UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
(Mark One)
| ☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
| For the quarterly period ended: | June 30, 2026 |
OR
| ☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
| For the transition period from | to |
Commission file number: 001-07626
Sensient Technologies Corporation
(Exact name of registrant as specified in its charter)
| Wisconsin | 39-0561070 | |
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
777 EAST WISCONSIN AVENUE, MILWAUKEE, WISCONSIN 53202-5304
(Address of principal executive offices)
| Registrant’s telephone number, including area code: | (414) 271-6755 |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| Common stock, par value $0.10 per share | SXT | New York Stock Exchange LLC |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for at least the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Large Accelerated Filer ☒ | Accelerated Filer ☐ | Non-Accelerated Filer ☐ |
| Smaller Reporting Company ☐ | Emerging Growth Company ☐ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes ☐ No ☒
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
| Class | Outstanding at July 22, 2026 | |
| Common Stock, par value $0.10 per share | 42,562,811 |
SENSIENT TECHNOLOGIES CORPORATION
INDEX
| Page No. | |||
| PART I. FINANCIAL INFORMATION: | |||
| Item 1. | |||
| | |||
| 1 | |||
| 2 | |||
| | |||
| 3 | |||
| 4 | |||
| | |||
| 5 | |||
| 6 | |||
| Item 2. | 15 | ||
| | | ||
| Item 3. | 21 | ||
| Item 4. | 21 | ||
| PART II. OTHER INFORMATION: | |||
| Item 1. | 21 | ||
| Item 1A. | 21 | ||
| Item 2. | 21 | ||
| Item 5. | 22 | ||
| Item 6. | 22 | ||
| 23 | |||
| 24 | |||
| PART I. | FINANCIAL INFORMATION |
| ITEM 1. | FINANCIAL STATEMENTS |
SENSIENT TECHNOLOGIES CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands except per share amounts)
(Unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Revenue | $ | 462,081 | $ | 414,230 | $ | 897,915 | $ | 806,555 | ||||||||
| Cost of products sold | 289,282 | 271,398 | 572,428 | 531,946 | ||||||||||||
| Selling and administrative expenses | 96,099 | 85,126 | 182,059 | 163,373 | ||||||||||||
| Operating income | 76,700 | 57,706 | 143,428 | 111,236 | ||||||||||||
| Interest expense | 8,174 | 7,391 | 16,076 | 14,732 | ||||||||||||
| Earnings before income taxes | 68,526 | 50,315 | 127,352 | 96,504 | ||||||||||||
| Income taxes | 17,167 | 12,728 | 31,823 | 24,455 | ||||||||||||
| Net earnings | $ | 51,359 | $ | 37,587 | $ | 95,529 | $ | 72,049 | ||||||||
| Weighted average number of common shares outstanding: | ||||||||||||||||
| Basic | 42,350 | 42,246 | 42,323 | 42,221 | ||||||||||||
| Diluted | 42,756 | 42,575 | 42,714 | 42,522 | ||||||||||||
| Earnings per common share: | ||||||||||||||||
| Basic | $ | 1.21 | $ | 0.89 | $ | 2.26 | $ | 1.71 | ||||||||
| Diluted | $ | 1.20 | $ | 0.88 | $ | 2.24 | $ | 1.69 | ||||||||
| Dividends declared per common share | $ | 0.41 | $ | 0.41 | $ | 0.82 | $ | 0.82 | ||||||||
See accompanying notes to consolidated condensed financial statements.
SENSIENT TECHNOLOGIES CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands)
(Unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Comprehensive income | $ | 53,848 | $ | 75,982 | $ | 94,691 | $ | 125,409 | ||||||||
See accompanying notes to consolidated condensed financial statements.
SENSIENT TECHNOLOGIES CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
| Assets | June 30, 2026 (Unaudited) | December 31, 2025 | ||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 31,019 | $ | 36,533 | ||||
| Trade accounts receivable | 376,503 | 305,380 | ||||||
| Inventories | 719,094 | 678,220 | ||||||
| Prepaid expenses and other current assets | 57,041 | 59,717 | ||||||
| Fixed assets held for sale | - | 1,598 | ||||||
| Total current assets | 1,183,657 | 1,081,448 | ||||||
| Other assets | 104,745 | 102,362 | ||||||
| Deferred tax assets | 63,395 | 71,204 | ||||||
| Intangible assets, net | 9,535 | 10,121 | ||||||
| Goodwill | 435,064 | 439,706 | ||||||
| Property, Plant, and Equipment: | ||||||||
| Land | 34,618 | 34,898 | ||||||
| Buildings | 368,979 | 366,797 | ||||||
| Machinery and equipment | 858,778 | 858,762 | ||||||
| Construction in progress | 118,505 | 78,492 | ||||||
| 1,380,880 | 1,338,949 | |||||||
| Less accumulated depreciation | (806,173 | ) | (799,653 | ) | ||||
| 574,707 | 539,296 | |||||||
| Total assets | $ | 2,371,103 | $ | 2,244,137 | ||||
| Liabilities and Shareholders’ Equity | ||||||||
| Current Liabilities: | ||||||||
| Trade accounts payable | $ | 145,300 | $ | 138,344 | ||||
| Accrued salaries, wages, and withholdings from employees | 39,739 | 43,988 | ||||||
| Other accrued expenses | 64,906 | 65,652 | ||||||
| Income taxes | 19,279 | 15,247 | ||||||
| Short-term borrowings | 397 | 352 | ||||||
| Total current liabilities | 269,621 | 263,583 | ||||||
| Deferred tax liabilities | 13,439 | 13,651 | ||||||
| Other liabilities | 39,879 | 40,112 | ||||||
| Accrued employee and retiree benefits | 24,737 | 24,045 | ||||||
| Long-term debt | 763,499 | 709,232 | ||||||
| Shareholders’ Equity: | ||||||||
| Common stock | 5,396 | 5,396 | ||||||
| Additional paid-in capital | 125,863 | 123,668 | ||||||
| Earnings reinvested in the business | 1,907,676 | 1,847,014 | ||||||
| Treasury stock, at cost | (607,916 | ) | (612,311 | ) | ||||
| Accumulated other comprehensive loss | (171,091 | ) | (170,253 | ) | ||||
| Total shareholders’ equity | 1,259,928 | 1,193,514 | ||||||
| Total liabilities and shareholders’ equity | $ | 2,371,103 | $ | 2,244,137 | ||||
See accompanying notes to consolidated condensed financial statements.
SENSIENT TECHNOLOGIES CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
| Six Months Ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| Cash flows from operating activities: | ||||||||
| Net earnings | $ | 95,529 | $ | 72,049 | ||||
| Adjustments to arrive at net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 31,428 | 30,334 | ||||||
| Share-based compensation expense | 9,380 | 6,639 | ||||||
| Net (gain) loss on assets | (149 | ) | 76 | |||||
| Portfolio Optimization Plan costs | - | 1,274 | ||||||
| Deferred income taxes | 3,320 | 2,711 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Trade accounts receivable | (72,244 | ) | (30,293 | ) | ||||
| Inventories | (42,811 | ) | (548 | ) | ||||
| Prepaid expenses and other assets | (181 | ) | (11,028 | ) | ||||
| Accounts payable and other accrued expenses | 8,131 | (17,578 | ) | |||||
| Accrued salaries, wages, and withholdings from employees | (4,071 | ) | (15,129 | ) | ||||
| Income taxes | 4,425 | (937 | ) | |||||
| Other liabilities | 2,090 | 1,734 | ||||||
| Net cash provided by operating activities | 34,847 | 39,304 | ||||||
| Cash flows from investing activities: | ||||||||
| Acquisition of property, plant, and equipment | (67,513 | ) | (38,035 | ) | ||||
| Proceeds from sale of assets | 2,019 | 56 | ||||||
| Acquisition of new business | - | (4,867 | ) | |||||
| Other investing activities | (282 | ) | 1,354 | |||||
| Net cash used in investing activities | (65,776 | ) | (41,492 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from additional borrowings | 150,719 | 106,484 | ||||||
| Debt payments | (87,897 | ) | (43,148 | ) | ||||
| Dividends paid | (34,867 | ) | (34,700 | ) | ||||
| Other financing activities | (4,411 | ) | (2,648 | ) | ||||
| Net cash provided by financing activities | 23,544 | 25,988 | ||||||
| Effect of exchange rate changes on cash and cash equivalents | 1,871 | 6,260 | ||||||
| Net (decrease) increase in cash and cash equivalents | (5,514 | ) | 30,060 | |||||
| Cash and cash equivalents at beginning of period | 36,533 | 26,626 | ||||||
| Cash and cash equivalents at end of period | $ | 31,019 | $ | 56,686 | ||||
See accompanying notes to consolidated condensed financial statements.
