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International Flavors Earnings Beat Estimates in Q3, Sales Dip Y/Y
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Key Takeaways
IFF posts Q3 adjusted EPS of $1.05, beating estimates and rising 1% year over year.
The Scent and Taste segments drive gains, offsetting weakness in other business areas.
IFF reaffirms its 2025 outlook, targeting $10.6-$10.9B in sales and $2.15B in EBITDA.
International Flavors & Fragrances Inc. ((IFF - Free Report) ) reported adjusted earnings of $1.05 per share in third-quarter 2025, beating the Zacks Consensus Estimate of $1.02 per share. The bottom line improved 1% from the year-ago quarter.
Including one-time items, the company reported earnings of 16 cents per share compared with the prior-year quarter’s 23 cents per share.
International Flavors & Fragrances Inc. Price, Consensus and EPS Surprise
International Flavors’ net sales fell 7.9% year over year to $2.69 billion but surpassed the Zacks Consensus Estimate of $2.63 billion. On a comparable basis, currency-neutral sales were flat with the prior-year quarter due to mid-single-digit growth in Scent and a low-single-digit growth in Taste.
International Flavors’ Q3 Gross Profit Dip Y/Y
In the reported quarter, IFF’s cost of goods sold was down 8.6% year over year to $1.71 billion. The gross profit fell 6.6% year over year to $983 million. The gross margin was 36.5% compared with 36% in the year-ago quarter.
Research and development expenses increased 7% year over year to $174 million. The selling and administrative expenses fell 15% year over year to $421 million in the third quarter.
The adjusted operating EBITDA was $519 million, down 8.6% from the prior-year quarter’s $568 million. The adjusted operating EBITDA margin was 19.3% compared with the year-ago quarter’s 19.4%.
IFF’s Q3 Segmental Performances
Net sales in the Taste segment increased 2.6% year over year to $635 million in the September-end quarter. The figure surpassed our estimate of $617 million. The adjusted operating EBITDA was $128 million, up 3.2% year over year. Our estimate for the segment’s adjusted EBITDA was $121 million.
Net sales in the Food Ingredients segment fell 1.5% year over year to $830 million in the September-end quarter. The figure beat our estimate of $813 million. The adjusted operating EBITDA was $106 million, up 20.5% year over year. Our estimate for the segment’s adjusted EBITDA was $107 million.
Sales generated in the Health & Bioscience segment were $577 million compared with the year-earlier quarter’s $568 million. Our estimate was $580 million. The adjusted operating EBITDA was $150 million in the quarter, up 0.7% year over year. Our estimate for the segment’s adjusted EBITDA was $150 million.
The Scent segment’s sales were $652 million, up 6.4% year over year. Our projection was $614 million. The adjusted operating EBITDA grew 7.1% year over year to $135 million. Our model had projected EBITDA of $123 million.
International Flavors’ Q3 Cash Flow & Balance Sheet Updates
International Flavors had cash and cash equivalents of $621 million at the end of third-quarter 2025, up from $469 million at the end of 2024. Long-term debt was $4.74 billion at the third-quarter end, down from $7.56 billion as of Dec. 31, 2024.
International Flavors generated $532 million in operating activities in the first nine months of fiscal 2025 compared with $681 million in the prior-year period.
IFF Reaffirms 2025 Guidance
The company expects sales for fiscal 2025 between $10.6 billion and $10.9 billion. Adjusted EBITDA is expected between $2 billion and $2.15 billion.
International Flavors’ Price Performance
In the past year, IFF shares have lost 36.6% compared with the industry’s 10.8% decline.
Performance of Other Chemical - Specialty Stocks in Q3
Linde plc. ((LIN - Free Report) ) reported third-quarter 2025 adjusted earnings per share of $4.21, which surpassed the Zacks Consensus Estimate of $4.18. The bottom line also improved from the year-ago quarter’s $3.94.
Linde’s total quarterly sales of $8.62 billion surpassed the Zacks Consensus Estimate of $8.60 billion. The top line also increased from the year-ago quarter’s $8.36 billion.
PPG Industries, Inc. ((PPG - Free Report) ) posted third-quarter 2025 adjusted earnings per share of $2.13, up from $2.03 in the year-ago quarter, surpassing the Zacks Consensus Estimate of $2.09.
PPG Industries’ sales were $4.08 billion in the quarter, up 1.2% year over year. The top line beat the Zacks Consensus Estimate of $4.04 billion.
Ecolab Inc.’s ((ECL - Free Report) ) adjusted earnings in third-quarter 2025 were $2.07 per share, up from $1.83 a year ago. The figure beat the Zacks Consensus Estimate of $2.06.
Ecolab reported net sales of $4.16 billion for the quarter, beating the Zacks Consensus Estimate of $4.12 billion. The company’s top line increased 4.2% year over year.
