SENSIENT TECHNOLOGIES CORP (SXT)

CIK: 0000310142. SIC: 2860 Industrial Organic Chemicals. Latest 10-K as of: 2026-02-13.

SIC breadcrumb: Manufacturing > Chemicals And Allied Products > SIC 2860 Industrial Organic Chemicals

SEC company page: https://www.sec.gov/edgar/browse/?CIK=310142. Latest filing source: 0001140361-26-005311.

Selected Fundamentals

Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-13. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000310142.json. Derived margins are computed from the extracted annual SEC facts.

Flow metrics use full-year FY periods from 10-K/10-K/A filings; balance-sheet metrics use FY-end instants. Missing metrics are omitted rather than fabricated.

Financial Charts

Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-05. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000310142.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

Quarterly Charts

Macro Cross-References

• CPIAUCSL - Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
• UNRATE - Unemployment Rate
• FEDFUNDS - Federal Funds Effective Rate
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• DFEDTARU - Federal Funds Target Range - Upper Limit
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• DGS2 - Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
• DGS10 - Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
• DGS30 - Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
• T10Y2Y - 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
• CPILFESL - Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
• CPIUFDSL - Consumer Price Index for All Urban Consumers: Food
• CPIENGSL - Consumer Price Index for All Urban Consumers: Energy
• CUSR0000SAH1 - Consumer Price Index for All Urban Consumers: Shelter
• PCEPI - Personal Consumption Expenditures: Chain-type Price Index
• PCEPILFE - Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
• PPIACO - Producer Price Index by Commodity: All Commodities
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• A191RL1Q225SBEA - Real Gross Domestic Product: Percent Change from Preceding Period
• INDPRO - Industrial Production: Total Index
• TCU - Capacity Utilization: Total Index
• HOUST - New Privately-Owned Housing Units Started: Total Units
• PERMIT - New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
• RSAFS - Advance Retail Sales: Retail Trade
• PCE - Personal Consumption Expenditures
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• HSN1F - New One Family Houses Sold: United States
• RHORUSQ156N - Homeownership Rate in the United States
• TTLCONS - Total Construction Spending: Total Construction in the United States
• RRVRUSQ156N - Rental Vacancy Rate in the United States
• TOTALSL - Total Consumer Credit Owned and Securitized
• REVOLSL - Revolving Consumer Credit Owned and Securitized
• DRCCLACBS - Delinquency Rate on Credit Card Loans, All Commercial Banks
• GDP - Gross Domestic Product
• GPDI - Gross Private Domestic Investment
• GCE - Government Consumption Expenditures and Gross Investment
• PCEC - Personal Consumption Expenditures
• NETEXP - Net Exports of Goods and Services
• GFDEBTN - Federal Debt: Total Public Debt
• GFDEGDQ188S - Federal Debt: Total Public Debt as Percent of Gross Domestic Product
• FYFSD - Federal Surplus or Deficit
• FGRECPT - Federal Government Current Receipts
• FGEXPND - Federal Government: Current Expenditures
• MANEMP - All Employees, Manufacturing
• USCONS - All Employees, Construction
• USTRADE - All Employees, Retail Trade
• USFIRE - All Employees, Financial Activities
• USGOVT - All Employees, Government
• AWHAETP - Average Weekly Hours of All Employees, Total Private
• DGORDER - Manufacturers' New Orders: Durable Goods
• NEWORDER - Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft
• BUSINV - Total Business Inventories
• EXPGS - Exports of Goods and Services
• IMPGS - Imports of Goods and Services
• IR - Import Price Index (End Use): All Commodities
• PPIFIS - Producer Price Index by Commodity: Final Demand

Latest quarter (10-Q)

Latest 10-Q source: 0001140361-26-019060.

Extracted between Part I Item 2 and the next Item 3/4 or Part II heading after HTML sanitization. Confidence: high. Filing date: 2026-05-05. Report date: 2026-03-31.

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 March 31, 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 $435.8 million and $392.3 million for the three months ended March 31, 2026 and 2025, respectively. The increase in revenue was primarily due to higher volumes, the favorable impact of foreign exchange rates that increased revenue
by approximately 4%, and favorable pricing.