SENSIENT TECHNOLOGIES CORPORATION
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
(In thousands, except share and per share amounts)
(Unaudited)
| Additional | Earnings Reinvested | Treasury Stock | Accumulated Other | |||||||||||||||||||||||||
| Three Months Ended June 30, 2026 | Common Stock | Paid-In Capital | in the Business | Shares | Amount | Comprehensive Income (Loss) | Total Equity | |||||||||||||||||||||
| Balances at March 31, 2026 | $ | 5,396 | $ | 121,971 | $ | 1,873,758 | 11,616,224 | $ | (608,664 | ) | $ | (173,580 | ) | $ | 1,218,881 | |||||||||||||
| Net earnings | - | - | 51,359 | - | - | - | 51,359 | |||||||||||||||||||||
| Other comprehensive income | - | - | - | - | - | 2,489 | 2,489 | |||||||||||||||||||||
| Cash dividends paid – $0.41 per share | - | - | (17,441 | ) | - | - | - | (17,441 | ) | |||||||||||||||||||
| Share-based compensation | - | 5,604 | - | - | - | - | 5,604 | |||||||||||||||||||||
| Non-vested stock issued upon vesting | - | (1,257 | ) | - | (23,984 | ) | 1,257 | - | - | |||||||||||||||||||
| Other | - | (455 | ) | - | 9,716 | (509 | ) | - | (964 | ) | ||||||||||||||||||
| Balances at June 30, 2026 | $ | 5,396 | $ | 125,863 | $ | 1,907,676 | 11,601,956 | $ | (607,916 | ) | $ | (171,091 | ) | $ | 1,259,928 | |||||||||||||
| Three Months Ended June 30, 2025 | ||||||||||||||||||||||||||||
| Balances at March 31, 2025 | $ | 5,396 | $ | 116,117 | $ | 1,799,225 | 11,714,809 | $ | (613,830 | ) | $ | (211,874 | ) | $ | 1,095,034 | |||||||||||||
| Net earnings | - | - | 37,587 | - | - | - | 37,587 | |||||||||||||||||||||
| Other comprehensive income | - | - | - | - | - | 38,395 | 38,395 | |||||||||||||||||||||
| Cash dividends paid – $0.41 per share | - | - | (17,324 | ) | - | - | - | (17,324 | ) | |||||||||||||||||||
| Share-based compensation | - | 3,739 | - | - | - | - | 3,739 | |||||||||||||||||||||
| Non-vested stock issued upon vesting | - | (633 | ) | - | (12,087 | ) | 633 | - | - | |||||||||||||||||||
| Other | - | (109 | ) | - | 3,844 | (201 | ) | - | (310 | ) | ||||||||||||||||||
| Balances at June 30, 2025 | $ | 5,396 | $ | 119,114 | $ | 1,819,488 | 11,706,566 | $ | (613,398 | ) | $ | (173,479 | ) | $ | 1,157,121 | |||||||||||||
| Six Months Ended June 30, 2026 | ||||||||||||||||||||||||||||
| Balances at December 31, 2025 | $ | 5,396 | $ | 123,668 | $ | 1,847,014 | 11,685,819 | $ | (612,311 | ) | $ | (170,253 | ) | $ | 1,193,514 | |||||||||||||
| Net earnings | - | - | 95,529 | - | - | - | 95,529 | |||||||||||||||||||||
| Other comprehensive loss | - | - | - | - | - | (838 | ) | (838 | ) | |||||||||||||||||||
| Cash dividends paid – $0.82 per share | - | - | (34,867 | ) | - | - | - | (34,867 | ) | |||||||||||||||||||
| Share-based compensation | - | 9,380 | - | - | - | - | 9,380 | |||||||||||||||||||||
| Non-vested stock issued upon vesting | - | (5,843 | ) | - | (111,515 | ) | 5,843 | - | - | |||||||||||||||||||
| Benefit plans | - | 729 | - | (17,031 | ) | 892 | - | 1,621 | ||||||||||||||||||||
| Other | - | (2,071 | ) | - | 44,683 | (2,340 | ) | - | (4,411 | ) | ||||||||||||||||||
| Balances at June 30, 2026 | $ | 5,396 | $ | 125,863 | $ | 1,907,676 | 11,601,956 | $ | (607,916 | ) | $ | (171,091 | ) | $ | 1,259,928 | |||||||||||||
| Six Months Ended June 30, 2025 | ||||||||||||||||||||||||||||
| Balances at December 31, 2024 | $ | 5,396 | $ | 117,500 | $ | 1,782,139 | 11,779,321 | $ | (617,210 | ) | $ | (226,839 | ) | $ | 1,060,986 | |||||||||||||
| Net earnings | - | - | 72,049 | - | - | - | 72,049 | |||||||||||||||||||||
| Other comprehensive income | - | - | - | - | - | 53,360 | 53,360 | |||||||||||||||||||||
| Cash dividends paid – $0.82 per share | - | - | (34,700 | ) | - | - | - | (34,700 | ) | |||||||||||||||||||
| Share-based compensation | - | 6,639 | - | - | - | - | 6,639 | |||||||||||||||||||||
| Non-vested stock issued upon vesting | - | (4,606 | ) | - | (87,916 | ) | 4,606 | - | - | |||||||||||||||||||
| Benefit plans | - | 394 | - | (19,899 | ) | 1,043 | - | 1,437 | ||||||||||||||||||||
| Other | - | (813 | ) | - | 35,060 | (1,837 | ) | - | (2,650 | ) | ||||||||||||||||||
| Balances at June 30, 2025 | $ | 5,396 | $ | 119,114 | $ | 1,819,488 | 11,706,566 | $ | (613,398 | ) | $ | (173,479 | ) | $ | 1,157,121 | |||||||||||||
See accompanying notes to consolidated condensed financial statements.
SENSIENT TECHNOLOGIES CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Unaudited)
| 1. | Accounting Policies |
In the opinion of Sensient Technologies Corporation (the Company), the accompanying unaudited consolidated condensed financial statements contain all adjustments (consisting of only normal recurring adjustments) that are necessary to present fairly the financial position of the Company as of June 30, 2026, and the results of operations, comprehensive income, and shareholders’ equity for the three and six months ended June 30, 2026 and 2025, and cash flows for the six months ended June 30, 2026 and 2025. The results of operations for any interim period are not necessarily indicative of the results to be expected for the full year.
The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Expenses are charged to operations in the period incurred.
Recently Adopted Accounting Pronouncements
In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires the Company to disclose specified additional information in its income tax rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. This ASU also requires the Company to disaggregate its income taxes paid disclosure by federal, state, and foreign taxes, with further disaggregation required for significant individual jurisdictions. This ASU is effective for fiscal years beginning after December 15, 2024. The Company adopted this ASU in the fourth quarter of 2025 using a prospective transition method. The Company updated its annual disclosures as a result of adopting this ASU, and the adoption did not have a material impact on the Company’s consolidated financial statements.
Recently Issued Accounting Pronouncements
In November 2024, the FASB issued ASU No. 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40) – Disaggregation of Income Statement Expenses, which will require the Company to disclose disaggregated information about certain income statement expense line items. This ASU is effective for fiscal years beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027. The Company is currently evaluating the potential impact of this standard on its consolidated financial statements and its related disclosures.
Please refer to the notes in the Company’s annual consolidated financial statements for the year ended December 31, 2025, for additional details of the Company’s financial condition and a description of the Company’s accounting policies, which have been continued without change.
| 2. | Acquisition |
On February 14, 2025, the Company acquired Biolie SAS, a natural color extraction business located in France. The Company paid $4.9 million in cash for this acquisition, which is net of $0.2 million in debt assumed. The assets acquired and liabilities assumed were recorded at their estimated fair value as of the acquisition date. The Company acquired net assets of $0.3 million, with the remaining $4.6 million allocated to goodwill. This business is part of the Color segment.
| 3. | Portfolio Optimization Plan |
During the fourth quarter of 2023, the Board of Directors of the Company approved a plan to undertake an effort to optimize certain production facilities and improve efficiencies within the Company (Portfolio Optimization Plan). As part of the Portfolio Optimization Plan, in the Flavors & Extracts segment, the Company evaluated the closure of its manufacturing facility in Felinfach, Wales, United Kingdom, the closure of its sales office in Granada, Spain, and the centralization and elimination of certain selling and administrative positions. In addition, in the Color segment, the Company evaluated the closure of a manufacturing facility in Delta, British Columbia, Canada, the closure of a sales office in Argentina, and centralizing and eliminating certain production positions and selling and administrative positions. The Company reports all costs associated with the Portfolio Optimization Plan in the Corporate & Other segment.
The Company’s Felinfach site was shut down in May 2025, and all production activities have been transferred to other locations. The Company began marketing the Felinfach site for sale in June 2025, at which point the held for sale criteria was met. These are the sole assets recorded in Fixed assets held for sale on the Company’s Consolidated Balance Sheet at December 31, 2025. The Company sold the land and building assets in February 2026 for approximately $2.0 million, resulting in a $0.4 million gain recognized in Selling and Administrative Expenses on the Company’s Consolidated Statements of Earnings during the three months ended March 31, 2026. There were no costs associated with the Portfolio Optimization Plan recognized during the three or six months ended June 30, 2026. The Company has completed all actions contemplated under the Portfolio Optimization Plan.
The total cost of the Portfolio Optimization Plan was approximately $50 million, primarily related to non-cash impairment charges and employee separation costs. We anticipate that the Portfolio Optimization Plan will reduce annual operating costs by approximately $8 million, with the full benefit expected to be achieved beginning in 2026. The Company reduced headcount by approximately 100 positions, primarily in the Flavors & Extracts and Color segments, related to certain production and selling and administrative positions.
