INTERNATIONAL FLAVORS & FRAGRANCES INC
For the period ended Sep 30, 2026. Filed Nov 3, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 3, 2026
IFF$82.62-4.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-04.
0000051253-26-000030
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-03.
0000051253-26-000041
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 187 previous paragraphs and 189 current paragraphs.
113 unchanged; 51 reworded; 24 added; 20 removed; 3 previous and 1 current paragraphs rearranged.
Tables are not compared: 13 previous and 12 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (24)
Current report
Scent sales in 2026 increased $37 million, or 6% on a reported basis, to $689 million compared to $652 million in the prior year period. On a comparable currency neutral basis, Scent sales increased 6% in 2026 compared to the prior year period, primarily driven by volume increases of 7% across business units. Exchange rate variations remained flat.
Current report
R&D expenses increased $8 million to $170 million (8.8% of sales) in the third quarter of 2026 compared to $162 million (8.7% of sales) in the third quarter of 2025 primarily driven by higher incentive compensation expense.
Current report
S&A expenses increased $39 million to $387 million (19.9% of sales) in the third quarter of 2026 compared to $348 million (18.6% of sales) in the third quarter of 2025. The increase in S&A expenses was primarily driven by additional regulatory costs of $28 million and higher incentive compensation expense.
Current report
The Company recognized a $23 million goodwill impairment charge in 2026 related to the Botanicals & Food Enhancements disposal group. See Note 4 for additional information.
Current report
Amortization expenses decreased to $78 million in the third quarter of 2026 compared to $84 million in the third quarter of 2025. The decrease in amortization expense was primarily driven by the intangible assets of the Botanicals & Food Enhancements disposal group and Meat Cultures business being classified as held for sale, and therefore no longer recognizing amortization expense on those intangible assets. See Note 12 for additional information.
Current report
(Gains) Losses on Business Disposals
Current report
Other expense, net, increased to $14 million in the third quarter of 2026 compared to $13 million in the third quarter of 2025. See Note 9 for additional information.
Current report
The effective tax rate for the three months ended September 30, 2026 decreased to 5.2% compared to 23.8% for the three months ended September 30, 2025. The year-over-year decrease was primarily driven by a discrete tax benefit resulting from the resolution of a Mexican tax matter as well as a non-deductible goodwill impairment. Additionally, the Company has reviewed the Global Anti-Base Erosion Model Rules (“Pillar Two”) introduced by the Organisation for Economic Cooperation and Development (“OECD”) and has determined that Pillar Two did not have a significant impact on the current period and is not expected to have a significant impact on income tax expense for the fiscal 2026 period.
Current report
Taste Segment Adjusted Operating EBITDA increased $5 million, or 4% on a reported basis, to $128 million in the third quarter of 2026 (18.6% of segment sales) from $123 million (18.7% of segment sales) in the comparable 2025 period. On a comparable currency neutral basis, Taste Segment Adjusted Operating EBITDA increased 7% in 2026 compared to the prior year period led primarily by volume increases.
Current report
The Company completed the divestiture of the Pharma Solutions disposal group on May 1, 2025, and the Nitrocellulose business on May 9, 2025. Accordingly, there were no Pharma Solutions segment results reported for the nine months ended September 30, 2026.
Current report
R&D expenses increased $7 million to $494 million (8.5% of sales) in the first nine months of 2026 compared to $487 million (8.3% of sales) in the 2025 period. The increase in R&D expenses was primarily driven by higher incentive compensation expense.
Current report
S&A expenses increased $11 million to $1.158 billion (20.0% of sales) in the first nine months of 2026 compared to $1.147 billion (19.6% of sales) in the 2025 period. The increase in S&A expenses was primarily driven by increased regulatory costs of $45 million and higher incentive compensation expense of $44 million, partially offset by lower divestiture costs of $63 million.
Current report
Impairment of Goodwill
Current report
(Gains) Losses on Business Disposals
Current report
The effective tax rate for the nine months ended September 30, 2026 was 51.6% compared to (9.3)% for the nine months ended September 30, 2025. The year-over-year increase was primarily driven by non-deductible regulatory costs and changes in the mix of earnings following business divestitures, as well as tax costs associated with repatriation activities, partially offset by a discrete benefit resulting from the resolution of a Mexican tax matter. For the nine months ended September 30, 2025, benefits were received primarily driven by the entity realignment project and favorable legislative changes impacting U.S. foreign inclusions. These were offset by goodwill impairment and the impact of business divestitures. Additionally, the Company has reviewed the Pillar Two rules introduced by the OECD and has determined that Pillar Two did not have a significant impact on the current period and is not expected to have a significant impact on income tax expense for the fiscal 2026 period.
Current report
Taste Segment Adjusted Operating EBITDA increased $35 million, or 9% on a reported basis, to $404 million in the first nine months of 2026 (19.7% of segment sales) from $369 million (18.8% of segment sales) in the comparable 2025 period. On a comparable currency neutral basis, Taste Segment Adjusted Operating EBITDA increased 11% in 2026 compared to the prior year period, primarily driven by volume increases. Comparable portfolio results exclude the impact of the divestiture of the Rene Laurent business with a EBITDA impact of approximately $5 million.