Gross Margin

The Company’s gross margin was 35.0% and 33.6% for the three months ended March 31, 2026 and 2025, respectively. For the three months ended March 31, 2025, Portfolio Optimization Plan costs totaling $1.8 million decreased gross margin by 50
basis points. See Portfolio Optimization Plan below for further information. The Company’s gross margin was further impacted by the favorable pricing and higher volumes, partially offset by higher raw
material costs.

Selling and Administrative Expenses

Selling and administrative expense as a percent of revenue was 19.7% and 19.9% for the three months ended March 31, 2026 and 2025, respectively. For the three months ended March 31, 2026, selling and administrative expenses were decreased by
$0.4 million, or approximately 10 basis points as a percent of revenue, from the gain on the sale of the Felinfach land and building assets. For the three months ended March 31, 2025, selling and administrative expenses were increased by
Portfolio Optimization Plan costs totaling $1.1 million, which increased selling and administrative expenses as a percent of revenue by approximately 20 basis points. See Portfolio Optimization Plan below

for further information.

Operating Income

Operating income was $66.7 million and $53.5 million for the three months ended March 31, 2026 and 2025, respectively. Operating margins were 15.3% and 13.6% for the three months ended March 31, 2026 and 2025, respectively. Portfolio
Optimization Plan costs decreased operating margins by approximately 80 basis points for the three months ended March 31, 2025. The increase in operating margin was primarily due to favorable pricing and higher volumes, partially offset by higher
raw material costs and higher performance-based executive compensation costs incurred in 2026.

12

Index

Interest Expense

Interest expense was $7.9 million and $7.3 million for the three months ended March 31, 2026 and 2025, respectively. The increase in expense was primarily due to an increase in the average outstanding debt balance.

Income Taxes

The effective income tax rates for the three months ended March 31, 2026 and 2025 were 24.9% and 25.4%, respectively. The effective tax rates for the three months ended March 31, 2026 and 2025 were both impacted by changes in estimates
associated with the finalization of prior year foreign tax items and the mix of foreign earnings.

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. As a result, the
Company met all of the assets held for sale criteria for the Felinfach land and building assets in June 2025, which have been recorded as the only balance 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. The Company has completed all actions contemplated under the Portfolio Optimization Plan.

For the three months ended March 31, 2025, the Company incurred costs of $2.9 million related to the Portfolio Optimization Plan recorded in Corporate & Other, primarily for dual plant operating costs, non-cash inventory charges,
professional services, and employee separation costs. The Company did not incur any costs related to the Portfolio Optimization Plan for the three months ended March 31, 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.

13

Index

Three Months Ended March 31,

(In thousands except per share amounts)

2026

2025

% Change

Operating Income (GAAP)

$

66,728

$

53,530

24.7

%

Portfolio Optimization Plan costs – Cost of products sold

-

1,814

Portfolio Optimization Plan costs – Selling and administrative expenses

-

1,050

Adjusted operating income

$

66,728

$

56,394

18.3

%

Net Earnings (GAAP)

$

44,170

$

34,462

28.2

%

Portfolio Optimization Plan costs, before tax

-

2,864

Tax impact of Portfolio Optimization Plan costs(1)

-

(702

)

Adjusted net earnings

$

44,170

$

36,624

20.6

%

Diluted Earnings Per Share (GAAP)

$

1.04

$

0.81

28.4

%

Portfolio Optimization Plan costs, net of tax

-

0.05

Adjusted diluted earnings per share

$

1.04

$

0.86

20.9

%

Operating Income (GAAP)

$

66,728

$

53,530

24.7

%

Depreciation and amortization

15,538

15,074

Share-based compensation expense

3,776

2,900

Portfolio Optimization Plan costs, before tax

-

2,864

Adjusted EBITDA

$

86,042

$

74,368

15.7

%

(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 months ended March 31, 2026, compared to the results for the three months ended March 31, 2025, in the respective financial measures.

