SENSIENT TECHNOLOGIES CORP

Previous wording

Revenue was $462.1 million and $414.2 million for the three months ended June 30, 2026 and 2025, respectively. Revenue was $897.9 million and $806.6 million for the six months ended June 30, 2026 and 2025, respectively. The increase in revenue for the three and six months ended June 30, 2026 was primarily due to higher volumes and selling prices and the favorable impact of foreign exchange rates that increased revenue by approximately 2% and 3%, respectively.

Current wording

Revenue was $455.8 million and $412.1 million for the three months ended September 30, 2026 and 2025, respectively. Revenue was $1.35 billion and $1.22 billion for the nine months ended September 30, 2026 and 2025, respectively. The increase in revenue for the three and nine months ended September 30, 2026 was primarily due to higher volumes and selling prices. Foreign exchange rates had an immaterial impact on consolidated revenue for the three months ended September 30, 2026. For the nine months ended September 30, 2026, the impact of foreign exchange rates increased consolidated revenue by approximately 2%.

Previous wording

The Company’s gross margin was 37.4% and 34.5% for the three months ended June 30, 2026 and 2025, respectively. The Company’s gross margin was 36.2% and 34.0% for the six months ended June 30, 2026 and 2025, respectively. For the three and six months ended June 30, 2025, Portfolio Optimization Plan costs totaling $1.8 million and $3.6 million, respectively, decreased gross margin by 40 and 50 basis points, respectively. See Portfolio Optimization Plan below for further information. For the three and six months ended June 30, 2026, the Company received $4.8 million of tariff refunds that improved gross margin by 100 and 50 basis points, respectively. The Company’s gross margins for the three and six months ended June 30, 2026 were further impacted by the higher volumes and selling prices, partially offset by higher raw material costs.

Current wording

The Company’s gross margin was 36.2% and 34.3% for the three months ended September 30, 2026 and 2025, respectively. The Company’s gross margin was 36.2% and 34.1% for the nine months ended September 30, 2026 and 2025, respectively. For the three and nine months ended September 30, 2025, Portfolio Optimization Plan costs totaling $0.6 million and $4.3 million, respectively, decreased gross margin by 20 and 40 basis points, respectively. See Portfolio Optimization Plan below for further information. For the nine months ended September 30, 2026, the Company received $4.8 million of tariff refunds that improved gross margin by 40 basis points. The Company’s gross margins for the three and nine months ended September 30, 2026 were further impacted by the higher volumes and selling prices, partially offset by higher raw material costs.

Previous wording

Selling and administrative expense as a percent of revenue was 20.8% and 20.6% for the three months ended June 30, 2026 and 2025, respectively. Selling and administrative expense as a percent of revenue was 20.3% for both the six months ended June 30, 2026 and 2025. For the three and six months ended June 30, 2025, selling and administrative expenses were increased by Portfolio Optimization Plan costs totaling $1.6 and $2.6 million, respectively, which increased selling and administrative expenses as a percent of revenue by approximately 40 basis points for each period. See Portfolio Optimization Plan below for further information. After the effects of the Portfolio Optimization Costs in 2025, the increase in selling and administrative expense as a percent of revenue for the three and six months ended June 30, 2026 was primarily due to higher performance-based executive compensation costs incurred in 2026.

Current wording

Selling and administrative expense as a percent of revenue was 20.3% for each of the three and nine months ended September 30, 2026 and 2025. For the three and nine months ended September 30, 2025, selling and administrative expenses were increased by Portfolio Optimization Plan costs totaling $2.7 and $5.3 million, respectively, which increased selling and administrative expenses as a percent of revenue by approximately 70 and 50 basis points, respectively. See Portfolio Optimization Plan below for further information. After the effects of the Portfolio Optimization Plan costs in 2025, the increase in selling and administrative expense as a percent of revenue for the three and nine months ended September 30, 2026 was primarily due to higher performance-based executive compensation costs incurred in 2026.

