IFF Reports Fourth Quarter and Full-Year 2025 Financial Results
International Flavors & Fragrances Inc. (NYSE: IFF) announced its financial performance for the fourth quarter and full year ended December 31, 2025, highlighting resilient operating execution, continued portfolio optimization, and investments aimed at supporting long-term profitable growth despite a challenging macroeconomic environment.
Full-Year 2025 Consolidated Performance
For 2025, IFF reported net sales of $10.89 billion, representing a 5% decline compared with the prior year on a reported basis. On a comparable, currency-neutral basis, however, sales grew 2%, supported by mid-single-digit growth in the Taste segment and low-single-digit gains in both Health & Biosciences and Scent.
The company posted a reported loss before taxes of $412 million and earnings per share (EPS) of $(1.46). Adjusted results reflected stronger underlying performance, with adjusted operating EBITDA of $2.086 billion and adjusted EPS excluding amortization of $4.20 per diluted share. Operating EBITDA margin reached 19.2%.
Cash flow from operations totaled $850 million, while free cash flow reached $256 million after capital expenditures. At year-end, net debt to credit-adjusted EBITDA stood at 2.6x, reflecting improved leverage positioning.
Management Perspective
CEO Erik Fyrwald described 2025 as a year of delivery against commitments and strategic advancement. He noted that IFF continued investing in research and development, commercial capabilities, and production capacity to strengthen customer partnerships and innovation pipelines.
Management also emphasized portfolio optimization efforts, including divestitures and the initiation of a sale process for the Food Ingredients segment. These actions are intended to sharpen strategic focus, enhance financial flexibility, and reallocate capital toward higher-value businesses.
Looking ahead, Fyrwald expressed confidence in the company’s innovation pipeline, reinvestment strategy, and ability to generate long-term shareholder value, even as macroeconomic uncertainty persists.
Segment Performance in 2025
Taste
Reported sales reached $2.48 billion, with 4% comparable currency-neutral growth across all regions. Adjusted operating EBITDA totaled $478 million, and margin stood at 19.3%. Comparable EBITDA increased 10%, driven by pricing, volume growth, and productivity improvements.
Health & Biosciences
Sales were $2.28 billion, rising 3% on a comparable currency-neutral basis, led by strong Food Biosciences performance and growth in Home & Personal Care and Animal Nutrition. Adjusted operating EBITDA was $594 million with a 26.0% margin, reflecting 7% comparable EBITDA growth.
Scent
The Scent segment generated $2.48 billion in sales, with 3% comparable currency-neutral growth fueled by double-digit Fine Fragrance expansion. Adjusted operating EBITDA reached $515 million, producing a 20.8% margin and 2% comparable EBITDA growth.
Food Ingredients
Sales totaled $3.28 billion, declining 3% on a comparable basis due to softness in Protein Solutions and the exit of lower-margin business, partly offset by strong Inclusions growth. Adjusted operating EBITDA was $423 million with a 12.9% margin, while comparable EBITDA rose 10% through productivity and margin initiatives.
Pharma Solutions
This segment experienced significant reported declines due to portfolio changes, though comparable currency-neutral metrics indicated underlying improvement.
Fourth Quarter 2025 Results
IFF reported fourth-quarter sales of $2.59 billion, down 7% year over year. On a comparable currency-neutral basis, sales increased 1%, supported by mid-single-digit growth in Health & Biosciences and Scent.
Income before taxes was $22 million, and reported EPS was $0.07. Adjusted operating EBITDA reached $437 million, with a 16.9% margin, while adjusted EPS excluding amortization was $0.80. Comparable adjusted EBITDA grew 7%, mainly due to productivity gains.
Fourth Quarter Segment Highlights
- Taste: Sales of $588 million and 17% comparable EBITDA growth driven by pricing and cost discipline.
- Health & Biosciences: Sales of $589 million with 20% comparable EBITDA growth from strong volume and productivity.
- Scent: Sales of $610 million and modest 1% comparable EBITDA growth, as pricing pressure partly offset operational gains.
- Food Ingredients: Sales of $802 million, with 11% comparable EBITDA decline due to lower volumes and unfavorable pricing.
2026 Financial Outlook
IFF expects 2026 full-year sales between $10.5 billion and $10.8 billion and adjusted operating EBITDA between $2.05 billion and $2.15 billion. Guidance assumes the divestiture of the Soy Crush, Concentrates, and Lecithin business closes on March 31, 2026, with three months of results included.
The company projects:
- 1% to 4% comparable currency-neutral sales growth
- 3% to 8% comparable adjusted EBITDA growth, outpacing sales
- Approximately 1% positive foreign-exchange impact on sales
- Around 5% negative impact from divestitures on both sales and EBITDA growth
Strategic Position and Investor Information
IFF plans to file its 2025 Form 10-K by March 2, 2026, and will host a webcast discussing results and outlook on February 12, 2026. A replay will remain available for one year.
Forward-looking statements in the announcement reflect management’s expectations regarding growth, portfolio actions, pricing, productivity, and macroeconomic conditions. Actual outcomes may differ due to risks such as demand shifts, regulatory developments, supply-chain disruptions, input-cost volatility, cybersecurity threats, and geopolitical uncertainty.
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