International Flavors & Fragrances (IFF) investor relations material

Executive summary

• Q3 net sales rose 4% reported and 5% comparable currency-neutral; adjusted operating EBITDA rose 5% reported and 6% comparable currency-neutral, with 5% volume growth across continuing segments.

• Taste and Scent led growth; Health & Biosciences posted modest sales growth as Food Biosciences and Grain Processing gains offset Health declines.

• Strong 9M performance supported higher FY26 guidance floors; Q4 profitability is expected to soften amid higher costs and reinvestment.

Financial highlights

• Q3 revenue was $1.942B, up 4% reported and 5% comparable currency-neutral; adjusted operating EBITDA was $403M, up 5% reported and 6% comparable currency-neutral.

• Q3 adjusted diluted EPS was $0.58; net loss attributable to shareholders was $55M, or $(0.22) per diluted share, including a $127M continuing-operations loss.

• 9M sales were $5.802B, down 1% reported but up 4% comparable currency-neutral; adjusted operating EBITDA was $1.244B at a 21.4% margin.

• 9M adjusted diluted EPS was $1.84; adjusted EPS excluding amortization was $2.58.

• 9M operating cash flow was $820M and free cash flow was $371M, up $245M YoY, supported by improved working capital.

Outlook and guidance

• FY26 sales guidance increased to $7.5B–$7.6B from $7.4B–$7.6B; comparable currency-neutral growth is expected at 3%–4%.

• FY26 adjusted operating EBITDA guidance increased to $1.55B–$1.6B from $1.53B–$1.6B; comparable currency-neutral growth is expected at 5%–8%.

• FX is expected to contribute ~1% to FY26 sales growth and ~2% to adjusted operating EBITDA growth; Q4 volumes are expected to remain solid.

• Q4 profitability is expected to moderate, particularly in Health & Biosciences, due to higher costs and continued reinvestment; pricing and productivity actions are ongoing.