third quarter 2026
Filed Oct 30, 2026Third-quarter revenue increased 10.6% to $455.8 million, operating income increased 25.5% to $72.4 million, and reported diluted EPS increased 29.9% to $1.13.
All three operating groups delivered revenue growth, consolidated operating income grew faster than revenue, and the company maintained its local-currency revenue, adjusted EBITDA, and adjusted diluted EPS outlook while raising the lower end of GAAP diluted EPS guidance.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, three months ended September 30GAAP | $455.8M | – | 10.6 % |
| Cost of products sold, three months ended September 30GAAP | 290,893 | – | 7.4 % |
| Selling and administrative expenses, three months ended September 30GAAP | 92,499 | – | 10.6 % |
| Operating income, three months ended September 30GAAP | $72.45M | – | 25.5 % |
| Interest expense, three months ended September 30GAAP | 8,345 | – | – |
| Earnings before income taxes, three months ended September 30GAAP | 64,104 | – | – |
| Income taxes, three months ended September 30GAAP | 15,760 | – | – |
| Net earnings, three months ended September 30GAAP | $48.34M | – | 30.8 % |
| Basic earnings per share, three months ended September 30GAAP | $ 1.14 | – | – |
| Diluted earnings per share, three months ended September 30GAAP | $ 1.13 | – | 29.9 % |
| Average common shares outstanding, basic, three months ended September 30GAAP | 42,353 | – | – |
| Average common shares outstanding, diluted, three months ended September 30GAAP | 42,831 | – | – |
| Adjusted operating income, three months ended September 30non-GAAP | $72.45M | – | 18.7 % |
| Adjusted net earnings, three months ended September 30non-GAAP | $48.34M | – | 18.1 % |
| Adjusted diluted earnings per share, three months ended September 30non-GAAP | $ 1.13 | – | 17.7 % |
| Adjusted EBITDA, three months ended September 30non-GAAP | $93.08M | – | 15.6 % |
| Revenue, nine months ended September 30GAAP | $1.35B | – | 11.1 % |
| Cost of products sold, nine months ended September 30GAAP | 863,321 | – | 7.6 % |
| Selling and administrative expenses, nine months ended September 30GAAP | 274,558 | – | 11.2 % |
| Operating income, nine months ended September 30GAAP | $215.9M | – | 27.8 % |
| Interest expense, nine months ended September 30GAAP | 24,421 | – | – |
| Earnings before income taxes, nine months ended September 30GAAP | 191,456 | – | – |
| Income taxes, nine months ended September 30GAAP | 47,583 | – | – |
| Net earnings, nine months ended September 30GAAP | $143.9M | – | 32.0 % |
| Basic earnings per share, nine months ended September 30GAAP | $ 3.40 | – | – |
| Diluted earnings per share, nine months ended September 30GAAP | $ 3.37 | – | 31.6 % |
| Adjusted operating income, nine months ended September 30non-GAAP | $215.9M | – | 21.0 % |
| Adjusted net earnings, nine months ended September 30non-GAAP | $143.9M | – | 22.3 % |
| Adjusted diluted earnings per share, nine months ended September 30non-GAAP | $ 3.37 | – | 22.1 % |
| Adjusted EBITDA, nine months ended September 30non-GAAP | $277.3M | – | 18.0 % |
| Net Debt, September 30non-GAAP | $765.5M | – | – |
| Credit Adjusted EBITDA, trailing twelve months ended September 30non-GAAP | $339.3M | – | – |
| Net Debt to Credit Adjusted EBITDA, September 30non-GAAP | 2.3 x | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Flavors & Extracts, three months ended September 30The revenue increase was driven primarily by higher prices and volume growth. | $210.0M | – | 3.5 % |
| Color, three months ended September 30The revenue increase was driven primarily by strong volume growth. | $210.3M | – | 18.1 % |
| Asia Pacific, three months ended September 30The revenue increase was driven by strong volume growth and higher prices across the Group. | $47.30M | – | 12.4 % |
| Flavors & Extracts, nine months ended September 30No nine-month segment revenue driver was provided. | $625.0M | – | 4.2 % |
| Color, nine months ended September 30No nine-month segment revenue driver was provided. | $624.7M | – | 18.9 % |
| Asia Pacific, nine months ended September 30No nine-month segment revenue driver was provided. | $140.1M | – | 10.6 % |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
2026 outlook
- RevenueLocal Currency Revenue (1): High Single-Digit to Low Double-Digit Growth
- NoteLocal Currency Adjusted EBITDA (1): Mid-Teen to High Teen Growth
- NoteDiluted EPS (GAAP): Between $4.15 and $4.20
- NoteLocal Currency Adjusted Diluted EPS (1): Mid-Teen to High Teen Growth
- NoteBased on current exchange rates, foreign currency impact is expected to be immaterial for the remainder of the year.
Capital returns
- Dividends paid, nine months ended September 30, 2026: $ 52,315
- Dividends paid, nine months ended September 30, 2025: $ 52,196
- Dividends paid per share, nine months ended September 30, 2026: $ 1.23
- Dividends paid per share, nine months ended September 30, 2025: $ 1.23
What drove it
- Third-quarter consolidated revenue increased 10.2% on a local currency basis.
- Third-quarter local currency adjusted operating income increased 18.6% and local currency adjusted EBITDA increased 15.4%.
- Flavors & Extracts revenue growth was driven primarily by higher prices and volume growth.
- Color revenue growth was driven primarily by strong volume growth.
- Asia Pacific revenue growth was driven by strong volume growth and higher prices across the Group.
- No Portfolio Optimization Plan costs were recorded in the third quarter of 2026, compared with $3.3 million in the third quarter of 2025.
