Item 2.02 Results of Operations and Financial Condition. Sensient Technologies Corporation (the “Company”) issued a press release on October 31, 2025, disclosing its results of operations for its quarter ended September 30, 2025, and its financial condition at that date. The press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K. The information contained in this Item 2.02 (including Exhibit 99.1) is intended to be furnished under Item 2.02 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act.
SXT Sensient Technologies Corp - 8-K
Accession
0001140361-25-0399322.027.019.01
Item 2.02 - Results of Operations and Financial Condition
Earnings press release attached as Exhibit 99.1.
Exhibit 99.1 - press release (3,455 words)
EX-99.1 2 ef20057979_ex99-1.htm EXHIBIT 99.1 Exhibit 99.1 Contact: David Plautz (414) 347-3706 [email protected] Sensient Technologies Corporation Reports Results for the Quarter Ended September 30, 2025 MILWAUKEE— October 31, 2025 — Sensient Technologies Corporation (NYSE: SXT), a leading provider of flavors and colors for the food, pharmaceutical, and personal care markets, today reported financial results for the third quarter ended September 30, 2025. Third Quarter Consolidated Results • Reported revenue increased 5.0% to $412.1 million in the third quarter of 2025 versus last year’s third quarter results of $392.6 million. On a local currency basis (1) , revenue increased 3.5%. • Reported operating income increased 14.2% to $57.7 million compared to $50.5 million recorded in the third quarter of 2024. In the third quarter of 2025, the Company recorded $3.3 million of costs related to its Portfolio Optimization Plan versus last year’s $1.2 million in the third quarter. Local currency adjusted operating income (1) and local currency adjusted EBITDA (1) increased 15.7% and 14.3%, respectively, in the third quarter. • Reported earnings per share increased 13.0% to 87 cents in the third quarter of 2025 compared to 77 cents in the third quarter of 2024. Local currency adjusted diluted EPS (1) increased 17.5% in the third quarter. “Sensient’s dedication to customer service while continuing to innovate and drive new sales wins has resulted in strong results. I remain very confident about our performance and am excited about the opportunities in front of us, particularly in natural colors,” said Paul Manning, Sensient’s Chairman, President, and Chief Executive Officer. - MORE - Sensient Technologies Corporation Earnings Release – Quarter Ended September 30, 2025 October 31, 2025 Page 2 Third Quarter Group Results Reported Local Currency (1) Revenue Quarter Year-to-Date Quarter Year-to-Date Flavors & Extracts -0.2 % -0.9 % -1.2 % -1.0 % Color 9.9 % 7.2 % 7.9 % 7.6 % Asia Pacific 0.7 % 5.0 % -0.3 % 3.9 % Total Revenue 5.0 % 3.2 % 3.5 % 3.2 % Reported Local Currency Adjusted (1) Operating Income Quarter Year-to-Date Quarter Year-to-Date Flavors & Extracts 8.4 % 7.6 % 7.8 % 7.6 % Color 26.6 % 19.9 % 23.8 % 19.7 % Asia Pacific 2.5 % 7.6 % 0.2 % 4.9 % Total Operating Income 14.2 % 12.9 % 15.7 % 14.3 % The Flavors & Extracts Group reported third quarter 2025 revenue of $203.0 million, a decrease of $0.3 million versus the prior year’s third quarter. The Group’s revenue was unfavorably impacted by lower volumes in agricultural ingredients (formerly natural ingredients). This decline was partially offset by higher prices and volumes in our flavors, extracts, and flavor ingredients product lines. Segment operating income was $28.0 million in the third quarter of 2025, an increase of $2.2 million compared to the prior year’s third quarter. The increase in segment operating income was driven by strong profitability of the flavors, extracts, and flavor ingredients product lines despite the decline in the revenue of agricultural ingredients. The Color Group reported revenue of $178.2 million in the third quarter of 2025, an increase of $16.1 million compared to the prior year’s third quarter. The Group’s revenue increase was driven by higher prices and strong volume growth in the food and pharmaceutical product lines. Segment operating income was $37.7 million in the third quarter of 2025, an increase of $7.9 million compared to the prior year’s third quarter results. - MORE - Sensient Technologies