Reportable Segment Performance
| Three Months Ended September 30, 2026 |
|---|
| Taste | Health & Biosciences | Scent | Total |
|---|
| Net Sales | $687 | $566 | $689 | $1,942 |
|---|
| Cost of Sales | (419) | (305) | (392) | |
|---|
| Research & Development Expenses | (46) | (56) | (67) | |
|---|
| Selling & Administrative Expenses | (116) | (105) | (112) | |
|---|
| Depreciation Expense Add-back (a) | 22 | 36 | 21 | |
|---|
| Adjusted Operating EBITDA | $128 | $136 | $139 | $403 |
|---|
| Reconciliation of Adjusted Operating EBITDA: |
|---|
| Total Adjusted Operating EBITDA | $403 |
|---|
| Depreciation & Amortization | (156) |
|---|
| Interest Expense | (46) |
|---|
| Other Expense, net | (14) |
|---|
| Restructuring and Other Charges (b) | (5) |
|---|
| Impairment of Goodwill (c) | (23) |
|---|
| Gains on Business Disposals (d) | 2 |
|---|
| Loss on Assets Classified as Held for Sale (e) | (236) |
|---|
| Divestiture Costs (f) | (10) |
|---|
| Strategic Initiative Costs (g) | (9) |
|---|
| Regulatory Costs (h) | (34) |
|---|
| Other (k) | (6) |
|---|
| Income Before Taxes from Continuing Operations | $(134) |
|---|
| Segment Adjusted Operating EBITDA Margin |
|---|
| Taste | 18.6% |
|---|
| Health & Biosciences | 24.0% |
|---|
| Scent | 20.2% |
|---|
| Consolidated | 20.8% |
|---|
| Three Months Ended September 30, 2025 |
|---|
| Taste | Health & Biosciences | Scent | Total |
|---|
| Net Sales | $658 | $559 | $652 | $1,869 |
|---|
| Cost of Sales | (399) | (299) | (372) | |
|---|
| Research & Development Expenses | (41) | (57) | (64) | |
|---|
| Selling & Administrative Expenses | (112) | (101) | (107) | |
|---|
| Depreciation Expense Add-back (a) | 17 | 32 | 18 | |
|---|
| Adjusted Operating EBITDA | $123 | $134 | $127 | $384 |
|---|
| Reconciliation of Adjusted Operating EBITDA: |
|---|
| Total Adjusted Operating EBITDA | $384 |
|---|
| Depreciation & Amortization | (151) |
|---|
| Interest Expense | (48) |
|---|
| Other Expense, net | (13) |
|---|
| Restructuring and Other Charges (b) | (14) |
|---|
| Divestiture Costs (f) | (11) |
|---|
| Strategic Initiative Costs (g) | (10) |
|---|
| Regulatory Costs (h) | (7) |
|---|
| Income Before Taxes from Continuing Operations | $130 |
|---|
| Segment Adjusted Operating EBITDA Margin |
|---|
| Taste | 18.7% |
|---|
| Health & Biosciences | 24.0% |
|---|
| Scent | 19.5% |
|---|
| Consolidated | 20.5% |
|---|
| Nine Months Ended September 30, 2026 |
|---|
| Taste | Health & Biosciences | Scent | Total |
|---|
| Net Sales | $2,055 | $1,742 | $2,005 | $5,802 |
|---|
| Cost of Sales | (1,227) | (927) | (1,141) | |
|---|
| Research & Development Expenses | (139) | (167) | (187) | |
|---|
| Selling & Administrative Expenses | (344) | (324) | (321) | |
|---|
| Depreciation Expense Add-back (a) | 59 | 102 | 58 | |
|---|
| Adjusted Operating EBITDA | $404 | $426 | $414 | $1,244 |
|---|
| Reconciliation of Adjusted Operating EBITDA |
|---|
| Total Adjusted Operating EBITDA | $1,244 |
|---|
| Depreciation & Amortization | (462) |
|---|
| Interest Expense | (136) |
|---|
| Other Expense, net | (47) |
|---|
| Restructuring and Other Charges (b) | (15) |
|---|
| Impairment of Goodwill (c) | (23) |
|---|
| Gains on Business Disposals (d) | 1 |
|---|
| Loss on Assets Classified as Held for Sale (e) | (263) |
|---|
| Divestiture Costs (f) | (25) |
|---|
| Strategic Initiative Costs (g) | (27) |
|---|
| Regulatory Costs (h) | (115) |
|---|
| Entity Realignment Costs (j) | (2) |
|---|
| Other (k) | (4) |
|---|
| Income Before Taxes from Continuing Operations | $126 |
|---|
| Segment Adjusted Operating EBITDA Margin |
|---|
| Taste | 19.7% |
|---|
| Health & Biosciences | 24.5% |
|---|
| Scent | 20.6% |
|---|
| Consolidated | 21.4% |
|---|
| Nine Months Ended September 30, 2025 |
|---|
| Taste | Health & Biosciences | Scent | Pharma Solutions | Total |
|---|
| Net Sales | $1,962 | $1,638 | $1,869 | $369 | $5,838 |
|---|
| Cost of Sales | (1,190) | (875) | (1,051) | (248) | |
|---|
| Research & Development Expenses | (131) | (163) | (184) | (8) | |
|---|
| Selling & Administrative Expenses | (321) | (294) | (298) | (42) | |
|---|
| Depreciation Expense Add-back (a) | 49 | 90 | 50 | 5 | |