Concerns
- Corporate & Other local currency adjusted operating expenses increased $2.2 million versus the prior year's third quarter, primarily due to higher performance-based compensation costs.
- Interest expense was 8,345 in the third quarter of 2026 compared with 7,328 in the third quarter of 2025.
- Trade accounts receivable was 373,755 and inventories were 791,096 at September 30, 2026.
- Net cash provided by operating activities for the nine months ended September 30, 2026 was 75,320, compared with 83,263 in 2025.
- Acquisition of property, plant, and equipment for the nine months ended September 30, 2026 was (105,775), compared with (57,788) in 2025.
- Long-term debt was 790,148 at September 30, 2026, compared with 709,232 at December 31, 2025.
What to watch
- Execution against 2026 local currency revenue guidance of High Single-Digit to Low Double-Digit Growth.
- Execution against 2026 local currency adjusted EBITDA guidance of Mid-Teen to High Teen Growth.
- Delivery within 2026 GAAP diluted EPS guidance of Between $4.15 and $4.20.
- Whether strong volume growth in Color and Asia Pacific continues.
- Corporate & Other operating expenses, including performance-based compensation costs.
- Operating cash flow, capital expenditure, receivables, inventories, and debt levels.
Balance sheet and cash flow
- Cash and cash equivalents at September 30, 2026: $ 42,625; December 31, 2025: $ 36,533.
- Trade accounts receivable at September 30, 2026: 373,755; December 31, 2025: 305,380.
- Inventories at September 30, 2026: 791,096; December 31, 2025: 678,220.
- Property, plant, and equipment, net, at September 30, 2026: 606,429; December 31, 2025: 539,296.
- Total assets at September 30, 2026: $ 2,475,832; December 31, 2025: $ 2,244,137.
- Short-term borrowings at September 30, 2026: 257; December 31, 2025: 352.
- Long-term debt at September 30, 2026: 790,148; December 31, 2025: 709,232.
- Shareholders’ Equity at September 30, 2026: 1,286,725; December 31, 2025: 1,193,514.
- Net cash provided by operating activities, nine months ended September 30, 2026: 75,320; 2025: 83,263.
- Acquisition of property, plant, and equipment, nine months ended September 30, 2026: (105,775); 2025: (57,788).
- Net cash used in investing activities, nine months ended September 30, 2026: (104,279); 2025: (60,998).
- Proceeds from additional borrowings, nine months ended September 30, 2026: 180,065; 2025: 125,619.
- Debt payments, nine months ended September 30, 2026: (88,310); 2025: (84,662).
- Net cash provided by financing activities, nine months ended September 30, 2026: 35,029; 2025: (13,887).
- Net increase in cash and cash equivalents, nine months ended September 30, 2026: 6,092; 2025: 16,043.
Analysis
Sensient reported broad-based third-quarter growth. Revenue increased 10.6% to $455.8 million, or 10.2% on a local currency basis. Color was the principal growth contributor, with revenue increasing 18.1% to $210.3 million on strong volume growth. Asia Pacific revenue increased 12.4% to $47.3 million, driven by volume growth and higher prices, while Flavors & Extracts revenue increased 3.5% to $210.0 million from higher prices and volume growth.
Profit growth exceeded revenue growth. GAAP operating income increased 25.5% to $72.4 million and GAAP net earnings increased 30.8% to $48.3 million. Adjusted operating income increased 18.7% to $72.4 million, adjusted EBITDA increased 15.6% to $93.1 million, and adjusted diluted EPS increased 17.7% to $1.13. The comparison includes $3.3 million of Portfolio Optimization Plan costs in the prior-year quarter and no such costs in the current quarter. Segment operating income increased 8.8% in Flavors & Extracts, 22.0% in Color, and 29.6% in Asia Pacific.
For the first nine months, revenue increased 11.1% to $1.35 billion and operating income increased 27.8% to $215.9 million. Nine-month adjusted EBITDA increased 18.0% to $277.3 million. Cash generation was lower year over year, with net cash provided by operating activities of 75,320 versus 83,263, while acquisition of property, plant, and equipment was (105,775) versus (57,788). Trade accounts receivable and inventories stood at 373,755 and 791,096 at September 30, 2026.
Capital allocation included dividends paid of 52,315 for the nine-month period, or $1.23 per share. Long-term debt was 790,148 at September 30, 2026, and net debt was $765,472. The company reported net debt to Credit Adjusted EBITDA of 2.3 x, unchanged from 2.3 x at September 30, 2025. The filing did not report share repurchases.
Management maintained its 2026 local currency revenue outlook of High Single-Digit to Low Double-Digit Growth, its local currency adjusted EBITDA outlook of Mid-Teen to High Teen Growth, and its local currency adjusted diluted EPS outlook of Mid-Teen to High Teen Growth. GAAP diluted EPS guidance is Between $4.15 and $4.20, compared with prior guidance in the release of Between $4.10 and $4.20. Management expects foreign currency impact to be immaterial for the remainder of the year based on current exchange rates.
Management, verbatim
Sensient delivered an exceptional third quarter, with results that reflect the strength of our strategy and unwavering focus on our customers. As we look ahead, I am encouraged by the momentum across our business, the opportunities in our markets, and the investments we are making to support growth. I remain very confident about our performance in 2026 and beyond.
Paul Manning, Chairman, President, and Chief Executive Officer
Not in the filing
stated, not guessed- GAAP gross profit and gross margin
- Non-GAAP gross profit and gross margin
- Free cash flow
- Share repurchases
- Quarterly operating cash flow
- Quarterly capital expenditures
- Prior-quarter comparisons for reported metrics
- Prior release outlook for comparison with actual results
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.