INTERNATIONAL FLAVORS & FRAGRANCES INC

Previous wording

Our Pharma Solutions segment produced, among other things, a vast portfolio of cellulosics and seaweed-based pharmaceutical excipients, used to improve the functionality and delivery of active pharmaceutical ingredients, including controlled or modified drug release formulations, and enabling the development of more effective pharmaceutical finished dosage formulations. Our excipients are used in prescription and over-the-counter pharmaceuticals and dietary supplements. Our Pharma Solutions products also serve a variety of other specialty and industrial end-uses including coatings, inks, electronics, agriculture and consumer products. During March 2024, we announced the sale process and entered into an agreement to sell the Pharma Solutions business disposal group, that is primarily made up of most businesses within the Company’s existing Pharma Solutions reportable segment. The transaction closed on May 1, 2025. During October 2024, we entered into an agreement to sell the Nitrocellulose disposal group, which is within our existing Pharma Solutions reportable operating segment. The transaction closed on May 9, 2025. See Note 3 for additional information. As of June 30, 2025, there is no remaining business in the Pharma Solutions reportable operating segment.

Current wording

Our Pharma Solutions segment produced, among other things, a vast portfolio of cellulosics and seaweed-based pharmaceutical excipients, used to improve the functionality and delivery of active pharmaceutical ingredients, including controlled or modified drug release formulations, and enabling the development of more effective pharmaceutical finished dosage formulations. Our excipients are used in prescription and over-the-counter pharmaceuticals and dietary supplements. Our Pharma Solutions products also serve a variety of other specialty and industrial end-uses including coatings, inks, electronics, agriculture and consumer products. During March 2024, we announced the sale process and entered into an agreement to sell the Pharma Solutions business disposal group, that is primarily made up of most businesses within the Company’s existing Pharma Solutions reportable segment. The transaction closed on May 1, 2025. During October 2024, we entered into an agreement to sell the Nitrocellulose disposal group, which was within our existing Pharma Solutions reportable segment. The transaction closed on May 9, 2025. See Note 3 for additional information. As of May 9, 2025, there is no remaining business in the Pharma Solutions reportable segment.

Previous wording

Sales in the second quarter of 2025 decreased $125 million, or 4% on a reported basis, to $2.764 billion compared to $2.889 billion in the 2024 period. On a currency neutral basis, sales in the second quarter of 2025 decreased 4% compared to the 2024 period as exchange rate variations were flat. The effect of exchange rates can vary by business and region, depending upon the mix of sales priced in U.S. dollars as compared to other currencies. The decrease in currency neutral sales was primarily driven by the divestiture impacts of approximately $193 million from the sale of the Pharma Solutions disposal group, Nitrocellulose disposal group, and Flavors & Essences UK (“F&E UK”) (“change in business portfolio mix due to divestitures”), offset in part by volume increases across all segments.

Current wording

Sales in the third quarter of 2025 decreased $231 million, or 8% on a reported basis, to $2.694 billion compared to $2.925 billion in the 2024 period. On a comparable currency neutral basis, sales in the third quarter of 2025 remained flat compared to the 2024 period primarily driven by favorable net pricing and volume increases driven by Scent and Taste. Exchange rate variations had a favorable impact. The effect of exchange rates can vary by business and region, depending upon the mix of sales priced in U.S. dollars as compared to other currencies. The divestiture impacts of approximately $282 million were from the sale of the Pharma Solutions disposal group, Nitrocellulose disposal group, and Flavors & Essences UK (“F&E UK”) (“change in business portfolio mix due to divestitures”).

Previous wording

Gross profit in the second quarter of 2025 decreased $38 million, or 4%, to $1.030 billion (37.3% of sales) compared to $1,068 million (37.0% of sales) in the 2024 period. The decrease in gross profit was primarily driven by the change in business portfolio mix due to divestitures, offset in part by volume increases and productivity gains.

