IFF Q3 Adjusted EPS Rises 9.2% to $0.83 as Sales Grow 3.9%; Raises Low End of 2026 Outlook
International Flavors & Fragrances raised the low end of its full-year 2026 guidance on Tuesday after third-quarter adjusted earnings excluding amortization rose 9.2% to $0.83 per share, as all three of its divisions grew sales.
Net sales from continuing operations rose 3.9% to $1.94 billion from $1.87 billion a year earlier, according to the earnings release IFF filed with an 8-K. On a comparable, currency-neutral basis, sales grew 5%. Adjusted operating EBITDA climbed 4.9% to $403 million, and the margin widened to 20.8% from 20.5%.
The quarter swung to a GAAP loss from continuing operations of $127 million, or $0.50 per diluted share, from net income of $99 million, or $0.39, a year earlier. The loss reflects a $236 million pre-tax loss on assets classified as held for sale and a $23 million goodwill impairment, both tied to the Botanicals & Food Enhancements disposal group.
"IFF delivered a solid third quarter, with improved sales and profitability across all divisions," CEO Erik Fyrwald said in the release.
Guidance floor moves up
IFF now expects 2026 sales of $7.5 billion to $7.6 billion, versus $7.4 billion to $7.6 billion previously, and adjusted operating EBITDA of $1.55 billion to $1.60 billion, up from $1.53 billion to $1.60 billion. Comparable currency-neutral sales growth is now seen at 3% to 4%, from 2% to 4%.
Fyrwald cautioned that the company expects "fourth-quarter profitability to be softer, particularly in Health & Biosciences, reflecting higher costs as well as reinvestments to strengthen the business."
Scent leads the divisions
Scent sales rose to $689 million, up 6% on a comparable currency-neutral basis, led by high-single-digit growth in Consumer Fragrances. Its adjusted operating EBITDA rose 9.4% to $139 million.
Taste sales reached $687 million, with comparable currency-neutral growth of 6% led by a double-digit increase in Greater Asia. Health & Biosciences grew 1% on that basis to $566 million, as gains in Food Biosciences and Grain Processing more than offset a decline in Health.
Cash, buyback and the Food Ingredients sale
Operating cash flow for the first nine months, including discontinued operations, rose by $288 million to $820 million, and free cash flow increased by $245 million to $371 million. IFF said it recently completed its $500 million accelerated share repurchase program.
The company said the sale of its Food Ingredients business is on track to close by the end of the second quarter of 2027. In a separate 8-K filed the same day, IFF said its board approved one-time transaction incentive awards for certain executives tied to that sale, including a $700,000 restricted stock unit grant to Fyrwald that vests after three years, and $700,000 cash awards to CFO Michael DeVeau and Health & Biosciences President Leticia Gonçalves Lourenço. None of the awards pays out unless the deal closes.
By the numbers
- Net sales: $1.94 billion, up 3.9%
- Adjusted EPS ex amortization: $0.83, versus $0.76
- GAAP EPS from continuing operations: loss of $0.50, versus $0.39
- Adjusted operating EBITDA: $403 million, up 4.9%
- 2026 sales guidance: $7.5 billion to $7.6 billion
- Nine-month free cash flow: $371 million
Sources
- International Flavors & Fragrances Inc. Form 8-K with third-quarter 2026 earnings release, filed Nov. 3, 2026 (accession 0000051253-26-000039)
- International Flavors & Fragrances Inc. Form 8-K on transaction incentive awards for executives, filed Nov. 3, 2026 (accession 0001140361-26-041833)
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