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International Flavors Earnings Beat Estimates in Q3, Sales Dip Y/Y
Key Takeaways
International Flavors & Fragrances Inc. ((IFF - Free Report) ) reported adjusted earnings of $1.05 per share in third-quarter 2025, beating the Zacks Consensus Estimate of $1.02 per share. The bottom line improved 1% from the year-ago quarter.
Including one-time items, the company reported earnings of 16 cents per share compared with the prior-year quarter’s 23 cents per share.
International Flavors & Fragrances Inc. Price, Consensus and EPS Surprise
International Flavors & Fragrances Inc. price-consensus-eps-surprise-chart | International Flavors & Fragrances Inc. Quote
International Flavors’ net sales fell 7.9% year over year to $2.69 billion but surpassed the Zacks Consensus Estimate of $2.63 billion. On a comparable basis, currency-neutral sales were flat with the prior-year quarter due to mid-single-digit growth in Scent and a low-single-digit growth in Taste.
International Flavors’ Q3 Gross Profit Dip Y/Y
In the reported quarter, IFF’s cost of goods sold was down 8.6% year over year to $1.71 billion. The gross profit fell 6.6% year over year to $983 million. The gross margin was 36.5% compared with 36% in the year-ago quarter.
Research and development expenses increased 7% year over year to $174 million. The selling and administrative expenses fell 15% year over year to $421 million in the third quarter.
The adjusted operating EBITDA was $519 million, down 8.6% from the prior-year quarter’s $568 million. The adjusted operating EBITDA margin was 19.3% compared with the year-ago quarter’s 19.4%.
IFF’s Q3 Segmental Performances
Net sales in the Taste segment increased 2.6% year over year to $635 million in the September-end quarter. The figure surpassed our estimate of $617 million. The adjusted operating EBITDA was $128 million, up 3.2% year over year. Our estimate for the segment’s adjusted EBITDA was $121 million.
Net sales in the Food Ingredients segment fell 1.5% year over year to $830 million in the September-end quarter. The figure beat our estimate of $813 million. The adjusted operating EBITDA was $106 million, up 20.5% year over year. Our estimate for the segment’s adjusted EBITDA was $107 million.
Sales generated in the Health & Bioscience segment were $577 million compared with the year-earlier quarter’s $568 million. Our estimate was $580 million. The adjusted operating EBITDA was $150 million in the quarter, up 0.7% year over year. Our estimate for the segment’s adjusted EBITDA was $150 million.
The Scent segment’s sales were $652 million, up 6.4% year over year. Our projection was $614 million. The adjusted operating EBITDA grew 7.1% year over year to $135 million. Our model had projected EBITDA of $123 million.
International Flavors’ Q3 Cash Flow & Balance Sheet Updates
International Flavors had cash and cash equivalents of $621 million at the end of third-quarter 2025, up from $469 million at the end of 2024. Long-term debt was $4.74 billion at the third-quarter end, down from $7.56 billion as of Dec. 31, 2024.
International Flavors generated $532 million in operating activities in the first nine months of fiscal 2025 compared with $681 million in the prior-year period.
IFF Reaffirms 2025 Guidance
The company expects sales for fiscal 2025 between $10.6 billion and $10.9 billion. Adjusted EBITDA is expected between $2 billion and $2.15 billion.
International Flavors’ Price Performance
In the past year, IFF shares have lost 36.6% compared with the industry’s 10.8% decline.
IFF’s Zacks Rank
International Flavors currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Chemical - Specialty Stocks in Q3
Linde plc. ((LIN - Free Report) ) reported third-quarter 2025 adjusted earnings per share of $4.21, which surpassed the Zacks Consensus Estimate of $4.18. The bottom line also improved from the year-ago quarter’s $3.94.
Linde’s total quarterly sales of $8.62 billion surpassed the Zacks Consensus Estimate of $8.60 billion. The top line also increased from the year-ago quarter’s $8.36 billion.
PPG Industries, Inc. ((PPG - Free Report) ) posted third-quarter 2025 adjusted earnings per share of $2.13, up from $2.03 in the year-ago quarter, surpassing the Zacks Consensus Estimate of $2.09.
PPG Industries’ sales were $4.08 billion in the quarter, up 1.2% year over year. The top line beat the Zacks Consensus Estimate of $4.04 billion.
Ecolab Inc.’s ((ECL - Free Report) ) adjusted earnings in third-quarter 2025 were $2.07 per share, up from $1.83 a year ago. The figure beat the Zacks Consensus Estimate of $2.06.
Ecolab reported net sales of $4.16 billion for the quarter, beating the Zacks Consensus Estimate of $4.12 billion. The company’s top line increased 4.2% year over year.