Sensient Technologies Corp (SXT)

Sensient Technologies Jumps on Strong Q1 Earnings BeatApril 24, 2026 9:58 AM
IH Market News
Shares of Sensient Technologies Corporation (NYSE:SXT) climbed nearly 6% in premarket trading on Friday after the company reported first-quarter results that came in well ahead of expectations.



Earnings and Revenue Outperform



The group posted adjusted earnings per share of $1.04 for the quarter ended March 31, 2026, beating the $0.83 analyst consensus by $0.21.Revenue rose 11.1% year-on-year to $435.8 million, exceeding forecasts of $411.39 million and up from $392.3 million in the same period last year. On a constant currency basis, sales increased 7.2%.



Segment Performance Driven by Color Division



The Color Group led growth, delivering revenue of $198.2 million, an 18.1% increase driven by strong volumes and pricing.The Flavors & Extracts segment reported revenue of $201.8 million, up 4.2%, while the Asia Pacific division generated $45.3 million in revenue, representing an 8.0% increase.“Sensient delivered strong results to start off the year. We executed on our strategy and continue to strengthen our position for the opportunities ahead, particularly in the area of natural colors,” said Paul Manning.



Profit Growth and Upgraded Outlook



Operating income surged 24.7% to $66.7 million, compared with $53.5 million in the first quarter of 2025.Following the strong start to the year, the company raised its full-year outlook and now expects high single-digit to double-digit revenue growth in local currency terms, compared with previous guidance of mid-single-digit to double-digit growth.Sensient also increased its diluted EPS guidance to a range of $3.70 to $3.90, up from the prior range of $3.60 to $3.80.

Original: Sensient Technologies Jumps on Strong Q1 Earnings Beat

Sensient Technologies Corporation Reports Results for the Quarter Ended March 31, 2026April 24, 2026 6:55 AM
Business Wire
Sensient Technologies Corporation (NYSE: SXT), a leading provider of flavors and colors for the food, pharmaceutical, and personal care markets, today reported financial results for the first quarter ended March 31, 2026.


First Quarter Consolidated Results



Reported revenue increased 11.1% to $435.8 million in the first quarter of 2026 versus last year’s first quarter results of $392.3 million. On a local currency basis(1), revenue increased 7.2%.



Reported operating income increased 24.7% to $66.7 million compared to $53.5 million recorded in last year’s first quarter. In the first quarter of 2025, the Company recorded $2.9 million of costs related to its Portfolio Optimization Plan versus no costs recorded in the first quarter of 2026. Local currency adjusted operating income(1) and local currency adjusted EBITDA(1) were up 12.2% and 10.4%, respectively, in the first quarter.



Reported earnings per share increased 28.4% to $1.04 in the first quarter of 2026 compared to 81 cents in the first quarter of 2025. Local currency adjusted diluted EPS(1) increased 14.0% in the first quarter.



“Sensient delivered strong results to start off the year. We executed on our strategy and continue to strengthen our position for the opportunities ahead, particularly in the area of natural colors. I remain very confident about our performance and am pleased to increase our guidance for 2026,” said Paul Manning, Sensient’s Chairman, President, and Chief Executive Officer.




First Quarter Group Results











 




Reported

Local Currency(1)


Revenue

Quarter

Quarter


Flavors & Extracts


4.2%






 






1.7%







Color


18.1%






 






12.3%







Asia Pacific


8.0%






 






4.7%







Total Revenue


11.1%






 






7.2%










 






 






 









Reported

Local Currency Adjusted(1)


Operating Income

Quarter

Quarter


Flavors & Extracts


7.0%






 






5.1%







Color


20.7%






 






13.2%







Asia Pacific


18.4%






 






14.5%







Total Operating Income


24.7%






 






12.2%











 


The Flavors & Extracts Group reported first quarter 2026 revenue of $201.8 million, an increase of $8.1 million versus the prior year’s first quarter. The Group’s revenue increase was driven primarily by higher prices and volume growth. Segment operating income was $26.8 million in the first quarter of 2026, an increase of $1.8 million compared to the prior year’s first quarter.


The Color Group reported revenue of $198.2 million in the first quarter of 2026, an increase of $30.4 million compared to the prior year’s first quarter. The Group’s revenue increase was driven by strong volume growth and higher prices across the Group. Segment operating income was $42.1 million in the first quarter of 2026, an increase of $7.2 million compared to the prior year’s first quarter results.


