Sensient (SXT) Q4 2025 earnings summary

Executive summary

• Q4 2025 consolidated revenue grew 4.5% year-over-year (2.0% in local currency) to $393.4 million, with all business groups delivering adjusted local currency operating profit growth and improved EBITDA margins.

• Adjusted EBITDA increased 3.2% to $63.0 million, while adjusted diluted EPS rose 10.8% to $0.72; reported GAAP diluted EPS declined 15.5% to $0.60.

• Portfolio Optimization Plan costs impacted Q4 2025 results by $6.3 million, affecting operating income and EPS.

• Multi-year growth trajectory continues, supported by a strong sales pipeline and ongoing investments in natural color technologies.

Financial highlights

• Q4 2025 revenue was $393.4M, up from $376.4M in Q4 2024; adjusted operating income was $44.5M, up 3.8% year-over-year.

• Adjusted EBITDA for Q4 2025 was $63.0M, up 3.2% year-over-year; adjusted EBITDA margin was 16.0%.

• Q4 2025 cash flow from operations was $127.8M, down from $157.2M in 2024, mainly due to higher working capital use.

• Net debt to adjusted EBITDA was 2.3x at year-end 2025.

• Consolidated adjusted tax rate was 17.1% in Q4 2025, down from 24.9% in Q4 2024.

Outlook and guidance

• 2026 guidance projects mid-single-digit to double-digit growth in local currency revenue and adjusted EBITDA, with stronger growth in the second half.

• Adjusted EPS expected to grow mid- to high-single digits; GAAP diluted EPS expected between $3.60 and $3.80 for 2026.

• Capital expenditures planned at $150M–$170M in 2026, with $225M–$250M for natural color conversion through 2028.

• Interest expense for 2026 expected to be ~$36M; tax rate ~25%.