Previous wording

Operating income was $76.7 million and $57.7 million for the three months ended June 30, 2026 and 2025, respectively. Operating margins were 16.6% and 13.9% for the three months ended June 30, 2026 and 2025, respectively. Operating income was $143.4 million and $111.2 million for the six months ended June 30, 2026 and 2025, respectively. Operating margins were 16.0% and 13.8% for the six months ended June 30, 2026 and 2025, respectively. The tariff refunds increased operating margins by approximately 100 and 50 basis points for the three and six months ended June 30, 2026, respectively. Portfolio Optimization Plan costs decreased operating margins by approximately 80 basis points for both the three and six months ended June 30, 2025. The Company’s operating margins for the three and six months ended June 30, 2026 were further impacted by the higher volumes and selling prices, partially offset by higher raw material costs and higher performance-based executive compensation costs incurred in 2026.

Current wording

Operating income was $72.4 million and $57.7 million for the three months ended September 30, 2026 and 2025, respectively. Operating margins were 15.9% and 14.0% for the three months ended September 30, 2026 and 2025, respectively. Operating income was $215.9 million and $168.9 million for the nine months ended September 30, 2026 and 2025, respectively. Operating margins were 15.9% and 13.9% for the nine months ended September 30, 2026 and 2025, respectively. The tariff refunds increased operating margins by approximately 40 basis points for the nine months ended September 30, 2026. Portfolio Optimization Plan costs decreased operating margins by approximately 80 and 70 basis points for the three and nine months ended September 30, 2025, respectively. The Company’s operating margins for the three and nine months ended September 30, 2026 were further increased by the higher volumes and selling prices, partially offset by higher raw material costs and higher performance-based executive compensation costs incurred in 2026.

Previous wording

Interest expense was $8.2 million and $7.4 million for the three months ended June 30, 2026 and 2025, respectively, and $16.1 million and $14.7 million for the six months ended June 30, 2026 and 2025, respectively. The increase in expense for both the three and six months ended June 30, 2026 was primarily due to an increase in the average outstanding debt balance.

Current wording

Interest expense was $8.3 million and $7.3 million for the three months ended September 30, 2026 and 2025, respectively, and $24.4 million and $22.1 million for the nine months ended September 30, 2026 and 2025, respectively. The increase in expense for both the three and nine months ended September 30, 2026 was primarily due to an increase in the average outstanding debt balance.

Previous wording

The effective income tax rates for the three months ended June 30, 2026 and 2025 were 25.1% and 25.3%, respectively. For the six months ended June 30, 2026 and 2025, the effective income tax rates were 25.0% and 25.3%, respectively. The effective tax rates for the three and six months ended June 30, 2026 and 2025 were both impacted by the mix of foreign earnings and changes in estimates associated with the finalization of prior year foreign tax items.

Current wording

The effective income tax rates for the three months ended September 30, 2026 and 2025 were 24.6% and 26.6%, respectively. For the nine months ended September 30, 2026 and 2025, the effective income tax rates were 24.9% and 25.8%, respectively. The effective tax rates for the three and nine months ended September 30, 2026 and 2025 were impacted by the mix of foreign earnings and changes in estimates associated with the finalization of prior year foreign tax items. The effective tax rates for the three and nine months ended September 30, 2025 were further impacted by the limited tax deductibility of costs related to the Portfolio Optimization Plan.

Previous wording

The Company’s Felinfach site was shut down in May 2025, and all production activities have been transferred to other locations. The Company began marketing the Felinfach site for sale in June 2025, at which point the held for sale criteria was met. These are the sole assets recorded in Fixed assets held for sale on the Company’s Consolidated Balance Sheet at December 31, 2025. The Company sold the land and building assets in February 2026 for approximately $2.0 million, resulting in a $0.4 million gain recognized in Selling and Administrative Expenses on the Company’s Consolidated Statements of Earnings during the three months ended March 31, 2026. The Company has completed all actions contemplated under the Portfolio Optimization Plan.

Current wording

The Company’s Felinfach site was shut down in May 2025, and all production activities have been transferred to other locations. The Company began marketing the Felinfach site for sale in June 2025, at which point the held for sale criteria were met. These are the sole assets recorded in Fixed assets held for sale on the Company’s Consolidated Balance Sheet at December 31, 2025. The Company sold the land and building assets in February 2026 for approximately $2.0 million, resulting in a $0.4 million gain recognized in Selling and Administrative Expenses on the Company’s Consolidated Statements of Earnings during the three months ended March 31, 2026. The Company has completed all actions contemplated under the Portfolio Optimization Plan.

