International Flavors & Fragrances (IFF) investor relations material

Executive summary

• Q3 2025 net sales were $2.694 billion, down 8% year-over-year mainly due to divestitures, but flat on a comparable currency neutral basis, with Scent and Taste growth offsetting declines in Food Ingredients and short-term pressures in Health & Biosciences.

• Adjusted operating EBITDA for Q3 was $519 million, up 7% currency neutral, with margin improving to 19.3% due to productivity and pricing initiatives.

• Strategic investments included new innovation centers, collaborations with BASF and Kemira, and continued portfolio optimization through divestitures such as Pharma Solutions, Nitrocellulose, and the announced sale of Soy Crush, Concentrates & Lecithin business.

• A $1.153 billion goodwill impairment in Food Ingredients drove a nine-month net loss of $392 million, despite strong cash flow and a $488 million gain on debt extinguishment.

• Management reaffirmed full-year 2025 guidance and announced a $500 million share repurchase program, with leverage improved to 2.5x net debt to EBITDA.

Financial highlights

• Q3 2025 revenue was $2.694 billion, down 8% year-over-year, but flat on a comparable currency neutral basis; adjusted operating EBITDA was $519 million, up 7% currency neutral, with margin up 130 basis points to 19.3%.

• Q3 2025 net income attributable to shareholders was $40 million ($0.16 per share), down 31% year-over-year; adjusted EPS ex amortization was $1.05.

• For the first nine months, net sales were $8.301 billion (down 5%), net loss was $392 million, and adjusted operating EBITDA was $1.649 billion.

• Free cash flow for the first nine months was $126 million; cash flow from operations was $532 million; CapEx was $406 million; $306 million paid in dividends.

• Net debt to credit adjusted EBITDA at Q3 end was 2.5x.

Outlook and guidance

• Full-year 2025 guidance: sales of $10.6–$10.9 billion and adjusted operating EBITDA of $2–$2.15 billion, with comparable currency neutral sales growth of 1%–4% and EBITDA growth of 5%–10%.

• Expecting to finish at the low end of sales growth and near the midpoint of EBITDA growth guidance; foreign exchange expected to have a 1% adverse impact on sales and 3% on EBITDA.

• Guidance includes only four months of Pharma Solutions results due to divestiture, impacting sales and EBITDA growth by ~7% and ~8%, respectively.

• Q4 expected to show typical seasonality with a step down in sales and margin due to strong prior-year comparables.

• Sufficient liquidity anticipated from operations, divestiture proceeds, and credit facilities.