IFF

It has been about a month since the last earnings report for International Flavors (IFF). Shares have lost about 1.3% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is International Flavors due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers. International Flavors reported second-quarter 2026 adjusted earnings of 82 cents per share, missing the Zacks Consensus Estimate of $1.14. The company’s second-quarter 2025 adjusted earnings came in at 77 cents, excluding the results from discontinued operations.Including one-time items, the company reported earnings of 20 cents per share compared with $2.33 in the prior-year quarter.In late May, International Flavors announced that it inked a deal with CVC Capital Partners to sell its Food Ingredients business. The deal is in sync with International Flavors’ portfolio transformation strategy, which is expected to solidify its focus on its innovation-driven businesses. Starting second-quarter 2026, the Food Ingredients disposal group is reported as discontinued operations. Net sales rose 1.8% year over year to $1.95 billion but missed the consensus estimate of $2.68 billion. Comparable currency-neutral sales advanced 6%, supported by broad-based growth across Taste, Health & Biosciences, and Scent. In the reported quarter, IFF’s cost of goods sold increased 0.5% year over year to $1.10 billion. Gross profit rose 3.5% to $853 million. The gross margin came in at 43.7% compared with 42.9% in the year-ago quarter.Research and development expenses remained flat year over year at $170 million. Selling and administrative expenses increased 6.8% to $437 million in the second quarter. Adjusted operating EBITDA came in at $408 million, up 2.3% from the prior-year quarter’s $399 million. The adjusted operating EBITDA margin was 20.9% compared with 20.8% in the year-ago quarter. Net sales in the Taste segment increased 5.2% year over year to $688 million in the June-end quarter. Adjusted operating EBITDA was $124 million, up 6% year over year from $117 million, driven by volume growth and favorable net pricing. The segment’s adjusted operating EBITDA margin was 18% compared with 17.9% in the prior-year quarter.Sales generated in the Health & Biosciences segment were $601 million, growing 7.5% from the year-earlier quarter’s $559 million. Growth was led by Grain Processing, Food Biosciences and Animal Nutrition. Adjusted operating EBITDA was $150 million in the quarter, up 7.9% year over year from $139 million. The segment’s adjusted operating EBITDA margin was 25% compared with 24.9% a year ago.The Scent segment’s sales were $665 million, up 10.3% year over year from $603 million. Fine Fragrance posted low-single-digit growth, with results affected by the Middle East conflict Adjusted operating EBITDA increased 10.7% to $134 million from $121 million in the prior-year quarter. The adjusted operating EBITDA margin was 20.2% compared with 20.1% in the year-ago quarter. IFF had cash and cash equivalents of $569 million at the end of the second quarter of 2026, down from $590 million at the end of 2025. Long-term debt was $4.74 billion at June 30, 2026, largely unchanged from the end of 2025. Net debt to credit-adjusted EBITDA was 2.5X.International Flavors generated $679 million in cash from operating activities in the first six months of 2026, up from $368 million in the prior-year period. For 2026, International Flavors expects sales from continuing operations of $7.4 billion to $7.6 billion. Adjusted operating EBITDA is projected between $1.53 billion and $1.60 billion. The outlook excludes $3.2 billion in sales and $520 million in adjusted operating EBITDA related to discontinued operations.The company expects comparable currency-neutral sales growth of 2-4% and comparable currency-neutral adjusted operating EBITDA growth of 4-8%. Foreign exchange is projected to benefit sales growth by 1% and adjusted operating EBITDA growth by 2%.IFF also authorized an enhanced $2.5-billion share repurchase program, including a planned $500-million accelerated repurchase in the second half of 2026. The remaining $2 billion is expected to be executed after the Food Ingredients divestiture closes, with completion targeted by the end of 2027. In the past month, investors have witnessed a downward trend in estimates review. The consensus estimate has shifted -20.07% due to these changes. At this time, International Flavors has a subpar Growth Score of D, a score with the same score on the momentum front. Charting a somewhat similar path, the stock has a score of F on the value side, putting it in the bottom 20% quintile for value investors. Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise International Flavors has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months. International Flavors is part of the Zacks Chemical - Specialty industry. Over the past month, Ashland (ASH), a stock from the same industry, has gained 3.5%. The company reported its results for the quarter ended June 2026 more than a month ago. Ashland reported revenues of $497 million in the last reported quarter, representing a year-over-year change of +7.3%. EPS of $1.02 for the same period compares with $1.04 a year ago. Ashland is expected to post earnings of $1.32 per share for the current quarter, representing a year-over-year change of +22.2%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.6%. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Ashland. Also, the stock has a VGM Score of D. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report International Flavors & Fragrances Inc. (IFF) : Free Stock Analysis Report Ashland Inc. (ASH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

International Flavors & Fragrances’ second quarter results were shaped by volume-driven growth across its core Scent, Taste, and Health & Biosciences divisions. Management emphasized that productivity improvements and a streamlined focus on customer needs were central to the quarter’s performance. CEO Jon Erik Fyrwald stated, “IFF delivered volume growth across the board, disciplined margin execution and robust free cash flow generation, strengthening our financial position.” The company’s divestiture of its Food Ingredients business was highlighted as a pivotal step, with temporary margin pressures attributed to stranded costs, but management expressed confidence in their remediation plan and long-term profitability improvements. Is now the time to buy IFF? Find out in our full research report (it’s free). Revenue: $1.95 billion vs analyst estimates of $2.61 billion (29.3% year-on-year decline, 25% miss) Adjusted EPS: $0.82 vs analyst expectations of $1.12 (26.6% miss) Adjusted EBITDA: $408 million vs analyst estimates of $529 million (20.9% margin, 22.9% miss) The company dropped its revenue guidance for the full year to $7.5 billion at the midpoint from $10.65 billion, a 29.6% decrease EBITDA guidance for the full year is $1.57 billion at the midpoint, below analyst estimates of $2.11 billion Operating Margin: 8.1%, in line with the same quarter last year Organic Revenue rose 6% year on year (beat) Market Capitalization: $21.71 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Abigail Eberts (Wells Fargo): Asked if the Food Ingredients divestiture marks the last major portfolio change. CEO Jon Erik Fyrwald said IFF is now focused on scaling its three core businesses and does not anticipate further large divestitures. Kristen Owen (Oppenheimer): Inquired about the higher end of sales growth guidance. CFO Michael Deveau explained this reflects strong first-half results, with second-half growth expected to moderate but remain positive. Lauren Lieberman (Barclays): Questioned the timeline for stranded cost elimination and future EBITDA margin potential. Fyrwald clarified that two-thirds of stranded costs will be removed in year one, with margin benefits expected as this progresses. Ghansham Panjabi (Baird): Asked about customer demand in light of inflation. Fyrwald replied that consumer demand has been resilient so far and the company is not seeing major changes, but remains vigilant regarding future risks. Patrick Cunningham (Citigroup): Queried about input cost inflation and pricing. Deveau responded that energy and logistics costs are rising, particularly in Scent, and acknowledged some pricing lag, which will be addressed in future quarters. Looking ahead, the StockStory team will be closely watching (1) IFF’s progress in eliminating stranded costs and the pace of associated margin recovery, (2) sustained volume growth across core Scent, Taste, and Health & Biosciences segments, and (3) execution on the $2.5 billion share repurchase program. The impact of working capital changes from the Food Ingredients divestiture and the trajectory of R&D-driven product launches will also be key signposts for the company’s transformation. International Flavors & Fragrances currently trades at $84.99, up from $80.89 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free for active Edge members). WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.

