International Flavors Q4 Earnings Miss Estimates, Sales Dip Y/Y

International Flavors & Fragrances Inc.IFF reported adjusted earnings of 80 cents per share in fourth-quarter 2025, missing the Zacks Consensus Estimate of 85 cents. The company posted adjusted EPS of 93 cents in the year-ago quarter, including the impacts of divestiture and integration-related costs, and other non-recurring costs. Excluding these, the company posted an adjusted EPS of 97 cents in the fourth quarter of 2024. 

Including one-time items, the company reported earnings of 7 cents per share against the prior-year quarter’s loss of 23 cents.

International Flavors’ net sales were $2.59 billion in the December-end quarter, down 6.6% from the year-ago quarter. The top line surpassed the Zacks Consensus Estimate of $2.51 billion. In the quarter, currency-neutral sales inched up 1%, aided by mid-single-digit growth in Health & Biosciences and Scent, and a low-single-digit performance in Taste.

International Flavors’ Q4 Gross Margin Improves Y/Y

In the reported quarter, IFF’s cost of goods sold was down 5.1% year over year to $1.7 billion. Gross profit fell 9.1% to $891 million. The gross margin came in at 34.4% compared with 35.4% in the year-ago quarter.

Research and development expenses increased 2.4% year over year to $174 million. Selling and administrative expenses rose 12.8% to $383 million in the fourth quarter. Adjusted operating EBITDA came in at $437 million, up 7.2% from the prior-year quarter’s $471 million. The adjusted operating EBITDA margin was 16.9% compared with the year-ago quarter’s 17%.

IFF’s Q4 Segmental Performances

Net sales in the Taste segment increased 2.1% year over year to $588 million in the December-end quarter. The figure surpassed our estimate of $572 million. The adjusted operating EBITDA was $94 million, up 8% year over year. Our estimate for the segment’s adjusted EBITDA was $113 million.

Net sales in the Food Ingredients segment fell 2.1% year over year to $802 million in the December-end quarter. The figure beat our estimate of $797 million. The adjusted operating EBITDA was $82 million, up 18% year over year. Our estimate for the segment’s adjusted EBITDA was $98 million.

Sales generated in the Health & Bioscience segment were $586 million compared with the year-earlier quarter’s $555 million. Our estimate was $542 million. The adjusted operating EBITDA was $155 million in the quarter, up 14% year over year. Our estimate for the segment’s adjusted EBITDA was $131 million.

The Scent segment’s sales were $610 million, up 5.5% year over year. Our projection was $567 million. The adjusted operating EBITDA remained flat year over year at $106 million. Our model had projected EBITDA of $107 million.

International Flavors’ Q4 Cash Flow & Balance Sheet Updates

IFF had cash and cash equivalents of $590 million at the end of 2025, up from $469 million at the end of 2024. Long-term debt was $4.74 billion at the 2025 end compared with $7.56 billion at the end of 2024.

International Flavors generated $0.85 billion in cash from operating activities in 2025, down from $1.07 billion in the prior year.

IFF’s 2025 Performance

The company reported adjusted earnings of $4.20 per share in 2025, missing the Zacks Consensus Estimate of $4.28. The company posted adjusted earnings of $4.22 in 2024. Including one-time items, the company reported a loss of $1.46 per share against the prior year’s earnings of $1.04.

International Flavors’ net sales were $10.89 billion in 2025, down 5.2% year over year. The top line surpassed the Zacks Consensus Estimate of $10.82 billion. In the year, currency-neutral sales rose 2%. The upside was driven by volume growth, productivity gains and favorable net pricing.

International Flavors’ 2026 Guidance

The company expects sales for fiscal 2026 between $10.5 billion and $10.8 billion. Adjusted EBITDA is expected between $2.05 billion and $2.15 billion.

IFF Stock’s Price Performance

In the past year, the company’s shares have lost 7% against the industry’s growth of 3.5%.

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International Flavors’ Zacks Rank

IFF currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Performance of Other Chemical - Specialty Stocks in Q3

Linde plcLIN reported fourth-quarter 2025 adjusted earnings per share of $4.20, which surpassed the Zacks Consensus Estimate of $4.18. The bottom line also improved from the year-ago quarter’s $3.97.

Linde’s sales of $8.76 billion surpassed the Zacks Consensus Estimate of $8.56 billion. The top line also increased from the year-ago quarter’s $8.28 billion.

PPG Industries, Inc.’s PPG fourth-quarter 2025 adjusted earnings per share were $1.51, down from $1.61 in the year-ago quarter, missing the Zacks Consensus Estimate of $1.57.

PPG Industries’ sales were $3.91 billion in the quarter, up 5% year over year. The top line beat the Zacks Consensus Estimate of $3.74 billion.

Ecolab Inc.’s ECL adjusted earnings in fourth-quarter 2025 were $2.08 per share, up from $1.81 a year ago. The figure beat the Zacks Consensus Estimate of $2.06.

Ecolab reported sales of $4.196 billion for the quarter, beating the Zacks Consensus Estimate of $4.193 billion. The company’s top line increased 4.8% year over year.

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