|---|
| Adjusted Operating EBITDA | $369 | $396 | $386 | $76 | $1,227 |
|---|
| Reconciliation of Adjusted Operating EBITDA: |
|---|
| Total Adjusted Operating EBITDA | $1,227 |
|---|
| Depreciation & Amortization | (439) |
|---|
| Interest Expense | (180) |
|---|
| Other Expense, net | (52) |
|---|
| Restructuring and Other Charges (b) | (49) |
|---|
| Impairment of Goodwill (c) | (34) |
|---|
| Losses on Business Disposals (d) | (111) |
|---|
| Divestiture Costs (f) | (88) |
|---|
| Strategic Initiative Costs (g) | (24) |
|---|
| Regulatory Costs (h) | (71) |
|---|
| Gain on Debt Extinguishment (i) | 488 |
|---|
| Entity Realignment Costs (j) | (5) |
|---|
| Other (k) | (6) |
|---|
| Income Before Taxes from Continuing Operations | $656 |
|---|
| Segment Adjusted Operating EBITDA Margin |
|---|
| Taste | 18.8% |
|---|
| Health & Biosciences | 24.2% |
|---|
| Scent | 20.7% |
|---|
| Pharma Solutions | 20.6% |
|---|
| Consolidated | 21.0% |
|---|
| (a) | There is depreciation recorded within cost of sales, research & development expenses, and selling & administrative expenses, which is then added back to calculate segment Adjusted Operating EBITDA. This reflects how the CODM reviews Segment results. |
|---|
| (b) | For 2026 and 2025, represents costs primarily related to severance as part of the IFF Productivity Program. |
|---|
| (c) | For 2026, represents the impairment of goodwill attributable to the Botanicals & Food Enhancements disposal group. For 2025, represents the impairment of goodwill attributable to the portion of the Food Ingredients reporting unit that is not included within the Food Ingredients or SCL disposal groups. |
|---|
| (d) | For 2026, primarily represents gains recognized as part of final settlement adjustments related to the divestiture of the Nitrocellulose business. For 2025, primarily represents losses recognized as part of the sale of the Pharma Solutions disposal group, offset in part by gains recognized on the sale of the Nitrocellulose business. |
|---|
| (e) | For 2026, represents the loss on assets classified as held for sale related to the Botanicals & Food Enhancements disposal group and the CitraSource business. |
|---|
| (f) | For 2026 and 2025, primarily represents costs related to the Company’s completed and anticipated divestitures, excluding external costs related to the planned divestiture of the Food Ingredients disposal group and the completed divestiture of the SCL disposal group. These costs primarily consisted of external consulting fees, professional and legal fees and salaries of individuals who are fully dedicated to such efforts. |
|---|
| (g) | Represents costs related to the Company’s strategic assessment and business portfolio optimization efforts and reorganizing the Global Business Services (GBS) Centers. In 2026, the GBS reorganization has been expanded to include additional functions such as customer service, supply chain and logistics in addition to human resources, accounting and finance, as well as additional efforts to automate processes and expand the use of artificial intelligence (AI) for these functions. These costs primarily consisted of external consulting fees and salaries of individuals who are fully dedicated to such efforts. Costs to develop software and AI are only included to the extent that they do not qualify for capitalization. |
|---|
| (h) | For 2026 and 2025, represents costs primarily related to provisions recognized for the ongoing investigations of the fragrance businesses and legal fees incurred. |
|---|
| (i) | For 2025, represents the gain recognized on the extinguishment of debt in connection with the completion of the tender offers. |
|---|
| (j) | For 2026 and 2025, primarily represents consulting costs related to the Company’s implementation of a phased restructuring initiative aimed at optimizing its legal entity framework. |
|---|
| (k) | For 2026 and 2025, primarily represents the net impact of costs related to severance for certain executives who have separated from the Company. For 2026, also represents losses recognized upon the sale of fixed assets. |
|---|
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.