Previous wording

For the three and six months ended June 30, 2025, the Company incurred costs of $3.3 million and $6.2 million, respectively, related to the Portfolio Optimization Plan recorded in Corporate & Other, primarily for dual plant operating costs, professional services, non-cash inventory charges, decommissioning costs, and employee separation costs. The Company did not incur any costs related to the Portfolio Optimization Plan for the three or six months ended June 30, 2026.

Current wording

For the three and nine months ended September 30, 2025, the Company incurred costs of $3.3 million and $9.5 million, respectively, related to the Portfolio Optimization Plan recorded in Corporate & Other, primarily for dual plant operating costs, professional services, non-cash inventory charges, decommissioning costs, and employee separation costs. The Company did not incur any costs related to the Portfolio Optimization Plan for the three or nine months ended September 30, 2026.

Previous wording

The Company has included each of these non-GAAP measures in order to provide additional information regarding our underlying operating results and comparable year-over-year performance. Such information is supplemental to information presented in accordance with GAAP and is not intended to represent a presentation in accordance with GAAP. These non-GAAP measures should not be considered in isolation. Rather, they should be considered together with GAAP measures and the rest of the information included in this report. Management internally reviews each of these non-GAAP measures to evaluate performance on a comparative period-to-period basis and to gain additional insight into underlying operating and performance trends, and the Company believes the information can be beneficial to investors for the same purposes. These non-GAAP measures may not be comparable to similarly titled measures used by other companies.

Current wording

The Company has included each of these non-GAAP measures in order to provide additional information regarding its underlying operating results and comparable year-over-year performance. Such information is supplemental to information presented in accordance with GAAP and is not intended to represent a presentation in accordance with GAAP. These non-GAAP measures should not be considered in isolation. Rather, they should be considered together with GAAP measures and the rest of the information included in this report. Management internally reviews each of these non-GAAP measures to evaluate performance on a comparative period-to-period basis and to gain additional insight into underlying operating and performance trends, and the Company believes the information can be beneficial to investors for the same purposes. These non-GAAP measures may not be comparable to similarly titled measures used by other companies.

Previous wording

The following table summarizes the percentage change for the results of the three and six months ended June 30, 2026, compared to the results for the three and six months ended June 30, 2025, in the respective financial measures.

Current wording

The following table summarizes the percentage change for the results of the three and nine months ended September 30, 2026, compared to the results for the three and nine months ended September 30, 2025, in the respective financial measures.

Previous wording

Flavors & Extracts segment revenue was $415.0 million and $396.9 million for the six months ended June 30, 2026 and 2025, respectively, an increase of approximately 5%. The increase was a result of higher revenue in Flavors, Extracts & Flavor Ingredients and Agricultural Ingredients. The higher revenue in Flavors, Extracts & Flavor Ingredients was primarily due to higher selling prices and the favorable impact of foreign exchange rates that increased segment revenue by approximately 2%. The higher revenue in Agricultural Ingredients was due to higher volumes and selling prices.

Current wording

Flavors & Extracts segment revenue was $210.0 million and $203.0 million for the three months ended September 30, 2026 and 2025, respectively, an increase of approximately 4%. The increase was a result of higher revenue in Agricultural Ingredients and Flavors, Extracts & Flavor Ingredients. The higher revenue in Agricultural Ingredients was due to higher volumes. The higher revenue in Flavors, Extracts & Flavor Ingredients was primarily due to higher selling prices, partially offset by lower volumes. Foreign exchange rates had an immaterial impact on segment revenue for the three months ended September 30, 2026.

Previous wording

Flavors & Extracts segment revenue was $213.2 million and $203.3 million for the three months ended June 30, 2026 and 2025, respectively, an increase of approximately 5%. The increase was a result of higher revenue in Agricultural Ingredients and Flavors, Extracts & Flavor Ingredients. The higher revenue in Agricultural Ingredients was due to higher volumes and selling prices. The higher revenue in Flavors, Extracts & Flavor Ingredients was primarily due to higher selling prices and the favorable impact of foreign exchange rates that increased segment revenue by approximately 1%.

Current wording

Flavors & Extracts segment revenue was $625.0 million and $599.9 million for the nine months ended September 30, 2026 and 2025, respectively, an increase of approximately 4%. The increase was a result of higher revenue in Flavors, Extracts & Flavor Ingredients and Agricultural Ingredients. The higher revenue in Flavors, Extracts & Flavor Ingredients was primarily due to higher selling prices and the favorable impact of foreign exchange rates that increased segment revenue by approximately 1%. The higher revenue in Agricultural Ingredients was due to higher volumes and selling prices.