Current wording

Gross profit in the third quarter of 2025 decreased $69 million, or 7%, to $983 million (36.5% of sales) compared to $1.052 billion (36.0% of sales) in the 2024 period. The decrease in gross profit was primarily driven by the change in business portfolio mix due to divestitures of approximately $103 million, offset in part by favorable net pricing and productivity gains.

Previous wording

SECOND QUARTER 2025 IN COMPARISON TO SECOND QUARTER 2024

Current wording

THIRD QUARTER 2025 IN COMPARISON TO THIRD QUARTER 2024

Previous wording

Comparable reported performance by segment was as follows:

Current wording

Comparable currency neutral reported performance by segment was as follows:

Previous wording

(1)Currency neutral sales are calculated by translating current year invoiced sale amounts at the exchange rates for the corresponding prior year period.

Current wording

(2)Currency neutral sales are calculated by translating current year invoiced sale amounts at the exchange rates for the corresponding prior year period.

Previous wording

Health & Biosciences sales in 2025 increased $21 million, or 4% on a reported basis, to $577 million compared to $556 million in the prior year period. On a currency neutral basis, Health & Biosciences sales increased 4% in 2025 compared to the prior year period as exchange rate variations were flat. Performance in the Health & Biosciences operating segment was driven by volume increases across various business units.

Current wording

Health & Biosciences sales in 2025 increased $9 million, or 2% on a reported basis, to $577 million compared to $568 million in the prior year period. On a comparable currency neutral basis, Health & Biosciences sales remained flat in 2025 compared to the prior year period, primarily driven by price and volume increases across various business units, offset by volume decreases in the Health business unit. Exchange rate variations had a favorable impact.

Previous wording

Scent sales in 2025 remained flat at $603 million compared to $603 million in the prior year period. On a currency neutral basis, Scent sales increased 1% in 2025 compared to the prior year period as exchange rate variations had an unfavorable impact. Performance in the Scent operating segment was driven by volume and price increases in Fine Fragrances and Consumer Fragrances offset by volume decreases in Fragrance Ingredients.

Current wording

Scent sales in 2025 increased $39 million, or 6% on a reported basis, to $652 million compared to $613 million in the prior year period. On a comparable currency neutral basis, Scent sales increased 5% in 2025 compared to the prior year period, primarily driven by volume increases in Fine Fragrance. Exchange rate variations had a favorable impact.

Previous wording

Cost of sales sold decreased $87 million to $1.734 billion (62.7% of sales) in the second quarter of 2025 compared to $1.821 billion (63.0% of sales) in the second quarter of 2024. The decrease in cost of sales was primarily driven the change in business portfolio mix due to divestitures, with an impact of approximately $130 million and by lower input costs and manufacturing expenses, lower unfavorable manufacturing absorption compared to the prior year period, offset in part by volume increases in sales.

Current wording

Cost of sales decreased $162 million to $1.711 billion (63.5% of sales) in the third quarter of 2025 compared to $1.873 billion (64.0% of sales) in the third quarter of 2024. The decrease in cost of sales was primarily driven by the change in business portfolio mix due to divestitures, with an impact of approximately $179 million and by lower input costs and manufacturing expenses, lower unfavorable manufacturing absorption compared to the prior year period, offset in part by volume increases in sales.

Previous wording

R&D expenses increased $9 million to $182 million (6.6% of sales) in the second quarter of 2025 compared to $173 million (6.0% of sales) in the second quarter of 2024. The increase in R&D expenses was primarily driven by an increase in employee related costs and operating expenses for R&D related activities, offset by the change in business portfolio mix due to divestitures, with an impact of approximately $8 million.

Current wording

R&D expenses increased $12 million to $174 million (6.5% of sales) in the third quarter of 2025 compared to $162 million (5.5% of sales) in the third quarter of 2024. The increase in R&D expenses was primarily driven by an increase in employee related costs and operating expenses for R&D related activities, offset by the change in business portfolio mix due to divestitures, with an impact of approximately $2 million.

