IFF Reports Fourth Quarter and Full-Year 2025 Results, Provides 2026 Outlook
International Flavors & Fragrances Inc. (NYSE: IFF), a global leader in flavors, fragrances, food ingredients, health and biosciences, announced its financial results for the fourth quarter and full year ended December 31, 2025, highlighting solid operational execution despite a challenging macroeconomic environment.
Full-Year 2025 Financial Highlights
For the full year 2025, IFF reported net sales of $10.89 billion, representing a 5% decline on a reported basis compared to the prior year. However, on a comparable currency-neutral basis, sales increased 2%, building on a strong 6% comparable growth in 2024. Growth was led by mid-single-digit gains in the Taste segment and low-single-digit improvements in Health & Biosciences and Scent.
The company reported a loss before taxes of $412 million for the full year. Adjusted operating EBITDA totaled $2.086 billion, with a margin of 19.2%. On a comparable currency-neutral basis, adjusted operating EBITDA increased 7%, supported by volume growth, productivity improvements, and favorable net pricing.
Reported earnings per share (EPS) for the year was $(1.46), while adjusted EPS excluding amortization reached $4.20 per diluted share.
Cash flow from operations was $850 million, and free cash flow amounted to $256 million after capital expenditures. IFF ended the year with a net debt to credit-adjusted EBITDA ratio of 2.6x, reflecting improved financial flexibility.
Management Commentary
Erik Fyrwald, CEO of IFF, stated that the company delivered on its full-year financial commitments despite ongoing economic pressures.
He emphasized continued investment in R&D, commercial capabilities, and capacity expansion to strengthen innovation and support long-term profitable growth. The company also advanced portfolio optimization initiatives, including several divestitures and the launch of a sale process for its Food Ingredients segment.
Looking ahead to 2026, Fyrwald noted that while macroeconomic uncertainty remains, IFF enters the year confident in its innovation pipeline, reinvestment strategy, and ability to create long-term shareholder value.
Segment Performance: Full-Year 2025
Taste
The Taste segment generated $2.48 billion in reported sales, with comparable currency-neutral growth of 4% across all regions. Adjusted operating EBITDA reached $478 million, with a margin of 19.3%. Comparable adjusted EBITDA grew 10%, driven by pricing discipline, productivity gains, and volume expansion.
Health & Biosciences
Health & Biosciences reported sales of $2.28 billion, with comparable currency-neutral growth of 3%. Strong performance in Food Biosciences, Home & Personal Care, and Animal Nutrition supported results.
Adjusted operating EBITDA totaled $594 million, delivering a robust 26.0% margin. Comparable adjusted EBITDA increased 7%, reflecting volume growth and operational efficiencies.
Scent
The Scent segment recorded $2.48 billion in sales, with comparable currency-neutral growth of 3%, supported by double-digit growth in Fine Fragrance.
Adjusted operating EBITDA reached $515 million, with a margin of 20.8%. Comparable adjusted EBITDA increased 2%, as productivity gains offset reinvestment spending and pricing pressures.
Food Ingredients
Food Ingredients generated $3.28 billion in sales, reflecting a 3% decline on a comparable currency-neutral basis. Growth in Inclusions was offset by softness in Protein Solutions and the strategic exit of lower-margin business lines.
Adjusted operating EBITDA was $423 million, with a 12.9% margin. Comparable adjusted EBITDA improved 10%, driven by margin expansion initiatives and productivity improvements.
Pharma Solutions
Pharma Solutions experienced significant reported declines due to portfolio changes but delivered strong comparable currency-neutral growth, reflecting ongoing restructuring and repositioning efforts.
Fourth Quarter 2025 Results
In the fourth quarter, IFF reported net sales of $2.59 billion, down 7% year-over-year on a reported basis. On a comparable currency-neutral basis, sales increased 1%, despite strong prior-year comparisons.
Income before taxes was $22 million. Adjusted operating EBITDA totaled $437 million, representing a 16.9% margin. Comparable adjusted EBITDA grew 7%, supported by productivity initiatives.
Reported EPS for the quarter was $0.07, while adjusted EPS excluding amortization reached $0.80 per diluted share.
Fourth Quarter Segment Highlights
Taste
Quarterly sales were $588 million, with comparable currency-neutral growth of 2%, led by North America. Adjusted EBITDA rose 17% on a comparable basis, reflecting pricing discipline and cost control.
Health & Biosciences
Sales reached $589 million, up 5% on a comparable currency-neutral basis. Adjusted EBITDA grew 20%, driven by strong volume growth and operational efficiencies.
Scent
The Scent segment posted $610 million in sales, with 4% comparable growth. Adjusted EBITDA increased modestly by 1%, as volume gains were partially offset by pricing pressures.
Food Ingredients
Sales totaled $802 million, declining 4% on a comparable basis. Adjusted EBITDA fell 11%, as lower volumes and unfavorable pricing outweighed productivity gains.
2026 Financial Guidance
IFF expects full-year 2026 sales to range between $10.5 billion and $10.8 billion, with adjusted operating EBITDA projected between $2.05 billion and $2.15 billion.
Comparable currency-neutral sales growth is expected to range from 1% to 4%, while comparable adjusted operating EBITDA is forecast to grow 3% to 8%, outpacing sales growth.
Foreign exchange is anticipated to provide a modest 1% positive impact on sales, while divestitures are expected to have an approximately 5% adverse impact on both sales and EBITDA growth in 2026.
Strategic Focus and Portfolio Optimization
Throughout 2025, IFF continued executing its strategic transformation plan. Divestitures and the planned sale of the Food Ingredients business aim to sharpen the company’s focus on higher-margin, innovation-driven segments such as Taste, Scent, and Biosciences.
Management emphasized capital allocation discipline, productivity initiatives, and reinvestment in growth platforms as central pillars of its long-term strategy.
Investor Information
IFF will host a live webcast to discuss its fourth quarter and full-year 2025 results and 2026 outlook. A replay will be available on the company’s investor relations website.
The company’s Annual Report on Form 10-K will be accessible via its website and the SEC by early March 2026.
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