Current report
Scent Segment Adjusted Operating EBITDA increased $28 million, or 7% on a reported basis, to $414 million in the first nine months of 2026 (20.6% of segment sales) from $386 million (20.7% of segment sales) in the comparable 2025 period. On a comparable currency neutral basis, Scent Segment Adjusted Operating EBITDA increased 5% in 2026 compared to the prior year period, primarily driven by volume increases and the $9 million net benefit of tariff refunds.
Current report
The Company completed the divestiture of the Pharma Solutions disposal group on May 1, 2025, and the Nitrocellulose business on May 9, 2025. Accordingly, there were no Pharma Solutions segment results reported for the nine months ended September 30, 2026.
Current report
On August 21, 2026, the Company entered into an ASR agreement with Wells Fargo Bank, National Association to repurchase the Company’s shares under a forward share repurchase transaction. During the three months ended September 30, 2026, the Company received approximately 4.8 million shares related to the ASR Agreement and recorded $500 million to treasury stock for the cost of shares received as well as associated fees and excise tax. On November 3, 2026, upon final settlement of the ASR agreement, the Company received approximately 1 million additional shares.
Current report
Factoring Arrangements
Current report
We utilize both company-sponsored and customer-sponsored non-recourse receivables factoring programs as part of our working capital and liquidity management strategy. Under these arrangements, we sell the trade receivables to unrelated financial institutions and account for the transactions as sales of receivables. On a total Company basis (including both continuing operations and discontinued operations), during the nine months ended September 30, 2026 and September 30, 2025, we sold approximately$1,162 million and $824 million respectively, of receivables under our own factoring agreements and $305 million and $556 million respectively, of receivables under customer-sponsored factoring agreements. Both company-sponsored and customer-sponsored agreements generated cash proceeds that were reflected in operating cash flows. The Company has$575 millionof total capacity under its company-sponsored factoring agreements, of which approximately$294 million is available as of September 30, 2026.
Current report
Our participation in these programs accelerates the conversion of trade receivables into cash and provides an additional source of short-term liquidity, resulting in a benefit to operating cash flow for the period. While we do not depend on these arrangements to fund our operations or capital requirements, a material reduction or discontinuation of the programs could temporarily cause an unfavorable impact on operating cash flows because receivables would remain outstanding longer before cash collection. Refer to Note 1 for further information regarding these arrangements.
Current report
Delayed Draw Term Loan Facility
Current report
As of September 30, 2026, we had $1.0 billion outstanding under our senior unsecured delayed draw term loan facility. Borrowings bear interest at Term SOFR plus an applicable margin ranging from 0.875% to 1.500% per year, or, at our option, a base rate plus an applicable margin ranging from 0.000% to 0.500% per year, in each case based on our public debt ratings. The loan has a contractual maturity of December 31, 2027, but is subject to mandatory prepayment with the net cash proceeds from the sale of our Food Ingredients business. See Note 14 for additional information.
Removed paragraphs (20)
Previous report
Scent sales in 2026 increased $62 million, or 10% on a reported basis, to $665 million compared to $603 million in the prior year period. On a comparable currency neutral basis, Scent sales increased 8% in 2026 compared to the prior year period primarily driven by volume increases in Fragrance Compounds, partially offset by volume decreases in Fragrance Ingredients. Exchange rate variations had a favorable impact of 2%.
Previous report
The Company completed the divestiture of the Pharma Solutions disposal group on May 1, 2025, and the Nitrocellulose business on May 9, 2025. Accordingly, there were no Pharma Solutions segment results reported for the second quarter of 2026.
Previous report
R&D expenses were flat at $170 million in the second quarter of 2026 (8.7% of sales) and in the second quarter of 2025 (8.9% of sales).
Previous report
S&A expenses increased $28 million to $437 million (22.4% of sales) in the second quarter of 2026 compared to $409 million (21.3% of sales) in the second quarter of 2025. The increase in S&A expenses was primarily driven by higher incentive compensation expense and regulatory costs, partially offset by lower consulting fees incurred in relation to business divestitures.
Previous report
Amortization expenses were flat at $82 million in the second quarter of 2026 and 2025. See Note 12 for additional information.
Previous report
Losses on Business Disposals
Previous report
Other expense, net, remained flat at $20 million in the second quarter of 2026 and 2025. See Note 9 for additional information.
Previous report
The effective tax rate for the three months ended June 30, 2026 increased to 48.4% compared to (25.6)% for the three months ended June 30, 2025. The increase was primarily driven by increased non-deductible regulatory costs, the entity realignment project in 2025, business divestitures and changes in the mix of earnings.
Previous report
Taste Segment Adjusted Operating EBITDA increased $7 million, or 6% on a reported basis, to $124 million in the second quarter of 2026 (18.0% of segment sales) from $117 million (17.9% of segment sales) in the comparable 2025 period. On a comparable currency neutral basis, Taste Segment Adjusted Operating EBITDA increased 6% in 2026 compared to the prior year period led primarily by volume growth and favorable net pricing.