The following table summarizes the Portfolio Optimization Plan expenses by segment for the three months ended June 30, 2025:
| (In thousands) | Flavors & Extracts | Color | Corporate & Other | Consolidated | ||||||||||||
| Non-cash impairment charges – Selling and administrative expenses | $ | 117 | $ | - | $ | - | $ | 117 | ||||||||
| Non-cash charges – Cost of products sold | 326 | - | - | 326 | ||||||||||||
| Employee separation – Selling and administrative expenses | 234 | - | - | 234 | ||||||||||||
| Other production costs – Cost of products sold | 1,463 | - | - | 1,463 | ||||||||||||
| Other costs – Selling and administrative expenses(1) | 937 | 97 | 165 | 1,199 | ||||||||||||
| Total | $ | 3,077 | $ | 97 | $ | 165 | $ | 3,339 | ||||||||
| | (1) | Other costs include professional services, decommissioning costs, and other related costs. |
The following table summarizes the Portfolio Optimization Plan expenses by segment for the six months ended June 30, 2025:
| (In thousands) | Flavors & Extracts | Color | Corporate & Other | Consolidated | ||||||||||||
| Non-cash impairment charges – Selling and administrative expenses | $ | 117 | $ | - | $ | - | $ | 117 | ||||||||
| Non-cash charges – Cost of products sold | 1,181 | - | - | 1,181 | ||||||||||||
| Employee separation – Selling and administrative expenses | 480 | 8 | - | 488 | ||||||||||||
| Other production costs – Cost of products sold | 2,422 | - | - | 2,422 | ||||||||||||
| Other costs – Selling and administrative expenses(1) | 1,728 | 102 | 165 | 1,995 | ||||||||||||
| Total | $ | 5,928 | $ | 110 | $ | 165 | $ | 6,203 | ||||||||
| | (1) | Other costs include professional services, decommissioning costs, and other related costs. |
| 4. | Trade Accounts Receivable |
Trade accounts receivables are recorded at their face amount, less an allowance for expected losses on doubtful accounts. The allowance for doubtful accounts is calculated based on customer-specific analysis and an aging methodology using historical loss information. The Company believes historical loss information is a reasonable basis for expected credit losses as the Company’s historical credit loss experience correlates with its customer delinquency status. This information is also adjusted for any known current economic conditions. Forecasted economic conditions have not had a significant impact on the current credit loss estimate due to the short-term nature of the Company’s customer receivables; however, the Company will continue to monitor and evaluate the rapidly changing economic conditions. Additionally, as the Company only has one portfolio segment, there are not different risks between portfolios. Specific accounts are written off against the allowance for doubtful accounts when the receivable is deemed no longer collectible.
The following table summarizes the changes in the allowance for doubtful accounts during the three and six month periods ended June 30, 2026 and 2025:
| (In thousands) Three Months Ended June 30, 2026 | Allowance for Doubtful Accounts | |||
| Balance at March 31, 2026 | $ | 5,319 | ||
| Provision for expected credit losses | 19 | |||
| Accounts written off | (220 | ) | ||
| Balance at June 30, 2026 | $ | 5,118 | ||
| (In thousands) Three Months Ended June 30, 2025 | Allowance for Doubtful Accounts | |||
| Balance at March 31, 2025 | $ | 5,205 | ||
| Provision for expected credit losses | 390 | |||
| Accounts written off | (174 | ) | ||
| Translation and other activity | 191 | |||
| Balance at June 30, 2025 | $ | 5,612 | ||
| (In thousands) Six Months Ended June 30, 2026 | Allowance for Doubtful Accounts | |||
| Balance at December 31, 2025 | $ | 5,128 | ||
| Provision for expected credit losses | 497 | |||
| Accounts written off | (501 | ) | ||
| Translation and other activity | (6 | ) | ||
| Balance at June 30, 2026 | $ | 5,118 | ||
| (In thousands) Six Months Ended June 30, 2025 | Allowance for Doubtful Accounts | |||
| Balance at December 31, 2024 | $ | 5,023 | ||
| Provision for expected credit losses | 744 | |||
| Accounts written off | (465 | ) | ||
| Translation and other activity | 310 | |||
| Balance at June 30, 2025 | $ | 5,612 | ||
| 5. | Inventories |
At June 30, 2026, and December 31, 2025, inventories included finished and in-process products totaling $512.4 million and $491.4 million, respectively, and raw materials and supplies of $206.7 million and $186.8 million, respectively.
| 6. | Debt |
On March 27, 2026, the Company issued €65 million of Euro-denominated senior notes under the Amended and Restated Consolidated Note Purchase and Master Note Agreement, maturing in March 2030 and bearing an interest rate of 4.00%. The proceeds were used to repay a portion of the Company’s existing revolving credit facility.
On June 18, 2026, the Company entered into a Credit Agreement (Credit Agreement) with CoBank, ACB, and the lenders party thereto from time to time. The Credit Agreement provides for an unsecured delayed-draw term loan credit facility (Term Loan) in the aggregate principal amount of up to $400 million, which is to be drawn in up to five advances over fifteen months following the closing date. All amounts owing under the Term Loan will be due five years from the closing date. Proceeds from the Credit Agreement will be used to refinance existing indebtedness and for working capital and other general corporate purposes. There were no draws made on the Term Loan as of June 30, 2026.
| 7. | Fair Value |
Accounting Standards Codification 820, Fair Value Measurement, defines fair value for financial assets and liabilities, establishes a framework for measuring fair value in GAAP, and expands disclosures about fair value measurements. The carrying values of the Company’s cash and cash equivalents, trade accounts receivable, trade accounts payable, accrued expenses, and short-term borrowings were approximately the same as the fair values as of June 30, 2026 and December 31, 2025. The net fair value of the forward exchange contracts based on current pricing obtained for comparable derivative products (Level 2 inputs) was an asset of $1.1 million and $0.3 million as of June 30, 2026 and December 31, 2025, respectively. The fair value of the Company’s long-term debt, including the portions of long-term debt classified as Short-term borrowings on the Company’s Consolidated Balance Sheets, is estimated using discounted cash flows based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements (Level 2 inputs). The carrying value of the long-term debt at June 30, 2026 and December 31, 2025, was $763.7 million and $709.5 million, respectively. The fair value of the long-term debt at June 30, 2026 and December 31, 2025, was $772.9 million and $720.9 million, respectively.
| 8. | Segment Information |
The Company evaluates performance based on operating income before share-based compensation (except for share-based compensation expense associated with stock grants to certain business unit leaders); restructuring and other charges, including Portfolio Optimization Plan costs; interest expense; and income taxes (segment operating income). Total revenue and segment operating income by business segment and geographic region include both sales to customers, as reported in the Company’s Consolidated Statements of Earnings, and intersegment sales, which are accounted for at prices that approximate market prices and are eliminated in consolidation.
Assets by business segment and geographic region are those assets used in the Company’s operations in each segment and geographic region. Segment assets reflect the allocation of goodwill to each segment. Corporate & Other assets consist primarily of accounts receivables from the securitization program, investments, deferred tax assets, and fixed assets.
The Company determines its operating segments based on information utilized by its chief operating decision maker (CODM) to allocate resources and assess performance. The Company’s CODM is the President and Chief Executive Officer. The CODM uses segment operating income or loss to allocate resources, which includes employees, financial, or capital resources, predominantly in the annual budget and forecasting process. The CODM considers budget-to-actual and year-over-year variances on a monthly basis for segment operating income or loss when allocating capital and personnel resources to the segments. Segment performance is evaluated based on operating income of the respective business units before share-based compensation (except for share-based compensation expense associated with stock grants to certain business unit leaders), restructuring and other charges, including the Portfolio Optimization Plan costs, and other costs (which are reported in Corporate & Other), interest expense, and income taxes.
The Company’s three reportable segments are the Flavors & Extracts and Color segments, which are both managed on a product line basis, and the Asia Pacific segment, which is managed on a geographic basis. The Company’s Flavors & Extracts segment produces flavor, extracts, and essential oils products that impart a desired taste, texture, aroma, or other characteristics to a broad range of consumer and other products. The Color segment produces natural and synthetic color systems for foods, beverages, pharmaceuticals, and nutraceuticals; colors, ingredients, and systems for personal care; and technical colors for industrial applications. The Asia Pacific segment is managed on a geographic basis and produces and distributes color, flavor, and essential oils products for the Asia Pacific countries. The Company’s corporate expenses, share-based compensation (except for share-based compensation expense associated with stock grants to certain business unit leaders), restructuring and other charges, including Portfolio Optimization Plan costs as further described in Note 3, Portfolio Optimization Plan, and certain other costs are included in the “Corporate & Other” category.
