Sensient Technologies (NYSE: SXT) lifts 2026 outlook after strong Q1 revenue and EPS gains
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Sensient Technologies reported a strong start to 2026, with first quarter revenue rising to $435.8 million, up 11.1% from $392.3 million a year earlier. Operating income increased to $66.7 million, a 24.7% gain, as margins improved.
Net earnings grew to $44.2 million, and diluted EPS rose to $1.04 from $0.81. All three segments—Flavors & Extracts, Color, and Asia Pacific—delivered revenue and operating income growth, led by particularly strong performance in Color.
Management highlighted momentum in natural colors and raised full-year 2026 guidance. The company now targets local currency revenue and adjusted EBITDA growth in the high single to double digits, and increased GAAP EPS guidance to a range of $3.70–$3.90.
Positive
- Robust top-line growth: Q1 2026 revenue rose 11.1% to $435.8 million, with all operating segments contributing and particularly strong 18.1% growth in the Color Group.
- Margin and earnings expansion: Operating income increased 24.7% to $66.7 million, net earnings rose 28.2% to $44.2 million, and diluted EPS improved from $0.81 to $1.04.
- Stronger 2026 outlook: Management raised full-year guidance, targeting high single to double-digit local currency revenue and adjusted EBITDA growth and increasing GAAP EPS guidance to $3.70–$3.90.
- Improved leverage metric: Net debt to Credit Adjusted EBITDA was 2.4x at March 31, 2026, down from 2.5x a year earlier, supported by higher trailing-twelve-month Credit Adjusted EBITDA.
Negative
- None.
Insights
Strong Q1 beat with broad-based growth and higher 2026 outlook.
Sensient Technologies delivered robust Q1 2026 results. Revenue reached $435.8 million, up 11.1%, while operating income climbed 24.7% to $66.7 million, expanding margins. Net earnings rose to $44.2 million and diluted EPS increased to $1.04 from $0.81.
Growth was broad-based: Color revenue grew 18.1%, Asia Pacific 8.0%, and Flavors & Extracts 4.2%, with each segment showing higher operating income. Non-GAAP metrics also improved, with adjusted EBITDA up 15.7% and adjusted diluted EPS up 14.0%, reflecting volume growth and pricing benefits.
Management raised full-year 2026 guidance, now expecting local currency revenue and adjusted EBITDA to grow at high single to double-digit rates and GAAP EPS of $3.70–$3.90. Capital expenditures are planned at $150–$170 million, and net debt to Credit Adjusted EBITDA stands at 2.4x, indicating moderate leverage.
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, and exhibit attachments filed with this report.
Key Figures
Q1 2026 Revenue: $435.8 million
Q1 2026 Operating Income: $66.7 million
Q1 2026 Net Earnings: $44.2 million
+5 more
8 metrics
Q1 2026 Revenue
$435.8 million
Three months ended March 31, 2026; up 11.1% year over year
Q1 2026 Operating Income
$66.7 million
Three months ended March 31, 2026; 24.7% increase vs. 2025
Q1 2026 Net Earnings
$44.2 million
Three months ended March 31, 2026; up 28.2% from prior year
Q1 2026 Diluted EPS
$1.04 per share
Three months ended March 31, 2026; up from $0.81 in 2025
Adjusted EBITDA Q1 2026
$86.0 million
Three months ended March 31, 2026; 15.7% growth vs. $74.4M
2026 GAAP EPS Guidance
$3.70–$3.90
Full-year 2026 outlook, raised from $3.60–$3.80 range
Net Debt to Credit Adjusted EBITDA
2.4x
Trailing twelve months ended March 31, 2026
2026 Capital Expenditures Guidance
$150–$170 million
Full-year 2026 projected capital spending range
Key Terms
Adjusted EBITDA, local currency adjusted, Portfolio Optimization Plan, Credit Adjusted EBITDA, +2 more
6 terms
Adjusted EBITDA financial
"Adjusted EBITDA Margin1 increased 70 bps in the quarter due to strong volume growth"
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.