Previous report
The Company completed the divestiture of the Pharma Solutions disposal group on May 1, 2025, and the Nitrocellulose business on May 9, 2025. Accordingly, there were no Pharma Solutions segment results reported for the second quarter of 2026.
Previous report
Pharma Solutions
Previous report
The Company completed the divestiture of the Pharma Solutions disposal group on May 1, 2025, and the Nitrocellulose business on May 9, 2025. Accordingly, there were no Pharma Solutions segment results reported for the first six months of 2026.
Previous report
R&D expenses decreased $1 million to $324 million (8.4% of sales) in the first six months of 2026 compared to $325 million (8.2% of sales) in the 2025 period. The decrease in R&D expenses was primarily driven by the impact of divestitures of approximately $9 million, offset by an increase in employee related costs and operating expenses for R&D related activities.
Previous report
S&A expenses decreased $28 million to $771 million (20.0% of sales) in the first six months of 2026 compared to $799 million (20.1% of sales) in the 2025 period. The decrease in S&A expenses was primarily driven by lower consulting fees incurred in relation to business divestitures, and impact of divestitures of approximately $24 million, offset by an increase in incentive compensation expense and regulatory costs.
Previous report
Gain on Extinguishment of Debt
Previous report
Losses on Business Disposals
Previous report
The effective tax rate for the six months ended June 30, 2026 was 27.7% compared to (17.5)% for the six months ended June 30, 2025. The increase was primarily driven by increased non-deductible regulatory costs, the entity realignment project in 2025, business divestitures and changes in the mix of earnings.
Previous report
Taste Segment Adjusted Operating EBITDA increased $30 million, or 12% on a reported basis, to $276 million in the first six months of 2026 (20.2% of segment sales) from $246 million (18.9% of segment sales) in the comparable 2025 period. On a comparable currency neutral basis, Taste Segment Adjusted Operating EBITDA increased 14% in 2026 compared to the prior year period primarily driven by volume increases and productivity gains.
Previous report
Health & Biosciences Segment Adjusted Operating EBITDA increased $28 million, or 11% on a reported basis, to $290 million in the first six months of 2026 (24.7% of segment sales) from $262 million in the comparable 2025 period (24.3% of segment sales). On a comparable currency neutral basis, Health & Biosciences Segment Adjusted Operating EBITDA increased 8% in 2026 compared to the prior year period primarily driven by productivity gains and volume increases.
Previous report
The Company completed the divestiture of the Pharma Solutions disposal group on May 1, 2025, and the Nitrocellulose business on May 9, 2025. Accordingly, there were no Pharma Solutions segment results reported for the six months ended June 30, 2026.
Reworded paragraphs (51)
Previous wording
On May 29, 2026, we announced that we entered into a definitive agreement to divest our Food Ingredients disposal group. We determined that the held for sale and discontinued operations criteria have been met during the second quarter of 2026 and the Company has classified the results of operations of its Food Ingredients disposal group, as well as the results of the SCL disposal group, as discontinued operations. Our Food Ingredients disposal group consists of a diversified portfolio across natural, artificial and plant-based specialty food ingredients that provide functional properties solutions for food and beverage products, as well as specialty soy protein with value-added formulations, emulsifiers and sweeteners.
Current wording
On May 29, 2026, we announced that we entered into a definitive agreement to divest our Food Ingredients disposal group. We determined that the held for sale and discontinued operations criteria have been met during the second quarter of 2026 and the Company has classified the results of operations of its Food Ingredients disposal group, as well as the results of the SCL disposal group, as discontinued operations for all periods presented. Our Food Ingredients disposal group consists of a diversified portfolio across natural, artificial and plant-based specialty food ingredients that provide functional properties solutions for food and beverage products, as well as specialty soy protein with value-added formulations, emulsifiers and sweeteners. The transaction is expected to close in the second quarter of 2027, subject to customary closing conditions and receipt of regulatory approvals.
Previous wording
Sales in the second quarter of 2026 increased $35 million, or 2% on a reported basis, to $1.954 billion compared to $1.919 billion in the 2025 period. On a comparable currency neutral basis, sales in the second quarter of 2026 increased 6% compared to the 2025 period. Exchange rate variations had a favorable impact 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. Comparable portfolio results exclude divestiture impacts of approximately $107 million from the sale of the Pharma Solutions disposal group, the Nitrocellulose disposal group and Rene Laurent business in France.
Current wording
Sales in the third quarter of 2026 increased $73 million, or 4% on a reported basis, to $1.942 billion compared to $1.869 billion in the 2025 period. On a comparable currency neutral basis, sales in the third quarter of 2026 increased 5% compared to the 2025 period. The increase was primarily driven by consolidated volume growth of 5%, with volume growth across all segments. The impact of exchange rate variations on net sales for the third quarter of 2026 was 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. Comparable portfolio results exclude divestiture impacts of approximately $6 million from the sale of the CitraSource business and Rene Laurent business in France.
