IFF Reports Fourth Quarter and Full Year 2025 Results

Delivered solid top and bottom-line performance & advanced strategic priorities in 2025

Launched sale process for the Food Ingredients segment

Continuing to drive financial performance in 2026

International Flavors & Fragrances Inc. (NYSE:IFF) reported financial results for the fourth quarter and full year ended December 31, 2025.

Full year 2025 Consolidated Summary:

Management Commentary

"IFF delivered a solid 2025 performance, meeting the full-year financial commitments we set at the start of the year, despite a challenging operating environment," said Erik Fyrwald, CEO of IFF. "It was also a year of continued strategic progress. We invested in R&D, commercial capabilities, and capacity expansion to better serve customers, advance our innovation pipeline, and support future profitable growth."

"We also took steps to optimize our portfolio. Through several divestitures and the recent launch of a sale process for our Food Ingredients segment, we sharpened our strategic focus and improved our financial flexibility, allowing us to direct resources to our highest-value businesses."

"Looking ahead to 2026, we are continuing to serve our customers with leading innovation to grow profitably with them and deliver financial performance across the company. While macroeconomic uncertainty persists, we are encouraged by the strength of our pipeline and the benefits of our reinvestment actions. We enter the year confident in our ability to deliver on our priorities and create long-term value for our shareholders."

Full year 2025 Consolidated Financial Results

• Reported net sales for the full year were $10.89 billion, a decrease of (5)% compared to the prior year. On a comparable basis², currency neutral sales¹ increased 2%, against a strong 6% year ago comparable, with mid-single digit growth in Taste and low-single digit performances in Health & Biosciences and Scent.
• Loss before taxes on a reported basis for the full year was $412 million. Adjusted operating EBITDA¹ for the full year was $2.086 billion. On a comparable basis², currency neutral adjusted operating EBITDA¹ increased 7%, led by volume growth, productivity gains and favorable net pricing.
• Reported earnings (loss) per share (EPS) for the full year was $(1.46). Adjusted EPS excluding amortization¹ was $4.20 per diluted share.
• Cash flow from operations for the full year was $850 million, and free cash flow¹ defined as cash flow from operations less capital expenditures totaled $256 million. Total debt to trailing twelve months net income at the end of the fourth quarter was (16.2)x. Net debt to credit-adjusted EBITDA¹ at the end of the full year was 2.6x.

Full year 2025 Segment Summary: Growth vs. Prior Year

Taste Segment

• On a reported basis, sales were $2.48 billion. On a comparable basis², currency neutral sales¹ increased 4% with broad-based growth in all regions.
• Taste adjusted operating EBITDA¹ was $478 million and adjusted operating EBITDA margin¹ was 19.3% for the full year. On a comparable basis², currency neutral adjusted operating EBITDA¹ grew 10% led by favorable net pricing, volume growth and productivity gains.

Health & Biosciences Segment

• On a reported basis, sales were $2.28 billion. On a comparable basis², currency neutral sales¹ increased 3% driven by growth in nearly all businesses led by a high-single digit increase in Food Biosciences and mid-single digit growth in Home & Personal Care and Animal Nutrition.
• Health & Biosciences adjusted operating EBITDA¹ was $594 million and adjusted operating EBITDA margin¹ was 26.0% for the full year. On a comparable basis², currency neutral adjusted operating EBITDA¹ grew 7% led primarily by volume growth and productivity gains.

Scent Segment

• On a reported basis, sales were $2.48 billion. On a comparable basis², currency neutral sales¹ improved 3% led by double-digit growth in Fine Fragrance and a low-single digit performance in Consumer Fragrance.
• Scent adjusted operating EBITDA¹ was $515 million and adjusted operating EBITDA margin¹ was 20.8% for the full year. On a comparable basis², currency neutral adjusted operating EBITDA¹ grew 2% led primarily by volume growth and productivity gains offset partially by reinvestment and unfavorable net pricing.

Food Ingredients Segment

• On a reported basis, sales were $3.28 billion. On a comparable basis², currency neutral sales¹ decreased (3)% as double-digit growth in Inclusions was offset primarily by softness in Protein Solutions as well as the proactive exit of low margin business over the course of 2025.
• Food Ingredients adjusted operating EBITDA¹ was $423 million and adjusted operating EBITDA margin¹ was 12.9% for the full year. On a comparable basis², currency neutral adjusted operating EBITDA¹ grew 10% driven primarily by productivity gains and margin improvement initiatives.