Previous wording

S&A expenses decreased $10 million to $483 million (17.5% of sales) in the second quarter of 2025 compared to $493 million (17.1% of sales) in the second quarter of 2024. The decrease in S&A expenses was primarily driven by lower consulting fees incurred in relation to business divestitures, offset by the provision for the anticipated class action settlements related to the fragrance business.

Current wording

S&A expenses decreased $74 million to $421 million (15.6% of sales) in the third quarter of 2025 compared to $495 million (16.9% of sales) in the third quarter of 2024. The decrease in S&A expenses was primarily driven by a decrease in the incentive compensation expense and lower consulting fees incurred in relation to business divestitures.

Previous wording

Restructuring and other charges increased to $21 million in the second quarter of 2025 compared to $2 million in the second quarter of 2024. The increase was driven by higher severance costs incurred as part of the IFF Productivity Program. See Note 4 for additional information.

Current wording

Restructuring and other charges increased to $16 million in the third quarter of 2025 compared to $1 million in the third quarter of 2024. The increase was driven by higher severance costs incurred as part of the IFF Productivity Program. See Note 4 for additional information.

Previous wording

Interest expense decreased to $61 million in the second quarter of 2025 compared to $79 million in the second quarter of 2024. The decrease in interest expense was due to lower debt outstanding. See Note 13 for additional information.

Current wording

Interest expense decreased to $48 million in the third quarter of 2025 compared to $74 million in the third quarter of 2024. The decrease in interest expense was due to lower debt outstanding. See Note 13 for additional information.

Previous wording

Other expense, net, decreased to $10 million in the second quarter of 2025 compared to $15 million in the second quarter of 2024. The decrease of $5 million was primarily due to lower foreign exchange losses. See Note 8 for additional information.

Current wording

Other expense, net, decreased to $14 million in the third quarter of 2025 compared to $28 million in the third quarter of 2024. The decrease of $14 million was primarily due to lower foreign exchange losses. See Note 8 for additional information.

Previous wording

The effective tax rate for the three months ended June 30, 2025 decreased to (14.6)% compared to 6.0% for the three months ended June 30, 2024. The decrease was primarily driven by the tax benefit resulting from the entity realignment project, partially offset by the impact of business divestitures and changes in the mix of earnings following the divestitures.

Current wording

The effective tax rate for the three months ended September 30, 2025 was 26.8% compared to 37.9% for the three months ended September 30, 2024. The decrease was primarily driven by the tax impacts resulting from the entity realignment project, business divestitures and changes in the mix of earnings following the divestitures.

Previous wording

Comparable Adjusted Operating EBITDA by segment was as follows:

Current wording

Comparable Currency Neutral Adjusted Operating EBITDA by segment was as follows:

Previous wording

FIRST SIX MONTHS 2025 IN COMPARISON TO FIRST SIX MONTHS 2024

Current wording

FIRST NINE MONTHS 2025 IN COMPARISON TO FIRST NINE MONTHS 2024

Previous wording

Sales for the first six months of 2025 decreased $181 million, or 3% on a reported basis, to $5.607 billion compared to $5.788 billion in the 2024 period. On a currency neutral basis, sales for the first six months of 2025 decreased 1% compared to the 2024 period. Exchange rate variations had a unfavorable impact on net sales in the first six months of 2025 of 2%. The effect of exchange rates can vary by business and region, depending upon the mix of sales priced in U.S. dollars as compared to other currencies. In addition, the decrease in sales was primarily driven by the change in business portfolio mix due to divestitures which was approximately $224 million, offset in part by volume increases across various business lines.

Current wording

Sales for the first nine months of 2025 decreased $412 million, or 5% on a reported basis, to $8.301 billion compared to $8.713 billion in the 2024 period. On a comparable currency neutral basis, sales for the first nine months of 2025 increased 2% compared to the 2024 period. Exchange rate variations had an unfavorable impact on net sales in the first nine months of 2025 of 1%. The effect of exchange rates can vary by business and region, depending upon the mix of sales priced in U.S. dollars as compared to other currencies. In addition, the decrease in sales was primarily driven by the change in business portfolio mix due to divestitures which was approximately $506 million, offset in part by volume increases across various business lines.