Previous wording
Gross profit in the second quarter of 2026 increased $29 million, or 4%, to $853 million (43.7% of sales) compared to $824 million (42.9% of sales) in the 2025 period. The increase in gross profit was primarily driven by volume increases and productivity gains and the benefit of tariff refunds received and recognized during the quarter offset in part by the change in business portfolio mix due to divestitures.
Current wording
Gross profit in the third quarter of 2026 increased $26 million, or 3%, to $825 million (42.5% of sales) compared to $799 million (42.8% of sales) in the 2025 period. The increase in gross profit was primarily driven by consolidated volume growth of 5%, with volume growth across all segments, and the benefit of tariff refunds received and recognized during the quarter of $7 million, partially offset by the impact of divestitures of $5 million.
Previous wording
SECOND QUARTER 2026 IN COMPARISON TO SECOND QUARTER 2025
Current wording
THIRD QUARTER 2026 IN COMPARISON TO THIRD QUARTER 2025
Previous wording
(1)Impact of business divestitures in 2025 includes results of the Rene Laurent business (divested December 1, 2025), and the Pharma Solutions disposal group and Nitrocellulose business (divested May 1, 2025 and May 9, 2025, respectively).
Current wording
(1)Impact of business divestitures in 2025 includes results of the Rene Laurent business (divested December 1, 2025) and the CitraSource business (divested July 1, 2026).
Previous wording
Taste sales in 2026 increased $34 million, or 5% on a reported basis, to $688 million compared to $654 million in the prior year period. On a comparable currency neutral basis, Taste sales increased 4% in 2026 compared to the prior year period primarily driven by volume and price increases in the Flavors business unit. Exchange rate variations had a favorable impact of 1%. Comparable portfolio results exclude the impact of the divestiture of the Rene Laurent business with a sales impact of approximately$4 million.
Current wording
Taste sales in 2026 increased $29 million, or 4% on a reported basis, to $687 million compared to $658 million in the prior year period. On a comparable currency neutral basis, Taste sales increased 6% in 2026 compared to the prior year period, primarily driven by volume increases of 5% across various business units. Exchange rate variations had an unfavorable impact of 1%. Comparable portfolio results exclude the impact of the divestiture of the Rene Laurent business with a sales impact of approximately$4 million.
Previous wording
Health & Biosciences sales in 2026 increased $42 million, or 8% on a reported basis, to $601 million compared to $559 million in the prior year period. On a comparable currency neutral basis, Health & Biosciences sales increased 5% in 2026 compared to the prior year period primarily driven by volume increases across various business units. Exchange rate variations had a favorable impact of 3%.
Current wording
Health & Biosciences sales in 2026 increased $7 million, or 1% on a reported basis, to $566 million compared to $559 million in the prior year period. On a comparable currency neutral basis, Health & Biosciences sales increased 1% in 2026 compared to the prior year period, primarily driven by volume increases of 2% across various business units. Exchange rate variations remained flat.
Previous wording
Cost of sales increased $6 million to $1.101 billion (56.3% of sales) in the second quarter of 2026 compared to $1.095 billion (57.1% of sales) in the second quarter of 2025. The increase in cost of sales was primarily driven by volume increases offset in part by the impact of divestitures of approximately $69 million and the benefit of tariff refunds recognized during the quarter.
Current wording
Cost of sales increased $47 million to $1.117 billion (57.5% of sales) in the third quarter of 2026 compared to $1.070 billion (57.2% of sales) in the third quarter of 2025. The increase in cost of sales was primarily driven by volume increases of 5%.
Previous wording
Restructuring and other charges decreased to $6 million in the second quarter of 2026 compared to $20 million in the second quarter of 2025. The decrease was primarily driven by lower severance expense. Higher severance costs were incurred in 2025 at the beginning of the Productivity program. See Note 5 for additional information.
Current wording
Restructuring and other charges decreased to $5 million in the third quarter of 2026 compared to $14 million in the third quarter of 2025. The decrease was driven by lower severance expense. See Note 5 for additional information.
Previous wording
Interest expense decreased to $46 million in the second quarter of 2026 compared to $61 million in the second quarter of 2025. The decrease in interest expense was due to lower debt outstanding. See Note 14 for additional information.
Current wording
Interest expense decreased to $46 million in the third quarter of 2026 compared to $48 million in the third quarter of 2025. The decrease in interest expense was due to lower debt outstanding. See Note 14 for additional information.
Previous wording
Losses on business disposals was $1 million in the second quarter of 2026 compared to $111 million in the second quarter of 2025. The net loss in 2025 was primarily driven by the Pharma Solutions disposal group and Nitrocellulose business divestitures. See Note 4 for additional information.
Current wording
The net gain on business disposals was $2 million in the third quarter of 2026. The net gain in 2026 was driven by the post-closing adjustments for the Nitrocellulose divestiture. See Note 4 for additional information.