For the three months ended September 30, 2026 and 2025, there was no difference between Reported (GAAP) and Adjusted (Non-GAAP) gross profit.
| Reconciliation of Selling and Administrative Expenses1 |
|---|
| Third Quarter |
|---|
| (DOLLARS IN MILLIONS) | 2026 | 2025 |
|---|
| Reported (GAAP) | $387 | $348 |
|---|
| Divestiture Costs (c) | (10) | (11) |
|---|
| Strategic Initiatives Costs (f) | (9) | (9) |
|---|
| Regulatory Costs (g) | (34) | (6) |
|---|
| Other (i) | (3) | (2) |
|---|
| Adjusted (Non-GAAP) | $331 | $320 |
|---|
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.
| Reconciliation of Net Income (Loss) and EPS from Continuing Operations1 |
|---|
| Third Quarter |
|---|
| 2026 | 2025 |
|---|
| (DOLLARS IN MILLIONS EXCEPT PER SHARE AMOUNTS) | Income before taxes | (Benefit) Provision for income taxes (j) | Net income attributable to IFF | Diluted EPS | Income before taxes | (Benefit) Provision for income taxes (j) | Net income attributable to IFF | Diluted EPS |
|---|
| Reported (GAAP) | $(134) | $(7) | $(127) | $(0.50) | $130 | $31 | $99 | $0.39 |
|---|
| Restructuring and Other Charges (a) | 5 | 1 | 4 | 0.01 | 14 | 3 | 11 | 0.04 |
|---|
| Impairment of goodwill (b) | 23 | — | 23 | 0.09 | — | — | — | — |
|---|
| Divestiture Costs (c) | 10 | 3 | 7 | 0.02 | 11 | 3 | 8 | 0.03 |
|---|
| Gains on Business Disposals (d) | (2) | (1) | (1) | — | — | (1) | 1 | — |
|---|
| Losses on Assets Classified as Held for Sale (e) | 236 | 48 | 188 | 0.73 | — | — | — | — |
|---|
| Strategic Initiative Costs (f) | 9 | 2 | 7 | 0.03 | 10 | 2 | 8 | 0.03 |
|---|
| Regulatory Costs (g) | 34 | 1 | 33 | 0.13 | 7 | 2 | 5 | 0.02 |
|---|
| Entity Realignment Costs (h) | — | (12) | 12 | 0.05 | — | — | — | — |
|---|
| Other (i) | 6 | — | 6 | 0.02 | — | 1 | (1) | — |
|---|
| Adjusted (Non-GAAP) | $187 | $35 | $152 | $0.58 | $172 | $41 | $131 | $0.51 |
|---|
| Reconciliation of Adjusted (Non-GAAP) EPS ex. Amortization1 |
|---|
| Third Quarter |
|---|
| (DOLLARS AND SHARE AMOUNTS IN MILLIONS) | 2026 | 2025 |
|---|
| Numerator |
|---|
| Adjusted (Non-GAAP) Net Income | $152 | $131 |
|---|
| Amortization of Acquisition related Intangible Assets | 78 | 84 |
|---|
| Tax impact on Amortization of Acquisition related Intangible Assets (j) | 19 | 20 |
|---|
| Amortization of Acquisition related Intangible Assets, net of tax (k) | 59 | 64 |
|---|
| Adjusted (Non-GAAP) Net Income ex. Amortization | $211 | $195 |
|---|
| Denominator |
|---|
| Weighted average shares assuming dilution (diluted) | 254 | 257 |
|---|
| Adjusted (Non-GAAP) EPS ex. Amortization | $0.83 | $0.76 |
|---|
| (a) | For 2026 and 2025, represents costs primarily related to severance as part of the IFF Productivity Program. |
|---|
| (b) | For 2026, represents the impairment of goodwill attributable to the Botanicals & Food Enhancements disposal group. |
|---|
| (c) | For 2026 and 2025, primarily represents costs related to the Company’s completed and anticipated divestitures, excluding external costs related to the planned divestiture of the Food Ingredients disposal group and the completed divestiture of the SCL disposal group. These costs primarily consisted of external consulting fees, professional and legal fees and salaries of individuals who are fully dedicated to such efforts. |
|---|
| (d) | For 2026, primarily represents gains recognized as part of final settlement adjustments related to the divestiture of the Nitrocellulose business in 2025. For 2025, primarily represents losses recognized as part of the sale of the Pharma Solutions disposal group, offset in part by gains recognized as part of the sale of the Nitrocellulose business. |
|---|
| (e) | For 2026, represents the loss on assets classified as held for sale related to the Botanicals & Food Enhancements disposal group. |
|---|