Previous wording

Taste sales in 2025 increased $29 million, or 2% on a reported basis, to $1.258 billion compared to $1.229 billion in the prior year period. On a currency neutral basis, Taste sales increased 5% in 2025 compared to the prior year period as exchange rate variations had an unfavorable impact. Performance in the Taste operating segment was driven by price and volume increases across all business units.

Current wording

Taste sales in 2025 increased $41 million, or 2% on a reported basis, to $1.893 billion compared to $1.852 billion in the prior year period. On a comparable currency neutral basis, Taste sales increased 5% in 2025 compared to the prior year period, driven by volume increases and favorable net pricing across all business units. Exchange rate variations had an unfavorable impact and the impact of the divestiture of the F&E UK business was approximately $15 million.

Previous wording

Food Ingredients sales in 2025 decreased $57 million, or 3% on a reported basis, to $1.646 billion compared to $1.703 billion in the prior year period. On a currency neutral basis, Food Ingredients sales decreased 2% in 2025 compared to the prior year period as exchange rates variations had an unfavorable impact. Performance in the Food Ingredients operating segment was primarily driven by volume decreases within the Protein Solutions business unit offset by volume increases within the Inclusions business unit.

Current wording

Food Ingredients sales in 2025 decreased $70 million, or 3% on a reported basis, to $2.476 billion compared to $2.546 billion in the prior year period. On a comparable currency neutral basis, Food Ingredients sales decreased 2% in 2025 compared to the prior year period, primarily driven by volume decreases and unfavorable net pricing. Exchange rates variations had an unfavorable impact.

Previous wording

Health & Biosciences sales in 2025 increased $32 million, or 3% on a reported basis, to $1.117 billion compared to $1.085 billion in the prior year period. On a currency neutral basis, Health & Biosciences sales increased 4% in 2025 compared to the prior year period as exchange rate variations had an unfavorable impact. Performance in the Health & Biosciences operating segment was driven by price and volume increases across all business units.

Current wording

Health & Biosciences sales in 2025 increased $41 million, or 2% on a reported basis, to $1.694 billion compared to $1.653 billion in the prior year period. On a comparable currency neutral basis, Health & Biosciences sales increased 3% in 2025 compared to the prior year period, primarily driven by price and volume increases. Exchange rate variations had an unfavorable impact.

Previous wording

Scent sales in 2025 decreased $31 million, or 2% on a reported basis, to $1.217 billion compared to $1.248 billion in the prior year period. On a currency neutral basis, Scent sales remained flat in 2025 compared to the prior year period as exchange rate variations had an unfavorable impact. Performance in the Scent operating segment was driven by price increases in the Fragrance Compounds business unit and volume increases across all business lines, offset in part by the divestiture of the Cosmetic Ingredients business, with a sales impact of approximately $27 million.

Current wording

Scent sales in 2025 remained flat at $1.869 billion compared to $1.861 billion in the prior year period. On a comparable currency neutral basis, Scent sales increased 3% in 2025 compared to the prior year period, primarily driven by price and volume increases in the Fine Fragrances business unit. Exchange rate variations had an unfavorable impact and the divestiture of the Cosmetic Ingredients business had a sales impact of approximately $27 million.

Previous wording

Pharma Solutions sales in 2025 decreased $154 million, or 29% on a reported basis, to $369 million compared to $523 million in the prior year period. On a currency neutral basis, Pharma Solutions sales decreased 28% in 2025 compared to the prior year period as the impact of exchange rate variations was flat. This comparison reflects six months of contributions from both businesses in 2024, whereas 2025 includes only four months of activity prior to the divestitures, contributing significantly to the year-over-year decline. On a comparable basis only including four months for both periods, currency neutral sales increased 12% driven by volume and price increases. The sales impact of divestitures of the Pharma Solutions disposal group and Nitrocellulose disposal group was approximately $186 million.