Operating results by segment for the periods presented are as follows:
| (In thousands) | Flavors & Extracts | Color | Asia Pacific | Corporate & Other | Consolidated | |||||||||||||||
| Three months ended June 30, 2026: | ||||||||||||||||||||
| Total segment revenue | $ | 213,179 | $ | 216,137 | $ | 47,589 | $ | - | $ | 476,905 | ||||||||||
| Intersegment revenue | (8,521 | ) | (6,145 | ) | (158 | ) | - | (14,824 | ) | |||||||||||
| Consolidated revenue from external customers | 204,658 | 209,992 | 47,431 | - | 462,081 | |||||||||||||||
| Cost of products sold | 147,173 | 115,404 | 26,705 | - | 289,282 | |||||||||||||||
| Selling and administrative expense | 27,054 | 40,074 | 9,766 | 19,205 | 96,099 | |||||||||||||||
| Operating income (loss) | 30,431 | 54,514 | 10,960 | (19,205 | ) | 76,700 | ||||||||||||||
| Interest expense | 8,174 | |||||||||||||||||||
| Earnings before income taxes | $ | 68,526 | ||||||||||||||||||
| Assets | 925,512 | 969,338 | 133,983 | 342,270 | 2,371,103 | |||||||||||||||
| Capital expenditures | 13,761 | 22,249 | 684 | 2,082 | 38,776 | |||||||||||||||
| Depreciation and amortization | 7,911 | 6,367 | 578 | 1,034 | 15,890 | |||||||||||||||
| Three months ended June 30, 2025: | ||||||||||||||||||||
| Total segment revenue | $ | 203,251 | $ | 179,282 | $ | 42,744 | $ | - | $ | 425,277 | ||||||||||
| Intersegment revenue | (5,770 | ) | (5,210 | ) | (67 | ) | - | (11,047 | ) | |||||||||||
| Consolidated revenue from external customers | 197,481 | 174,072 | 42,677 | - | 414,230 | |||||||||||||||
| Cost of products sold | 142,625 | 101,762 | 25,222 | 1,789 | 271,398 | |||||||||||||||
| Selling and administrative expense | 26,350 | 33,388 | 8,512 | 16,876 | 85,126 | |||||||||||||||
| Operating income (loss) | 28,506 | 38,922 | 8,943 | (18,665 | ) | 57,706 | ||||||||||||||
| Interest expense | 7,391 | |||||||||||||||||||
| Earnings before income taxes | $ | 50,315 | ||||||||||||||||||
| Assets | 843,445 | 887,924 | 130,214 | 342,978 | 2,204,561 | |||||||||||||||
| Capital expenditures | 14,472 | 4,959 | 429 | 1,321 | 21,181 | |||||||||||||||
| Depreciation and amortization | 7,676 | 6,062 | 570 | 952 | 15,260 | |||||||||||||||
| (In thousands) | Flavors & Extracts | Color | Asia Pacific | Corporate & Other | Consolidated | |||||||||||||||
| Six months ended June 30, 2026: | ||||||||||||||||||||
| Total segment revenue | $ | 415,004 | $ | 414,313 | $ | 92,844 | $ | - | $ | 922,161 | ||||||||||
| Intersegment revenue | (14,240 | ) | (9,799 | ) | (207 | ) | - | (24,246 | ) | |||||||||||
| Consolidated revenue from external customers | 400,764 | 404,514 | 92,637 | - | 897,915 | |||||||||||||||
| Cost of products sold | 289,108 | 231,307 | 52,013 | - | 572,428 | |||||||||||||||
| Selling and administrative expense | 54,475 | 76,628 | 18,484 | 32,472 | 182,059 | |||||||||||||||
| Operating income (loss) | 57,181 | 96,579 | 22,140 | (32,472 | ) | 143,428 | ||||||||||||||
| Interest expense | 16,076 | |||||||||||||||||||
| Earnings before income taxes | $ | 127,352 | ||||||||||||||||||
| Assets | 925,512 | 969,338 | 133,983 | 342,270 | 2,371,103 | |||||||||||||||
| Capital expenditures | 24,213 | 39,013 | 993 | 3,294 | 67,513 | |||||||||||||||
| Depreciation and amortization | 15,671 | 12,524 | 1,163 | 2,070 | 31,428 | |||||||||||||||
| Six months ended June 30, 2025: | ||||||||||||||||||||
| Total segment revenue | $ | 396,932 | $ | 347,032 | $ | 84,645 | $ | - | $ | 828,609 | ||||||||||
| Intersegment revenue | (11,653 | ) | (10,324 | ) | (77 | ) | - | (22,054 | ) | |||||||||||
| Consolidated revenue from external customers | 385,279 | 336,708 | 84,568 | - | 806,555 | |||||||||||||||
| Cost of products sold | 280,559 | 198,199 | 49,585 | 3,603 | 531,946 | |||||||||||||||
| Selling and administrative expense | 51,225 | 64,735 | 16,598 | 30,815 | 163,373 | |||||||||||||||
| Operating income (loss) | 53,495 | 73,774 | 18,385 | (34,418 | ) | 111,236 | ||||||||||||||
| Interest expense | 14,732 | |||||||||||||||||||
| Earnings before income taxes | $ | 96,504 | ||||||||||||||||||
| Assets | 843,445 | 887,924 | 130,214 | 342,978 | 2,204,561 | |||||||||||||||
| Capital expenditures | 27,008 | 8,481 | 604 | 1,942 | 38,035 | |||||||||||||||
| Depreciation and amortization | 15,316 | 11,998 | 1,118 | 1,902 | 30,334 | |||||||||||||||
Product Lines
| (In thousands) | Flavors & Extracts | Color | Asia Pacific | Consolidated | ||||||||||||
| Three months ended June 30, 2026: | ||||||||||||||||
| Flavors, Extracts & Flavor Ingredients | $ | 146,613 | $ | - | $ | - | $ | 146,613 | ||||||||
| Agricultural Ingredients | 66,566 | - | - | 66,566 | ||||||||||||
| Food & Pharmaceutical Colors | - | 167,741 | - | 167,741 | ||||||||||||
| Personal Care | - | 48,396 | - | 48,396 | ||||||||||||
| Asia Pacific | - | - | 47,589 | 47,589 | ||||||||||||
| Intersegment Revenue | (8,521 | ) | (6,145 | ) | (158 | ) | (14,824 | ) | ||||||||
| Total revenue from external customers | $ | 204,658 | $ | 209,992 | $ | 47,431 | $ | 462,081 | ||||||||
| Three months ended June 30, 2025: | ||||||||||||||||
| Flavors, Extracts & Flavor Ingredients | $ | 141,736 | $ | - | $ | - | $ | 141,736 | ||||||||
| Agricultural Ingredients | 61,515 | - | - | 61,515 | ||||||||||||
| Food & Pharmaceutical Colors | - | 136,377 | - | 136,377 | ||||||||||||
| Personal Care | - | 42,905 | - | 42,905 | ||||||||||||
| Asia Pacific | - | - | 42,744 | 42,744 | ||||||||||||
| Intersegment Revenue | (5,770 | ) | (5,210 | ) | (67 | ) | (11,047 | ) | ||||||||
| Total revenue from external customers | $ | 197,481 | $ | 174,072 | $ | 42,677 | $ | 414,230 | ||||||||
| (In thousands) | Flavors & Extracts | Color | Asia Pacific | Consolidated | ||||||||||||
| Six months ended June 30, 2026: | ||||||||||||||||
| Flavors, Extracts & Flavor Ingredients | $ | 285,177 | $ | - | $ | - | $ | 285,177 | ||||||||
| Agricultural Ingredients | 129,827 | - | - | 129,827 | ||||||||||||
| Food & Pharmaceutical Colors | - | 319,021 | - | 319,021 | ||||||||||||
| Personal Care | - | 95,292 | - | 95,292 | ||||||||||||
| Asia Pacific | - | - | 92,844 | 92,844 | ||||||||||||
| Intersegment Revenue | (14,240 | ) | (9,799 | ) | (207 | ) | (24,246 | ) | ||||||||
| Total revenue from external customers | $ | 400,764 | $ | 404,514 | $ | 92,637 | $ | 897,915 | ||||||||
| Six months ended June 30, 2025: | ||||||||||||||||
| Flavors, Extracts & Flavor Ingredients | $ | 271,917 | $ | - | $ | - | $ | 271,917 | ||||||||
| Agricultural Ingredients | 125,015 | - | - | 125,015 | ||||||||||||
| Food & Pharmaceutical Colors | - | 260,977 | - | 260,977 | ||||||||||||
| Personal Care | - | 86,055 | - | 86,055 | ||||||||||||
| Asia Pacific | - | - | 84,645 | 84,645 | ||||||||||||
| Intersegment Revenue | (11,653 | ) | (10,324 | ) | (77 | ) | (22,054 | ) | ||||||||
| Total revenue from external customers | $ | 385,279 | $ | 336,708 | $ | 84,568 | $ | 806,555 | ||||||||
Geographic Markets
| (In thousands) | Flavors & Extracts | Color | Asia Pacific | Consolidated | ||||||||||||
| Three months ended June 30, 2026: | ||||||||||||||||
| North America | $ | 160,251 | $ | 110,968 | $ | 51 | $ | 271,270 | ||||||||
| Europe | 33,014 | 56,784 | 10 | 89,808 | ||||||||||||
| Asia Pacific | 4,558 | 18,690 | 46,510 | 69,758 | ||||||||||||
| Other | 6,835 | 23,550 | 860 | 31,245 | ||||||||||||
| Total revenue from external customers | $ | 204,658 | $ | 209,992 | $ | 47,431 | $ | 462,081 | ||||||||
| Three months ended June 30, 2025: | ||||||||||||||||
| North America | $ | 152,292 | $ | 84,402 | $ | 14 | $ | 236,708 | ||||||||
| Europe | 33,284 | 50,686 | 16 | 83,986 | ||||||||||||
| Asia Pacific | 4,722 | 17,048 | 41,078 | 62,848 | ||||||||||||
| Other | 7,183 | 21,936 | 1,569 | 30,688 | ||||||||||||
| Total revenue from external customers | $ | 197,481 | $ | 174,072 | $ | 42,677 | $ | 414,230 | ||||||||
| (In thousands) | Flavors & Extracts | Color | Asia Pacific | Consolidated | ||||||||||||
| Six months ended June 30, 2026: | ||||||||||||||||
| North America | $ | 319,194 | $ | 208,736 | $ | 92 | $ | 528,022 | ||||||||
| Europe | 62,414 | 113,802 | 17 | 176,233 | ||||||||||||
| Asia Pacific | 7,377 | 39,641 | 89,688 | 136,706 | ||||||||||||
| Other | 11,779 | 42,335 | 2,840 | 56,954 | ||||||||||||
| Total revenue from external customers | $ | 400,764 | $ | 404,514 | $ | 92,637 | $ | 897,915 | ||||||||
| Six months ended June 30, 2025: | ||||||||||||||||
| North America | $ | 301,919 | $ | 163,071 | $ | 15 | $ | 465,005 | ||||||||
| Europe | 61,441 | 98,409 | 38 | 159,888 | ||||||||||||
| Asia Pacific | 9,244 | 33,674 | 81,842 | 124,760 | ||||||||||||
| Other | 12,675 | 41,554 | 2,673 | 56,902 | ||||||||||||
| Total revenue from external customers | $ | 385,279 | $ | 336,708 | $ | 84,568 | $ | 806,555 | ||||||||
| 9. | Retirement Plans |
The Company’s components of annual benefit cost for the defined benefit plans for the periods presented are as follows:
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| (In thousands) | 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Service cost | $ | 313 | $ | 376 | $ | 626 | $ | 745 | ||||||||
| Interest cost | 444 | 455 | 888 | 899 | ||||||||||||
| Expected return on plan assets | (278 | ) | (276 | ) | (556 | ) | (541 | ) | ||||||||
| Recognized actuarial gain | (39 | ) | (71 | ) | (78 | ) | (143 | ) | ||||||||
| Total defined benefit expense | $ | 440 | $ | 484 | $ | 880 | $ | 960 | ||||||||
The Company’s non-service cost portion of defined benefit expense is recorded in Interest Expense on the Company’s Consolidated Statements of Earnings. The Company’s service cost portion of defined benefit expense is recorded in Selling and Administrative Expenses on the Company’s Consolidated Statements of Earnings.
