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Sensient (SXT) investor relations material
Sensient Q3 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Q3 2025 revenue grew 5.0% year-over-year to $412.1 million, with local currency revenue up 3.5% and strong gains in the Color segment; adjusted EBITDA rose 16.3% to $80.5 million, and adjusted diluted EPS increased 20% to $0.96.
Operating income increased 14.2% to $57.7 million, with adjusted operating income up 18.0%; net earnings for the quarter were $37.0 million, up 13% year-over-year.
Portfolio Optimization Plan costs were $3.3 million in Q3 2025, impacting GAAP results.
Raised full-year 2025 guidance to double-digit local currency-adjusted EBITDA and EPS growth, supported by regulatory-driven demand for natural colors.
Strategic focus on U.S. conversion from synthetic to natural colors, with robust sales pipelines and new wins despite flat consumer markets.
Financial highlights
Q3 2025 revenue was $412.1 million, up from $392.6 million in Q3 2024; adjusted EBITDA for Q3 was $80.5 million, up 16.3% year-over-year.
Adjusted operating income was $61 million, up from $51.7 million year-over-year, a 15.7% increase in local currency.
Cash flow from operations was $44 million in Q3 2025; for the nine months ended September 30, 2025, it was $83.3 million.
Net debt to credit adjusted EBITDA was 2.3x as of September 30, 2025, down from 2.4x a year earlier.
Gross margin improved to 34.3% in Q3 2025 from 33.2% in Q3 2024.
Outlook and guidance
Full-year 2025 local currency revenue growth expected at mid-single digits, with adjusted EBITDA and EPS now expected to grow at double-digit rates.
2025 GAAP EPS expected between $3.13 and $3.23, including $0.28 of Portfolio Optimization Plan costs.
Capital expenditures for 2025 expected to be around $100 million; at least $150 million anticipated for 2026 to support natural color conversion.
Long-term consolidated local currency revenue expected to grow at a mid-single-digit rate, with potential upside from accelerated natural color conversions.
Foreign currency expected to be a slight tailwind for the year.
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