Previous wording
There was a $27 million loss on assets classified as held for sale in the second quarter of 2026 related to the CitraSource business. See Note 4 for additional information.
Current wording
There was a $236 million loss on assets classified as held for sale in the third quarter of 2026 related to the Botanicals & Food Enhancements disposal group. See Note 4 for additional information.
Previous wording
Scent Segment Adjusted Operating EBITDA increased $16 million, or 6% on a reported basis, to $275 million in the first six months of 2026 (20.9% of segment sales) from $259 million (21.3% of segment sales) in the comparable 2025 period. On a comparable currency neutral basis, Scent Segment Adjusted Operating EBITDA increased 2% in 2026 compared to the prior year period primarily driven by productivity gains and volume increases.
Current wording
Health & Biosciences Segment Adjusted Operating EBITDA increased $2 million, or 1% on a reported basis, to $136 million in the third quarter of 2026 (24.0% of segment sales) from $134 million in the comparable 2025 period (24.0% of segment sales). On a comparable currency neutral basis, Health & Biosciences Segment Adjusted Operating EBITDA increased 2% in 2026 compared to the prior year period led primarily by volume increases.
Previous wording
Scent Segment Adjusted Operating EBITDA increased $13 million, or 11% on a reported basis, to $134 million in the second quarter of 2026 (20.2% of segment sales) from $121 million (20.1% of segment sales) in the comparable 2025 period. On a comparable currency neutral basis, Scent Segment Adjusted Operating EBITDA increased 5% in 2026 compared to the prior year period led primarily by volume growth and favorable net pricing.
Current wording
Scent Segment Adjusted Operating EBITDA increased $12 million, or 9% on a reported basis, to $139 million in the third quarter of 2026 (20.2% of segment sales) from $127 million (19.5% of segment sales) in the comparable 2025 period. On a comparable currency neutral basis, Scent Segment Adjusted Operating EBITDA increased 10% in 2026 compared to the prior year period led primarily by volume increases and the net benefit of tariff refunds of $6 million.
Previous wording
FIRST SIX MONTHS 2026 IN COMPARISON TO FIRST SIX MONTHS 2025
Current wording
FIRST NINE MONTHS 2026 IN COMPARISON TO FIRST NINE MONTHS 2025
Previous wording
Sales for the first six months of 2026 decreased $109 million, or 3% on a reported basis, to $3.860 billion compared to $3.969 billion in the 2025 period. On a comparable currency neutral basis, sales for the first six months of 2026 increased 4% compared to the 2025 period. Exchange rate variations had a favorable impact on net sales in the first six months of 2026 of 3%. 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. Comparable portfolio results exclude the impact of divestitures which was approximately $379 million.
Current wording
Sales for the first nine months of 2026 decreased $36 million, or 1% on a reported basis, to $5.802 billion compared to $5.838 billion in the 2025 period. On a comparable currency neutral basis, sales for the first nine months of 2026 increased 4% compared to the 2025 period. Exchange rate variations had a favorable impact on net sales in the first nine months of 2026 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. Comparable portfolio results exclude the impact of divestitures which was approximately $385 million.
Previous wording
(1)Impact of business divestitures in 2025 includes results of the Rene Laurent business (divested December 1, 2025), and the Pharma Solutions disposal group and Nitrocellulose business (divested May 1, 2025 and May 9, 2025, respectively).
Current wording
(1)Impact of business divestitures in 2025 includes results of the Rene Laurent business (divested December 1, 2025), the CitraSource business (divested July 1, 2026), and the Pharma Solutions disposal group and Nitrocellulose business (divested May 1, 2025 and May 9, 2025, respectively).
Previous wording
Taste sales in 2026 increased $64 million, or 5% on a reported basis, to $1.368 billion compared to $1.304 billion in the prior year period. On a comparable currency neutral basis, Taste sales increased 3% in 2026 compared to the prior year period. Exchange rate variations had a favorable impact of 2%. Comparable portfolio results exclude the impact of the divestiture of the Rene Laurent business with a sales impact of approximately$10 million.
Current wording
Taste sales in 2026 increased $93 million, or 5% on a reported basis, to $2.055 billion compared to $1.962 billion in the prior year period. On a comparable currency neutral basis, Taste sales increased 4% in 2026 compared to the prior year period, primarily driven by volume increases of 3%. Exchange rate variations had a favorable impact of 2%. Comparable portfolio results exclude the impact of the divestiture of the Rene Laurent business with a sales impact of approximately$14 million.
Previous wording
Health & Biosciences sales in 2026 increased $97 million, or 9% on a reported basis, to $1.176 billion compared to $1.079 billion in the prior year period. On a comparable currency neutral basis, Health & Biosciences sales increased 5% in 2026 compared to the prior year period driven by volume increases. Exchange rate variations had a favorable impact of 4%.
Current wording
Health & Biosciences sales in 2026 increased $104 million, or 6% on a reported basis, to $1.742 billion compared to $1.638 billion in the prior year period. On a comparable currency neutral basis, Health & Biosciences sales increased 4% in 2026 compared to the prior year period, primarily driven by volume increases of 4%. Exchange rate variations had a favorable impact of 2%.