Three Months Ended March 31, 2026

Total

Foreign

Exchange

Rates

Adjustments(1)

Local

Currency

Adjusted

Revenue

Flavors & Extracts

4.2

%

2.5

%

N/A

1.7

%

Color

18.1

%

5.8

%

N/A

[Excerpt truncated for page length; source filing is linked above.]

Latest 10-K MD&A

Extracted between Item 7 and the next Item 7A/8 heading after HTML sanitization. Confidence: high. Filing date: 2026-02-13. Report date: 2025-12-31.

Item 7.

Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis of the Company’s financial condition and results of operations should be read in conjunction with our audited consolidated financial statements and the notes to those statements
(Part II, Item 8 of this Form 10-K). This section generally discusses the results of our operations for the year ended December 31, 2025, compared to the year ended December 31, 2024. For a discussion of the year ended December 31, 2024,
compared to the year ended December 31, 2023, please refer to Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the fiscal year ended December 31,
2024, filed with the Securities and Exchange Commission on February 19, 2025, which is incorporated herein by reference.

OVERVIEW

Sensient Technologies Corporation (the Company or Sensient) is a leading global manufacturer and marketer of colors, flavors, and other specialty ingredients. The Company uses advanced technologies at facilities
around the world to develop specialty food and beverage systems; personal care, essential oils, pharmaceutical, and nutraceutical systems; specialty colors; and other specialty and fine chemicals. The Company’s three reportable segments are
the Flavors & Extracts Group and the Color Group, which are both managed on a product line basis, and the Asia Pacific Group, which is managed on a geographic basis. 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 the Portfolio Optimization Plan costs, and other costs are included in
the “Corporate & Other” category.

The Company’s diluted earnings per share were $3.16 in 2025 and $2.94 in 2024. 2025 results were negatively impacted by $15.8 million ($13.8 million after tax, $0.32 per share) of Portfolio Optimization Plan costs.
2024 results were negatively impacted by $6.6 million ($2.5 million after tax, $0.06 per share) of Portfolio Optimization Plan costs. Adjusted diluted earnings per share, which exclude the Portfolio Optimization Plan costs, were $3.48 in 2025
and $3.00 in 2024 (see discussion below regarding non-GAAP financial measures).

Additional information on the results is included below.

RESULTS OF OPERATIONS

2025 vs. 2024

Revenue

Sensient’s revenue was approximately $1.61 billion and $1.56 billion in 2025 and 2024, respectively.

Gross Profit

The Company’s gross margin was 33.5% in 2025 and 32.6% in 2024. The increase in gross margin was primarily due to higher selling prices and volumes, partially offset by higher raw material costs and higher Portfolio
Optimization Plan costs. Gross profit in 2025 and 2024 was negatively impacted by Portfolio Optimization Plan costs totaling $7.5 million and $1.4 million, respectively, which decreased gross margin by approximately 40 basis points and 10 basis
points in 2025 and 2024, respectively. See Portfolio Optimization Plan below for further information.

Selling and Administrative Expenses

Selling and administrative expense as a percent of revenue was 20.6% in 2025 and 20.3% in 2024. Selling and administrative expenses in 2025 and 2024 were increased by Portfolio Optimization Plan costs totaling $8.3
million and $5.3 million, respectively. Selling and administrative expense as a percent of revenue increased by approximately 50 basis points and 40 basis points in 2025 and 2024, respectively, as a result of these costs. See Portfolio Optimization Plan below for further information.

Operating Income

Operating income was $207.1 million in 2025 and $191.6 million in 2024. Operating margins were 12.8% in 2025 and 12.3% in 2024. Portfolio Optimization Plan costs decreased operating margins by approximately 100 basis
points and 40 basis points in 2025 and 2024, respectively.

Operating margins were positively impacted by the higher selling prices and volumes, partially offset by higher raw material costs.

Additional information on segment results can be found in the Segment Information section.

Interest Expense

Interest expense was $29.6 million in 2025 and $28.8 million in 2024. The increase in expense was primarily due to an increase in the average outstanding debt balance.