Previous wording

Flavors & Extracts segment operating income was $30.4 million and $28.5 million for the three months ended June 30, 2026 and 2025, respectively, an increase of approximately 7%. The higher segment operating income was primarily a result of higher operating income in Agricultural Ingredients, primarily due to higher selling prices and favorable product mix, partially offset by higher raw material costs. Segment operating income as a percent of revenue was 14.3% in the current quarter compared to 14.0% in the prior year’s comparable quarter. Foreign exchange rates increased segment operating income by approximately 1% for the three months ended June 30, 2026.

Current wording

Flavors & Extracts segment operating income was $30.5 million and $28.0 million for the three months ended September 30, 2026 and 2025, respectively, an increase of approximately 9%. The higher segment operating income was primarily a result of higher operating income in Flavors, Extracts & Flavor Ingredients, primarily due to higher selling prices and favorable product mix, partially offset by higher manufacturing and other costs. Segment operating income as a percent of revenue was 14.5% in the current quarter compared to 13.8% in the prior year’s comparable quarter. Foreign exchange rates had an immaterial impact on segment operating income for the three months ended September 30, 2026.

Previous wording

Flavors & Extracts segment operating income was $57.2 million and $53.5 million for the six months ended June 30, 2026 and 2025, respectively, an increase of approximately 7%. The higher segment operating income was a result of higher operating income in Flavors, Extracts & Flavor Ingredients and Agricultural Ingredients. The higher segment operating income for Flavors, Extracts & Flavor Ingredients was primarily due to higher selling prices, favorable product mix, and higher volumes, partially offset by higher manufacturing and other costs. The higher segment operating income for Agricultural Ingredients was primarily due to higher selling prices. Segment operating income as a percent of revenue was 13.8% in the current six month period compared to 13.5% in the prior year’s comparable six month period. Foreign exchange rates increased segment operating income by approximately 1% for the six months ended June 30, 2026.

Current wording

Flavors & Extracts segment operating income was $87.7 million and $81.5 million for the nine months ended September 30, 2026 and 2025, respectively, an increase of approximately 8%. The higher segment operating income was a result of higher operating income in Flavors, Extracts & Flavor Ingredients and Agricultural Ingredients. The higher segment operating income for Flavors, Extracts & Flavor Ingredients was primarily due to higher selling prices, favorable product mix, and higher volumes, partially offset by higher manufacturing and other costs. The higher segment operating income for Agricultural Ingredients was due to higher selling prices, favorable product mix, and higher volumes, partially offset by higher raw material costs and manufacturing and other costs. Segment operating income as a percent of revenue was 14.0% in the current nine month period compared to 13.6% in the prior year’s comparable nine month period. Foreign exchange rates increased segment operating income by approximately 1% for the nine months ended September 30, 2026.

Previous wording

Segment revenue for the Color segment was $414.3 million and $347.0 million for the six months ended June 30, 2026 and 2025, respectively, an increase of approximately 19%. The increase was a result of higher revenue in Food & Pharmaceutical Colors and Personal Care. The higher revenue in Food & Pharmaceutical Colors was due to higher volumes, including higher volumes associated with natural colors conversion activity, the favorable impact of foreign exchange rates, and higher selling prices. The higher revenue in Personal Care was due to the favorable impact of foreign exchange rates, higher volumes, and higher selling prices. Foreign exchange rates increased segment revenue by approximately 4% for the six months ended June 30, 2026.

Current wording

Segment revenue for the Color segment was $210.3 million and $178.2 million for the three months ended September 30, 2026 and 2025, respectively, an increase of approximately 18%. The increase was primarily a result of higher revenue in Food & Pharmaceutical Colors, primarily due to higher volumes, including higher volumes associated with natural colors conversion activity, and the favorable impact of foreign exchange rates that increased segment revenue by approximately 1%.

Previous wording

Segment revenue for the Color segment was $216.1 million and $179.3 million for the three months ended June 30, 2026 and 2025, respectively, an increase of approximately 21%. The increase was a result of higher revenue in Food & Pharmaceutical Colors and Personal Care. The higher revenue in Food & Pharmaceutical Colors was due to higher volumes, including higher volumes associated with natural colors conversion activity, the favorable impact of foreign exchange rates, and higher selling prices. The higher revenue in Personal Care was due to higher volumes, the favorable impact of foreign exchange rates, and higher selling prices. Foreign exchange rates increased segment revenue by approximately 3% for the three months ended June 30, 2026.