Current wording

Pharma Solutions sales in 2025 decreased $432 million, or 54% on a reported basis, to $369 million compared to $801 million in the prior year period. On a comparable currency neutral basis, Pharma Solutions sales increased 12% in 2025 compared to the prior year period, driven by volume and price increases. The impact of exchange rate variations had an unfavorable impact and the divestitures of the Pharma Solutions disposal group and Nitrocellulose disposal group had a sales impact of approximately $464 million. This comparison reflects nine months of contributions from both businesses in 2024, whereas 2025 includes only four months of activity prior to the divestitures, contributing significantly to the year-over-year decline.

Previous wording

Cost of sales decreased $154 million to $3.542 billion (63.2% of sales) in the first six months of 2025 compared to $3.696 billion (63.9% of sales) in the 2024 period. The decrease in cost of sales was primarily driven by the change in business portfolio mix due to divestitures which was approximately $140 million.

Current wording

Cost of sales decreased $316 million to $5.253 billion (63.3% of sales) in the first nine months of 2025 compared to $5.569 billion (63.9% of sales) in the 2024 period. The decrease in cost of sales was primarily driven by the change in business portfolio mix due to divestitures which was approximately $320 million.

Previous wording

R&D expenses increased $7 million to $346 million (6.2% of sales) in the first six months of 2025 compared to $339 million (5.9% of sales) in the 2024 period. The increase in R&D expenses was primarily driven by an increase in employee related costs and operating expenses for R&D related activities, offset the change in business portfolio mix due to divestitures, with an impact of approximately $14 million.

Current wording

R&D expenses increased $19 million to $520 million (6.3% of sales) in the first nine months of 2025 compared to $501 million (5.8% of sales) in the 2024 period. The increase in R&D expenses was primarily driven by an increase in employee related costs and operating expenses for R&D related activities, offset the change in business portfolio mix due to divestitures, with an impact of approximately $13 million.

Previous wording

S&A expenses decreased $39 million to $944 million (16.8% of sales) in the first six months of 2025 compared to $983 million (17.0% of sales) in the 2024 period. The decrease in S&A expenses was primarily driven by lower consulting fees incurred in relation to business divestitures, offset by the provision for the anticipated class action settlements related to the Fragrance businesses.

Current wording

S&A expenses decreased $113 million to $1,365 million (16.4% of sales) in the first nine months of 2025 compared to $1.478 billion (17.0% of sales) in the 2024 period. The decrease in S&A expenses was primarily driven by a decrease in incentive compensation expense, lower consulting fees and professional and legal fees incurred in relation to business divestitures.

Previous wording

Amortization expenses decreased to $288 million in the first six months of 2025 compared to $321 million in the 2024 period. The decrease in amortization expense was primarily driven by the intangible assets of the Pharma Solutions disposal group being classified as “held for sale,” and therefore no longer recognizing amortization expense on those intangible assets. See Note 3 for additional information.

Current wording

Amortization expenses decreased to $434 million in the first nine months of 2025 compared to $467 million in the 2024 period. The decrease in amortization expense was primarily driven by the intangible assets of the Pharma Solutions disposal group being classified as “held for sale,” and therefore no longer recognizing amortization expense on those intangible assets. See Note 3 for additional information.

Previous wording

The impairment of goodwill was $1.153 billion in the first six months of 2025 compared to $64 million in the 2024 period. The 2025 impairment of goodwill was related to the Food Ingredients reporting unit, and the 2024 impairment of goodwill was related to the Pharma Solutions disposal group. See Note 3 for additional information.

Current wording

The impairment of goodwill was $1.153 billion in the first nine months of 2025 compared to $64 million in the 2024 period. The 2025 impairment of goodwill was related to the Food Ingredients reporting unit, and the 2024 impairment of goodwill was related to the Pharma Solutions disposal group. See Note 3 for additional information.

Previous wording

Restructuring and other charges increased to $38 million in the first six months of 2025 compared to $5 million in the 2024 period. The increase was driven by higher severance costs incurred as part of the IFF Productivity Program in 2025. See Note 4 for additional information.