24

Index

Income Taxes

The effective income tax rate was 24.3% in 2025 and 23.4% in 2024. The effective tax rates in both 2025 and 2024 were impacted by the release of valuation allowances related to net operating losses (NOLs),
changes in estimates associated with the finalization of prior year foreign and domestic tax items, audit settlements, the mix of foreign earnings, and the limited tax deductibility of costs related to the Portfolio Optimization Plan. The
effective tax rate in 2025 was also impacted by the change in the German tax rate. See Note 11, Income Taxes, in the Notes to Consolidated
Financial Statements included in this report for additional information.

2025

2024

Rate before Portfolio Optimization Plan and discrete items

26.2

%

25.2

%

Portfolio Optimization Plan impact

1.2

%

0.3

%

Discrete items

(3.1

%)

(2.1

%)

Reported effective tax rate

24.3

%

23.4

%

The 2026 effective income tax rate is estimated to be between 24% and 25%.

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. This business is part of the Color segment.

See Note 2, Acquisition, in the Notes to Consolidated Financial Statements included in this report for additional information.

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. As a result, the
Company met all of the assets held for sale criteria for the Felinfach land and building assets in June 2025, which have been recorded as the only balance in Fixed assets held for sale on the Company’s
Consolidated Balance Sheets. The Company has substantially completed all other actions contemplated under the Portfolio Optimization Plan in accordance with local laws.

See Note 14, Portfolio Optimization Plan, in the Notes to Consolidated Financial Statements included in this
report for additional information.

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.

25

Index

Twelve Months Ended December 31,

(In thousands except per share amounts)

2025

2024

% Change

Operating Income (GAAP)

$

207,128

$

191,579

8.1

%

Portfolio Optimization Plan costs – Cost of products sold

7,531

1,362

Portfolio Optimization Plan costs – Selling and administrative expenses

8,275

5,269

Adjusted operating income

$

222,934

$

198,210

12.5

%

Net Earnings (GAAP)

$

134,489

$

124,666

7.9

%

Portfolio Optimization Plan costs, before tax

15,806

6,631

Tax impact of Portfolio Optimization Plan costs(1)

(2,001

)

(4,156

)

Adjusted net earnings

$

148,294

$

127,141

16.6

%

Diluted Earnings Per Share (GAAP)

$

3.16

$

2.94

7.5

%

Portfolio Optimization Plan costs, net of tax

0.32

0.06

Adjusted diluted earnings per share

$

3.48

$

3.00

16.0

%

Operating Income (GAAP)

$

207,128

$

191,579

8.1

%

Depreciation and amortization

61,098

60,329

Share-based compensation expense

13,946

10,084

Portfolio Optimization Plan costs, before tax

15,806

6,631

Adjusted EBITDA

$

297,978

$

268,623

10.9

%

(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 14, 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 in the 2025 results compared to the 2024 results in the respective financial measures.

Twelve Months Ended December 31, 2025

Total

Foreign

Exchange

Rates

Adjustments(1)

Adjusted Local

Currency

Revenue

Flavors & Extracts

(0.9%)

0.4%

N/A

(1.3%)

Color

8.1%

0.7%

N/A

7.4%

Asia Pacific

3.5%

1.1%

N/A

2.4%

Total Revenue

3.5%

0.6%

N/A

2.9%

Operating Income

Flavors & Extracts

3.8%

0.4%

0.0%

3.4%

Color

18.2%

1.3%

0.0%

16.9%

Asia Pacific

6.3%

2.5%

0.0%

3.8%

Corporate & Other

20.2%

0.0%

14.8%

5.4%

Total Operating Income

8.1%

1.4%

(4.4%)

11.1%

Diluted Earnings per Share

7.5%

1.4%

(8.6%)

14.7%

Adjusted EBITDA

10.9%

1.1%

N/A

9.8%

(1)

Adjustments consist of Portfolio Optimization Plan costs.

Note:

Refer to table above for a reconciliation of these non-GAAP measures.

