MILWAUKEE--(BUSINESS WIRE)--February 13, 2026--
Sensient Technologies Corporation $(SXT)$, a leading provider of flavors and colors for the food, pharmaceutical, and personal care markets, today reported financial results for the fourth quarter ended December 31, 2025.
Fourth Quarter Consolidated Results
-- Reported revenue increased 4.5% to $393.4 million in the fourth quarter
of 2025 versus last year's fourth quarter results of $376.4 million. On a
local currency basis(1), revenue increased 2.0%.
-- Reported operating income decreased 9.1% to $38.2 million compared to
$42.0 million recorded in the fourth quarter of 2024. In the fourth
quarter of 2025, the Company recorded $6.3 million of costs related to
its Portfolio Optimization Plan versus last year's $0.9 million in the
fourth quarter. Local currency adjusted operating income(1) and local
currency adjusted EBITDA(1) were both flat in the fourth quarter.
-- Reported earnings per share decreased 15.5% to 60 cents in the fourth
quarter of 2025 compared to 71 cents in the fourth quarter of 2024. Local
currency adjusted diluted EPS(1) increased 6.2% in the fourth quarter.
"Sensient delivered strong results in 2025 driven by exceptional new sales wins. We executed on our strategy, delivered meaningful value to our customers, and strengthened our position for the opportunities ahead. I remain very confident about our performance and the momentum we have going forward," said Paul Manning, Sensient's Chairman, President, and Chief Executive Officer.
Fourth Quarter Group Results
Reported Local Currency(1)
Revenue Quarter Year-to-Date Quarter Year-to-Date
---------------- ------- ------------ ---------- ----------------
Flavors &
Extracts -0.6% -0.9% -2.4% -1.3%
Color 10.9% 8.1% 7.0% 7.4%
Asia Pacific -1.0% 3.5% -1.9% 2.4%
Total Revenue 4.5% 3.5% 2.0% 2.9%
Reported Local Currency Adjusted(1)
Operating Income Quarter Year-to-Date Quarter Year-to-Date
---------------- ------- ------------ ---------- ----------------
Flavors &
Extracts -10.0% 3.8% -11.6% 3.4%
Color 12.2% 18.2% 7.2% 16.9%
Asia Pacific 2.4% 6.3% 0.6% 3.8%
Total Operating
Income -9.1% 8.1% -0.4% 11.1%
The Flavors & Extracts Group reported fourth quarter 2025 revenue of $187.0 million, a decrease of $1.1 million versus the prior year's fourth quarter. The Group's revenue was unfavorably impacted by lower volumes, particularly in the agricultural ingredients product line. This decline was partially offset by higher prices. Segment operating income was $19.2 million in the fourth quarter of 2025, a decrease of $2.1 million compared to the prior year's fourth quarter. The decrease in segment operating income was driven by the decline in the volume in the agricultural ingredients product line along with a one-time charge of approximately $3 million stemming from the impact of severe rains from atmospheric river events late in the year that disrupted the harvest and production.
The Color Group reported revenue of $175.4 million in the fourth quarter of 2025, an increase of $17.3 million compared to the prior year's fourth quarter. The Group's revenue increase was driven by strong volume growth and higher prices in the food and pharmaceutical product lines. Segment operating income was $29.8 million in the fourth quarter of 2025, an increase of $3.2 million compared to the prior year's fourth quarter results.
The Asia Pacific Group reported revenue of $41.4 million in the fourth quarter of 2025, a decrease of $0.4 million compared to the prior year's fourth quarter. Segment operating income was $8.7 million in the quarter, an increase of $0.2 million compared to the prior year's fourth quarter.
Corporate & Other reported operating expenses were $19.5 million in the fourth quarter of 2025, compared to $14.4 million of operating expenses reported in the prior year's fourth quarter. The higher operating expenses were primarily due to higher Portfolio Optimization Plan costs in the quarter. Local currency adjusted operating expenses(1) for Corporate & Other decreased $0.3 million compared to the prior year's fourth quarter, primarily due to lower performance-based compensation costs recorded in 2025.
2026 OUTLOOK
Metric Current Guidance
------------------------------------- -------------------------------------
Local Currency Revenue(1) Mid-Single-Digit to Double-Digit
Growth
Local Currency Adjusted EBITDA(1) Mid-Single-Digit to Double-Digit
Growth
Diluted EPS (GAAP) Between $3.60 and $3.80*
Local Currency Adjusted Diluted Mid-Single-Digit to High Single-Digit
EPS(1) Growth
*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.
(1) Please refer to "Reconciliation of Non-GAAP Amounts" at the end of this
release for more information regarding our non-GAAP financial
measures.
USE OF NON-GAAP FINANCIAL MEASURES
The Company's non-GAAP financial measures eliminate the impact of certain items, which, depending on the measure, include: currency movements, depreciation and amortization, Portfolio Optimization Plan costs, and non-cash share-based compensation. These measures are provided to enhance the overall understanding of the Company's performance when viewed together with the GAAP results. Refer to "Reconciliation of Non-GAAP Amounts" at the end of this release.
CONFERENCE CALL
The Company will host a conference call to discuss its 2025 fourth quarter financial results at 8:30 a.m. CST on Friday, February 13, 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 February 20, 2026 by calling (855) 669-9658 and using access code 4128932. 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 February 18, 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
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