Fourth Quarter 2025 Consolidated Summary:

Fourth Quarter 2025 Consolidated Financial Results

• Reported net sales for the fourth quarter were $2.59 billion, a decrease of (7)% compared to the prior year period. On a comparable basis², currency neutral sales¹ increased 1% versus the prior year period, against a strong 6% year ago comparable, led by mid-single digit growth in Health & Biosciences and Scent and a low-single digit performance in Taste.
• Income before taxes on a reported basis for the fourth quarter was $22 million. Adjusted operating EBITDA¹ for the fourth quarter was $437 million. On a comparable basis², currency neutral adjusted operating EBITDA¹ increased 7% led primarily by productivity gains.
• Reported earnings per share (EPS) for the fourth quarter was $0.07. Adjusted EPS excluding amortization¹ was $0.80 per diluted share.

Fourth Quarter 2025 Segment Summary: Growth vs. Prior Year

Taste Segment

• On a reported basis, sales were $588 million. On a comparable basis², currency neutral sales¹ increased 2%, with broad based growth in all regions led by a strong performance in North America.
• Taste adjusted operating EBITDA¹ was $94 million and adjusted operating EBITDA margin¹ was 16% in the fourth quarter. On a comparable basis², currency neutral adjusted operating EBITDA¹ grew 17% led primarily by favorable net pricing and cost discipline.

Health & Biosciences Segment

• On a reported basis, sales were $589 million. On a comparable basis², currency neutral sales¹ increased 5% as double-digit performances in Food Biosciences and Animal Nutrition and high-single digit growth in Home & Personal Care was partially offset by softness in Health, specifically in North America.
• Health & Biosciences adjusted operating EBITDA¹ was $155 million and adjusted operating EBITDA margin¹ was 26.3% in the fourth quarter. On a comparable basis², currency neutral adjusted operating EBITDA¹ grew 20% led by volume growth and productivity gains.

Scent Segment

• On a reported basis, sales were $610 million. On a comparable basis², currency neutral sales¹ improved 4% driven by double digit growth in Fine Fragrance and a mid-single digit performance in Consumer Fragrance.
• Scent adjusted operating EBITDA¹ was $106 million and adjusted operating EBITDA margin¹ was 17.4% in the fourth quarter. On a comparable basis², currency neutral adjusted operating EBITDA¹ grew 1% as volume growth and productivity gains were partially offset by unfavorable net pricing.

Food Ingredients Segment

• On a reported basis, sales were $802 million. On a comparable basis², currency neutral sales¹ decreased (4)% as growth in Systems and Inclusions was offset primarily by softness in Protein Solutions and Emulsifiers & Sweeteners.
• Food Ingredients adjusted operating EBITDA¹ was $82 million and adjusted operating EBITDA margin¹ was 10.2% in the fourth quarter. On a comparable basis², currency neutral adjusted operating EBITDA¹ declined (11)% as productivity gains were more than offset by lower volumes and unfavorable net price.

2026 Financial Guidance

Full year 2026 sales are expected to be in the range of $10.5 billion to $10.8 billion and full year 2026 adjusted operating EBITDA to be in the range of $2.05 billion to $2.15 billion. Full year guidance includes three months of our Soy Crush, Concentrates, and Lecithin business results with the divestiture assumed to close on March 31, 2026.

The Company expects comparable currency neutral sales growth to be between 1% to 4%. Comparable currency neutral adjusted operating EBITDA is expected to grow at a faster rate than sales, growing 3% to 8% year-over-year.

Based on recent market foreign exchange rates, the Company expects that foreign exchange will have an approximately 1% positive impact to sales growth and have no impact on adjusted operating EBITDA growth in 2026. The Company also expects that divestitures will have an approximately 5% adverse impact to both sales and adjusted operating EBITDA growth in 2026.

A copy of the Company's Annual Report on Form 10-K will be available on its website at www.iff.com or at www.sec.gov by March 2, 2026.

Audio Webcast

A live webcast to discuss the Company's fourth quarter and full year 2025 financial results and outlook for 2026 will be held on February 12, 2026, at 9:00 a.m. ET. The webcast and accompanying slide presentation may be accessed on the Company's IR website at ir.iff.com. For those unable to listen to the live webcast, a recorded version will be made available on the Company's website approximately one hour after the event and will remain available on IFF's website for one year.

Cautionary Statement Under The Private Securities Litigation Reform Act of 1995

This press release includes statements that are not historical facts and are "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management's current assumptions, estimates and expectations, including with respect to our financial and operational outlook (sales, adjusted operating EBITDA and cash flow), portfolio optimization initiatives (including the ongoing sale process for our Food Ingredients division), pricing, productivity and cost-discipline actions, capital allocation, future operations, growth potential, strategic investments and the expected effects of foreign exchange. These statements reflect management's present views, are based on a series of expectations, assumptions, estimates and projections about the Company, are subject to change, and involve uncertainties that could cause actual results to differ materially.