local currency adjusted financial
"percentage changes in revenue, operating income, and diluted earnings per share on an adjusted local currency basis"
Portfolio Optimization Plan financial
"Q1 2025 results included $2.9 million of Portfolio Optimization Plan costs"
Credit Adjusted EBITDA financial
"Net Debt to Credit Adjusted EBITDA was 2.4x"
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.
forward-looking statements regulatory
"This release contains statements that may constitute “forward-looking statements” within the meaning of Federal securities laws"
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.
non-GAAP financial measures financial
"the Company reports certain non-GAAP financial measures, including adjusted operating income, adjusted net earnings, and adjusted diluted earnings per share"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
Earnings Snapshot
Revenue: $435.8 million · Guidance included
Q1 2026
Revenue
$435.8 million
+11.1% vs. Q1 2025
Operating Income (GAAP)
$66.7 million
+24.7% vs. Q1 2025
Net Earnings (GAAP)
$44.2 million
+28.2% vs. Q1 2025
Diluted EPS (GAAP)
$1.04
+28.4% vs. Q1 2025
Adjusted EBITDA
$86.0 million
+15.7% vs. Q1 2025
Guidance
For full-year 2026, the company guides to high single to double-digit local currency revenue and adjusted EBITDA growth, GAAP diluted EPS of $3.70–$3.90, capital expenditures of $150–$170 million, an adjusted effective tax rate of ~25%, and interest expense of ~ $36 million.
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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(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:
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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.
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Sensient Technologies Corporation (the “Company”) issued a press release on April 24, 2026, disclosing its results of operations for its quarter ended March 31, 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 April 24, 2026, the Company also posted an updated investor presentation for its quarter ended March 31, 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 March 31, 2026.
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99.2
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Sensient Technologies Corporation Investor Presentation – Q1 2026.
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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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April 24, 2026
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Exhibit 99.1
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Contact:
David Plautz
(414) 347-3706
investor.relations@sensient.com
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Sensient Technologies Corporation
Reports Results for the Quarter Ended March 31, 2026
MILWAUKEE— April 24, 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 first quarter ended March 31, 2026.
First Quarter Consolidated Results
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Reported revenue increased 11.1% to $435.8 million in the first quarter of 2026 versus last year’s first quarter results of $392.3 million. On a local currency basis(1),
revenue increased 7.2%.
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•
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Reported operating income increased 24.7% to $66.7 million compared to $53.5 million recorded in last year’s first quarter. In the first quarter of 2025, the Company recorded $2.9
million of costs related to its Portfolio Optimization Plan versus no costs recorded in the first quarter of 2026. Local currency adjusted operating income(1) and local currency adjusted EBITDA(1) were up 12.2% and
10.4%, respectively, in the first quarter.
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•
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Reported earnings per share increased 28.4% to $1.04 in the first quarter of 2026 compared to 81 cents in the first quarter of 2025. Local currency adjusted diluted EPS(1)
increased 14.0% in the first quarter.
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“Sensient delivered strong results to start off the year. We executed on our strategy
and continue to strengthen our position for the opportunities ahead, particularly in the area of natural colors. I remain very confident about our performance and am pleased to increase our guidance for 2026,”
said Paul Manning, Sensient’s Chairman, President, and Chief Executive Officer.
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Sensient Technologies Corporation
Earnings Release – Quarter Ended March 31, 2026
April 24, 2026
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Page 2
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First Quarter Group Results
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Revenue
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Reported
Quarter
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Local Currency(1)
Quarter |
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Flavors & Extracts
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4.2
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%
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1.7
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%
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Color
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18.1
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%
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12.3
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%
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Asia Pacific
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8.0
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%
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4.7
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%
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Total Revenue
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11.1
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%
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7.2
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%
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Operating Income
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Reported
Quarter |
Local Currency
Adjusted(1)
Quarter
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Flavors & Extracts
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7.0
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%
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5.1
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%
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Color
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20.7
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%
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13.2
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%
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Asia Pacific
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18.4
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%
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14.5
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%
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Total Operating Income
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24.7
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%
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12.2
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%
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The Flavors & Extracts Group reported first quarter 2026 revenue of $201.8 million, an increase of $8.1 million versus the prior year’s first
quarter. The Group’s revenue increase was driven primarily by higher prices and volume growth. Segment operating income was $26.8 million in the first quarter of 2026, an increase of $1.8 million compared to the prior year’s first quarter.
