International Flavors & Fragrances (IFF) Q2 2026 earnings summary

Executive summary

• Achieved strong Q2 and H1 2026 results with 6% revenue growth and 8% EBITDA growth year-over-year on a continuing operations basis, driven by volume and productivity gains.

• Announced divestiture of Food Ingredients business for $4.3 billion, sharpening focus on higher-growth, higher-margin Taste, Scent, and Health & Biosciences segments.

• Free cash flow for H1 2026 reached $378 million, up $284 million year-over-year, reflecting improved net working capital.

• Enhanced $2.5 billion share repurchase authorization, with $500 million to be executed in H2 2026.

• Net income attributable to shareholders fell 92% to $50 million for Q2 2026, reflecting higher tax rates, regulatory costs, and the absence of prior-year divestiture gains.

Financial highlights

• Q2 2026 revenue from continuing operations just under $2 billion, up 6% year-over-year currency neutral; adjusted operating EBITDA $408 million, up 6%.

• Total company sales (including discontinued ops) would have been $2.8 billion, EBITDA $548 million.

• Taste sales grew 4% to $688 million; Health & Biosciences up 5% to $601 million; Scent up 8% to $665 million.

• Free cash flow for H1 2026 was $378 million, up $284 million year-over-year.

• Cash and cash equivalents at Q2 end: $569 million; gross debt decreased by over $3 billion year-over-year.

Outlook and guidance

• Full-year 2026 sales expected at $7.4–$7.6 billion (2–4% growth); EBITDA $1.53–$1.6 billion (4–8% growth).

• Guidance reflects portfolio reshaping and strong H1 performance; foreign exchange expected to add ~1% to sales and ~2% to EBITDA growth.

• Stranded costs from divestiture (~$100 million) to be eliminated over two years, supporting margin expansion.

• Free cash flow for 2026 expected to improve year-over-year despite working capital headwinds from divestiture.

• Macroeconomic uncertainty persists, especially due to Middle East conflict.