International Flavors & Fragrances (IFF) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered solid sales and volume growth across all business segments, led by Health & Biosciences, with Taste, Food Ingredients, and Scent also contributing.

• Adjusted operating EBITDA grew 8% year-over-year on a comparable, currency neutral basis, driven by productivity and volume gains.

• Strong cash generation and improved profitability, with robust free cash flow and higher margins.

• Completed divestiture of Soy Crush, Concentrates, and Lecithin business for $110 million, and advanced the Food Ingredients sale process.

• Actively managing inflation, macroeconomic, and geopolitical risks, with full-year 2026 guidance reaffirmed.

Financial highlights

• Q1 2026 revenue was $2.741 billion, down 4% year-over-year, but up 3% on a comparable currency neutral basis.

• Adjusted operating EBITDA was $568 million, up 8% year-over-year; margin reached 20.7%, the highest since Q2 2022.

• Cash flow from operations was $257 million, up $130 million year-over-year; free cash flow was $92 million, up $144 million.

• Returned $102 million to shareholders via dividends and $35 million via share repurchases.

• Gross debt at quarter-end was $5.85 billion, net debt to EBITDA at 2.5x; cash and cash equivalents were $562 million.

Outlook and guidance

• Full-year 2026 sales guidance reaffirmed at $10.5–$10.8 billion (1–4% growth); adjusted operating EBITDA guidance at $2.05–$2.15 billion (3–8% growth).

• All divisions expected to deliver top-line growth, supported by innovation and new wins.

• Inflationary pressures, especially from energy and logistics, expected to impact profitability; pricing actions underway to offset.

• Foreign exchange expected to benefit sales by ~1% with minimal EBITDA impact; divestitures to reduce both sales and EBITDA growth by ~5%.

• Fine Fragrance in the Middle East expected to be impacted in Q2 due to demand and supply chain issues.