Current wording

Restructuring and other charges increased to $54 million in the first nine months of 2025 compared to $6 million in the 2024 period. The increase was driven by higher severance costs incurred as part of the IFF Productivity Program in 2025. See Note 4 for additional information.

Previous wording

Interest expense decreased to $132 million in the first six months of 2025 compared to $162 million in the 2024 period. The decrease in interest expense was due to lower debt outstanding. See Note 13 for additional information.

Current wording

Interest expense decreased to $180 million in the first nine months of 2025 compared to $236 million in the 2024 period. The decrease in interest expense was due to lower debt outstanding. See Note 13 for additional information.

Previous wording

Gain on extinguishment of debt was $488 million in the second quarter of 2025 due to the repurchase of approximately $2.5 billion of notes for approximately $2.0 billion in cash, using the proceeds from the divestitures. See Note 13 for additional information.

Current wording

Gain on extinguishment of debt was $488 million in the first nine months of 2025 due to the repurchase of approximately $2.5 billion of notes for approximately $2.0 billion in cash. See Note 13 for additional information.

Previous wording

Losses (gains) on business disposals was $81 million in the first six months of 2025 compared to $(368) million in the 2024 period. The net loss in 2025 was primarily driven by the Pharma Solutions disposal group and Nitrocellulose business divestitures, while the gain recognized in 2024 related to the Cosmetic Ingredients business divestiture. See Note 3 for additional information.

Current wording

Losses (gains) on business disposals was $111 million in the first nine months of 2025 compared to $(348) million in the 2024 period. The net loss in 2025 was primarily driven by the Pharma Solutions disposal group and Nitrocellulose business divestitures, while the gain recognized in 2024 related to the Cosmetic Ingredients business divestiture, offset in part by the loss recognized on the sale of the F&E UK business. See Note 3 for additional information.

Previous wording

The effective tax rate for the six months ended June 30, 2025 was 12.0% compared to 21.8% for the six months ended June 30, 2024. The decrease was primarily driven by the tax benefit resulting from the entity realignment project, partially offset by the impact of business divestitures and changes in the mix of earnings following the divestitures.

Current wording

The effective tax rate for the nine months ended September 30, 2025 was 10.1% compared to 22.7% for the nine months ended September 30, 2024. The decrease was primarily driven by the tax impacts resulting from the entity realignment project, business divestitures and changes in the mix of earnings following the divestitures.

Previous wording

Comparable Adjusted Operating EBITDA by segments was as follows:

Current wording

Comparable Currency Neutral Adjusted Operating EBITDA by segments was as follows:

Previous wording

(1)Refer to Note 6 for a reconciliation of Adjusted Operating EBITDA to (Loss) Income Before Taxes.

Current wording

(1)Refer to Note 6 for a reconciliation of Adjusted Operating EBITDA to Income (Loss) Before Taxes.

Previous wording

Taste Segment Adjusted Operating EBITDA increased $12 million, or 5% on a reported basis, to $256 million in the first six months of 2025 (20.3% of segment sales) from $244 million (19.9% of segment sales) in the comparable 2024 period. On a currency neutral basis, Taste Segment Adjusted Operating EBITDA increased 9% in 2025 compared to the prior year period as exchange rate variations had an unfavorable impact. The performance was primarily driven by volume increases and productivity gains.

Current wording

Taste Segment Adjusted Operating EBITDA increased $11 million, or 3% on a reported basis, to $384 million in the first nine months of 2025 (20.3% of segment sales) from $373 million (20.1% of segment sales) in the comparable 2024 period. On a comparable currency neutral basis, Taste Segment Adjusted Operating EBITDA increased 8% in 2025 compared to the prior year period, primarily driven by volume increases and favorable net pricing.

Previous wording

Health & Biosciences Segment Adjusted Operating EBITDA remained flat on a reported basis, at $289 million in the first six months of 2025 (25.9% of segment sales) and in the comparable 2024 period (26.6% of segment sales). On a currency neutral basis, Health & Biosciences Segment Adjusted Operating EBITDA increased 2% in 2025 compared to the prior year period as exchange rate variations had an unfavorable impact. The performance was primarily driven by productivity gains and volume increases.