Current wording

Segment revenue for the Color segment was $624.7 million and $525.2 million for the nine months ended September 30, 2026 and 2025, respectively, an increase of approximately 19%. The increase was a result of higher revenue in Food & Pharmaceutical Colors and Personal Care. The higher revenue in Food & Pharmaceutical Colors was due to higher volumes, including higher volumes associated with natural colors conversion activity, the favorable impact of foreign exchange rates, and higher selling prices. The higher revenue in Personal Care was due to the favorable impact of foreign exchange rates, higher selling prices, and higher volumes. Foreign exchange rates increased segment revenue by approximately 3% for the nine months ended September 30, 2026.

Previous wording

Segment operating income for the Color segment was $54.5 million and $38.9 million for the three months ended June 30, 2026 and 2025, respectively, an increase of approximately 40%. The higher segment operating income was a result of higher operating income in Food & Pharmaceutical Colors and Personal Care. The higher operating income in Food & Pharmaceutical Colors was primarily due to higher volumes, the favorable impact of tariff refunds received, higher selling prices, and a favorable product mix, partially offset by higher raw material costs. The higher operating income in Personal Care was primarily due to higher volumes and selling prices and the favorable impact of tariff refunds received, partially offset by higher manufacturing and other costs. Foreign exchange rates increased segment operating income by approximately 3% for the three months ended June 30, 2026. Segment operating income as a percent of revenue was 25.2% in the current quarter and 21.7% in the prior year’s comparable quarter.

Current wording

Segment operating income for the Color segment was $46.1 million and $37.7 million for the three months ended September 30, 2026 and 2025, respectively, an increase of approximately 22%. The higher segment operating income was a result of higher operating income in Food & Pharmaceutical Colors and Personal Care. The higher operating income in Food & Pharmaceutical Colors was primarily due to higher volumes, partially offset by higher raw material and manufacturing and other costs. The higher operating income in Personal Care was primarily due to higher selling prices. Foreign exchange rates increased segment operating income by approximately 1% for the three months ended September 30, 2026. Segment operating income as a percent of revenue was 21.9% in the current quarter and 21.2% in the prior year’s comparable quarter.

Previous wording

Segment operating income for the Color segment was $96.6 million and $73.8 million for the six months ended June 30, 2026 and 2025, respectively, an increase of approximately 31%. The higher segment operating income was a result of higher operating income in Food & Pharmaceutical Colors and Personal Care. The higher operating income in Food & Pharmaceutical Colors was due to higher volumes and selling prices, the favorable impact of tariff refunds received, the favorable impact of foreign exchange rates, and a favorable product mix, partially offset by higher raw material and manufacturing and other costs. The higher operating income in Personal Care was primarily due to higher selling prices and volumes, the favorable impact of tariff refunds received, and the favorable impact of foreign exchange rates, partially offset by higher manufacturing and other costs. Foreign exchange rates increased segment operating income by approximately 5% for the six months ended June 30, 2026. Segment operating income as a percent of revenue was 23.3% in the current six month period and 21.3% in the prior year’s comparable period.

Current wording

Segment operating income for the Color segment was $142.6 million and $111.5 million for the nine months ended September 30, 2026 and 2025, respectively, an increase of approximately 28%. The higher segment operating income was a result of higher operating income in Food & Pharmaceutical Colors and Personal Care. The higher operating income in Food & Pharmaceutical Colors was due to higher volumes and selling prices, the favorable impact of tariff refunds received, and the favorable impact of foreign exchange rates, partially offset by higher raw material and manufacturing and other costs. The higher operating income in Personal Care was primarily due to higher selling prices and volumes, the favorable impact of tariff refunds received, and the favorable impact of foreign exchange rates, partially offset by higher manufacturing and other costs. Foreign exchange rates increased segment operating income by approximately 4% for the nine months ended September 30, 2026. Segment operating income as a percent of revenue was 22.8% in the current nine month period and 21.2% in the prior year’s comparable period.