Certain of such forward-looking information may be identified by such terms as "expect", "anticipate", "believe", "intend", "outlook", "may", "estimate", "should", "predict", "plan", "project", "could", and similar terms or variations thereof. These statements are not guarantees of future performance and are subject to risks and uncertainties that could lead to materially different outcomes.

Such risks, uncertainties and other factors include, among others, the following: (1) demand trends, competitive dynamics and customer concentration in our end markets; (2) execution of our strategic transformation and other strategic transactions, divestitures, acquisitions, collaborations and joint ventures; (3) working capital and inventory management; (4) outcomes of legal claims, disputes, regulatory investigations and litigation; (5) tariffs and trade actions, supply chain disruptions and macro events, including geopolitical developments, climate events, natural disasters, public health crises; (6) volatility in input costs (such as raw materials, transportation and energy); (7) attraction, retention and turnover of key employees and executives; (8) product innovation, time-to-market, product safety and quality; (9) cybersecurity incidents, artificial intelligence related risks, data privacy and compliance with data protection laws; (10) exposure to emerging markets, foreign currency fluctuations and international regulatory and political risks; (11) capital allocation, dividend policy and potential impairments of tangible or intangible assets; (12); our indebtedness, credit rating liquidity, and access to capital; (13) pension and postretirement obligations; (14) compliance with federal, state, local and international rules and regulations, and regulatory, environmental, anti-corruption and sanctions laws and related ethical business practices; (15) protection and enforcement of intellectual property; (16) changes in tax laws and policies, tax audits and outcomes, including potential tax liabilities related to prior transactions; and (17) changes in federal, state, local and international rules and regulations.

The foregoing list of important factors does not include all such factors, nor necessarily present them in order of importance. Important factors are described under "Risk Factors" in our most recent Annual Report on Form 10-K and in our subsequent filings with the SEC, and those disclosures are incorporated herein by reference.

We intend our forward-looking statements to speak only as of the time of such statements and do not undertake or plan to update or revise them as more information becomes available or to reflect changes in expectations, assumptions or results, whether as a result of new information, future events or otherwise. We can give no assurance that such expectations or forward-looking statements will prove to be correct. An occurrence of, or any material adverse change in, one or more of the risk factors or risks and uncertainties referred to in this press release or included in our other periodic reports filed with the SEC could materially and adversely impact our operations and our future financial results.

Any public statements or disclosures made by us following this press release that modify or impact any of the forward-looking statements contained in or accompanying this press release will be deemed to modify or supersede such outlook or other forward-looking statements in or accompanying this press release.

Use of Non-GAAP Financial Measures

We provide in this press release non-GAAP financial measures, including: (i) comparable, currency neutral sales; (ii) adjusted operating EBITDA and comparable, currency neutral adjusted operating EBITDA; (iii) adjusted operating EBITDA margin; (iv) adjusted EPS ex amortization; (v) free cash flow; (vi) net debt to credit adjusted EBITDA; [and] (vii) adjusted selling and administrative expenses; and adjusted gross profit.

Our non-GAAP financial measures are defined below.

Comparable results for the fourth quarter and full year exclude the impact of divestitures.

Currency Neutral metrics eliminate the effects that result from translating non-U.S. currencies to U.S. dollars. We calculate currency neutral numbers by translating current year invoiced sale amounts at the exchange rates used for the corresponding prior year period. We use currency neutral results in our analysis of subsidiary or segment performance. We also use currency neutral numbers when analyzing our performance against our competitors.

Adjusted operating EBITDA and adjusted operating EBITDA margin exclude depreciation and amortization expense, interest expense, other expense, net, and certain non-recurring or unusual items that are not part of recurring operations such as, restructuring and other charges, impairment of goodwill, gains (losses) on business disposals, loss on assets classified as held for sale, divestiture and integration related costs, strategic initiative costs, regulatory costs and other items.

Adjusted EPS ex Amortization excludes the impact of non-operational items including, restructuring and other charges, impairment of goodwill, divestitures and integration related costs, losses (gains) on business disposals, loss on assets classified as held for sale, pension settlement losses (gains), strategic initiative costs, regulatory costs, redemption value adjustment to EPS and other items that are not a part of recurring operations.

Free Cash Flow is operating cash flow (i.e. cash flow from operations) less capital expenditures.