Previous wording
Scent sales in 2026 increased $99 million, or 8% on a reported basis, to $1.316 billion compared to $1.217 billion in the prior year period. On a comparable currency neutral basis, Scent sales increased 5% in 2026 compared to the prior year period driven by volume increases in the Fragrance Compounds business unit, partially offset by decreases across other business units. Exchange rate variations had a favorable impact of 3%.
Current wording
Scent sales in 2026 increased $136 million, or 7% on a reported basis, to $2.005 billion compared to $1.869 billion in the prior year period. On a comparable currency neutral basis, Scent sales increased 5% in 2026 compared to the prior year period, driven by volume increases of 6%. Exchange rate variations had a favorable impact of 2%.
Previous wording
Cost of sales decreased $115 million to $2.178 billion (56.4% of sales) in the first six months of 2026 compared to $2.293 billion (57.8% of sales) in the 2025 period. The decrease in cost of sales was primarily driven by the impact of divestitures of approximately $250 million and the benefit of tariff refunds recognized during the period, partially offsetin part by volume increases in sales.
Current wording
Cost of sales decreased $68 million to $3.295 billion (56.8% of sales) in the first nine months of 2026 compared to $3.363 billion (57.6% of sales) in the 2025 period. The decrease in cost of sales was primarily driven by the impact of divestitures of approximately $252 million and the benefit of tariff refunds recognized during the period of $33 million, partially offsetby volume increases of 4%.
Previous wording
Amortization expenses increased to $166 million in the first six months of 2026 compared to $162 million in the 2025 period. The increase in amortization expense was primarily driven by the impact of foreign currency exchange rates. See Note 12 for additional information.
Current wording
Amortization expenses decreased to $244 million in the first nine months of 2026 compared to $246 million in the 2025 period. The decrease in amortization expense was primarily driven by the intangible assets of the Botanicals & Food Enhancements disposal group and Meat Cultures business being classified as “held for sale,” and therefore no longer recognizing amortization expense on those intangible assets, partially offset by the impact of foreign currency exchange rates. See Note 12 for additional information.
Previous wording
The impairment of goodwill of $34 million in the 2025 period 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. See Note 7 for additional information.
Current wording
The impairment of goodwill decreased to $23 million in the first nine months of 2026 from $34 million in the 2025 period. The 2026 impairment of goodwill was related to the Botanicals & Food Enhancements disposal group. The 2025 impairment of goodwill was attributable to the portion of the Food Ingredients reporting unit that is not included within the Food Ingredients or SCL disposal groups. See Note 4 for additional information.
Previous wording
Restructuring and other charges decreased to $10 million in the first six months of 2026 compared to $35 million in the 2025 period. The decrease was driven by higher severance costs incurred as part of the IFF Productivity Program in 2025. See Note 5 for additional information.
Current wording
Restructuring and other charges decreased to $15 million in the first nine months of 2026 compared to $49 million in the 2025 period. The decrease was driven by lower severance costs incurred as part of the IFF Productivity Program in 2026 compared to 2025. See Note 5 for additional information.
Previous wording
Interest expense decreased to $90 million in the first six months of 2026 compared to $132 million in the 2025 period. The decrease in interest expense was due to lower debt outstanding. See Note 14 for additional information.
Current wording
Interest expense decreased to $136 million in the first nine months of 2026 compared to $180 million in the 2025 period. The decrease in interest expense was due to lower debt outstanding. See Note 14 for additional information.
Previous wording
Gain on extinguishment of debt was $488 million in the first six months 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 14 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, using the proceeds from the divestitures. See Note 14 for additional information.
Previous wording
Losses on business disposals was $1 million in the first six months of 2026 compared to $111 million in the 2025 period. The net loss in 2025 was primarily driven by the Pharma Solutions disposal group and Nitrocellulose business divestitures. See Note 4 for additional information.
Current wording
A net gain on business disposals of $1 million was recognized during the first nine months of 2026 compared to a net loss of $111 million during the 2025 period. The net loss in 2025 was primarily driven by the Pharma Solutions disposal group and Nitrocellulose business divestitures. See Note 4 for additional information.
Previous wording
There was a $27 million loss on assets classified as held for sale in the first six months of 2026 related to the CitraSource business. See Note 4 for additional information.
Current wording
During the first nine months of 2026, the Company recognized losses on assets classified as held for sale of $236 million related to the Botanicals & Food Enhancements disposal group and $27 million related to the CitraSource business. See Note 4 for additional information.
Previous wording
Other expense, net, was $33 million in the first six months of 2026 compared to $39 million in the 2025 period. The decrease was primarily due to decreased foreign exchange losses, partially offset by increased pension-related benefit. See Note 9 for additional information.
Current wording
Other expense, net, was $47 million in the first nine months of 2026 compared to $52 million in the 2025 period. The decrease was due to decreased foreign exchange losses, partially offset by lower pension-related benefit in 2026. See Note 9 for additional information.