The Asia Pacific Group reported revenue of $45.3 million in the first quarter of 2026, an increase of $3.4 million compared to the prior year’s first quarter. The Group’s revenue increase was driven by strong volume growth and higher prices across the Group. Segment operating income was $11.2 million in the quarter, an increase of $1.7 million compared to the prior year’s first quarter.


Corporate & Other reported operating expenses were $13.3 million in the first quarter of 2026, compared to $15.8 million of operating expenses reported in the prior year’s first quarter. The lower operating expenses were primarily due to Portfolio Optimization Plan costs in the prior year’s first quarter. Local currency adjusted operating expenses(1) for Corporate & Other increased $0.4 million compared to the prior year’s first quarter.




2026 OUTLOOK











 


Metric

Current Guidance

Prior Guidance






 


Local Currency Revenue(1)

High Single-Digit to Double-Digit Growth

Mid-Single-Digit to Double-Digit Growth






 


Local Currency Adjusted EBITDA(1)

High Single-Digit to Double-Digit Growth

Mid-Single-Digit to Double-Digit Growth






 


Diluted EPS (GAAP)

Between $3.70 and $3.90*

Between $3.60 and $3.80*






 


Local Currency Adjusted Diluted EPS(1)

High Single-Digit to Double-Digit Growth

Mid-Single-Digit to High Single-Digit Growth






 


*Based on current exchange rates, foreign currency impact is expected to be immaterial for the year.


The Company’s guidance is based on current conditions and economic and market trends in the markets in which the Company operates and is subject to various risks and uncertainties as described below.




(1)






Please refer to “Reconciliation of Non-GAAP Amounts” at the end of this release for more information regarding our non-GAAP financial measures.







USE OF NON-GAAP FINANCIAL MEASURES


The Company’s non-GAAP financial measures eliminate the impact of certain items, which, depending on the measure, include: currency movements, depreciation and amortization, Portfolio Optimization Plan costs, and non-cash share-based compensation. These measures are provided to enhance the overall understanding of the Company’s performance when viewed together with the GAAP results. Refer to “Reconciliation of Non-GAAP Amounts” at the end of this release.


CONFERENCE CALL


The Company will host a conference call to discuss its 2026 first quarter financial results at 8:30 a.m. CDT on Friday, April 24, 2026. To participate in the conference call, contact Chorus Call Inc. at (844) 492-3726 or (412) 317-1078, and ask to join the Sensient Technologies Corporation conference call. Alternatively, the call can be accessed by using the webcast link that is available on the Investor Information section of the Company’s web site at www.sensient.com.


A replay of the call will be available one hour after the end of the conference call through May 1, 2026 by calling (855) 669-9658 and using access code 1602690. An audio replay and written transcript of the call will also be posted on the Investor Information section of the Company’s web site at www.sensient.com on or after April 28, 2026.


This release contains statements that may constitute “forward-looking statements” within the meaning of Federal securities laws including in the quote from our Chairman, President, and Chief Executive Officer and under “2026 Outlook” above. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, and other factors concerning the Company’s operations and business environment. Important factors that could cause actual results to differ materially from those suggested by these forward-looking statements and that could adversely affect the Company’s future financial performance include the following: the Company’s ability to manage general business, economic, and capital market conditions, including actions taken by customers in response to such market conditions, and the impact of recessions and economic downturns; the impact of macroeconomic and geopolitical volatility, including inflation and shortages impacting the availability and cost of raw materials, energy, and other supplies, disruptions and delays in the Company’s supply chain, and the conflicts between Russia and Ukraine and in the Middle East; industry, regulatory, legal, and economic factors related to the Company’s domestic and international business; the effects of tariffs, trade barriers, and disputes; the availability and cost of labor, logistics, and transportation; the pace and nature of new product introductions by the Company and the Company’s customers; the Company’s ability to anticipate and respond to changing consumer preferences, changing technologies, and changing regulations; the Company’s ability to successfully implement its growth strategies; the outcome of the Company’s various productivity-improvement and cost-reduction efforts, acquisition and divestiture activities, and Portfolio Optimization Plan; growth in markets for products in which the Company competes; industry and customer acceptance of price increases; actions by competitors; the Company’s ability to enhance its innovation efforts and drive cost efficiencies; currency exchange rate fluctuations; and other factors included in “Risk Factors” in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, and in other documents that the Company files with the SEC. The risks and uncertainties identified above are not the only risks the Company faces. Additional risks and uncertainties not presently known to the Company or that it currently believes to be immaterial also may adversely affect the Company. Should any known or unknown risks and uncertainties develop into actual events, these developments could have material adverse effects on our business, financial condition, and results of operations. This release contains time-sensitive information that reflects management’s best analysis only as of the date of this release. Except to the extent required by applicable laws, the Company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied herein will not be realized.