Interested in International Flavors & Fragrances Inc.? Here are five stocks we like better. Strong second-quarter performance: Continuing-operations sales rose 6% to nearly $2 billion, while adjusted operating EBITDA increased 6% to $408 million, led by volume growth across Taste, Health & Biosciences and especially Scent. Food Ingredients sale advances: IFF is selling the business to CVC Capital Partners for approximately $4.3 billion, retaining a 10% stake. More than $1 billion of proceeds will go toward debt reduction, while the company plans to address about $100 million in stranded costs. 2026 outlook and shareholder returns: IFF projects continuing-operations sales of $7.4 billion–$7.6 billion and EBITDA of $1.53 billion–$1.6 billion. The board also authorized a $2.5 billion share-repurchase program, with about $500 million expected to be repurchased in the second half of 2026. These 5 stocks have unique competitive edge and room to run International Flavors & Fragrances (NYSE:IFF) reported higher second-quarter sales and earnings across its continuing operations, supported by volume growth, productivity gains and improved working capital management, while outlining capital-allocation plans tied to the pending sale of its Food Ingredients business. Chief Executive Officer Erik Fyrwald said the company generated volume growth across its businesses and improved free cash flow during the first half of 2026. On a continuing-operations basis, first-half sales rose 4% and EBITDA increased 8%. Free cash flow totaled $378 million, up $284 million from the prior-year period. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Hidden gems: 3 undervalued stocks with a unique competitive edge “IFF delivered volume growth across the board, disciplined margin execution, and robust free cash flow generation,” Fyrwald said. For the second quarter, IFF reported continuing-operations revenue of just under $2 billion, up about 6% on a comparable currency-neutral basis. Adjusted operating EBITDA rose 6% to $408 million. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High 14 best consumer staples dividend stocks Michael DeVeau, IFF’s CFO, said growth was volume-driven, reflecting new customer wins and higher sales within existing business. He noted that U.S. tariff refunds, netted against customer pass-throughs, benefited results, while higher incentive compensation accruals tied to the company’s first-half performance weighed on year-over-year EBITDA growth. Excluding those factors, he said underlying EBITDA growth would have been stronger. Taste: Sales increased 4% to $688 million, led by double-digit growth in Asia. EBITDA rose 6% to $124 million, supported by volume growth and favorable net pricing. Health & Biosciences: Sales rose 5% to $601 million, with growth across businesses and notable gains in Grain Processing, Food Biosciences and Animal Nutrition. EBITDA increased 6% to $150 million, primarily due to volume leverage. Scent: Sales grew 8% to $665 million and EBITDA increased 5% to $134 million. Fragrance Ingredients grew more than 20%, while Consumer Fragrances posted high-single-digit growth. DeVeau said Fragrance Ingredients benefited partly from an easier comparison, as the business had declined by more than 10% in the year-earlier period. He also cited the company’s use of its synthetic fragrance portfolio to capture sales amid supply-chain disruptions and higher Brent crude prices. The company expects that growth to normalize in the second half as the mix shifts toward higher-value ingredients. → No Hangover: Revisiting Microsoft One Week After Earnings Fine Fragrances increased slightly in the quarter despite the Middle East conflict, compared with IFF’s prior expectation for a mid-single-digit decline. However, the company expects softer Fine Fragrances performance in the third quarter, partly because the business grew 20% in the comparable quarter last year, before anticipating recovery in the fourth quarter. IFF is proceeding with its agreement to sell Food Ingredients to CVC Capital Partners in a transaction valuing the business at about $4.3 billion, or roughly 10 times enterprise value to EBITDA. The deal is expected to close by the end of the second quarter of 2027, and IFF plans to retain a 10% ownership stake in the business. Fyrwald said the sale will leave IFF focused on its Taste, Scent and Health & Biosciences businesses, which the company views as higher-growth, higher-margin operations. He told analysts that IFF has no significant divestitures remaining and plans to focus on scaling the three businesses organically and through bolt-on acquisitions. The transaction will leave approximately $100 million of corporate and functional costs at IFF that had previously been allocated to Food Ingredients. These costs are now spread across the remaining segments and are temporarily pressuring business-unit margins. Management said it has begun a remediation plan and expects to eliminate about two-thirds of the stranded costs in the first 12 months after the transaction closes, with the remainder removed during the second full year. The plan includes redesigning processes, simplifying systems, rationalizing activities, reviewing third-party contracts and aligning the remaining company’s cost structure to its needs. IFF also announced an agreement to sell a portfolio of non-strategic botanical extracts, vitamins and minerals, and food enhancement products. The portfolio, primarily within Health & Biosciences and