Corporation Earnings Release – Quarter Ended September 30, 2025 October 31, 2025 Page 3 The Asia Pacific Group reported revenue of $42.1 million in the third quarter of 2025, an increase of $0.3 million compared to the prior year’s third quarter. Segment operating income was $9.5 million in the quarter, an increase of $0.2 million compared to the prior year’s third quarter. Corporate & Other reported operating expenses of $17.6 million in the third quarter of 2025, compared to $14.5 million of operating expenses reported in the prior year’s third quarter. The higher operating expenses were primarily due to higher Portfolio Optimization Plan costs in the quarter. Local currency adjusted operating expenses (1) for Corporate & Other increased $1.0 million compared to the prior year’s third quarter, primarily due to higher performance-based compensation costs recorded in 2025. 2025 OUTLOOK Metric Current Guidance Prior Guidance Local Currency Revenue (1) Mid-Single-Digit Growth Mid-Single-Digit Growth Local Currency Adjusted EBITDA (1) Double-Digit Growth High Single-Digit Growth Diluted EPS (GAAP) Between $3.13 and $3.23* Between $3.13 and $3.23 Local Currency Adjusted Diluted EPS (1) Double-Digit Growth High Single-Digit to Double-Digit Growth *Includes approximately 28 cents of Portfolio Optimization Plan costs. Based on current exchange rates, foreign currency impact is expected to be a slight tailwind for the year. The Company’s guidance is based on current conditions and economic and market trends in the markets in which the Company operates and is subject to various risks and uncertainties as described below. (1) Please refer to “ Reconciliation of Non-GAAP Amounts ” at the end of this release for more information regarding our non-GAAP financial measures. - MORE - Sensient Technologies Corporation Earnings Release – Quarter Ended September 30, 2025 October 31, 2025 Page 4 USE OF NON-GAAP FINANCIAL MEASURES The Company’s non-GAAP financial measures eliminate the impact of certain items, which, depending on the measure, include: currency movements, depreciation and amortization, Portfolio Optimization Plan costs, and non-cash share-based compensation. These measures are provided to enhance the overall understanding of the Company’s performance when viewed together with the GAAP results. Refer to “ Reconciliation of Non-GAAP Amounts ” at the end of this release. CONFERENCE CALL The Company will host a conference call to discuss its 2025 third quarter financial results at 8:30 a.m. CDT on Friday, October 31, 2025. To participate in the conference call, contact Chorus Call Inc. at (844) 492-3726 or (412) 317-1078, and ask to join the Sensient Technologies Corporation conference call. Alternatively, the call can be accessed by using the webcast link that is available on the Investor Information section of the Company’s web site at www.sensient.com . A replay of the call will be available one hour after the end of the conference call through November 7, 2025, by calling (877) 344-7529 and using access code 1491278. An audio replay and written transcript of the call will also be posted on the Investor Information section of the Company’s web site at www.sensient.com on or after November 4, 2025. - MORE - Sensient Technologies Corporation Earnings Release – Quarter Ended September 30, 2025 October 31, 2025 Page 5 This release contains statements that may constitute “forward-looking statements” within the meaning of Federal securities laws including in the quote from our Chairman, President, and Chief Executive Officer and under “2025 Outlook” above. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, and other factors concerning the Company’s operations and business environment. Important factors that could cause actual results to differ materially from those suggested by these forward-looking statements and that could adversely affect the Company’s future financial performance include the following: 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 other factors included in “Risk Factors” in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, and in other documents that the Company files with the SEC. The risks and uncertainties identified above are not the only risks the Company faces. Additional