ABOUT SENSIENT TECHNOLOGIES


Sensient Technologies Corporation is a leading global manufacturer and marketer of colors, flavors, and other specialty ingredients. Sensient uses advanced technologies and robust global supply chain capabilities to develop specialized solutions for food and beverages, as well as products that serve the pharmaceutical, nutraceutical, and personal care industries. Sensient’s customers range in size from small entrepreneurial businesses to major international manufacturers representing some of the world’s best-known brands. Sensient is headquartered in Milwaukee, Wisconsin.


www.sensient.com



Sensient Technologies Corporation


(In thousands, except percentages and per share amounts)


(Unaudited)








 


Consolidated Statements of Earnings

Three Months Ended March 31,








 





2026






 






2025






 






% Change













 


Revenue


$






435,834






 







$






392,325






 







11.1






%













 


Cost of products sold


 






283,146






 







 






260,548






 







8.7






%







Selling and administrative expenses


 






85,960






 







 






78,247






 







9.9






%













 


Operating income


 






66,728






 







 






53,530






 







24.7






%







Interest expense


 






7,902






 







 






7,341






 















 


Earnings before income taxes


 






58,826






 







 






46,189






 









Income taxes


 






14,656






 







 






11,727






 















 


Net earnings


$






44,170






 







$






34,462






 







28.2






%













 


Earnings per share of common stock:








Basic


$






1.04






 







$






0.82






 















 


Diluted


$






1.04






 







$






0.81






 















 


Average common shares outstanding:








Basic


 






42,294






 







 






42,197






 















 


Diluted


 






42,671






 







 






42,469






 















 








 








 


Results by Segment

Three Months Ended March 31,








 



Revenue







2026






 






2025






 






% Change













 


Flavors & Extracts


$






201,825






 







$






193,681






 







4.2






%







Color


 






198,176






 







 






167,750






 







18.1






%







Asia Pacific


 






45,255






 







 






41,901






 







8.0






%







Intersegment elimination


 






(9,422






)







 






(11,007






)















 


Consolidated


$






435,834






 







$






392,325






 







11.1






%













 


Operating Income














 


Flavors & Extracts


$






26,750






 







$






24,989






 







7.0






%







Color


 






42,065






 







 






34,852






 







20.7






%







Asia Pacific


 






11,180






 







 






9,442






 







18.4






%







Corporate & Other


 






(13,267






)







 






(15,753






)















 


Consolidated


$






66,728






 







$






53,530






 







24.7






%








Sensient Technologies Corporation


(In thousands)


(Unaudited)






 


Consolidated Condensed Balance Sheets


March 31,






 






December 31,










2026






 






2025











 


Cash and cash equivalents


$






38,542







$






36,533







Trade accounts receivable


 






342,295







 






305,380







Inventories


 






681,730







 






678,220







Prepaid expenses and other current assets


 






58,971







 






59,717







Fixed assets held for sale


 






-







 






1,598







Total Current Assets


 






1,121,538







 






1,081,448











 


Goodwill & intangible assets (net)


 






446,282







 






449,827







Property, plant, and equipment (net)


 






550,555







 






539,296







Other assets


 






169,213







 






173,566











 


Total Assets


$






2,287,588







$






2,244,137











 


Trade accounts payable


$






114,222







$






138,344







Short-term borrowings


 






232







 






352







Other current liabilities


 






109,259







 






124,887







Total Current Liabilities


 






223,713







 






263,583











 


Long-term debt


 






767,558







 






709,232







Accrued employee and retiree benefits


 






24,163







 






24,045







Other liabilities


 






53,273







 






53,763







Shareholders' Equity


 






1,218,881







 






1,193,514











 


Total Liabilities and Shareholders' Equity


$






2,287,588







$






2,244,137








Sensient Technologies Corporation


(In thousands, except per share amounts)


(Unaudited)






 


Consolidated Statements of Cash Flows






Three Months Ended March 31,









2026






 