Previous wording
Health & Biosciences Segment Adjusted Operating EBITDA increased $11 million, or 8% on a reported basis, to $150 million in the second quarter of 2026 (25.0% of segment sales) from $139 million in the comparable 2025 period (24.9% of segment sales). On a comparable currency neutral basis, Health & Biosciences Segment Adjusted Operating EBITDA increased 6% in 2026 compared to the prior year period driven by volume growth and favorable net pricing.
Current wording
Health & Biosciences Segment Adjusted Operating EBITDA increased $30 million, or 8% on a reported basis, to $426 million in the first nine months of 2026 (24.5% of segment sales) from $396 million in the comparable 2025 period (24.2% of segment sales). On a comparable currency neutral basis, Health & Biosciences Segment Adjusted Operating EBITDA increased 6% in 2026 compared to the prior year period, primarily driven by volume increases and the $8 million net benefit of tariff refunds.
Previous wording
We had cash and cash equivalents of $569 million at June 30, 2026 compared to $590 million on the Consolidated Balance Sheets, at December 31, 2025. 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 $519 million at September 30, 2026 compared to $590 million on the Consolidated Balance Sheets at December 31, 2025. Of the $519 million balance at September 30, 2026, $5 million was classified as assets held for sale and $242 million was included in current assets from discontinued operations. Of the $590 million balance at December 31, 2025, $243 million was included in current assets from discontinued operations. 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.
Previous wording
Effective utilization of the cash generated by our international operations is a critical component of our strategy. We regularly repatriate cash from our non-U.S. subsidiaries to fund financial obligations in the U.S. As we repatriate these funds to the U.S., there will be required income taxes payable in certain U.S. states and applicable foreign withholding taxes during the period when such repatriation occurs. Accordingly, as of June 30, 2026, we had a deferred tax liability of approximately $150 million for the effect of repatriating the funds to the U.S., attributable to various non-U.S. subsidiaries. There is no deferred tax liability associated with non-U.S. subsidiaries where we intend to indefinitely reinvest the earnings to fund local operations and/or capital projects.
Current wording
Effective utilization of the cash generated by our international operations is a critical component of our strategy. We regularly repatriate cash from our non-U.S. subsidiaries to fund financial obligations in the U.S. As we repatriate these funds to the U.S., there will be required income taxes payable in certain U.S. states and applicable foreign withholding taxes during the period when such repatriation occurs. Accordingly, as of September 30, 2026, we had a deferred tax liability of approximately $167 million for the effect of repatriating the funds to the U.S., attributable to various non-U.S. subsidiaries. There is no deferred tax liability associated with non-U.S. subsidiaries where we intend to indefinitely reinvest the earnings to fund local operations and/or capital projects.
Previous wording
Cash flows provided by operating activities for the six months ended June 30, 2026 were $679 million, compared to $368 million for the six months ended June 30, 2025. The increase in cash flows from operating activities during 2026 was primarily driven by the decrease in working capital, largely related to inventories, accounts payables and a smaller incentive compensation payout made in 2026 related to 2025 results compared to the prior year, partially offset by an increase in accounts receivable in the current year.
Current wording
Cash flows provided by operating activities for the nine months ended September 30, 2026 were $820 million, compared to $532 million for the nine months ended September 30, 2025. The increase in cash flows from operating activities during 2026 was primarily driven by the decrease in working capital, largely related to inventories, accounts payables and a smaller incentive compensation payout made in 2026 related to 2025 results compared to the prior year, partially offset by an increase in accounts receivable in the current year.
Previous wording
Cash flows used in investing activities for the six months ended June 30, 2026 were $133 million, compared to cash flows provided by investing activities of $2.541 billion in the prior year period. Cash flows provided by investing activities during 2025 were primarily comprised of net proceeds of $2.707 billion received in the prior year period from the divestitures of the Pharma Solutions disposal group, the Nitrocellulose business and the Tobacco Flavoring business in North America. Investing cash outflows in the current year were primarily driven by $301 million of additions to property, plant and equipment, partially offset by $201 million of net proceeds from the divestiture of the SCL disposal group and the collection of an earnout related to the prior year divestiture of the Pharma Solutions disposal group.
Current wording
Cash flows used in investing activities for the nine months ended September 30, 2026 were $274 million, compared to cash flows provided by investing activities of $2.426 billion in the prior year period. Investing cash outflows used in the current year were primarily driven by $449 million of additions to property, plant and equipment, partially offset by $247 million of net proceeds from the divestiture of the SCL disposal group, the collection of an earnout related to the prior year divestiture of the Pharma Solutions disposal group, and net proceeds from the divestiture of the CitraSource business. Cash flows provided by investing activities during 2025 were primarily comprised of net proceeds of $2.707 billion received in the prior year period from the divestitures of the Pharma Solutions disposal group, the Nitrocellulose business and the Tobacco Flavoring business in North America, partially offset by additions to property, plant and equipment of $406 million.