Current wording

Health & Biosciences Segment Adjusted Operating EBITDA remained flat on a reported basis, at $439 million in the first nine months of 2025 (25.9% of segment sales) and $441 million in the comparable 2024 period (26.7% of segment sales). On a comparable currency neutral basis, Health & Biosciences Segment Adjusted Operating EBITDA increased 3% in 2025 compared to the prior year period, primarily driven by productivity gains and volume increases.

Previous wording

Scent Segment Adjusted Operating EBITDA decreased $37 million, or 12% on a reported basis, to $274 million in the first six months of 2025 (22.5% of segment sales) from $311 million (24.9% of segment sales) in the comparable 2024 period. On a currency neutral basis, Scent Segment Adjusted Operating EBITDA decreased 4% in 2025 compared to the prior year period as exchange rate variations had an unfavorable impact. The performance was primarily driven by volume declines in Fragrance Ingredients, partially offset by strong performances in Fine Fragrances. Comparable portfolio results exclude the impact of the divestiture of the Cosmetic Ingredients business with an Adjusted Operating EBITDA impact of approximately $15 million.

Current wording

Scent Segment Adjusted Operating EBITDA decreased $30 million, or 7% on a reported basis, to $409 million in the first nine months of 2025 (21.9% of segment sales) from $439 million (23.6% of segment sales) in the comparable 2024 period. On a comparable currency neutral basis, Scent Segment Adjusted Operating EBITDA increased 2% in 2025 compared to the prior year period, primarily driven by strong performances in Fine Fragrances, partially offset by volume declines in Fragrance Ingredients. Comparable portfolio results exclude the impact of the divestiture of the Cosmetic Ingredients business with an Adjusted Operating EBITDA impact of approximately $14 million.

Previous wording

Pharma Solutions Segment Adjusted Operating EBITDA decreased $29 million, or 28% on a reported basis, to $76 million in the first six months of 2025 (20.6% of segment sales) from $105 million (20.1% of segment sales) in the comparable 2024 period. On a currency neutral basis, Pharma Solutions Segment Adjusted Operating EBITDA decreased 25% in 2025 compared to the prior year period as exchange rate variations had an unfavorable impact. The decrease was primarily driven by the divestitures of the Pharma Solutions disposal group and Nitrocellulose business, with an Adjusted Operating EBITDA impact of approximately $36 million. This comparison reflects two full quarters of contributions from both businesses in 2024, whereas 2025 includes only four months of activity prior to the divestitures, contributing significantly to the year-over-year decline.

Current wording

Pharma Solutions Segment Adjusted Operating EBITDA decreased $97 million, or 56% on a reported basis, to $76 million in the first nine months of 2025 (20.6% of segment sales) from $173 million (21.6% of segment sales) in the comparable 2024 period. On a comparable currency neutral basis, Pharma Solutions Segment Adjusted Operating EBITDA increased 16% in 2025 compared to the prior period. The divestitures of the Pharma Solutions disposal group and Nitrocellulose business had an impact on Adjusted Operating EBITDA of approximately $105 million. This comparison reflects three full quarters of contributions from both businesses in 2024, whereas 2025 includes only four months of activity prior to the divestitures, contributing significantly to the year-over-year decline.

Previous wording

We had cash and cash equivalents of $816 million at June 30, 2025 compared to $471 million, inclusive of $2 million in Assets held for sale on the Consolidated Balance Sheets, at December 31, 2024. A portion of this balance was held outside the United States. Cash balances held in foreign jurisdictions are, in most circumstances, available to be repatriated to the United States.

Current wording

We had cash and cash equivalents of $621 million on the Consolidated Balance Sheets at September 30, 2025 compared to$471 million, inclusive of $2 million in Assets held for sale on the Consolidated Balance Sheets, at December 31, 2024. A portion of this balance was held outside the United States. Cash balances held in foreign jurisdictions are, in most circumstances, available to be repatriated to the United States.