Net debt to credit adjusted EBITDA is the leverage ratio used in our credit agreements and defined as net debt (which is debt for borrowed money less cash and cash equivalents) divided by the trailing 12-month credit adjusted EBITDA. Credit adjusted EBITDA is defined as income (loss) before interest expense, income taxes, depreciation and amortization, specified items and non-cash items.

Adjusted selling and administrative expenses exclude divestiture and integration related costs, strategic initiative costs, regulatory costs, entity realignment costs and other costs.

Adjusted gross profit excludes divestiture and integration related costs.

These non-GAAP measures are intended to provide additional information regarding our underlying operating results and comparable year-over-year performance. Such information is supplemental to information presented in accordance with GAAP and is not intended to represent a presentation in accordance with GAAP. In discussing our historical and expected future results and financial condition, we believe it is meaningful for investors to be made aware of and to be assisted in a better understanding of, on a period-to-period comparable basis, financial amounts both including and excluding these identified items, as well as the impact of exchange rate fluctuations. These non-GAAP measures should not be considered in isolation or as substitutes for analysis of the Company's results under GAAP and may not be comparable to other companies' calculation of such metrics.

We have also presented a non-GAAP measure, adjusted operating EBITDA, in the Financial Guidance provided above. Adjusted operating EBITDA is defined in the previous section of this release and we believe this measure is useful in understanding the Financial Guidance for the same reasons mentioned in that section. The comparable GAAP metric would be Net income (loss), which we do not provide guidance on. Reconciliations from such estimated GAAP metric to the presented non-GAAP metric would also require unreasonable effort because such reconciliations would depend upon events which are uncertain in timing or amounts, and activities which are not completely controlled by us. This includes, by way of illustration, possible transactions and related costs and amounts, known and unknown matters involving regulatory and other bodies and future events involving third parties.

Welcome to IFF

At IFF (NYSE:IFF), we make joy through science, creativity and heart. As the global leader in flavors, fragrances, food ingredients, health and biosciences, we deliver groundbreaking, sustainable innovations that elevate everyday products—advancing wellness, delighting the senses and enhancing the human experience. Learn more at iff.com, LinkedIn, Instagram and Facebook.

NMF Not meaningful

The following table reconciles cash, cash equivalents and restricted cash between the Company's balance sheets as of December 31, 2025 and 2024 to the amounts reported on the Company's statement of cash flows for the periods ended December 31, 2025 and 2024.

International Flavors & Fragrances Inc.

GAAP to Non-GAAP Reconciliation

(Unaudited)

The following information and schedules provide reconciliation information between reported GAAP amounts and non-GAAP certain adjusted amounts. This information and schedules are not intended as, and should not be viewed as, a substitute for reported GAAP amounts or financial statements of the Company prepared and presented in accordance with GAAP.

International Flavors & Fragrances Inc.

GAAP to Non-GAAP Reconciliation

(Unaudited)

The following information and schedules provide reconciliation information between reported GAAP amounts and non-GAAP certain adjusted amounts. This information and schedules are not intended as, and should not be viewed as, a substitute for reported GAAP amounts or financial statements of the Company prepared and presented in accordance with GAAP.

International Flavors & Fragrances Inc.

GAAP to Non-GAAP Reconciliation

(Unaudited)

The following information and schedules provide reconciliation information between reported GAAP amounts and non-GAAP certain adjusted amounts. This information and schedules are not intended as, and should not be viewed as, a substitute for reported GAAP amounts or financial statements of the Company prepared and presented in accordance with GAAP.

International Flavors & Fragrances Inc.

GAAP to Non-GAAP Reconciliation

(Unaudited)

The following information and schedules provide reconciliation information between reported GAAP amounts and non-GAAP certain adjusted amounts. This information and schedules are not intended as, and should not be viewed as, a substitute for reported GAAP amounts or financial statements of the Company prepared and presented in accordance with GAAP.

International Flavors & Fragrances Inc.

Debt Covenants

(Amounts in millions)

(Unaudited)

The following information and schedules provide reconciliation information between reported GAAP amounts and non-GAAP certain adjusted amounts. This information and schedules are not intended as, and should not be viewed as, a substitute for reported GAAP amounts or financial statements of the Company prepared and presented in accordance with GAAP.

International Flavors & Fragrances Inc.

Comparable Reportable Segment Performance

(Amounts in millions)

(Unaudited)

The following information and schedule provides reconciliation information between reported GAAP amounts and non-GAAP certain adjusted amounts. This information and schedule is not intended as, and should not be viewed as, a substitute for reported GAAP amounts or financial statements of the Company prepared and presented in accordance with GAAP.