflationary pressures resulting from the conflict between the United States and Iran, could exacerbate these challenges and impact our profitability.

The United States implemented significant tariffs on imports from a wide range of countries in 2025. On February 20, 2026, the Supreme Court of the United States ruled the tariffs imposed by the United States in reliance on the International Emergency Economic Powers Act during 2025 were unconstitutional. On the same day, the Trump administration temporarily imposed 10% tariffs on imports from all countries for 150 days. On February 21, 2026, the Trump administration announced the tariff rate will be increased to 15%. These actions, and retaliatory tariffs imposed by other countries on United States exports, have led to significant volatility and uncertainty in global markets. The Company anticipates incurring incremental tariff costs on certain raw materials to produce our products and certain finished goods shipped to customers. However, the Company expects to manage the impact of the increased tariff costs through pricing actions. To the extent the Company is unable to offset the increased tariff costs, or the tariffs negatively impact demand, or other trade barriers are implemented, the Company’s revenue and profitability would be adversely impacted. If additional tariffs are adopted, the Company would incur additional tariff costs that could be material.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the United States. The OBBBA includes a broad range of tax reform provisions, such as the extension of certain expiring provisions, modifications to the international tax framework, and the continuation of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions implemented through 2027. These provisions did not have a material impact on our effective tax rate for the three months ended March 31, 2026. We will continue to assess the OBBBA tax provisions and their impacts on our consolidated financial statements.

Cash Flows from Operating Activities
Net cash used in operating activities was $13.6 million and $9.0 million for the three months ended March 31, 2026 and 2025, respectively. The increase in net cash used in operating activities was primarily due to an increase in cash used by inventory during 2026 compared to 2025 and a decrease in cash provided by accounts receivable.

Cash Flows from Investing Activities
Net cash used in investing activities was $26.9 million and $21.3 million during the three months ended March 31, 2026 and 2025, respectively. Capital expenditures were $28.7 million and $16.9 million during the three months ended March 31, 2026 and 2025, respectively. The Company received $2.0 million for the sale of the Felinfach land and building assets during the three months ended March 31, 2026. The Company paid $4.3 million for the acquisition of Biolie SAS during the three months ended March 31, 2025.

Cash Flows from Financing Activities
Net cash provided by financing activities was $42.4 million and $36.0 million for the three months ended March 31, 2026 and 2025, respectively. Net debt increased by $63.3 million and $55.7 million for the three months ended March 31, 2026 and 2025, respectively. For purposes of the cash flow statement, net changes in debt exclude the impact of foreign exchange rates. Dividends of $17.4 million were paid during both the three months ended March 31, 2026 and 2025. Dividends paid per share were $0.41 for both the three months ended March 31, 2026 and 2025.

16
Index
CRITICAL ACCOUNTING POLICIES

There have been no material changes in the Company’s critical accounting policies during the quarter ended March 31, 2026. For additional information about the Company’s critical accounting policies, refer to “Critical Accounting Policies” under Item 7 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

ITEM 3.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes in the Company’s exposure to market risk during the quarter ended March 31, 2026. For additional information about market risk, refer to Part II, Item 7A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

ITEM 4.
CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures: The Company carried out an evaluation, under the supervision and with the participation of management, including the Company’s Chairman, President, and Chief Executive Officer and its Vice President and Chief Financial Officer, of the effectiveness, as of the end of the period covered by this report, of the design and operation of the disclosure controls and procedures, as defined in Rule 13a-15(e) of the Exchange Act. Based upon that evaluation, the Company’s Chairman, President, and Chief Executive Officer and its Vice President and Chief Financial Officer have concluded that the disclosure controls and procedures were effective as of the end of the period covered by this report.

Changes in Internal Control over Financial Reporting: There have been no changes in the Company’s internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) during the quarter ended March 31, 2026, that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II.
OTHER INFORMATION

ITEM 1.
LEGAL PROCEEDINGS

See Part I, Item 1, Note 13, Commitments and Contingencies, of this report for information regarding legal proceedings in which the Company is involved.

ITEM 1A.
RISK FACTORS

There were no material changes to the risk factors previously disclosed in Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

ITEM 2.
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

On October 19, 2017, the Board of Directors authorized the repurchase of up to three million shares (2017 Authorization). As of March 31, 2026, 1,267,019 shares had been repurchased under the 2017 Authorization. There is no expiration date for the 2017 Authorization. The 2017 Authorization may be modified, suspended, or discontinued by the Board of Directors at any time. As of March 31, 2026, the maximum number of shares that may be purchased under publicly announced plans is 1,732,981. No shares were purchased by the Company during the three months ended March 31, 2026.

ITEM 5.
OTHER INFORMATION

During the three months ended March 31, 2026, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.

ITEM 6.
EXHIBITS

The exhibits listed in the following Exhibit Index are filed as part of this Quarterly Report on Form 10-Q.

17
Index
SENSIENT TECHNOLOGIES CORPORATION
EXHIBIT INDEX
QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED MARCH 31, 2026

Exhibit
Description
Incorporated by Reference From
Filed Herewith
       
31
Certifications of the Company’s Chairman, President & Chief Executive Officer and Vice President & Chief Financial Officer pursuant to Rule 13a-14(a) of the Exchange Act
 
  
X
       
32
Certifications of the Company’s Chairman, President & Chief Executive Officer and Vice President & Chief Financial Officer pursuant to 18 United States Code § 1350
  
X
       
101.INS
Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)
  
X
       
101.SCH
Inline XBRL Taxonomy Extension Schema Document
  
X
       
101.CAL
Inline XBRL Taxonomy Extension Calculation Linkbase Document
  
X
       
101.DEF
Inline XBRL Taxonomy Extension Definition Linkbase Document
  
X

101.LAB
Inline XBRL Taxonomy Extension Label Linkbase Document
  
X
       
101.PRE
Inline XBRL Taxonomy Extension Presentation Linkbase Document
  
X
       
104
Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)
  
X

18
Index
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

   
SENSIENT TECHNOLOGIES CORPORATION
       
Date:
May 5, 2026
By:
 /s/  John J. Manning
  
     
John J. Manning, Senior Vice
President, General Counsel & Secretary

Date:
May 5, 2026
By:
 /s/  Tobin Tornehl
  
     
Tobin Tornehl, Vice President &
Chief Financial Officer


19

Source: View Original Filing on SEC EDGAR