Highlights

  • Second quarter 2026 net sales from continuing operations were $1.954 billion, compared with $1.919 billion, and diluted income per share was $0.20.
  • Net income from continuing operations was $33 million, compared with $550 million, which included a $488 million gain on extinguishment of debt.
  • On August 4, 2026, the Board authorized a $2.5 billion share repurchase, including a $500 million accelerated share repurchase.
  • Management expects full-year 2026 sales of $7.4 billion to $7.6 billion and EBITDA of $1.53 billion to approximately $1.6 billion.

International Flavors & Fragrances Inc. (NYSE: IFF) shares were trading at USD 91.96 on October 27, 2026, down 1.85%, with a relative volume at time of 2.17. The ingredients company agreed on May 29, 2026 to sell its Food Ingredients disposal group to CVC Capital Partners, announced on July 20, 2026 an agreement to divest a portfolio of botanical extracts and related products, and filed its quarterly report for the period ended June 30, 2026 on August 4, 2026.

IFF is incorporated in New York, and its principal executive offices are at 521 West 57th Street in New York, with a Wilmington, Delaware address also listed. It reports three segments: Taste, which develops flavor compounds and natural taste solutions; Health & Biosciences, which develops enzymes, food cultures and probiotics; and Scent, which creates fragrance compounds and ingredients. Its fiscal year ends December 31.

Second Quarter Results

The statements below present continuing operations unless noted. Net sales were $1.954 billion for the second quarter of 2026, up $35 million, or 2% on a reported basis, from $1.919 billion. On a comparable currency neutral basis, sales increased 6%. Taste net sales were $688 million, Health & Biosciences $601 million and Scent $665 million.

Gross profit was $853 million, or 43.7% of sales, compared with $824 million, or 42.9%. Selling and administrative expenses were $437 million, compared with $409 million. Operating profit was $158 million, compared with $142 million. The quarter included a $27 million loss on assets classified as held for sale. The effective tax rate was 48.4%.

Net income from continuing operations was $33 million, compared with $550 million in the prior-year period, which included a $488 million gain on extinguishment of debt. Net income attributable to IFF shareholders was $50 million, compared with $599 million, and diluted income per share was $0.20, compared with $2.33. Diluted income per share from continuing operations was $0.13, compared with $2.14.

For the six months, net income attributable to IFF shareholders was $219 million, compared with a loss of $419 million.

Divestitures, Cash Flow and Capital Allocation

The Food Ingredients sale to CVC is expected to close by the end of the second quarter of 2027, subject to customary closing conditions and regulatory approvals, and IFF will retain an approximate 10% equity interest. Management said the transaction values the business at about $4.3 billion. IFF also expects to close the botanical extracts, vitamins and minerals, and food enhancement products sale in the fourth quarter of 2026 and expects a pre-tax loss on that sale of approximately $200 million to $300 million, including any related goodwill impairment.

Cash flows provided by operating activities were $679 million for the six months, compared with $368 million. Cash and cash equivalents were $569 million at June 30, 2026. IFF had $5.611 billion of senior unsecured notes outstanding, no borrowings under its $2 billion Revolving Credit Facility, and a net debt to credit adjusted EBITDA ratio of 2.51 to 1.0, and it was in compliance with all covenants.

IFF declared a dividend of $0.40 per share in the second quarter. On August 4, 2026, the Board authorized a repurchase of $2.5 billion, including about $400 million remaining on the prior authorization and a $500 million accelerated repurchase expected in the second half of 2026. The remaining $2.0 billion is expected to follow the Food Ingredients closing, with completion by the end of 2027.

2026 Outlook

On its second quarter call, management said it expects full-year 2026 sales of $7.4 billion to $7.6 billion, and EBITDA of $1.53 billion to approximately $1.6 billion. The 10-Q states that capital spending in 2026 is expected at approximately 6.0% of total company sales. Management also said it plans to reduce debt by more than $1 billion.