| (f) | Represents costs related to the Company’s strategic assessment and business portfolio optimization efforts and reorganizing the Global Business Services (GBS) Centers. In 2026, the GBS reorganization has been expanded to include additional functions such as customer service, supply chain and logistics in addition to human resources, accounting and finance, as well as additional efforts to automate processes and expand the use of artificial intelligence (AI) for these functions. These costs primarily consisted of external consulting fees and salaries of individuals who are fully dedicated to such efforts. Costs to develop software and AI are only included to the extent that they do not qualify for capitalization. |
|---|
| (g) | For 2026 and 2025, represents costs primarily related to legal fees incurred and provisions recognized for the ongoing investigations of the fragrance businesses. |
|---|
| (h) | In 2025, the Company implemented a phased restructuring initiative aimed at optimizing its legal entity framework and recognized a one-time tax benefit. In 2026, the Company updated the tax benefit previously recorded. |
|---|
| (i) | For 2026, represents the net impact of costs related to severance for certain executives who have separated from the Company, and losses recognized upon the sale of fixed assets. |
|---|
| (j) | The income tax effects of non-GAAP adjustments are calculated based on the applicable statutory tax rate for the relevant jurisdiction, except for those items which are non-taxable or subject to valuation allowances for which the tax expense (benefit) was calculated at 0%. The tax benefit for amortization is calculated in a similar manner as the tax effects of the non-GAAP adjustments. |
|---|
| (k) | Represents all amortization of intangible assets acquired in connection with acquisitions, net of tax. |
|---|
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.
For the nine months ended September 30, 2026 and 2025, there was no difference between Reported (GAAP) and Adjusted (Non-GAAP) gross profit.
| Reconciliation of Selling and Administrative Expenses1 |
|---|
| Third Quarter Year-to-Date |
|---|
| (DOLLARS IN MILLIONS) | 2026 | 2025 |
|---|
| Reported (GAAP) | $1,158 | $1,147 |
|---|
| Divestiture Costs (c) | (25) | (88) |
|---|
| Strategic Initiatives Costs (f) | (27) | (23) |
|---|
| Regulatory Costs (g) | (115) | (70) |
|---|
| Entity Realignment Costs (i) | (2) | (5) |
|---|
| Other (j) | (2) | (6) |
|---|
| Adjusted (Non-GAAP) | $987 | $955 |
|---|
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.
| Reconciliation of Net Income (Loss) and EPS from Continuing Operations1 |
|---|
| Third Quarter Year-to-Date |
|---|
| 2026 | 2025 |
|---|
| (DOLLARS IN MILLIONS EXCEPT PER SHARE AMOUNTS) | Income before taxes | Provision (Benefit) for income taxes (k) | Net income attributable to IFF (l) | Diluted EPS | Income before taxes | Provision (Benefit) for income taxes (k) | Net income attributable to IFF (l) | Diluted EPS |
|---|
| Reported (GAAP) | $126 | $65 | $60 | $0.23 | $656 | $(61) | $716 | $2.80 |
|---|
| Restructuring and Other Charges (a) | 15 | 4 | 11 | 0.04 | 49 | 11 | 38 | 0.15 |
|---|
| Impairment of Goodwill (b) | 23 | — | 23 | 0.09 | 34 | — | 34 | 0.13 |
|---|
| Divestiture Costs (c) | 25 | 5 | 20 | 0.08 | 88 | 37 | 51 | 0.20 |
|---|
| (Gains) losses on Business Disposals (d) | (1) | (1) | — | — | 111 | (138) | 249 | 0.97 |
|---|
| Losses on Assets Classified as Held for Sale (e) | 263 | 52 | 211 | 0.82 | — | — | — | — |
|---|
| Strategic Initiative Costs (f) | 27 | 6 | 21 | 0.08 | 24 | 5 | 19 | 0.07 |
|---|
| Regulatory Costs (g) | 115 | 4 | 111 | 0.43 | 71 | 17 | 54 | 0.21 |
|---|
| Gain on debt extinguishment (h) | — | — | — | — | (488) | (116) | (372) | (1.45) |
|---|
| Entity Realignment Costs (i) | 2 | (11) | 13 | 0.05 | 5 | 361 | (356) | (1.40) |
|---|
| Other (j) | 4 | — | 4 | 0.02 | 6 | 1 | 5 | 0.02 |
|---|
| Adjusted (Non-GAAP) | $599 | $124 | $474 | $1.84 | $556 | $117 | $438 | $1.70 |
|---|
| Reconciliation of Adjusted (Non-GAAP) EPS ex. Amortization1 |
|---|
| Third Quarter Year-to-Date |
|---|
| (DOLLARS AND SHARE AMOUNTS IN MILLIONS) | 2026 | 2025 |
|---|
| Numerator |
|---|
| Adjusted (Non-GAAP) Net Income | $474 | $438 |
|---|
| Amortization of Acquisition related Intangible Assets | 244 | 246 |
|---|
