Sensient (SXT) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 10.6% reported and 10.2% in local currency to $455.8M; adjusted EBITDA increased 15.6% reported and 15.4% in local currency to $93.1M.

• Operating income increased 25.5% to $72.4M and net earnings rose 30.8% to $48.3M; diluted EPS was $1.13, up 29.9%.

• Nine-month revenue rose 11.1% to $1.354B, operating income increased 27.8% to $215.9M, and net earnings grew 32.0% to $143.9M.

• Natural-color conversions remain a key growth driver, with a $1B incremental annualized sales run-rate target by year-end 2028.

Financial highlights

• Adjusted EBITDA margin expanded 90 bps to 20.4%; adjusted operating income grew 18.7% reported and 18.6% in local currency.

• Adjusted diluted EPS rose 17.7% to $1.13 from $0.96; adjusted net earnings increased 18.1% to $48.3M from $40.9M.

• Q3 revenue growth reflected higher volumes and selling prices; 9M foreign exchange increased consolidated revenue by ~2%.

• Q3 operating cash flow was $40.5M and capital expenditures were $38M; Q3 2025 included $3.3M of Portfolio Optimization Plan costs, with none recorded in Q3 2026.

Outlook and guidance

• FY 2026 local-currency revenue growth guidance remains high-single to low-double digits; adjusted EBITDA and adjusted EPS growth are expected in the mid- to high-teens.

• GAAP diluted EPS guidance is $4.15–$4.20, raised at the low end from $4.10–$4.20; FX impact is expected to be immaterial for the rest of 2026 at current rates.

• FY group outlook: Color revenue growth in the high teens, Flavors & Extracts in the mid-single digits, and Asia Pacific in the low double digits.

• FY 2026 capital expenditures are expected to be ~$160M; adjusted effective tax rate is ~25% and interest expense ~$34M.

• Natural-color conversion activity is expected to accelerate in 2027 and continue through 2028; personal care growth is expected in the mid-single digits for 2026.