Taste, has about $170 million in annual sales and a mid-single-digit EBITDA margin. IFF expects about $75 million in proceeds and anticipates closing that transaction in the fourth quarter of 2026. The company plans to use more than $1 billion of Food Ingredients sale proceeds to reduce debt, targeting net debt to credit-adjusted EBITDA of 2.0 times to 2.5 times by the end of 2027. IFF ended the first half of 2026 at 2.5 times leverage, while gross debt had declined about $5.7 billion. The board authorized a $2.5 billion share-repurchase program, including approximately $400 million remaining under a prior authorization. IFF expects to repurchase about $500 million of shares in the second half of 2026 before the Food Ingredients transaction closes, with the remaining authorization targeted for completion by the end of 2027. Cash flow from operations reached $679 million in the first half, while capital expenditures totaled $301 million, or about 5% of sales. DeVeau said IFF expects transaction-related working-capital headwinds in the second half, potentially amounting to a couple hundred million dollars, related to separating Food Ingredients. Despite those headwinds, the company expects 2026 free cash flow to exceed its 2025 result. For the remaining portfolio, management said it expects capital expenditures to run in a 5% to 6% range of sales, likely toward the high end over the next one to two years due to planned high-return investments. IFF introduced full-year guidance on a continuing-operations basis following the Food Ingredients reclassification. The company expects 2026 sales of $7.4 billion to $7.6 billion, representing growth of 2% to 4%, and EBITDA of $1.53 billion to approximately $1.6 billion, representing growth of 4% to 8%. DeVeau said the guidance implies second-half sales growth of 0% to 4% and EBITDA growth of 4% to 8%. The higher low end of the full-year ranges primarily reflects the company’s stronger first-half performance, he said, while the range continues to account for macroeconomic uncertainty and Middle East volatility. Second-quarter growth was almost entirely volume-driven, according to DeVeau. For the second half, IFF expects volumes to remain the primary sales driver, with pricing providing only a modest contribution. Input costs for raw materials, energy and logistics are expected to rise modestly, with Scent most affected. The company is pursuing surcharges and other pricing actions, though management said there can be timing lags, particularly in Scent. International Flavors & Fragrances Inc (NYSE:IFF) is a global leader in the creation and production of flavors, fragrances, cosmetic actives and nutritional lipids. The company develops taste and scent solutions for a wide array of end markets including food and beverage, personal care, household goods and pharmaceutical products. Its portfolio spans natural and nature-identical flavors, fine fragrances, functional ingredients for skin and hair care, and specialty oils that enhance nutritional value and sensory appeal. IFF's research and development network comprises innovation centers in North America, Europe, Asia-Pacific and Latin America, where multidisciplinary teams collaborate on aroma chemistry, sensory science and biotechnology. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "International Flavors & Fragrances Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Revenue (Continuing Operations): Just under $2 billion in Q2 2026, up roughly 6% with growth across all businesses. Adjusted Operating EBITDA: $408 million in Q2, up 6% versus the prior year, driven by growth and productivity gains. Taste Segment Sales: Grew 4% to $688 million, with double-digit performance in Asia. Taste Segment EBITDA: $124 million, a 6% increase driven by volume growth and favorable net pricing. Health & Biosciences Sales: Grew 5% to $601 million, with notable increases in grain processing, food biosciences, and animal nutrition. Health & Biosciences EBITDA: Increased 6% to $150 million, primarily due to volume leverage. Scent Segment Sales: $665 million, representing 8% growth, driven by double-digit growth in fragrance ingredients. Scent Segment EBITDA: Grew 5% to $134 million, driven by volume growth and productivity gains. Free Cash Flow (First Half 2026): $378 million, up $284 million year over year. Full Year 2026 Sales Guidance (Continuing Operations): Expected in the range of $7.4 billion to $7.6 billion, indicating 2% to 4% growth. Full Year 2026 EBITDA Guidance (Continuing Operations): Expected between $1.53 billion and approximately $1.6 billion, representing growth of 4% to 8%. Warning! GuruFocus has detected 9 Warning Signs with IFF. Is IFF fairly valued? Test your thesis with our free DCF calculator. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. International Flavors & Fragrances Inc (NYSE:IFF) delivered strong second-quarter results with 6% sales growth across all businesses, driven by volume growth and productivity improvements. The company announced a significant divestiture of its Food Ingredients business to CVC, which is expected to sharpen its focus on higher-margin Taste, Scent, and Health & Biosciences segments. International Flavors & Fragrances Inc (NYSE:IFF) reported robust free cash flow generation of $378 million in the first half of 2026, a $284 million improvement year-over-year, driven by strong net working capital improvements. The company has a clear plan to eliminate approximately $100 million in stranded costs following the Food Ingredients divestiture, with two-thirds expected to be removed within the first 12 months post-close. International Flavors & Fragrances Inc (NYSE:IFF) announced a $2.5 billion share repurchase program and plans to reduce debt by over $1 billion, reflecting confidence in long-term value creation and a compelling return profile. The Scent segment delivered 8% sales growth, with fragrance ingredients growing over 20% and fine fragrance performing better than expected despite Middle East conflict challenges. International Flavors & Fragrances Inc (NYSE:IFF) raised its full-year 2026 guidance on a continuing operations basis, expecting sales growth of 2% to 4% and EBITDA growth of 4% to 8%. The company is increasing R&D investment to approximately 9% of sales, strengthening its competitive position against global competitors, including those from China. International Flavors & Fragrances Inc (NYSE:IFF) expects to achieve a net debt to EBITDA leverage of 2.0 to 2.5 times post-transaction, a significant improvement from 4.5 times at the beginning of 2020. The Health & Biosciences segment grew 5% with notable increases in grain processing, food biosciences, and animal nutrition, and the company sees continued growth opportunities in probiotics and GLP-1 related products. International Flavors & Fragrances Inc (NYSE:IFF) faces approximately $100 million in stranded costs from the Food Ingredients divestiture that will temporarily pressure business unit margins until remediation actions are completed. The company expects net working capital headwinds in the second half of 2026 related to the Food Ingredients separation, including an unwind of factoring agreements and potential inventory builds, which could impact free cash flow by up to $100 million. International Flavors & Fragrances Inc (NYSE:IFF) anticipates moderating sales growth in the second half of 2026, with implied growth of 0% to 4% compared to the 6% reported in Q2, reflecting market uncertainty. The ongoing Middle East conflict continues to impact the fine fragrance business, with expectations of a softer Q3 due to difficult comparables and geopolitical volatility. Input cost inflation, particularly in energy and logistics, is expected to pressure margins in the second half of 2026, with the Scent segment being the most impacted. International Flavors & Fragrances Inc (NYSE:IFF) expects pricing to be a modest benefit at best in the second half of 2026, with pricing catch-up only expected to materialize in 2027, creating a lag between costs and recovery. The company's fragrance ingredients growth in Q2 was partly driven by easy comparisons and supply chain disruptions, with growth expected to normalize and shift towards higher-value ingredients over time. International Flavors & Fragrances Inc (NYSE:IFF) faces continued market challenges in the US probiotics business, although the company is encouraged by recent trends and strategic initiatives. The company's EBITDA growth of 6% in Q2 was impacted by increased incentive compensation accruals tied to strong first-half performance, which reduced underlying profitability growth. International Flavors & Fragrances Inc (NYSE:IFF) expects CapEx to be in the range of 5% to 6% of sales, with the upper end of that range (around 6%) expected over the next 1-2 years due to critical high-return initiatives. Q: Is the food ingredients divestiture the last major portfolio change, or are there other areas of the portfolio that IFF is looking to trim? A: CEO Erik Fyrwald confirmed that IFF is now exactly where it wants to be with its portfolio, focused on its three core businesses: Scent, Taste, and Health & Biosciences. He stated there are no significant divestitures left to do, and the strategy is now centered on scaling these businesses organically and through bolt-on acquisitions. Q: Can you provide more detail on the plan to offset the $100 million in stranded costs and how should we think about the long-term EBITDA margin potential for the remaining business? A: CEO Erik Fyrwald explained that the remediation plan aims to eliminate two-thirds of the stranded costs within the first 12 months post-close and the remainder by the second full year. He emphasized the company will move as fast as possible without harming the growth of the remaining businesses, which presents significant opportunities for margin expansion. Q: What is the outlook for the probiotics business within Health & Biosciences, and what initiatives are planned to drive growth? A: CEO Erik Fyrwald stated that while the US market remains challenging, IFF is encouraged by the path back to growth, citing increased recognition of probiotic health benefits and interest from major companies like Procter & Gamble. The strategy includes strengthening the R&D pipeline and engaging more directly with customers to capitalize on opportunities in supplements and functional beverages. Q: Can you break down the drivers of the recovery in the Scent business, particularly in consumer and fine fragrances, and how R&D initiatives are evolving? A: CEO Erik Fyrwald highlighted the strong leadership and R&D capabilities now in place, with a great pipeline of molecules and delivery systems. CFO Michael DeVeau added that fine fragrance is expected to be softer in Q3 but stronger in Q4, with mid-single-digit growth in the second half. Consumer fragrance is expected to normalize to low single-digit growth, while fragrance ingredients growth will shift towards higher value-added