26

Index

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 discussion below regarding its operating segments has been updated to reflect the Company’s disaggregation of revenue, as summarized in Part II, Item 8, Note 12, Segment

and Geographic Information, of this report.

The Company’s reportable segments consist of the Flavors & Extracts, Color, and Asia Pacific segments.

Flavors & Extracts

Flavors & Extracts segment revenue was $786.9 million in 2025 and $793.7 million in 2024, a decrease of approximately 1%. The lower segment revenue was a result of lower revenue in Agricultural Ingredients,
partially offset by higher revenue in Flavors, Extracts & Flavor Ingredients. The lower revenue in Agricultural Ingredients was due to lower volumes, partially offset by higher selling prices. The higher revenue in Flavors, Extracts &
Flavor Ingredients was primarily due to higher selling prices and volumes. Foreign exchange rates had an immaterial impact on segment revenue.

Flavors & Extracts segment operating income was $100.7 million in 2025 and $97.1 million in 2024, an increase of approximately 4%. Foreign exchange rates had an immaterial impact on segment operating income. The
higher segment operating income was a result of higher operating income in Flavors, Extracts & Flavor Ingredients, partially offset by lower operating income in Agricultural Ingredients. The higher operating income in Flavors, Extracts
& Flavor Ingredients was primarily due to higher selling prices and volumes, partially offset by higher manufacturing and other costs. The lower operating income in Agricultural Ingredients was due to higher raw material costs, lower
volumes, a one-time charge stemming from the impact of atmospheric river events late in the year that disrupted the harvest and production, and higher manufacturing and other costs, partially offset by higher selling prices. Segment operating
income as a percent of revenue was 12.8% and 12.2% for 2025 and 2024, respectively.

Color

Color segment revenue was $700.6 million in 2025 and $647.9 million in 2024, an increase of approximately 8%. The higher segment revenue was a result of higher revenue in Food & Pharmaceutical Colors and
Personal Care. The higher revenue in Food & Pharmaceutical Colors was primarily due to higher volumes and selling prices. The higher revenue in Personal Care was primarily due to higher selling prices and the acquisition of Biolie SAS, partially offset by lower volumes. Segment revenue was further increased by the favorable impact of foreign exchange rates, which increased segment
revenue by approximately 1%.

Color segment operating income was $141.3 million in 2025 and $119.5 million in 2024, an increase of approximately 18%. The higher segment operating income was a result of higher operating income in Food &
Pharmaceutical Colors, partially offset by lower operating income in Personal Care. The higher operating income in Food & Pharmaceutical Colors was due to higher selling prices and volumes, a favorable product mix, and the favorable impact
of foreign exchange rates, which increased segment operating income by approximately 1%, partially offset by higher raw material and manufacturing and other costs. The lower operating income in Personal Care was primarily due to higher raw
material and manufacturing and other costs, partially offset by higher selling prices. Segment operating income as a percent of revenue was 20.2% and 18.4% for 2025 and 2024, respectively.

Asia Pacific

Asia Pacific segment revenue was $168.2 million and $162.5 million for 2025 and 2024, respectively, an increase of approximately 4%. Segment revenue was higher than the prior year primarily due to higher selling
prices and the favorable impact of foreign exchange rates, which increased segment revenue by approximately 1%, partially offset by lower volumes largely driven by tariff-related impacts.

Asia Pacific segment operating income was $36.6 million in 2025 and $34.5 million in 2024, an increase of approximately 6%. The increase in segment operating income was a result of higher selling prices, a favorable
product mix, and the favorable impact of foreign exchange rates, which increased segment operating income by approximately 3%, partially offset by higher raw material and manufacturing and other costs. Segment operating income as a percent of
revenue was 21.8% in 2025 and 21.2% in 2024.

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Corporate & Other

The Corporate & Other operating loss was $71.5 million in 2025 and $59.5 million in 2024. The higher operating loss was primarily a result of higher Portfolio Optimization Plan costs and higher performance-based
compensation costs in 2025. See the Portfolio Optimization Plan section above for further information.