2025







Cash flows from operating activities:






Net earnings


$






44,170






 







$






34,462






 







Adjustments to arrive at net cash provided by operating activities:






Depreciation and amortization


 






15,538






 







 






15,074






 







Share-based compensation expense


 






3,776






 







 






2,900






 







Net (gain) loss on assets


 






(305






)







 






46






 







Portfolio Optimization Plan costs


 






-






 







 






831






 







Deferred income taxes


 






1,897






 







 






1,282






 







Changes in operating assets and liabilities:






Trade accounts receivable


 






(37,718






)







 






(20,780






)







Inventories


 






(5,360






)







 






7,202






 







Prepaid expenses and other assets


 






(270






)







 






(8,064






)







Trade accounts payable and other accrued expenses


 






(22,837






)







 






(25,859






)







Accrued salaries, wages, and withholdings


 






(15,273






)







 






(21,665






)







Income taxes


 






2,562






 







 






4,989






 







Other liabilities


 






203






 







 






604






 











 


Net cash used in operating activities


 






(13,617






)







 






(8,978






)











 


Cash flows from investing activities:






Acquisition of property, plant, and equipment


 






(28,737






)







 






(16,854






)







Proceeds from sale of assets


 






2,016






 







 






7






 







Acquisition of new business


 






-






 







 






(4,349






)







Other investing activities


 






(200






)







 






(88






)











 


Net cash used in investing activities


 






(26,921






)







 






(21,284






)











 


Cash flows from financing activities:






Proceeds from additional borrowings


 






140,139






 







 






66,449






 







Debt payments


 






(76,867






)







 






(10,771






)







Dividends paid


 






(17,426






)







 






(17,376






)







Other financing activities


 






(3,447






)







 






(2,341






)











 


Net cash provided by financing activities


 






42,399






 







 






35,961






 











 


Effect of exchange rate changes on cash and cash equivalents


 






148






 







 






249






 











 


Net increase in cash and cash equivalents


 






2,009






 







 






5,948






 







Cash and cash equivalents at beginning of period


 






36,533






 







 






26,626






 







Cash and cash equivalents at end of period


$






38,542






 







$






32,574






 











 






 


Supplemental Information






Three Months Ended March 31,


2026






 






2025











 


Dividends paid per share


$






0.41






 







$






0.41






 









Sensient Technologies Corporation








(In thousands, except percentages and per share amounts)








(Unaudited)









 



Reconciliation of Non-GAAP Amounts








The Company's results for the three months ended March 31, 2026 and 2025 include adjusted operating income, adjusted net earnings, and adjusted diluted earnings per share, which, in each case, exclude Portfolio Optimization Plan costs.









 





Three Months Ended March 31,










2026






 






2025






 






% Change







Operating income (GAAP)


$






66,728







$






53,530






 







24.7






%







Portfolio Optimization Plan costs – Cost of products sold


 






-







 






1,814






 









Portfolio Optimization Plan costs – Selling and administrative expenses


 






-







 






1,050






 









Adjusted operating income


$






66,728







$






56,394






 







18.3






%













 


Net earnings (GAAP)


$






44,170







$






34,462






 







28.2






%







Portfolio Optimization Plan costs, before tax


 






-







 






2,864






 









Tax impact of Portfolio Optimization Plan costs(1)


 






-







 






(702






)









Adjusted net earnings


$






44,170







$






36,624






 







20.6






%













 


Diluted earnings per share (GAAP)


$






1.04







$






0.81






 







28.4






%







Portfolio Optimization Plan costs, net of tax


 






-







 






0.05






 









Adjusted diluted earnings per share


$






1.04







$






0.86






 







20.9






%













 


Note: Earnings per share calculations may not foot due to rounding differences.








 


(1) Tax impact adjustments were determined based on the nature of the underlying non-GAAP adjustments and their relevant jurisdictional tax rates.