The Color Group reported revenue of $198.2 million in the first quarter of 2026, an increase of $30.4 million compared to the prior year’s first
quarter. The Group’s revenue increase was driven by strong volume growth and higher prices across the Group. Segment operating income was $42.1 million in the first quarter of 2026, an increase of $7.2 million compared to the prior year’s first
quarter results.
The Asia Pacific Group reported revenue of $45.3 million in the first quarter of 2026, an increase of $3.4 million compared to the prior year’s first
quarter. The Group’s revenue increase was driven by strong volume growth and higher prices across the Group. Segment operating income was $11.2 million in the quarter, an increase of $1.7 million compared to the prior year’s first quarter.
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Sensient Technologies Corporation
Earnings Release – Quarter Ended March 31, 2026
April 24, 2026
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Page 3
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Corporate & Other reported operating expenses were $13.3 million in the first quarter of 2026, compared to $15.8 million of operating expenses
reported in the prior year’s first quarter. The lower operating expenses were primarily due to Portfolio Optimization Plan costs in the prior year’s first quarter. Local currency adjusted operating expenses(1) for Corporate & Other
increased $0.4 million compared to the prior year’s first quarter.
2026 OUTLOOK
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Metric
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Current Guidance
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Prior Guidance
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Local Currency Revenue(1)
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High Single-Digit to Double-Digit Growth
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Mid-Single-Digit to Double-Digit Growth
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Local Currency Adjusted EBITDA(1)
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High Single-Digit to Double-Digit Growth
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Mid-Single-Digit to Double-Digit Growth
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Diluted EPS (GAAP)
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Between $3.70 and $3.90*
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Between $3.60 and $3.80*
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Local Currency Adjusted Diluted EPS(1)
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High Single-Digit to Double-Digit Growth
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Mid-Single-Digit to High Single-Digit Growth
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*Based on current exchange rates, foreign currency impact is expected to be immaterial for 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.
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(1)
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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
Earnings Release – Quarter Ended March 31, 2026
April 24, 2026
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Page 4
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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 first quarter financial results at 8:30 a.m. CDT on Friday,
April 24, 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 May 1, 2026 by calling (855) 669-9658 and using access
code 1602690. 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 April 28,
2026.
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Sensient Technologies Corporation
Earnings Release – Quarter Ended March 31, 2026
April 24, 2026
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Page 5
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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
(In thousands, except percentages and per share amounts)
(Unaudited)
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Page 6
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Consolidated Statements of Earnings
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Three Months Ended March 31,
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2026
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2025
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% Change
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Revenue
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$
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435,834
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$
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392,325
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11.1
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%
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||||||
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Cost of products sold
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283,146
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260,548
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8.7
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%
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Selling and administrative expenses
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85,960
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78,247
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9.9
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%
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Operating income
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66,728
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53,530
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24.7
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%
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Interest expense
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7,902
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7,341
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Earnings before income taxes
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58,826
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46,189
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Income taxes
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14,656
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11,727
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Net earnings
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$
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44,170
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$
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34,462
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28.2
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%
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Earnings per share of common stock:
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||||||||||||
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Basic
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$
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1.04
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$
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0.82
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Diluted
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$
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1.04
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$
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0.81
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Average common shares outstanding:
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Basic
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42,294
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42,197
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Diluted
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42,671
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42,469
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Results by Segment
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Three Months Ended March 31,
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Revenue
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2026
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2025
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% Change
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Flavors & Extracts
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$
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201,825
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$
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193,681
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4.2
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%
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||||||
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Color
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198,176
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167,750
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18.1
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%
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||||||||
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Asia Pacific