LIQUIDITY AND FINANCIAL POSITION

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 December 31, 2025. The Company expects its cash
flow from operations and its existing 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. However, the
Company anticipates to increase its existing debt capacity over the coming years to further support the increased cash requirements for operations and capital expenditures associated with the natural colors conversion activity. 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 2029, with approximately $35 million coming due in 2026. The Company believes that it has the ability to refinance or repay all of its obligations through a combination of cash flow from operations, issuance of additional
notes, and substantial borrowing capacity of approximately $261 million 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 in 2025. The
Company has experienced increased costs for certain inputs, such as raw materials, shipping and logistics, and labor-related costs. We continue to expect to manage these impacts in the near term, but persistent, accelerated, or expanded
inflationary conditions could exacerbate these challenges and impact our profitability.

The United States implemented significant tariffs on imports from a wide range of countries in 2025 and has announced the possibility of implementing additional, or increasing current, tariffs in 2026. These actions, and retaliatory tariffs
imposed by other countries on United States exports, have led to significant volatility and uncertainty in global markets. 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 effective in 2025 and others implemented through 2027. These provisions did
not have a material impact on our effective tax rate for the year ended December 31, 2025. We will continue to assess the OBBBA tax provisions and their impacts on our consolidated financial statements.

In October 2017, the Board of Directors authorized the repurchase of up to three million shares. As of December 31, 2025, 1,732,981 shares were available to be repurchased under the existing authorization. The
Company’s share repurchase program has no expiration date. These authorizations may be modified, suspended, or discontinued by the Board of Directors at any time. There were no shares of Company stock repurchased in 2025 or 2024.

Cash Flows from Operating Activities

Net cash provided by operating activities was $127.8 million and $157.2 million in 2025 and 2024, respectively. Operating cash flow provided the primary source of funds for operating needs, capital expenditures, and
shareholder dividends. The decrease in net cash provided by operating activities in 2025 was primarily due to an increase in cash used by inventory and an increase in cash used for performance-based compensation payments (which are determined
based on prior year performance) made during 2025 compared to 2024, partially offset by an increase in cash provided by accounts receivable.

Cash Flows from Investing Activities

Net cash used in investing activities was $92.7 million and $59.2 million in 2025 and 2024, respectively. Capital expenditures were $89.4 million in 2025 and $59.2 million in 2024. In 2025, the Company paid $4.9 million for the acquisition of Biolie SAS.

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Cash Flows from Financing Activities

Net cash used in financing activities was $35.0 million and $81.5 million in 2025 and 2024, respectively. The Company had a net increase in debt of $38.9 million and a net decrease in debt of $7.8 million in
2025 and 2024, respectively. The cash proceeds from the increase in net debt in 2025 were primarily used to support capital expenditure investments related to natural color conversion efforts during the year. For the purposes of the cash flow statement, net changes in debt exclude the impact of foreign exchange rates. The Company has paid uninterrupted quarterly cash dividends since commencing public trading of its stock in 1962.
Dividends paid per share were $1.64 in 2025 and 2024. Total dividends paid were $69.6 million and $69.4 million in 2025 and 2024, respectively.

CRITICAL ACCOUNTING ESTIMATES

In preparing the financial statements in accordance with accounting principles generally accepted in the U.S., management is required to make estimates and assumptions that have an impact on the asset, liability,
revenue, and expense amounts reported. These estimates can also affect supplemental information disclosures of the Company, including information about contingencies, risk, and financial condition. The Company believes, given current facts and
circumstances, that its estimates and assumptions are reasonable, adhere to accounting principles generally accepted in the U.S., and are consistently applied. Inherent in the nature of an estimate or assumption is the fact that actual results
may differ from estimates and estimates may vary as new facts and circumstances arise. The Company makes routine estimates and judgments in determining the net realizable value of accounts receivable, inventories, and property, plant, and
equipment. Management believes the Company’s most critical accounting estimates and assumptions are in the following areas:

Revenue Recognition

The Company recognizes revenue at the transfer of control of its products to the Company’s customers in an amount reflecting the consideration to which the Company expects to be entitled. Revenue is recognized when
control of the product is transferred to the customer, the customer is obligated to pay the Company, and the Company has no remaining obligations, which is typically at shipment. See Note 1, Summary of
Significant Accounting Policies, in the Notes to Consolidated Financial Statements included in this report for additional details.