Previous wording
We have evaluated and re-prioritized our capital projects and expect that capital spending in 2026 will be approximately 6.0% of total company sales (net of potential grants and other reimbursements from government authorities), up from approximately 5.5% in 2025.
Current wording
We have evaluated and re-prioritized our capital projects and expect that capital spending in 2026 will be approximately 5.5% of total company sales (net of potential grants and other reimbursements from government authorities), consistent with capital spending in 2025.
Previous wording
Cash flows used in financing activities for the six months ended June 30, 2026 were $565 million, compared to $2.654 billion in the prior year period. The decrease in cash flows used in financing activities was primarily driven by the Company’s prior year purchase for cash of certain of its outstanding series of Senior Notes for an aggregate purchase price, excluding accrued and unpaid interest, of $2.0 billion. This decrease was partially offset by increased net repayments of commercial paper of $264 million during the six months ended June 30, 2026, in addition to $71 million of common stock repurchases under the share repurchase program that began on October 1, 2025.
Current wording
Cash flows used in financing activities for the nine months ended September 30, 2026 were $609 million, compared to $2.891 billion in the prior year period. The decrease in cash flows used in financing activities was primarily driven by the Company’s prior year purchase for cash of certain of its outstanding series of Senior Notes for an aggregate purchase price, excluding accrued and unpaid interest, of $2.0 billion, as well as $1.0 billion of proceeds from the Delayed Draw Term Loan Facility, which substantially funded the repayment of the €800 million ($912 million) 2026 Euro Notes on September 25, 2026. The decrease was also driven by decreased net commercial paper borrowings of $224 million during the nine months ended September 30, 2026 compared to $370 million in the 2025 period. The decrease was partially offset by $584 million of common stock repurchases under the Company’s share repurchase programs.
Previous wording
We paid dividends totaling $204 million in the 2026 period. We declared a cash dividend per share of $0.40 in the second quarter of 2026 that was paid on July 10, 2026 to all shareholders of record as of June 18, 2026.
Current wording
We paid dividends totaling $306 million in both the 2026 and 2025 periods. We declared a cash dividend per share of $0.40 in the third quarter of 2026 that was paid on October 9, 2026 to all shareholders of record as of September 18, 2026.
Previous wording
On August 4, 2026, the Company announced that its Board of Directors has authorized an enhanced share repurchase authorization with a total value of $2.5 billion, including approximately $400 million remaining on its prior authorization. Under the program, the Board of Directors also authorized an accelerated share repurchase of $500 million, which the Company expects to execute in the second half of 2026. The remaining $2.0 billion share repurchase is expected to be executed following the closing of the Food Ingredients disposal group divestiture, with an expected completion of the program by the end of 2027. The Board will review the share repurchase program periodically and may authorize adjustments of its term and size.
Current wording
On August 4, 2026, the Company announced that its Board of Directors authorized an enhanced share repurchase authorization with a total value of $2.5 billion; this amount included approximately $400 million remaining on its prior authorization. Under the program, the Board of Directors authorized an accelerated share repurchase (“ASR”) of $500 million.
Previous wording
At June 30, 2026, we were in compliance with all financial and other covenants, including the net debt to credit adjusted EBITDA(1) ratio. At June 30, 2026, our net debt to credit adjusted EBITDA(1) ratio was 2.51 to 1.0 as defined by the credit facility agreements, which is below the relevant level provided by our financial covenants of existing outstanding debt.
Current wording
At September 30, 2026, we were in compliance with all financial and other covenants, including the net debt to credit adjusted EBITDA(1) ratio. At September 30, 2026, our net debt to credit adjusted EBITDA(1) ratio was 2.75 to 1.0 as defined by the credit facility agreements, which is below the relevant level provided by our financial covenants of existing outstanding debt.
Previous wording
(1)Specified items consisted of restructuring and other charges, impairment of goodwill, divestiture costs, strategic initiative costs, regulatory costs, gain on debt extinguishment, entity realignment costs and other costs that are not related to recurring operations.
Current wording
(1)Specified items consisted of restructuring and other charges, impairment of goodwill, divestiture costs, strategic initiative costs, regulatory costs, and other costs that are not related to recurring operations.
Showing the first 40 of 51 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
The remaining unused amount of the share repurchase authorization is expected to be executed following the closing of the Food Ingredients disposal group divestiture, with an expected completion of the program by the end of 2027. The Board will review the share repurchase program periodically and may authorize adjustments of its term and size. The Company plans to fund repurchases from cash provided by operating activities, short-term debt and net cash proceeds provided by the divestiture of the Food Ingredients disposal group.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
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 14 for additional information.
Previous report — wording carried elsewhere
Following the completed divestitures of the Pharma Solutions disposal group on May 1, 2025 and the Nitrocellulose business on May 9, 2025, the Company reallocated certain corporate costs previously attributed to the Pharma Solutions segment. These costs have been redistributed across the Taste, Health & Biosciences, and Scent segments for comparability purposes.
Previous report — wording carried elsewhere
Pharma Solutions Segment Adjusted Operating EBITDA