| Tax impact on Amortization of Acquisition related Intangible Assets (k) | 60 | 60 |
|---|
| Amortization of Acquisition related Intangible Assets, net of tax (m) | 184 | 186 |
|---|
| Adjusted (Non-GAAP) Net Income ex. Amortization | $658 | $624 |
|---|
| Denominator |
|---|
| Weighted average shares assuming dilution (diluted) | 255 | 255 |
|---|
| Adjusted (Non-GAAP) EPS ex. Amortization | $2.58 | $2.45 |
|---|
| (a) | For 2026 and 2025, represents costs primarily related to severance as part of the IFF Productivity Program. |
|---|
| (b) | For 2026, represents the impairment of goodwill attributable to the Botanicals & Food Enhancements disposal group. For 2025, represents the impairment of goodwill related to the Food Ingredients reporting unit that is not included in the Food Ingredients or SCL disposal groups. |
|---|
| (c) | For 2026 and 2025, primarily represents costs related to the Company’s completed and anticipated divestitures, excluding external costs related to the planned divestiture of the Food Ingredients disposal group and the completed divestiture of the SCL disposal group. These costs primarily consisted of external consulting fees, professional and legal fees and salaries of individuals who are fully dedicated to such efforts. |
|---|
| (d) | For 2026, primarily represents gains recognized as part of final settlement adjustments related to the divestiture of the Nitrocellulose business in 2025. For 2025, primarily represents losses recognized as part of the sale of the Pharma Solutions disposal group, offset in part by gains recognized as part of the sale of the Nitrocellulose business. |
|---|
| (e) | For 2026, represents the loss on assets classified as held for sale related to the CitraSource business and the Botanicals & Food Enhancements disposal group. |
|---|
| (f) | Represents costs related to the Company’s strategic assessment and business portfolio optimization efforts and reorganizing the Global Business Services (GBS) Centers. In 2026, the GBS reorganization has been expanded to include additional functions such as customer service, supply chain and logistics in addition to human resources, accounting and finance, as well as additional efforts to automate processes and expand the use of artificial intelligence (AI) for these functions. These costs primarily consisted of external consulting fees and salaries of individuals who are fully dedicated to such efforts. Costs to develop software and AI are only included to the extent that they do not qualify for capitalization. |
|---|
| (g) | For 2026 and 2025, represents costs primarily related to legal fees incurred and provisions recognized for the ongoing investigations of the fragrance businesses. |
|---|
| (h) | For 2025, represents the gain recognized on the extinguishment of debt in connection with the completion of the tender offers. |
|---|
| (i) | In 2025, the Company implemented a phased restructuring initiative aimed at optimizing its legal entity framework and recognized a one-time tax benefit. In 2026, the Company updated the tax benefit previously recorded. |
|---|
| (j) | For 2026 and 2025, primarily represents the net impact of costs related to severance for certain executives who have separated from the Company. For 2026, also represents losses recognized upon the sale of fixed assets. |
|---|
| (k) | The income tax effects of non-GAAP adjustments are calculated based on the applicable statutory tax rate for the relevant jurisdiction, except for those items which are non-taxable or subject to valuation allowances for which the tax expense (benefit) was calculated at 0%. The tax benefit for amortization is calculated in a similar manner as the tax effects of the non-GAAP adjustments. |
|---|
| (l) | For each of the nine months ended September 30, 2026 and September 30, 2025, reported and adjusted net income from continuing operations are each decreased by income attributable to non-controlling interest from continuing operations of $1 million. |
|---|
| (m) | Represents all amortization of intangible assets acquired in connection with acquisitions, net of tax. |
|---|