Goodwill Valuation

The Company reviews the carrying value of goodwill annually utilizing several valuation methodologies, including a discounted cash flow model. The Company completed its annual goodwill impairment test under Accounting
Standards Codification (ASC) 350, Intangibles – Goodwill and Other, in the third quarter of 2025. In conducting its annual test for impairment, the Company performed a quantitative assessment of the
fair values for each of its reporting units and compared each of these values to the net book value of each reporting unit. Fair value is estimated using both a discounted cash flow analysis and an analysis of comparable company market values.
If the fair value of a reporting unit exceeds its net book value, no impairment exists. The Company’s three reporting units each had goodwill recorded and were tested for impairment. All three reporting units had fair values that were above
their respective net book values by at least 75%. Changes in estimates of future cash flows caused by items such as unforeseen events or changes in market conditions could negatively affect the reporting units’ fair value and result in an
impairment charge.

Income Taxes

The Company estimates its income tax expense in each of the taxing jurisdictions in which it operates. The Company is subject to a tax audit in each of these jurisdictions, which could result in changes to the
estimated tax expense. The amount of these changes would vary by jurisdiction and would be recorded when probable and estimable. These changes could impact the Company’s financial statements. Management has recorded valuation allowances to
reduce the Company’s deferred tax assets to the amount that is more likely than not to be realized. As of December 31, 2025, the Company recorded gross deferred tax assets of $133.9 million with an associated valuation allowance of $29.1
million. Examples of deferred tax assets include deductions, net operating losses, and tax credits that the Company believes will reduce its future tax payments. In assessing the future realization of these assets, management has considered
future taxable income and ongoing tax planning strategies. An adjustment to the recorded valuation allowance as a result of changes in facts or circumstances could result in a significant change in the Company’s tax expense. The Company does
not provide for deferred taxes on unremitted earnings of foreign subsidiaries, which are considered to be invested indefinitely.

Inventories

Inventories are stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out (FIFO) method. Net realizable value is determined on the basis of estimated realizable values. Cost
includes direct materials, direct labor, and manufacturing overhead.

The Company’s inventories contain a variety of inventory types with varying characteristics that would impact potential inventory obsolescence. The Company estimates any required write-downs for inventory obsolescence
by examining inventories on a quarterly basis to determine if there are any damaged items or slow-moving products in which the carrying values could exceed net realizable value. Inventory write-downs are recorded as the difference between the
cost of inventory and its estimated market value. The Company recorded non-cash charges of $4.3 million and $0.7 million in 2025 and 2024, respectively, in Cost of Products Sold related to the Portfolio
Optimization Plan. The non-cash charges in 2025 reduced the carrying value of certain inventories, as they were determined to be excess, and the non-cash charges in 2024 were primarily related to trial production runs that did not meet quality
specifications and thus were disposed. While significant judgment is involved in determining the net realizable value of certain inventories with shorter expirations, the Company believes that inventory is appropriately stated at the lower of
cost or net realizable value.

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Commitments and Contingencies

The Company is subject to litigation and other legal proceedings arising in the ordinary course of its businesses or arising under applicable laws and regulations. Estimating liabilities and costs associated with
these matters requires the judgment of management, who rely in part on information from Company legal counsel. When it is probable that the Company has incurred a liability associated with claims or pending or threatened litigation matters and
the Company’s exposure is reasonably estimable, the Company records a charge against earnings. The Company recognizes related insurance reimbursement when receipt is deemed probable. The Company’s estimate of liabilities and related insurance
recoveries may change as further facts and circumstances become known.

NEW PRONOUNCEMENTS

Refer to the “Recently Adopted Accounting Pronouncements” and “Recently Issued Accounting Pronouncements” section within Note 1, “Summary of Significant Accounting Policies,” in the Notes to Consolidated Financial Statements included in this report for additional details.