| 10. | Derivative Instruments and Hedging Activity |
The Company may use forward exchange contracts and foreign currency denominated debt to manage its exposure to foreign exchange risk in order to reduce the effect of fluctuating foreign currencies on short-term foreign currency denominated intercompany transactions, non-functional currency raw material purchases, non-functional currency sales, and other known foreign currency exposures. These forward exchange contracts generally have maturities of less than 18 months. The Company’s primary hedging activities and their accounting treatment are summarized below.
Forward exchange contracts – Certain forward exchange contracts have been designated as cash flow hedges. The Company had $45.0 million and $49.9 million of forward exchange contracts designated as cash flow hedges outstanding as of June 30, 2026 and December 31, 2025, respectively. For the three and six months ended June 30, 2026 and 2025, the amounts reclassified into net earnings in the Company’s Consolidated Statements of Earnings that offset the underlying transactions’ impact on earnings in the same period were not material. In addition, the Company utilizes forward exchange contracts that are not designated as cash flow hedges. The results of these transactions were not material to the financial statements of the Company.
Net investment hedges – The Company has designated certain foreign currency denominated long-term borrowings as partial hedges of the Company’s foreign currency net asset positions. As of June 30, 2026, and December 31, 2025, the total value of the Company’s net investment hedges, which included Euro denominated long-term debt, was $300.9 million and $309.5 million, respectively. Changes in the fair value of this debt attributable to changes in spot foreign exchange rates are recorded in foreign currency translation in Accumulated Other Comprehensive Loss (OCL). For the three months ended June 30, 2026, and 2025, the impact of foreign exchange rates on these debt instruments decreased debt by $3.4 million and increased debt by $26.8 million, respectively, which has been recorded as foreign currency translation in OCL. For the six months ended June 30, 2026 and 2025, the impact of foreign exchange rates on these debt instruments decreased debt by $8.5 million and increased debt by $39.6 million, respectively, which has been recorded as foreign currency translation in OCL.
| 11. | Income Taxes |
The effective income tax rates for the three months ended June 30, 2026 and 2025 were 25.1% and 25.3%, respectively. For the six months ended June 30, 2026 and 2025, the effective income tax rates were 25.0% and 25.3%, respectively. The effective tax rates for the three and six months ended June 30, 2026 and 2025 were both impacted by the mix of foreign earnings and changes in estimates associated with the finalization of prior year foreign tax items.
| 12. | Accumulated Other Comprehensive Loss |
The following table summarizes the changes in OCL during the three and six month periods ended June 30, 2026 and 2025:
| (In thousands) | Cash Flow Hedges (1) | Pension Items (1) | Foreign Currency Items | Total | ||||||||||||
| Balances at December 31, 2025 | $ | 30 | $ | (3,392 | ) | $ | (166,891 | ) | $ | (170,253 | ) | |||||
| Other comprehensive income (loss) before reclassifications | 1,570 | - | (1,702 | ) | (132 | ) | ||||||||||
| Amounts reclassified from OCL | (648 | ) | (58 | ) | - | (706 | ) | |||||||||
| Balances at June 30, 2026 | $ | 952 | $ | (3,450 | ) | $ | (168,593 | ) | $ | (171,091 | ) | |||||
| (In thousands) | Cash Flow Hedges (1) | Pension Items (1) | Foreign Currency Items | Total | ||||||||||||
| Balances at March 31, 2026 | $ | 869 | $ | (3,421 | ) | $ | (171,028 | ) | $ | (173,580 | ) | |||||
| Other comprehensive income before reclassifications | 523 | - | 2,435 | 2,958 | ||||||||||||
| Amounts reclassified from OCL | (440 | ) | (29 | ) | - | (469 | ) | |||||||||
| Balances at June 30, 2026 | $ | 952 | $ | (3,450 | ) | $ | (168,593 | ) | $ | (171,091 | ) | |||||
| (In thousands) | Cash Flow Hedges (1) | Pension Items (1) | Foreign Currency Items | Total | ||||||||||||
| Balances at December 31, 2024 | $ | (310 | ) | $ | (2,348 | ) | $ | (224,181 | ) | $ | (226,839 | ) | ||||
| Other comprehensive income before reclassifications | 1,724 | - | 52,434 | 54,158 | ||||||||||||
| Amounts reclassified from OCL | (691 | ) | (107 | ) | - | (798 | ) | |||||||||
| Balances at June 30, 2025 | $ | 723 | $ | (2,455 | ) | $ | (171,747 | ) | $ | (173,479 | ) | |||||
| (In thousands) | Cash Flow Hedges (1) | Pension Items (1) | Foreign Currency Items | Total | ||||||||||||
| Balances at March 31, 2025 | $ | 509 | $ | (2,402 | ) | $ | (209,981 | ) | $ | (211,874 | ) | |||||
| Other comprehensive income before reclassifications | 716 | - | 38,234 | 38,950 | ||||||||||||
| Amounts reclassified from OCL | (502 | ) | (53 | ) | - | (555 | ) | |||||||||
| Balances at June 30, 2025 | $ | 723 | $ | (2,455 | ) | $ | (171,747 | ) | $ | (173,479 | ) | |||||
| | (1) | Cash Flow Hedges and Pension Items are net of tax. |
| 13. | Commitments and Contingencies |
The Company is subject to various claims and litigation arising in the normal course of business. The Company establishes reserves for claims and proceedings when it is probable that liabilities exist and reasonable estimates of loss can be made. While it is not possible to predict the outcome of these matters, based on our assessment of the facts and circumstances now known, we do not believe that these matters, individually or in the aggregate, will have a material adverse effect on our financial position. However, actual outcomes may be different from those expected and could have a material effect on our results of operations or cash flows in a particular period.
| 14. | Subsequent Event |
On July 23, 2026, the Company announced its quarterly dividend of $0.41 per share would be payable on September 1, 2026.
| ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
FORWARD-LOOKING STATEMENTS
This report contains forward-looking statements that reflect management’s current assumptions and estimates of future economic circumstances, industry conditions, Company performance, and financial results. Forward-looking statements include statements in the future tense, statements referring to any period after June 30, 2026, and statements including the terms “expect,” “believe,” “anticipate,” and other similar terms that express expectations as to future events or conditions. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for such forward-looking statements. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, and other factors that could cause actual events to differ materially from those expressed in the forward-looking statements. A variety of factors could cause the Company’s actual results and experience to differ materially from the anticipated results. These factors and assumptions include, among others, the Company’s ability to manage general business, economic, and capital market conditions, including actions taken by customers in response to such market conditions, and the impact of recessions and economic downturns; the impact of macroeconomic and geopolitical volatility, including inflation and shortages impacting the availability and cost of raw materials, energy, and other supplies, disruptions and delays in the Company’s supply chain, and the conflicts between Russia and Ukraine and in the Middle East; industry, regulatory, legal, and economic factors related to the Company’s domestic and international business; the effects of tariffs, trade barriers, and disputes; the availability and cost of labor, logistics, and transportation; the pace and nature of new product introductions by the Company and the Company’s customers; the Company’s ability to anticipate and respond to changing consumer preferences, changing technologies, and changing regulations; the Company’s ability to successfully implement its growth strategies; the outcome of the Company’s various productivity-improvement and cost-reduction efforts, acquisition and divestiture activities, and Portfolio Optimization Plan; growth in markets for products in which the Company competes; industry and customer acceptance of price increases; actions by competitors; the Company’s ability to enhance its innovation efforts and drive cost efficiencies; currency exchange rate fluctuations; and the matters discussed under Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. Except to the extent required by applicable law, the Company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.
OVERVIEW
Revenue
Revenue was $462.1 million and $414.2 million for the three months ended June 30, 2026 and 2025, respectively. Revenue was $897.9 million and $806.6 million for the six months ended June 30, 2026 and 2025, respectively. The increase in revenue for the three and six months ended June 30, 2026 was primarily due to higher volumes and selling prices and the favorable impact of foreign exchange rates that increased revenue by approximately 2% and 3%, respectively.
