Sensient raises 2026 earnings outlook floor to $4.15
The lower end of Sensient’s 2026 GAAP diluted EPS range rose to $4.15, while its $4.20 upper end remained unchanged.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Sensient Technologies Corporation reported third-quarter 2026 revenue of $455.8 million, up 10.6% year over year, and operating income of $72.4 million, up 25.5%. Net earnings rose 30.8% to $48.3 million, while diluted earnings per share increased to $1.13 from $0.87. Color Group revenue increased 18.1%; Flavors & Extracts revenue increased 3.5%, and Asia Pacific revenue increased 12.4%. The company attributed Color and Asia Pacific growth mainly to volume, and Flavors & Extracts growth to higher prices and volume.
Cash provided by operations for the first nine months was $75.3 million, versus $83.3 million a year earlier; capital expenditures were $105.8 million versus $57.8 million. Sensient raised the low end of its 2026 GAAP diluted EPS outlook to $4.15, from $4.10, while keeping the $4.20 high end. Local-currency revenue guidance remains high-single-digit to low-double-digit growth, and local-currency adjusted EBITDA and adjusted diluted EPS guidance remain mid-teen to high-teen growth. Management expects the foreign currency impact to be immaterial for the remainder of 2026.
2 points · 0 major0 major · 1 point
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointQ3 revenue reached $455.8 million, up 10.6% year over year.
- Moderate pointQ3 net earnings increased 30.8% to $48.3 million.
Negative
- Minor pointNine-month operating cash flow was $75.3 million, down from $83.3 million.
Filing Explained
The accompanying Q3 presentation reports total debt of
8-K Event Classification
3 items: 2.02, 7.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Revenue: $455.8 million
Operating income: $72.4 million
Net earnings: $48.3 million
+4 more
7 metrics
Revenue
$455.8 million
Third quarter 2026; $412.1 million in third quarter 2025; up 10.6%.
Operating income
$72.4 million
Third quarter 2026; $57.7 million in third quarter 2025; up 25.5%.
Net earnings
$48.3 million
Third quarter 2026; $37.0 million in third quarter 2025; up 30.8%.
Diluted earnings per share
$1.13
Third quarter 2026; $0.87 in third quarter 2025.
Net cash provided by operating activities
$75.3 million
Nine months ended September 30, 2026; $83.3 million in the comparable 2025 period.
Capital expenditures
$105.8 million
Nine months ended September 30, 2026; $57.8 million in the comparable 2025 period.
Diluted EPS (GAAP) guidance
$4.15 to $4.20 per share
2026 guidance; prior range was $4.10 to $4.20 per share.
Key Terms
Adjusted EBITDA, Portfolio Optimization Plan costs, Credit Adjusted EBITDA, operating leverage
4 terms
Adjusted EBITDA financial
"Adjusted EBITDA was $93.1 million"
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.
Portfolio Optimization Plan costs financial
"exclude Portfolio Optimization Plan costs"
Credit Adjusted EBITDA financial
"Net Debt to Credit Adjusted EBITDA"
Credit-adjusted EBITDA is a measure of a company's operating profit that starts with earnings before interest, taxes, depreciation and amortization and then adjusts for credit-related items such as expected loan losses, bad-debt allowances, or other financing and credit costs. Investors use it to see how much cash the business generates after accounting for credit risks, which helps assess the company’s ability to pay debt or cover losses—like judging a car’s fuel efficiency after adding the weight of heavy cargo.
operating leverage financial
"Strong operating leverage in the quarter"
Operating leverage measures how much a company's profits are affected by changes in sales volume. When a business has high operating leverage, small increases in sales can lead to much larger increases in profit, much like a lever amplifies force. It matters to investors because it indicates how sensitive a company's earnings are to fluctuations in sales, affecting risk and potential returns.
Earnings Snapshot
Revenue: $455.8 million · Guidance included
Third quarter ended September 30, 2026
Revenue
$455.8 million
Up 10.6% year over year
Operating income
$72.4 million
Up 25.5% year over year
Net earnings
$48.3 million
Up 30.8% year over year
Diluted earnings per share
$1.13
Compared with $0.87 a year earlier
Guidance
For 2026, GAAP diluted EPS guidance is $4.15 to $4.20 per share, compared with prior guidance of $4.10 to $4.20. Local-currency revenue guidance is high-single-digit to low-double-digit growth; local-currency adjusted EBITDA and adjusted diluted EPS guidance are mid-teen to high-teen growth.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What was SXT's revenue in Q3 2026?
Sensient reported third-quarter 2026 revenue of $455.8 million, up 10.6% from $412.1 million a year earlier. Revenue grew 18.1% in Color, 3.5% in Flavors & Extracts, and 12.4% in Asia Pacific.
How much did SXT earn in Q3 2026?
Sensient's third-quarter net earnings were $48.3 million, up 30.8% from $37.0 million a year earlier. Operating income was $72.4 million, an increase of 25.5%, and diluted earnings per share were $1.13 compared with $0.87.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
(Date of Report/Date of earliest event reported)
(Exact name of registrant as specified in its charter)
|
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||
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(IRS Employer Identification No.)