Previous wording

Segment revenue for the Asia Pacific segment was $47.6 million and $42.7 million for the three months ended June 30, 2026 and 2025, respectively, an increase of approximately 11%. The increase was a result of higher volumes and selling prices, partially offset by the unfavorable impact of foreign exchange rates that decreased segment revenue by approximately 1%.

Current wording

Segment revenue for the Asia Pacific segment was $47.3 million and $42.1 million for the three months ended September 30, 2026 and 2025, respectively, an increase of approximately 12%. The increase was a result of higher volumes and selling prices, partially offset by the unfavorable impact of foreign exchange rates that decreased segment revenue by approximately 2%.

Previous wording

Segment operating income for the Asia Pacific segment was $11.0 million and $8.9 million for the three months ended June 30, 2026 and 2025, respectively, an increase of approximately 23%. The increase was primarily due to higher volumes and selling prices, partially offset by higher manufacturing and other costs and the unfavorable impact of foreign exchange rates that decreased segment operating income by approximately 1%. Segment operating income as a percent of revenue was 23.0% in the current quarter and 20.9% in the prior year’s comparable quarter.

Current wording

Segment operating income for the Asia Pacific segment was $12.4 million and $9.5 million for the three months ended September 30, 2026 and 2025, respectively, an increase of approximately 30%. The increase was primarily due to higher volumes and selling prices, partially offset by higher manufacturing and other costs and the unfavorable impact of foreign exchange rates that decreased segment operating income by approximately 3%. Segment operating income as a percent of revenue was 26.1% in the current quarter and 22.7% in the prior year’s comparable quarter.

Previous wording

The Corporate & Other operating expense was $19.2 million and $18.7 million for the three months ended June 30, 2026 and 2025, respectively. The higher operating expense was primarily due to higher performance-based executive compensation costs incurred in 2026, partially offset by Portfolio Optimization Plan costs totaling $3.3 million in the three months ended June 30, 2025. See the Portfolio Optimization Plan section above for further information.

Current wording

The Corporate & Other operating expense was $16.5 million and $17.6 million for the three months ended September 30, 2026 and 2025, respectively. The lower operating expense was primarily due to Portfolio Optimization Plan costs totaling $3.3 million in the three months ended September 30, 2025, partially offset by higher performance-based executive compensation costs incurred in 2026. See the Portfolio Optimization Plan section above for further information.

Previous wording

The Corporate & Other operating expense was $32.5 million and $34.4 million for the six months ended June 30, 2026 and 2025, respectively. The lower operating expense was primarily due to Portfolio Optimization Plan costs totaling $6.2 million in the six months ended June 30, 2025, partially offset by higher performance-based executive compensation costs incurred in 2026. See the Portfolio Optimization Plan section above for further information.

Current wording

The Corporate & Other operating expense was $49.0 million and $52.0 million for the nine months ended September 30, 2026 and 2025, respectively. The lower operating expense was primarily due to Portfolio Optimization Plan costs totaling $9.5 million in the nine months ended September 30, 2025, partially offset by higher performance-based executive compensation costs incurred in 2026. See the Portfolio Optimization Plan section above for further information.

Previous wording

The Company continues to monitor developments with respect to tariffs and other trade policy matters closely, including impacts from the U.S. Supreme Court decision that struck down tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”) and other litigation, as well as the implementation of additional tariffs. As of June 30, 2026, we have received approximately $5 million of IEEPA tariff refunds, which included applicable interest. We do not anticipate receiving any further tariff refunds in the future. The tariffs imposed by the United States, and retaliatory tariffs imposed by other countries on United States exports, have led to significant volatility and uncertainty in global markets. As a result of these ongoing tariff-related actions, the Company anticipates incurring incremental tariff costs on certain raw materials to produce our products and certain finished goods shipped to customers. However, the Company expects to manage the impact of the increased tariff costs through pricing actions. To the extent the Company is unable to offset the increased tariff costs, or the tariffs negatively impact demand, or other trade barriers are implemented, the Company’s revenue and profitability would be adversely impacted. If additional tariffs are adopted, the Company would incur additional tariff costs that could be material.