Gross Margin
The Company’s gross margin was 37.4% and 34.5% for the three months ended June 30, 2026 and 2025, respectively. The Company’s gross margin was 36.2% and 34.0% for the six months ended June 30, 2026 and 2025, respectively. For the three and six months ended June 30, 2025, Portfolio Optimization Plan costs totaling $1.8 million and $3.6 million, respectively, decreased gross margin by 40 and 50 basis points, respectively. See Portfolio Optimization Plan below for further information. For the three and six months ended June 30, 2026, the Company received $4.8 million of tariff refunds that improved gross margin by 100 and 50 basis points, respectively. The Company’s gross margins for the three and six months ended June 30, 2026 were further impacted by the higher volumes and selling prices, partially offset by higher raw material costs.
Selling and Administrative Expenses
Selling and administrative expense as a percent of revenue was 20.8% and 20.6% for the three months ended June 30, 2026 and 2025, respectively. Selling and administrative expense as a percent of revenue was 20.3% for both the six months ended June 30, 2026 and 2025. For the three and six months ended June 30, 2025, selling and administrative expenses were increased by Portfolio Optimization Plan costs totaling $1.6 and $2.6 million, respectively, which increased selling and administrative expenses as a percent of revenue by approximately 40 basis points for each period. See Portfolio Optimization Plan below for further information. After the effects of the Portfolio Optimization Costs in 2025, the increase in selling and administrative expense as a percent of revenue for the three and six months ended June 30, 2026 was primarily due to higher performance-based executive compensation costs incurred in 2026.
Operating Income
Operating income was $76.7 million and $57.7 million for the three months ended June 30, 2026 and 2025, respectively. Operating margins were 16.6% and 13.9% for the three months ended June 30, 2026 and 2025, respectively. Operating income was $143.4 million and $111.2 million for the six months ended June 30, 2026 and 2025, respectively. Operating margins were 16.0% and 13.8% for the six months ended June 30, 2026 and 2025, respectively. The tariff refunds increased operating margins by approximately 100 and 50 basis points for the three and six months ended June 30, 2026, respectively. Portfolio Optimization Plan costs decreased operating margins by approximately 80 basis points for both the three and six months ended June 30, 2025. The Company’s operating margins for the three and six months ended June 30, 2026 were further impacted by the higher volumes and selling prices, partially offset by higher raw material costs and higher performance-based executive compensation costs incurred in 2026.
Interest Expense
Interest expense was $8.2 million and $7.4 million for the three months ended June 30, 2026 and 2025, respectively, and $16.1 million and $14.7 million for the six months ended June 30, 2026 and 2025, respectively. The increase in expense for both the three and six months ended June 30, 2026 was primarily due to an increase in the average outstanding debt balance.
Income Taxes
The effective income tax rates for the three months ended June 30, 2026 and 2025 were 25.1% and 25.3%, respectively. For the six months ended June 30, 2026 and 2025, the effective income tax rates were 25.0% and 25.3%, respectively. The effective tax rates for the three and six months ended June 30, 2026 and 2025 were both impacted by the mix of foreign earnings and changes in estimates associated with the finalization of prior year foreign tax items.
Acquisition
On February 14, 2025, the Company acquired Biolie SAS, a natural color extraction business located in France. The Company paid $4.9 million in cash for this acquisition, which is net of $0.2 million in debt assumed. The assets acquired and liabilities assumed were recorded at their estimated fair value as of the acquisition date. The Company acquired net assets of $0.3 million, with the remaining $4.6 million allocated to goodwill. This business is part of the Color segment.
Portfolio Optimization Plan
During the fourth quarter of 2023, the Board of Directors of the Company approved a plan to undertake an effort to optimize certain production facilities and improve efficiencies within the Company (Portfolio Optimization Plan). As part of the Portfolio Optimization Plan, in the Flavors & Extracts segment, the Company evaluated the closure of its manufacturing facility in Felinfach, Wales, United Kingdom, the closure of its sales office in Granada, Spain, and the centralization and elimination of certain selling and administrative positions. In addition, in the Color segment, the Company evaluated the closure of a manufacturing facility in Delta, British Columbia, Canada, the closure of a sales office in Argentina, and centralizing and eliminating certain production positions and selling and administrative positions. The Company reports all costs associated with the Portfolio Optimization Plan in the Corporate & Other segment.
The Company’s Felinfach site was shut down in May 2025, and all production activities have been transferred to other locations. The Company began marketing the Felinfach site for sale in June 2025, at which point the held for sale criteria was met. These are the sole assets recorded in Fixed assets held for sale on the Company’s Consolidated Balance Sheet at December 31, 2025. The Company sold the land and building assets in February 2026 for approximately $2.0 million, resulting in a $0.4 million gain recognized in Selling and Administrative Expenses on the Company’s Consolidated Statements of Earnings during the three months ended March 31, 2026. The Company has completed all actions contemplated under the Portfolio Optimization Plan.
For the three and six months ended June 30, 2025, the Company incurred costs of $3.3 million and $6.2 million, respectively, related to the Portfolio Optimization Plan recorded in Corporate & Other, primarily for dual plant operating costs, professional services, non-cash inventory charges, decommissioning costs, and employee separation costs. The Company did not incur any costs related to the Portfolio Optimization Plan for the three or six months ended June 30, 2026.
NON-GAAP FINANCIAL MEASURES
Within the following tables, the Company reports certain non-GAAP financial measures, including: (1) adjusted operating income, adjusted net earnings, and adjusted diluted earnings per share, which exclude restructuring and other costs, including the Portfolio Optimization Plan costs, (2) percentage changes in revenue, operating income, and diluted earnings per share on an adjusted local currency basis, which eliminate the effects that result from translating its international operations into U.S. dollars and restructuring and other costs, including the Portfolio Optimization Plan costs, and (3) adjusted EBITDA, which excludes restructuring and other costs, including the Portfolio Optimization Plan costs, and non-cash share based compensation expense.
The Company has included each of these non-GAAP measures in order to provide additional information regarding our underlying operating results and comparable year-over-year performance. Such information is supplemental to information presented in accordance with GAAP and is not intended to represent a presentation in accordance with GAAP. These non-GAAP measures should not be considered in isolation. Rather, they should be considered together with GAAP measures and the rest of the information included in this report. Management internally reviews each of these non-GAAP measures to evaluate performance on a comparative period-to-period basis and to gain additional insight into underlying operating and performance trends, and the Company believes the information can be beneficial to investors for the same purposes. These non-GAAP measures may not be comparable to similarly titled measures used by other companies.
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||
| (In thousands, except per share amounts) | 2026 | 2025 | % Change | 2026 | 2025 | % Change | ||||||||||||||||||
| Operating Income (GAAP) | $ | 76,700 | $ | 57,706 | 32.9 | % | $ | 143,428 | $ | 111,236 | 28.9 | % | ||||||||||||
| Portfolio Optimization Plan costs – Cost of products sold | - | 1,789 | - | 3,603 | ||||||||||||||||||||
| Portfolio Optimization Plan costs – Selling and administrative expenses | - | 1,550 | - | 2,600 | ||||||||||||||||||||
| Adjusted operating income | $ | 76,700 | $ | 61,045 | 25.6 | % | $ | 143,428 | $ | 117,439 | 22.1 | % | ||||||||||||
| Net Earnings (GAAP) | $ | 51,359 | $ | 37,587 | 36.6 | % | $ | 95,529 | $ | 72,049 | 32.6 | % | ||||||||||||
| Portfolio Optimization Plan costs, before tax | - | 3,339 | - | 6,203 | ||||||||||||||||||||
| Tax impact of Portfolio Optimization Plan costs(1) | - | (815 | ) | - | (1,517 | ) | ||||||||||||||||||
| Adjusted net earnings | $ | 51,359 | $ | 40,111 | 28.0 | % | $ | 95,529 | $ | 76,735 | 24.5 | % | ||||||||||||
| Diluted earnings per share (GAAP) | $ | 1.20 | $ | 0.88 | 36.4 | % | $ | 2.24 | $ | 1.69 | 32.5 | % | ||||||||||||
| Portfolio Optimization Plan costs, net of tax | - | 0.06 | - | 0.11 | ||||||||||||||||||||
| Adjusted diluted earnings per share | $ | 1.20 | $ | 0.94 | 27.7 | % | $ | 2.24 | $ | 1.80 | 24.4 | % | ||||||||||||
| Operating Income (GAAP) | $ | 76,700 | $ | 57,706 | 32.9 | % | $ | 143,428 | 111,236 | 28.9 | % | |||||||||||||
| Depreciation and amortization | 15,890 | 15,260 | 31,428 | 30,334 | ||||||||||||||||||||
| Share-based compensation expense | 5,604 | 3,739 | 9,380 | 6,639 | ||||||||||||||||||||
| Portfolio Optimization Plan costs, before tax | - | 3,339 | - | 6,203 | ||||||||||||||||||||
| Adjusted EBITDA | $ | 98,194 | $ | 80,044 | 22.7 | % | $ | 184,236 | $ | 154,412 | 19.3 | % | ||||||||||||
(1) Tax impact adjustments were determined based on the nature of the underlying non-GAAP adjustments and their relevant jurisdictional tax rates.
Portfolio Optimization Plan costs are discussed under “Portfolio Optimization Plan” above and Note 3, Portfolio Optimization Plan, in the Notes to the Consolidated Financial Statements included in this report.
Note: Earnings per share calculations may not foot due to rounding differences.