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(Address and zip code of principal executive offices)
(414 ) 271-6755
(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Securities registered pursuant to Section 12(b) of the Act:
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of
the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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. ☐
| Item 2.02 |
Results of Operations and Financial Condition.
|
Sensient Technologies Corporation (the “Company”) issued a press release on October 30, 2026, disclosing its results of operations for the quarter ended September 30, 2026, and its financial condition at that date. The press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information contained in this Item 2.02 (including Exhibit 99.1) is intended to be furnished under Item 2.02 of Form 8-K and shall not be deemed “filed” for
purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference into any registration statement or other
document filed under the Securities Act of 1933, as amended, or the Exchange Act.
| Item 7.01 |
Regulation FD Disclosure.
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On October 30, 2026, the Company also posted an updated investor presentation for the quarter ended September 30, 2026, on the “Investor Information”
section of its website. A copy of the investor presentation is furnished as Exhibit 99.2 to this Current Report on Form 8-K.
The information contained in this Item 7.01 (including Exhibit 99.2) is intended to be furnished under Item 7.01 of Form 8-K and shall not be deemed
“filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference into any registration statement or other document filed under the Securities Act
of 1933, as amended, or the Exchange Act.
| Item 9.01 |
Financial Statements and Exhibits.
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(d)
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Exhibits. The following exhibits are furnished with this Current Report on
Form 8-K:
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EXHIBIT INDEX
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Exhibit
Number
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Description
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99.1
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Sensient Technologies Corporation Earnings Press Release for the Quarter Ended September 30, 2026.
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99.2
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Sensient Technologies Corporation Investor Presentation – Q3 2026.
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104
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Cover Page Interactive Data File (embedded within the Inline XBRL document).
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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 hereunto duly
authorized.
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SENSIENT TECHNOLOGIES CORPORATION
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By:
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/s/ John J. Manning
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Name:
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John J. Manning
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Title:
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Senior Vice President, General Counsel, and Secretary
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Date:
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October 30, 2026
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Exhibit 99.1
 |
Contact:
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David Plautz
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(414) 347-3706
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investor.relations@sensient.com
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Sensient Technologies Corporation
Reports Results for the Quarter Ended September 30, 2026
MILWAUKEE— October 30, 2026 — 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%.
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| • |
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.
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| • |
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.
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Sensient Technologies Corporation
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Page 2
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Earnings Release – Quarter Ended September 30, 2026
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|
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October 30, 2026
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Third Quarter Group Results
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Reported
Quarter
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Local Currency(1)
Quarter
|
|||||||
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Revenue
|
||||||||
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Flavors & Extracts
|
3.5
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%
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3.2
|
%
|
||||
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Color
|
18.1
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%
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17.0
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%
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||||
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Asia Pacific
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12.4
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%
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14.8
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%
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||||
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Total Revenue
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10.6
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%
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10.2
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%
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||||
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Reported
Quarter
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Local Currency Adjusted(1)
Quarter
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|||||||
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Operating Income
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||||||||
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Flavors & Extracts
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8.8
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% |
8.8
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%
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||||
| Color |
22.0
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% |
21.1
|
%
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||||
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Asia Pacific
|
29.6
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% |
32.4
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%
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||||
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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.
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Sensient Technologies Corporation
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Page 3
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Earnings Release – Quarter Ended September 30, 2026
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October 30, 2026
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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
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Prior Guidance
|
||
|
Local Currency Revenue(1)
|
High Single-Digit to Low Double-Digit Growth
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High Single-Digit to Low Double-Digit Growth
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||
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Local Currency Adjusted EBITDA(1)
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Mid-Teen to High Teen Growth
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Mid-Teen to High Teen Growth
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||
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Diluted EPS (GAAP)
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Between $4.15 and $4.20*
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Between $4.10 and $4.20*
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Local Currency Adjusted Diluted EPS(1)
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Mid-Teen to High Teen Growth
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Mid-Teen to High Teen Growth
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||
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*Based on current exchange rates, foreign currency impact is expected to be immaterial for the remainder of the year.
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||||
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.
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Sensient Technologies Corporation
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Page 4
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Earnings Release – Quarter Ended September 30, 2026
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October 30, 2026
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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.
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Sensient Technologies Corporation
|
Page 5
|
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Earnings Release – Quarter Ended September 30, 2026
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|
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October 30, 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
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Sensient Technologies Corporation
|
Page 6
|
|
(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
|
Page 7
|
|
(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
|
Page 8
|
|
(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
|
Page 9
|
|
(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,
|
|||||||||||||||||||||||
|
2026
|
Adjustments(2)
|
Adjusted
2026
|
2025
|
Adjustments(2)
|
Adjusted
2025
|
|||||||||||||||||||
|
Operating Income
|
||||||||||||||||||||||||
|
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,
|
|||||||||||||||||||||||
|
2026
|
Adjustments(2)
|
Adjusted
2026
|
2025
|
Adjustments(2)
|
Adjusted
2025
|
|||||||||||||||||||
|
Operating Income
|
||||||||||||||||||||||||
|
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
|
Page 10
|
|
(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
|
Page 11
|
|
(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
|
2.3
|
x
|
2.3
|
x
|
|||||
|
(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.
Exhibit 99.2