risks and uncertainties not presently known to the Company or that it currently believes to be immaterial also may adversely affect the Company. Should any known or unknown risks and uncertainties develop into actual events, these developments could have material adverse effects on our business, financial condition, and results of operations. This release contains time-sensitive information that reflects management’s best analysis only as of the date of this release. Except to the extent required by applicable laws, 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 herein will not be realized. ABOUT SENSIENT TECHNOLOGIES Sensient Technologies Corporation is a leading global manufacturer and marketer of colors, flavors, and other specialty ingredients. Sensient uses advanced technologies and robust global supply chain capabilities to develop specialized solutions for food and beverages, as well as products that serve the pharmaceutical, nutraceutical, and personal care industries. Sensient’s customers range in size from small entrepreneurial businesses to major international manufacturers representing some of the world’s best-known brands. Sensient is headquartered in Milwaukee, Wisconsin. www.sensient.com - MORE - Sensient Technologies Corporation (In thousands, except percentages and per share amounts) (Unaudited) Page 6 Consolidated Statements of Earnings Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 % Change 2025 2024 % Change Revenue $ 412,109 $ 392,613 5.0 % $ 1,218,664 $ 1,180,808 3.2 % Cost of products sold 270,767 262,209 3.3 % 802,713 793,133 1.2 % Selling and administrative expenses 83,636 79,884 4.7 % 247,009 238,092 3.7 % Operating income 57,706 50,520 14.2 % 168,942 149,583 12.9 % Interest expense 7,328 7,696 22,060 22,394 Earnings before income taxes 50,378 42,824 146,882 127,189 Income taxes 13,422 10,134 37,877 32,627 Net earnings $ 36,956 $ 32,690 13.0 % $ 109,005 $ 94,562 15.3 % Earnings per share of common stock: Basic $ 0.87 $ 0.78 $ 2.58 $ 2.24 Diluted $ 0.87 $ 0.77 $ 2.56 $ 2.23 Average common shares outstanding: Basic 42,248 42,159 42,231 42,139 Diluted 42,665 42,429 42,570 42,377 Results by Segment Three Months Ended September 30, Nine Months Ended September 30, Revenue 2025 2024 % Change 2025 2024 % Change Flavors & Extracts $ 202,970 $ 203,279 (0.2 %) $ 599,902 $ 605,584 (0.9 %) Color 178,156 162,080 9.9 % 525,188 489,805 7.2 % Asia Pacific 42,082 41,778 0.7 % 126,727 120,664 5.0 % Intersegment elimination (11,099 ) (14,524 ) (33,153 ) (35,245 ) Consolidated $ 412,109 $ 392,613 5.0 % $ 1,218,664 $ 1,180,808 3.2 % Operating Income Flavors & Extracts $ 28,038 $ 25,862 8.4 % $ 81,533 $ 75,749 7.6 % Color 37,734 29,806 26.6 % 111,508 92,987 19.9 % Asia Pacific 9,541 9,307 2.5 % 27,926 25,963 7.6 % Corporate & Other (17,607 ) (14,455 ) (52,025 ) (45,116 ) Consolidated $ 57,706 $ 50,520 14.2 % $ 168,942 $ 149,583 12.9 % - MORE - Sensient Technologies Corporation (In thousands) (Unaudited) Page 7 Consolidated Condensed Balance Sheets September 30, December 31, 2025 2024 Cash and cash equivalents $ 42,669 $ 26,626 Trade accounts receivable 323,387 290,087 Inventories 653,718 600,302 Prepaid expenses and other current assets 51,728 44,871 Fixed assets held for sale 1,595 - Total Current Assets 1,073,097 961,886 Goodwill & intangible assets (net) 449,902 423,658 Property, plant, and equipment (net) 518,489 491,587 Other assets 168,053 146,663 Total Assets $ 2,209,541 $ 2,023,794 Trade accounts payable $ 122,878 $ 139,052 Short-term borrowings 777 19,848 Other current liabilities 110,033 111,739 Total Current Liabilities 233,688 270,639 Long-term debt 711,177 613,523 Accrued employee and retiree benefits 27,031 24,499 Other liabilities 57,484 54,147 Shareholders' Equity 1,180,161 1,060,986 Total Liabilities and Shareholders' Equity $ 2,209,541 $ 2,023,794 - MORE - Sensient Technologies Corporation (In thousands, except per share amounts) (Unaudited) Page 8 Consolidated Statements of Cash Flows Nine Months Ended September 30, 2025 2024 Cash flows from operating activities: Net earnings $ 109,005 $ 94,562 Adjustments to arrive at net cash provided by operating activities: Depreciation and amortization 45,890 45,185 Share-based compensation expense 10,584 6,980 Net loss (gain) on assets 166 (210 ) Portfolio Optimization Plan costs 2,107 1,406 Deferred income taxes 3,899 (11,117 ) Changes in operating assets and liabilities: Trade accounts receivable (19,716 ) (32,138 ) Inventories (35,609 ) 14,902 Prepaid expenses and other assets (9,160 ) 221 Trade accounts payable and other accrued expenses (10,973 ) (4,664 ) Accrued salaries, wages, and withholdings (9,781 ) 16,769 Income taxes (5,076 ) 854 Other liabilities 1,927 3,011 Net cash provided by operating activities 83,263 135,761 Cash flows from investing activities: Acquisition of property, plant, and equipment (57,788 ) (36,088 ) Proceeds from sale of assets 397 338 Acquisition of new business (4,867 ) - Other investing activities 1,260 (1,444 ) Net cash used in investing activities (60,998 ) (37,194 ) Cash flows from financing activities: Proceeds from additional borrowings 125,619 134,432 Debt payments (84,662 ) (154,219 ) Dividends paid (52,196 ) (52,034 ) Other financing activities (2,648 ) (3,317 ) Net cash used in financing activities (13,887 ) (75,138 ) Effect of exchange rate changes on cash and cash equivalents 7,665 (15,394 ) Net increase in cash and cash equivalents 16,043 8,035 Cash and cash equivalents at beginning of period 26,626 28,934 Cash and cash equivalents at end of period $ 42,669 $ 36,969 Supplemental Information Nine Months Ended September 30, 2025 2024 Dividends paid per share $ 1.23 $ 1.23 - MORE - Sensient Technologies Corporation (In thousands, except percentages and per share amounts) (Unaudited) Page 9 Reconciliation of Non-GAAP Amounts The Company's results for the three and nine months ended September 30, 2025 and 2024 include adjusted operating income, adjusted net earnings, and adjusted diluted earnings per share, which, in each case, exclude Portfolio Optimization Plan costs. Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 % Change 2025 2024 % Change Operating income (GAAP) $ 57,706 $ 50,520 14.2 % $ 168,942 $ 149,583 12.9 % Portfolio Optimization Plan costs – Cost of products sold 649 209 4,252 523 Portfolio Optimization Plan costs – Selling and administrative expenses 2,674 1,002 5,274 5,252 Adjusted operating income $ 61,029 $ 51,731 18.0 % $ 178,468 $ 155,358 14.9 % Net earnings (GAAP) $ 36,956 $ 32,690 13.0 % $ 109,005 $ 94,562 15.3 % Portfolio Optimization Plan costs, before tax 3,323 1,211 9,526 5,775 Tax impact of Portfolio Optimization Plan costs (1) 649 (17 ) (868 ) (586 ) Adjusted net earnings $ 40,928 $ 33,884 20.8 % $ 117,663 $ 99,751 18.0 % Diluted earnings per share (GAAP) $ 0.87 $ 0.77 13.0 % $ 2.56 $ 2.23 14.8 % Portfolio Optimization Plan costs, net of tax 0.09 0.03 0.20 0.12 Adjusted diluted earnings per share $ 0.96 $ 0.80 20.0 % $ 2.76 $ 2.35 17.4 % Note: Earnings per share calculations may not foot due to rounding differences. (1) Tax impact adjustments were determined based on the nature of the underlying non-GAAP adjustments and their relevant jurisdictional tax rates. Results by Segment Three Months Ended September 30, Adjusted Adjusted Operating Income 2025 Adjustments (2) 2025 2024 Adjustments (2) 2024 Flavors & Extracts $ 28,038 $ - $ 28,038 $ 25,862 $ - $ 25,862 Color 37,734 - 37,734 29,806 - 29,806 Asia Pacific 9,541 - 9,541 9,307 - 9,307 Corporate & Other (17,607 ) 3,323 (14,284 ) (14,455 ) 1,211 (13,244 ) Consolidated $ 57,706 $ 3,323 $ 61,029 $ 50,520 $ 1,211 $ 51,731 Results by Segment Nine Months Ended September 30, Adjusted Adjusted Operating Income 2025 Adjustments (2) 2025 2024 Adjustments (2) 2024 Flavors & Extracts $ 81,533 $ - $ 81,533 $ 75,749 $ - $ 75,749 Color 111,508 - 111,508 92,987 - 92,987 Asia Pacific 27,926 - 27,926 25,963 - 25,963 Corporate & Other (52,025 ) 9,526 (42,499 ) (45,116 ) 5,775 (39,341 ) Consolidated $ 168,942 $ 9,526 $ 178,468 $ 149,583 $ 5,775 $ 155,358 (2) Adjustments consist of Portfolio Optimization Plan costs. - MORE - Sensient Technologies Corporation (Unaudited) Page 10 Reconciliation of Non-GAAP Amounts - Continued The following table summarizes the percentage change in the 2025 results compared to the 2024 results for the corresponding periods. Three Months Ended September 30, Revenue Total Foreign Exchange Rates Adjustments (3) Local Currency Adjusted Flavors & Extracts (0.2 %) 1.0 % N/A (1.2 %) Color 9.9 % 2.0 % N/A 7.9 % Asia Pacific 0.7 % 1.0 % N/A (0.3 %) Total Revenue 5.0 % 1.5 % N/A 3.5 % Operating Income Flavors & Extracts 8.4 % 0.6 % 0.0 % 7.8 % Color 26.6 % 2.8 % 0.0 % 23.8 % Asia Pacific 2.5 % 2.3 % 0.0 % 0.2 % Corporate & Other 21.8 % 0.0 % 13.9 % 7.9 % Total Operating Income 14.2 % 2.4 % (3.9 %) 15.7 % Diluted Earnings Per Share 13.0 % 2.6 % (7.1 %) 17.5 % Adjusted EBITDA 16.3 % 2.0 % N/A 14.3 % Nine Months Ended September 30, Revenue Total Foreign Exchange Rates Adjustments (3) Local Currency Adjusted Flavors & Extracts (0.9 %) 0.1 % N/A (1.0 %) Color 7.2 % (0.4 %) N/A 7.6 % Asia Pacific 5.0 % 1.1 % N/A 3.9 % Total Revenue 3.2 % 0.0 % N/A 3.2 % Operating Income Flavors & Extracts 7.6 % 0.0 % 0.0 % 7.6 % Color 19.9 % 0.2 % 0.0 % 19.7 % Asia Pacific 7.6 % 2.7 % 0.0 % 4.9 % Corporate & Other 15.3 % 0.0 % 7.3 % 8.0 % Total Operating Income 12.9 % 0.6 % (2.0 %) 14.3 % Diluted Earnings Per Share 14.8 % 0.5 % (2.3 %) 16.6 % Adjusted EBITDA 13.2 % 0.4 % N/A 12.8 % (3) Adjustments consist of Portfolio Optimization Plan costs. - MORE - Sensient Technologies Corporation (In thousands, except percentages) (Unaudited) Page 11 Reconciliation of Non-GAAP Amounts - Continued The following table summarizes the reconciliation between Operating Income (GAAP) and Adjusted EBITDA for the three and nine months ended September 30, 2025 and 2024. Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 % Change 2025 2024 % Change Operating income (GAAP) $ 57,706 $ 50,520 14.2 % $ 168,942 $ 149,583 12.9 % Depreciation and amortization 15,556 15,460 45,890 45,185 Share-based compensation expense 3,945 2,069 10,584 6,980 Portfolio Optimization Plan costs, before tax 3,323 1,211 9,526 5,775 Adjusted EBITDA $ 80,530 $ 69,260 16.3 % $ 234,942 $ 207,523 13.2 % The following table summarizes the reconciliation between Debt (GAAP) and Net Debt, and Operating Income (GAAP) and Credit Adjusted EBITDA for the trailing twelve months ended September 30, 2025 and 2024. September 30, Debt 2025 2024 Short-term borrowings $ 777 $ 17,811 Long-term debt 711,177 625,627 Credit Agreement adjustments (4) (27,992 ) (22,633 ) Net Debt $ 683,962 $ 620,805 Operating income (GAAP) $ 210,938 $ 157,646 Depreciation and amortization 61,034 59,645 Share-based compensation expense 13,688 8,628 Portfolio Optimization Plan costs, before tax 10,382 33,616 Other non-operating gains (5) (495 ) (998 ) Credit Adjusted EBITDA $ 295,547 $ 258,537 Net Debt to Credit Adjusted EBITDA 2.3x 2.4x (4) Adjustments include cash and cash equivalents, as described in the Company's Fourth Amended and Restated Credit Agreement (Credit Agreement), and certain letters of credit and hedge contracts. (5) Adjustments consist of certain financing transaction costs, certain non-financing interest items, and gains and losses related to certain non-cash, non-operating, and/or non-recurring items as described in the Credit Agreement. We have included each of these non-GAAP measures in order to provide additional information regarding our underlying operating results and comparable period-over-period 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 release and our SEC filings. 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 we believe 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.
Item 7.01 - Regulation FD Disclosure
127 words
Item 7.01 Regulation FD Disclosure. On October 31, 2025 , the Company also posted an updated investor presentation for i ts quarter ended September 30, 2025, on the “Investor Information” section of its website. A copy of the investor presentation is furnished as Exhibit 99.2 to this Current Report on Form 8-K. The information contained in this Item 7.01 (including Exhibit 99.2) is intended to be furnished under Item 7.01 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act.
Item 9.01 - Financial Statements and Exhibits
61 words
Item 9.01 Financial Statements and Exhibits. (d) Exhibits . The following exhibits are furnished with this Current Report on Form 8-K: EXHIBIT INDEX Exhibit Number Description 99.1 Sensient Technologies Corporation Earnings Press Release for the Quarter Ended September 30, 2025. 99.2 Sensient Technologies Corporation Investor Presentation – Q3 2025. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document).