Current wording

The Company continues to monitor developments with respect to tariffs and other trade policy matters closely, including impacts from the U.S. Supreme Court decision that struck down tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”) and other litigation, as well as the implementation of additional tariffs. As of September 30, 2026, we have received approximately $5 million of IEEPA tariff refunds from the U.S. Customs and Border Protection, which included applicable interest. We do not anticipate receiving any material amounts of tariff refunds in the future. The tariffs imposed by the United States, and retaliatory tariffs imposed by other countries on United States exports, have led to significant volatility and uncertainty in global markets. As a result of these ongoing tariff-related actions, the Company anticipates incurring incremental tariff costs on certain raw materials to produce our products and certain finished goods shipped to customers. However, the Company expects to manage the impact of the increased tariff costs through pricing actions. To the extent the Company is unable to offset the increased tariff costs, or the tariffs negatively impact demand, or other trade barriers are implemented, the Company’s revenue and profitability would be adversely impacted. If additional tariffs are adopted, the Company would incur additional tariff costs that could be material.

Previous wording

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the United States. The OBBBA includes a broad range of tax reform provisions, such as the extension of certain expiring provisions, modifications to the international tax framework, and the continuation of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions implemented through 2027. These provisions did not have a material impact on our effective tax rate for the three or six months ended June 30, 2026. We will continue to assess the OBBBA tax provisions and their impacts on our consolidated financial statements.

Current wording

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the United States. The OBBBA includes a broad range of tax reform provisions, such as the extension of certain expiring provisions, modifications to the international tax framework, and the continuation of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions implemented through 2027. These provisions did not have a material impact on our effective tax rate for the three or nine months ended September 30, 2026. We will continue to assess the OBBBA tax provisions and their impacts on our consolidated financial statements.

Previous wording

Net cash provided by operating activities was $34.8 million and $39.3 million for the six months ended June 30, 2026 and 2025, respectively. The decrease in net cash provided by operating activities was primarily due to an increase in cash used by inventory during 2026 compared to 2025 and a decrease in cash provided by accounts receivable, partially offset by an increase in cash provided by accounts payable and other accrued expenses.

Current wording

Net cash provided by operating activities was $75.3 million and $83.3 million for the nine months ended September 30, 2026 and 2025, respectively. The decrease in net cash provided by operating activities was primarily due to an increase in cash used by inventory during 2026 compared to 2025 and a decrease in cash provided by accounts receivable, partially offset by an increase in cash provided by accounts payable and other accrued expenses.

Previous wording

Net cash used in investing activities was $65.8 million and $41.5 million during the six months ended June 30, 2026 and 2025, respectively. Capital expenditures were $67.5 million and $38.0 million during the six months ended June 30, 2026 and 2025, respectively. In 2026, the Company received $2.0 million for the sale of the Felinfach land and building assets. In 2025, the Company paid $4.9 million for the acquisition of Biolie SAS.

Current wording

Net cash used in investing activities was $104.3 million and $61.0 million during the nine months ended September 30, 2026 and 2025, respectively. Capital expenditures were $105.8 million and $57.8 million during the nine months ended September 30, 2026 and 2025, respectively. In 2026, the Company received $2.0 million for the sale of the Felinfach land and building assets. In 2025, the Company paid $4.9 million for the acquisition of Biolie SAS.

Previous wording

Net cash provided by financing activities was $23.5 million and $26.0 million for the six months ended June 30, 2026 and 2025, respectively. Net debt increased by $62.8 million and $63.3 million for the six months ended June 30, 2026 and 2025, respectively. The cash proceeds from the increase in net debt in the current period were primarily used to support natural color conversion capital expenditure investments during the six months ended June 30, 2026. For purposes of the cash flow statement, net changes in debt exclude the impact of foreign exchange rates. Dividends of $34.9 million and $34.7 million were paid during the six months ended June 30, 2026 and 2025, respectively. Total dividends of $0.82 per share were paid for both the six months ended June 30, 2026 and 2025.

Current wording

Net cash provided by financing activities was $35.0 million and net cash used in financing activities was $13.9 million for the nine months ended September 30, 2026 and 2025, respectively. Net debt increased by $91.8 million and $41.0 million for the nine months ended September 30, 2026 and 2025, respectively. The cash proceeds from the increase in net debt in the current period were primarily used to support capital expenditure investments during the nine months ended September 30, 2026. For purposes of the cash flow statement, net changes in debt exclude the impact of foreign exchange rates. Dividends of $52.3 million and $52.2 million were paid during the nine months ended September 30, 2026 and 2025, respectively. Total dividends of $1.23 per share were paid for both the nine months ended September 30, 2026 and 2025.