The following table summarizes the percentage change for the results of the three and six months ended June 30, 2026, compared to the results for the three and six months ended June 30, 2025, in the respective financial measures.
| Three Months Ended June 30, 2026 | Six Months Ended June 30, 2026 | |||||||||||||||||||||||||||||||
| Revenue | Total | Foreign Exchange Rates | Adjustments(1) | Adjusted Local Currency | Total | Foreign Exchange Rates | Adjustments(1) | Adjusted Local Currency | ||||||||||||||||||||||||
| Flavors & Extracts | 4.9 | % | 1.1 | % | N/A | 3.8 | % | 4.6 | % | 1.8 | % | N/A | 2.8 | % | ||||||||||||||||||
| Color | 20.6 | % | 3.0 | % | N/A | 17.6 | % | 19.4 | % | 4.3 | % | N/A | 15.1 | % | ||||||||||||||||||
| Asia Pacific | 11.3 | % | (1.0 | %) | N/A | 12.3 | % | 9.7 | % | 1.2 | % | N/A | 8.5 | % | ||||||||||||||||||
| Total Revenue | 11.6 | % | 1.7 | % | N/A | 9.9 | % | 11.3 | % | 2.7 | % | N/A | 8.6 | % | ||||||||||||||||||
| Operating Income | ||||||||||||||||||||||||||||||||
| Flavors & Extracts | 6.8 | % | 0.7 | % | 0.0 | % | 6.1 | % | 6.9 | % | 1.3 | % | 0.0 | % | 5.6 | % | ||||||||||||||||
| Color | 40.1 | % | 3.3 | % | 0.0 | % | 36.8 | % | 30.9 | % | 5.3 | % | 0.0 | % | 25.6 | % | ||||||||||||||||
| Asia Pacific | 22.6 | % | (1.2 | %) | 0.0 | % | 23.8 | % | 20.4 | % | 1.4 | % | 0.0 | % | 19.0 | % | ||||||||||||||||
| Corporate & Other | 2.9 | % | 0.0 | % | (22.4 | %) | 25.3 | % | (5.7 | %) | 0.0 | % | (20.8 | %) | 15.1 | % | ||||||||||||||||
| Total Operating Income | 32.9 | % | 2.3 | % | 7.2 | % | 23.4 | % | 28.9 | % | 4.3 | % | 6.6 | % | 18.0 | % | ||||||||||||||||
| Diluted Earnings per Share | 36.4 | % | 3.4 | % | 7.5 | % | 25.5 | % | 32.5 | % | 4.7 | % | 7.8 | % | 20.0 | % | ||||||||||||||||
| Adjusted EBITDA | 22.7 | % | 1.9 | % | N/A | 20.8 | % | 19.3 | % | 3.5 | % | N/A | 15.8 | % | ||||||||||||||||||
| (1) | Adjustments consist of Portfolio Optimization Plan costs. |
Note: Refer to table above for a reconciliation of these non-GAAP measures.
SEGMENT INFORMATION
The Company determines its operating segments based on information utilized by its chief operating decision maker to allocate resources and assess performance. Segment performance is evaluated on operating income before share-based compensation (except for share-based compensation expense associated with stock grants to certain business unit leaders), restructuring and other costs, including the Portfolio Optimization Plan costs, and other costs (which are reported in Corporate & Other), interest expense, and income taxes.
The Company’s reportable segments consist of the Flavors & Extracts, Color, and Asia Pacific segments.
Flavors & Extracts
Flavors & Extracts segment revenue was $213.2 million and $203.3 million for the three months ended June 30, 2026 and 2025, respectively, an increase of approximately 5%. The increase was a result of higher revenue in Agricultural Ingredients and Flavors, Extracts & Flavor Ingredients. The higher revenue in Agricultural Ingredients was due to higher volumes and selling prices. The higher revenue in Flavors, Extracts & Flavor Ingredients was primarily due to higher selling prices and the favorable impact of foreign exchange rates that increased segment revenue by approximately 1%.
Flavors & Extracts segment revenue was $415.0 million and $396.9 million for the six months ended June 30, 2026 and 2025, respectively, an increase of approximately 5%. The increase was a result of higher revenue in Flavors, Extracts & Flavor Ingredients and Agricultural Ingredients. The higher revenue in Flavors, Extracts & Flavor Ingredients was primarily due to higher selling prices and the favorable impact of foreign exchange rates that increased segment revenue by approximately 2%. The higher revenue in Agricultural Ingredients was due to higher volumes and selling prices.
Flavors & Extracts segment operating income was $30.4 million and $28.5 million for the three months ended June 30, 2026 and 2025, respectively, an increase of approximately 7%. The higher segment operating income was primarily a result of higher operating income in Agricultural Ingredients, primarily due to higher selling prices and favorable product mix, partially offset by higher raw material costs. Segment operating income as a percent of revenue was 14.3% in the current quarter compared to 14.0% in the prior year’s comparable quarter. Foreign exchange rates increased segment operating income by approximately 1% for the three months ended June 30, 2026.
Flavors & Extracts segment operating income was $57.2 million and $53.5 million for the six months ended June 30, 2026 and 2025, respectively, an increase of approximately 7%. The higher segment operating income was a result of higher operating income in Flavors, Extracts & Flavor Ingredients and Agricultural Ingredients. The higher segment operating income for Flavors, Extracts & Flavor Ingredients was primarily due to higher selling prices, favorable product mix, and higher volumes, partially offset by higher manufacturing and other costs. The higher segment operating income for Agricultural Ingredients was primarily due to higher selling prices. Segment operating income as a percent of revenue was 13.8% in the current six month period compared to 13.5% in the prior year’s comparable six month period. Foreign exchange rates increased segment operating income by approximately 1% for the six months ended June 30, 2026.
Color
Segment revenue for the Color segment was $216.1 million and $179.3 million for the three months ended June 30, 2026 and 2025, respectively, an increase of approximately 21%. The increase was a result of higher revenue in Food & Pharmaceutical Colors and Personal Care. The higher revenue in Food & Pharmaceutical Colors was due to higher volumes, including higher volumes associated with natural colors conversion activity, the favorable impact of foreign exchange rates, and higher selling prices. The higher revenue in Personal Care was due to higher volumes, the favorable impact of foreign exchange rates, and higher selling prices. Foreign exchange rates increased segment revenue by approximately 3% for the three months ended June 30, 2026.
Segment revenue for the Color segment was $414.3 million and $347.0 million for the six months ended June 30, 2026 and 2025, respectively, an increase of approximately 19%. The increase was a result of higher revenue in Food & Pharmaceutical Colors and Personal Care. The higher revenue in Food & Pharmaceutical Colors was due to higher volumes, including higher volumes associated with natural colors conversion activity, the favorable impact of foreign exchange rates, and higher selling prices. The higher revenue in Personal Care was due to the favorable impact of foreign exchange rates, higher volumes, and higher selling prices. Foreign exchange rates increased segment revenue by approximately 4% for the six months ended June 30, 2026.
Segment operating income for the Color segment was $54.5 million and $38.9 million for the three months ended June 30, 2026 and 2025, respectively, an increase of approximately 40%. The higher segment operating income was a result of higher operating income in Food & Pharmaceutical Colors and Personal Care. The higher operating income in Food & Pharmaceutical Colors was primarily due to higher volumes, the favorable impact of tariff refunds received, higher selling prices, and a favorable product mix, partially offset by higher raw material costs. The higher operating income in Personal Care was primarily due to higher volumes and selling prices and the favorable impact of tariff refunds received, partially offset by higher manufacturing and other costs. Foreign exchange rates increased segment operating income by approximately 3% for the three months ended June 30, 2026. Segment operating income as a percent of revenue was 25.2% in the current quarter and 21.7% in the prior year’s comparable quarter.
Segment operating income for the Color segment was $96.6 million and $73.8 million for the six months ended June 30, 2026 and 2025, respectively, an increase of approximately 31%. The higher segment operating income was a result of higher operating income in Food & Pharmaceutical Colors and Personal Care. The higher operating income in Food & Pharmaceutical Colors was due to higher volumes and selling prices, the favorable impact of tariff refunds received, the favorable impact of foreign exchange rates, and a favorable product mix, partially offset by higher raw material and manufacturing and other costs. The higher operating income in Personal Care was primarily due to higher selling prices and volumes, the favorable impact of tariff refunds received, and the favorable impact of foreign exchange rates, partially offset by higher manufacturing and other costs. Foreign exchange rates increased segment operating income by approximately 5% for the six months ended June 30, 2026. Segment operating income as a percent of revenue was 23.3% in the current six month period and 21.3% in the prior year’s comparable period.
Asia Pacific
Segment revenue for the Asia Pacific segment was $47.6 million and $42.7 million for the three months ended June 30, 2026 and 2025, respectively, an increase of approximately 11%. The increase was a result of higher volumes and selling prices, partially offset by the unfavorable impact of foreign exchange rates that decreased segment revenue by approximately 1%.
Segment revenue for the Asia Pacific segment was $92.8 million and $84.6 million for the six months ended June 30, 2026 and 2025, respectively, an increase of approximately 10%. The increase was a result of higher volumes and selling prices and the favorable impact of foreign exchange rates that increased segment revenue by approximately 1%.
Segment operating income for the Asia Pacific segment was $11.0 million and $8.9 million for the three months ended June 30, 2026 and 2025, respectively, an increase of approximately 23%. The increase was primarily due to higher volumes and selling prices, partially offset by higher manufacturing and other costs and the unfavorable impact of foreign exchange rates that decreased segment operating income by approximately 1%. Segment operating income as a percent of revenue was 23.0% in the current quarter and 20.9% in the prior year’s comparable quarter.