Results by Segment

Three Months Ended March 31,





 






 






 






 






Adjusted






 






 






 






 






 






Adjusted







Operating Income


2026






 






Adjustments(2)






 






2026






 






2025






 






Adjustments(2)






 






2025



















 


Flavors & Extracts


$






26,750






 







$






-







$






26,750






 







$






24,989






 







$






-







$






24,989






 







Color


 






42,065






 







 






-







 






42,065






 







 






34,852






 







 






-







 






34,852






 







Asia Pacific


 






11,180






 







 






-







 






11,180






 







 






9,442






 







 






-







 






9,442






 







Corporate & Other


 






(13,267






)







 






-







 






(13,267






)







 






(15,753






)







 






2,864







 






(12,889






)



















 


Consolidated


$






66,728






 







$






-







$






66,728






 







$






53,530






 







$






2,864







$






56,394






 



















 














 


(2) Adjustments consist of Portfolio Optimization Plan costs.




The following table summarizes the percentage change in the 2026 results compared to the 2025 results for the corresponding periods.









 





Three Months Ended March 31, 2026







Revenue


Total






 






Foreign




Exchange




Rates






 






Adjustments(3)






 






Local




Currency




Adjusted







Flavors & Extracts


4.2






%







2.5






%







N/A






 







1.7






%







Color


18.1






%







5.8






%







N/A






 







12.3






%







Asia Pacific


8.0






%







3.3






%







N/A






 







4.7






%







Total Revenue


11.1






%







3.9






%







N/A






 







7.2






%















 


Operating Income










Flavors & Extracts


7.0






%







1.9






%







0.0






%







5.1






%







Color


20.7






%







7.5






%







0.0






%







13.2






%







Asia Pacific


18.4






%







3.9






%







0.0






%







14.5






%







Corporate & Other


(15.8






%)







0.0






%







(18.7






%)







2.9






%







Total Operating Income


24.7






%







6.5






%







6.0






%







12.2






%







Diluted Earnings Per Share


28.4






%







7.4






%







7.0






%







14.0






%







Adjusted EBITDA


15.7






%







5.3






%







N/A






 







10.4






%



















 



(3) Adjustments consist of Portfolio Optimization Plan costs.








Sensient Technologies Corporation


(In thousands, except percentages)


(Unaudited)








 


Reconciliation of Non-GAAP Amounts - Continued


The following table summarizes the reconciliation between Operating Income (GAAP) and Adjusted EBITDA for the three months ended March 31, 2026 and 2025.








 





Three Months Ended March 31,










 






 






 






 






 










2026






 






2025






 






% Change







Operating income (GAAP)


$






66,728






 







$






53,530






 







24.7






%







Depreciation and amortization


 






15,538






 







 






15,074






 









Share-based compensation expense


 






3,776






 







 






2,900






 









Portfolio Optimization Plan costs, before tax


 






-






 







 






2,864






 









Adjusted EBITDA


$






86,042






 







$






74,368






 







15.7






%













 








 


The following table summarizes the reconciliation between Debt (GAAP) and Net Debt, and Operating Income (GAAP) and Credit Adjusted EBITDA for the trailing twelve months ended March 31, 2026 and 2025.








 





March 31,









Debt


2026






 






2025









Short-term borrowings


$






232






 







$






18,575






 









Long-term debt


 






767,558






 







 






683,266






 









Credit Agreement adjustments(4)


 






(20,780






)







 






(21,165






)









Net Debt


$






747,010






 







$






680,676






 















 


Operating income (GAAP)


$






220,326






 







$






195,703






 









Depreciation and amortization


 






61,562






 







 






60,694






 









Share-based compensation expense


 






14,822






 







 






10,989






 









Portfolio Optimization Plan costs, before tax


 






12,942






 







 






6,683






 









Other non-operating gains(5)


 






(1,170






)







 






(871






)









Credit Adjusted EBITDA


$






308,482






 







$






273,198






 















 


Net Debt to Credit Adjusted EBITDA

2.4x

2.5x










 


(4) Adjustments include cash and cash equivalents, as described in the Company's Fourth Amended and Restated Credit Agreement (Credit Agreement), and certain letters of credit and hedge contracts.


(5) Adjustments consist of certain financing transaction costs, certain non-financing interest items, and gains and losses related to certain non-cash, non-operating, and/or non-recurring items as described in the Credit Agreement.








 


We have included each of these non-GAAP measures in order to provide additional information regarding our underlying operating results and comparable period-over-period 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 release and our SEC filings. 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 we believe 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.


Category: Earnings


Source: Sensient Technologies Corporation

View source version on businesswire.com: https://www.businesswire.com/news/home/20260423221827/en/
David Plautz

(414) 347-3706

investor.relations@sensient.com


Original: Sensient Technologies Corporation Reports Results for the Quarter Ended March 31, 2026