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45,255
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41,901
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8.0
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%
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||||||||
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Intersegment elimination
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(9,422
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)
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(11,007
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)
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Consolidated
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$
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435,834
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$
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392,325
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11.1
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%
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||||||
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Operating Income
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Flavors & Extracts
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$
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26,750
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$
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24,989
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7.0
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%
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Color
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42,065
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34,852
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20.7
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%
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Asia Pacific
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11,180
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9,442
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18.4
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%
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Corporate & Other
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(13,267
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)
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(15,753
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)
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Consolidated
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$
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66,728
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$
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53,530
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24.7
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%
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Sensient Technologies Corporation
(In thousands)
(Unaudited)
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Page 7
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| Consolidated Condensed Balance Sheets |
March 31,
2026 |
December 31,
2025 |
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Cash and cash equivalents
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$
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38,542
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$
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36,533
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Trade accounts receivable
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342,295
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305,380
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||||||
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Inventories
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681,730
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678,220
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||||||
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Prepaid expenses and other current assets
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58,971
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59,717
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Fixed assets held for sale
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-
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1,598
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Total Current Assets
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1,121,538
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1,081,448
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Goodwill & intangible assets (net)
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446,282
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449,827
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Property, plant, and equipment (net)
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550,555
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539,296
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Other assets
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169,213
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173,566
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Total Assets
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$
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2,287,588
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$
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2,244,137
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||||
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Trade accounts payable
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$
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114,222
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$
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138,344
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Short-term borrowings
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232
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352
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Other current liabilities
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109,259
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124,887
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Total Current Liabilities
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223,713
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263,583
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Long-term debt
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767,558
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709,232
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Accrued employee and retiree benefits
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24,163
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24,045
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Other liabilities
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53,273
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53,763
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Shareholders’ Equity
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1,218,881
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1,193,514
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Total Liabilities and Shareholders’ Equity
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$
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2,287,588
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$
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2,244,137
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||||
|
Sensient Technologies Corporation
(In thousands, except per share amounts)
(Unaudited)
|
Page 8
|
|
Consolidated Statements of Cash Flows
|
||||||||
|
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
|
)
|
||||
|
Trade accounts payable and other accrued expenses
|
(22,837
|
)
|
(25,859
|
)
|
||||
|
Accrued salaries, wages, and withholdings
|
(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
|
||||
|
Supplemental Information
|
||||||||
|
Three Months Ended March 31,
|
2026
|
2025
|
||||||
|
Dividends paid per share
|
$
|
0.41
|
$
|
0.41
|
||||
|
Sensient Technologies Corporation
(In thousands, except percentages and per share amounts)
(Unaudited) |
Page 9
|
Reconciliation of Non-GAAP Amounts
The Company’s results for the three months ended March 31, 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 March 31,
|
||||||||||||
|
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
|
%
|
||||||
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 March 31,
|
|||||||||||||||||||||||
|
Operating Income
|
2026
|
Adjustments(2)
|
Adjusted
2026 |
2025
|
Adjustments(2)
|
Adjusted
2025 |
||||||||||||||||||
|
Flavors & Extracts
|
$
|
26,750
|
$
|
-
|
$
|
26,750
|
$
|
24,989
|
$
|
-
|
$
|
24,989
|
||||||||||||
|
Color
|
42,065
|
-
|
42,065
|
34,852
|
-
|
34,852
|
||||||||||||||||||
|
Asia Pacific
|
11,180
|
-
|
11,180
|
9,442
|
-
|
9,442
|
||||||||||||||||||
|
Corporate & Other
|
(13,267
|
)
|
-
|
(13,267
|
)
|
(15,753
|
)
|
2,864
|
(12,889
|
)
|
||||||||||||||
|
Consolidated
|
$
|
66,728
|
$
|
-
|
$
|
66,728
|
$
|
53,530
|
$
|
2,864
|
$
|
56,394
|
||||||||||||
|
(2)
|
Adjustments consist of Portfolio Optimization Plan costs.