Segment operating income for the Asia Pacific segment was $22.1 million and $18.4 million for the six months ended June 30, 2026 and 2025, respectively, an increase of approximately 20%. The increase was primarily due to higher volumes and selling prices and the favorable impact of foreign exchange rates that increased segment operating income by approximately 1%, partially offset by higher manufacturing and other costs. Segment operating income as a percent of revenue was 23.8% in the current six month period and 21.7% in the prior year’s comparable period.
Corporate & Other
The Corporate & Other operating expense was $19.2 million and $18.7 million for the three months ended June 30, 2026 and 2025, respectively. The higher operating expense was primarily due to higher performance-based executive compensation costs incurred in 2026, partially offset by Portfolio Optimization Plan costs totaling $3.3 million in the three months ended June 30, 2025. See the Portfolio Optimization Plan section above for further information.
The Corporate & Other operating expense was $32.5 million and $34.4 million for the six months ended June 30, 2026 and 2025, respectively. The lower operating expense was primarily due to Portfolio Optimization Plan costs totaling $6.2 million in the six months ended June 30, 2025, partially offset by higher performance-based executive compensation costs incurred in 2026. See the Portfolio Optimization Plan section above for further information.
LIQUIDITY AND FINANCIAL CONDITION
Financial Condition
The Company’s financial position remains strong. The Company is in compliance with its loan covenants calculated in accordance with applicable agreements as of June 30, 2026. The Company expects to increase its existing indebtedness in the short-term to further support the increased cash requirements for operations and capital expenditures associated with the natural colors conversion activity. In the long-term, the Company anticipates that its cash flow from operations and debt capacity can be used to meet anticipated future cash requirements for operations, capital expenditures, and dividend payments, as well as potential acquisitions and stock repurchases. The Company’s contractual obligations consist primarily of operational commitments, which we expect to continue to be able to satisfy through cash generated from operations, and debt. The Company has various series of notes outstanding that mature from 2026 through 2030. The Company believes that it has the ability to refinance or repay these obligations through a combination of cash flow from operations, issuance of additional notes, and sufficient borrowing capacity under the Company’s revolving credit facility, which matures in 2030.
As a result of our ability to manage the impact of inflation through pricing and other actions, the impact of inflation was not material to the Company’s financial position and its results of operations for the three months ended June 30, 2026. The Company has experienced increased costs for certain inputs, such as raw materials, energy, shipping and logistics, packaging, and labor-related costs. We continue to expect to manage these impacts in the near term, but persistent, accelerated, or expanded inflationary conditions, including any heightened inflationary pressures resulting from the conflict between the United States and Iran and its aftermath, could exacerbate these challenges and impact our profitability.
The Company continues to monitor developments with respect to tariffs and other trade policy matters closely, including impacts from the U.S. Supreme Court decision that struck down tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”) and other litigation, as well as the implementation of additional tariffs. As of June 30, 2026, we have received approximately $5 million of IEEPA tariff refunds, which included applicable interest. We do not anticipate receiving any further tariff refunds in the future. The tariffs imposed by the United States, and retaliatory tariffs imposed by other countries on United States exports, have led to significant volatility and uncertainty in global markets. As a result of these ongoing tariff-related actions, the Company anticipates incurring incremental tariff costs on certain raw materials to produce our products and certain finished goods shipped to customers. However, the Company expects to manage the impact of the increased tariff costs through pricing actions. To the extent the Company is unable to offset the increased tariff costs, or the tariffs negatively impact demand, or other trade barriers are implemented, the Company’s revenue and profitability would be adversely impacted. If additional tariffs are adopted, the Company would incur additional tariff costs that could be material.
On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the United States. The OBBBA includes a broad range of tax reform provisions, such as the extension of certain expiring provisions, modifications to the international tax framework, and the continuation of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions implemented through 2027. These provisions did not have a material impact on our effective tax rate for the three or six months ended June 30, 2026. We will continue to assess the OBBBA tax provisions and their impacts on our consolidated financial statements.
Cash Flows from Operating Activities
Net cash provided by operating activities was $34.8 million and $39.3 million for the six months ended June 30, 2026 and 2025, respectively. The decrease in net cash provided by operating activities was primarily due to an increase in cash used by inventory during 2026 compared to 2025 and a decrease in cash provided by accounts receivable, partially offset by an increase in cash provided by accounts payable and other accrued expenses.
Cash Flows from Investing Activities
Net cash used in investing activities was $65.8 million and $41.5 million during the six months ended June 30, 2026 and 2025, respectively. Capital expenditures were $67.5 million and $38.0 million during the six months ended June 30, 2026 and 2025, respectively. In 2026, the Company received $2.0 million for the sale of the Felinfach land and building assets. In 2025, the Company paid $4.9 million for the acquisition of Biolie SAS.
Cash Flows from Financing Activities
Net cash provided by financing activities was $23.5 million and $26.0 million for the six months ended June 30, 2026 and 2025, respectively. Net debt increased by $62.8 million and $63.3 million for the six months ended June 30, 2026 and 2025, respectively. The cash proceeds from the increase in net debt in the current period were primarily used to support natural color conversion capital expenditure investments during the six months ended June 30, 2026. For purposes of the cash flow statement, net changes in debt exclude the impact of foreign exchange rates. Dividends of $34.9 million and $34.7 million were paid during the six months ended June 30, 2026 and 2025, respectively. Total dividends of $0.82 per share were paid for both the six months ended June 30, 2026 and 2025.
CRITICAL ACCOUNTING POLICIES
There have been no material changes in the Company’s critical accounting policies during the quarter ended June 30, 2026. For additional information about the Company’s critical accounting policies, refer to “Critical Accounting Policies” under Item 7 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
| ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
There have been no material changes in the Company’s exposure to market risk during the quarter ended June 30, 2026. For additional information about market risk, refer to Part II, Item 7A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
| ITEM 4. | CONTROLS AND PROCEDURES |
Evaluation of Disclosure Controls and Procedures: The Company carried out an evaluation, under the supervision and with the participation of management, including the Company’s Chairman, President, and Chief Executive Officer and its Vice President and Chief Financial Officer, of the effectiveness, as of the end of the period covered by this report, of the design and operation of the disclosure controls and procedures, as defined in Rule 13a-15(e) of the Exchange Act. Based upon that evaluation, the Company’s Chairman, President, and Chief Executive Officer and its Vice President and Chief Financial Officer have concluded that the disclosure controls and procedures were effective as of the end of the period covered by this report.
Changes in Internal Control over Financial Reporting: During the quarter ended June 30, 2026, the Company upgraded an enterprise resource planning software application used in a business unit within the Flavors & Extracts segment and within the Corporate segment. The Company followed an implementation process that required significant pre-implementation planning, design, and testing. There have been no other changes in the Company’s internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) during the quarter ended June 30, 2026, that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
| PART II. | OTHER INFORMATION |
| ITEM 1. | LEGAL PROCEEDINGS |
See Part I, Item 1, Note 13, Commitments and Contingencies, of this report for information regarding legal proceedings in which the Company is involved.
| ITEM 1A. | RISK FACTORS |
There were no material changes to the risk factors previously disclosed in Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
| ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
On October 19, 2017, the Board of Directors authorized the repurchase of up to three million shares (2017 Authorization). As of June 30, 2026, 1,267,019 shares had been repurchased under the 2017 Authorization. There is no expiration date for the 2017 Authorization. The 2017 Authorization may be modified, suspended, or discontinued by the Board of Directors at any time. As of June 30, 2026, the maximum number of shares that may be purchased under publicly announced plans is 1,732,981. No shares were purchased by the Company during the three or six months ended June 30, 2026.
| ITEM 5. | OTHER INFORMATION |
During the three months ended June 30, 2026, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.
| ITEM 6. | EXHIBITS |
The exhibits listed in the following Exhibit Index are filed as part of this Quarterly Report on Form 10-Q.
SENSIENT TECHNOLOGIES CORPORATION
EXHIBIT INDEX
QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED JUNE 30, 2026
| Exhibit | Description | Incorporated by Reference From | Filed Herewith | |
| Credit Agreement, dated as of June 18, 2026, among Sensient Technologies Corporation, certain subsidiaries thereof from time to time party thereto as borrowers, CoBank, ACB, as administrative agent, and the lenders party thereto from time to time | Exhibit 10.1 to Current Report on Form 8-K filed June 23, 2026 (Commission File No. 1-7626) | |||
| Amendment No. 2 to the Receivables Sale Agreement, dated as of July 31, 2026 | X | |||
| Certifications of the Company’s Chairman, President & Chief Executive Officer and Vice President & Chief Financial Officer pursuant to Rule 13a-14(a) of the Exchange Act | X | |||
| Certifications of the Company’s Chairman, President & Chief Executive Officer and Vice President & Chief Financial Officer pursuant to 18 United States Code § 1350 | X | |||
| 101.INS | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document) | X | ||
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document | X | ||
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | X | ||
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | X | ||
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | X | ||
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | X | ||
| 104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) | X |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| SENSIENT TECHNOLOGIES CORPORATION | ||||
| Date: | August 4, 2026 | By: | /s/ John J. Manning | |
| John J. Manning, Senior Vice President, General Counsel & Secretary | ||||
| Date: | August 4, 2026 | By: | /s/ Tobin Tornehl | |
| Tobin Tornehl, Vice President & Chief Financial Officer |
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