|
The following table summarizes the percentage change in the 2026 results compared to the 2025 results for the corresponding periods.
|
Three Months Ended March 31, 2026
|
||||||||||||||||
|
Revenue
|
Total
|
Foreign Exchange Rates
|
Adjustments(3)
|
Local Currency Adjusted
|
||||||||||||
|
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
|
%
|
|||||||||
|
(3)
|
Adjustments consist of Portfolio Optimization Plan costs.
|
|
Sensient Technologies Corporation
(In thousands, except percentages)
(Unaudited)
|
Page 10
|
Reconciliation of Non-GAAP Amounts - Continued
The following table summarizes the reconciliation between Operating Income (GAAP) and Adjusted EBITDA for the three months ended March 31, 2026 and 2025.
|
Three Months Ended March 31,
|
||||||||||||
|
2026
|
2025
|
% Change
|
||||||||||
|
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
|
%
|
||||||
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 March 31,
2026 and 2025.
|
March 31,
|
||||||||
|
Debt
|
2026
|
2025
|
||||||
|
Short-term borrowings
|
$
|
232
|
$
|
18,575
|
||||
|
Long-term debt
|
767,558
|
683,266
|
||||||
|
Credit Agreement adjustments(4)
|
(20,780
|
)
|
(21,165
|
)
|
||||
|
Net Debt
|
$
|
747,010
|
$
|
680,676
|
||||
|
Operating income (GAAP)
|
$
|
220,326
|
$
|
195,703
|
||||
|
Depreciation and amortization
|
61,562
|
60,694
|
||||||
|
Share-based compensation expense
|
14,822
|
10,989
|
||||||
|
Portfolio Optimization Plan costs, before tax
|
12,942
|
6,683
|
||||||
|
Other non-operating gains(5)
|
(1,170
|
)
|
(871
|
)
|
||||
|
Credit Adjusted EBITDA
|
$
|
308,482
|
$
|
273,198
|
||||
|
Net Debt to Credit Adjusted EBITDA
|
2.4x
|
2.5x
|
||||||
|
(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
FAQ
How did Sensient Technologies (SXT) perform in Q1 2026?
Sensient posted strong Q1 2026 results, with revenue of $435.8 million, up 11.1% year over year. Operating income rose 24.7% to $66.7 million, net earnings reached $44.2 million, and diluted EPS increased to $1.04 from $0.81.
Which segments drove Sensient Technologies (SXT) Q1 2026 growth?
All segments contributed to growth. Color revenue increased 18.1% to $198.2 million, Asia Pacific rose 8.0% to $45.3 million, and Flavors & Extracts grew 4.2% to $201.8 million, each also delivering higher operating income.
What earnings did Sensient Technologies (SXT) report for Q1 2026?
Sensient reported Q1 2026 net earnings of $44.2 million, compared with $34.5 million a year earlier. Diluted earnings per share were $1.04, up from $0.81. Adjusted diluted EPS was also $1.04, versus $0.86 in Q1 2025.
Did Sensient Technologies (SXT) change its 2026 financial guidance?
Yes. Sensient raised 2026 guidance, now targeting high single to double-digit local currency revenue and adjusted EBITDA growth. GAAP diluted EPS guidance increased to $3.70–$3.90, up from the prior $3.60–$3.80 range, with capital expenditures of $150–$170 million.
How did Sensient Technologies’ (SXT) profitability and margins trend in Q1 2026?
Profitability improved meaningfully. Operating margin increased from 13.6% to 15.3%, and adjusted EBITDA rose to $86.0 million with a 19.7% margin. These gains were driven by volume growth, favorable pricing, and lower restructuring-related costs.
What is Sensient Technologies’ (SXT) leverage position after Q1 2026?
At March 31, 2026, Sensient reported net debt of $747.0 million and trailing-twelve-month Credit Adjusted EBITDA of $308.5 million, resulting in a net debt to Credit Adjusted EBITDA ratio of 2.4x, slightly better than 2.5x a year earlier.