products over time. Q: What is the current outlook for input cost inflation in the second half, and are there any pricing lags or customer resistance? A: CFO Michael DeVeau stated that input costs, particularly energy and logistics, are expected to rise in the second half, with the Scent segment most impacted. IFF is working with customers on surcharges, though there is a lag in some instances. The company expects pricing to be a modest benefit in the second half, with a more significant catch-up expected in 2027. Q: How much of the Q2 volume growth was driven by easy comparisons versus underlying market improvement, and what is the expectation for fragrance ingredients? A: CFO Michael DeVeau noted that the fragrance ingredients business grew over 20%, partly due to a weak year-ago comparison, but also because the team strategically leveraged its synthetics portfolio to capture sales amid supply chain disruptions and higher crude prices. Growth is expected to normalize in the second half, shifting towards higher value-added ingredients. Q: Can you provide more specifics on the expected working capital headwinds related to the food ingredients divestiture and the free cash flow outlook? A: CFO Michael DeVeau indicated that the working capital headwind could be around $100 million, related to the unwind of factoring agreements and inventory builds ahead of the stand-up date. Despite this, IFF still expects full-year 2026 free cash flow to be higher than 2025. Longer-term, the remaining businesses are expected to achieve mid-to-high teens free cash flow as a percentage of sales. Q: How should we think about the impact of the divestiture on CapEx and reinvestment in innovation? A: CFO Michael DeVeau stated that CapEx is expected to be in the range of 5-6% of sales, with the upper end of that range expected over the next 1-2 years due to critical high-return initiatives. R&D spending remains a key priority at 8-9% of sales, which is crucial for driving growth and margin expansion in the remaining businesses. Q: Can you provide an indication of price and volume for Q2 and how pricing will layer in over the course of the year? A: CFO Michael DeVeau confirmed that Q2 growth was entirely volume-driven across all three divisions, with minimal pricing. In the second half, volumes will remain the primary driver, with pricing as a modest benefit. The company expects to see more significant pricing catch-up in 2027 to offset input cost inflation. Q: Given the strong first-half performance, how much of the guidance increase is due to first-half results versus an improved second-half outlook? A: CFO Michael DeVeau explained that the increase in the low end of the sales growth range primarily reflects the strong first-half performance. For the second half, sales growth is expected to moderate from the 6% reported in Q2, but the company still expects to deliver low single-digit growth. The wide guidance range reflects prudence given ongoing market uncertainty, particularly in the Middle East. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE. International Flavors & Fragrances (IFF) released second quarter 2026 results that combined higher sales with sharply lower earnings and fresh full year guidance, giving investors new information on the company’s continuing operations and discontinued businesses. See our latest analysis for International Flavors & Fragrances. The latest quarterly announcement comes after a mixed stretch for International Flavors & Fragrances, with the stock showing an 18.9% year to date share price return but a 5 year total shareholder return that is still down 40.83%. Recent 1 day and 7 day share price gains of 0.38% and 2.07% follow a 30 day share price return that declined 3.51%. This suggests short term momentum is stabilising while investors weigh the updated earnings picture and the clarified split between continuing and discontinued operations. If this earnings update has you reassessing your watchlist, it can help to compare IFF with other areas of the market and see what is holding up well in different themes. One way to do that is to scan 19 top founder-led companies International Flavors & Fragrances now trades at a clear discount to both analyst targets and some intrinsic value estimates, even after the recent rebound. Is that a cautious market mispricing, or a fair response to weaker earnings quality? International Flavors & Fragrances has a narrative fair value of $91.66 against a last close of $80.89, which frames the recent share price move in a very different light from trailing earnings alone. Read the complete narrative. Want to see what sits behind that shift in focus? The narrative leans heavily on future margin assumptions, moderate revenue growth and a richer earnings multiple. The exact mix of those inputs is where the fair value story really gets interesting. Result: Fair Value of $91.66 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, International Flavors & Fragrances still faces pressure from commoditisation in fragrance ingredients and ongoing softness in key markets such as North America and China. Find out about the key risks to this International Flavors & Fragrances narrative. With both risks and rewards in focus for International Flavors & Fragrances, do you want to move quickly and test the thesis for yourself? Start by reviewing the 3 key rewards and 2 important warning signs. If this update on International Flavors & Fragrances has sharpened your thinking, now is a good time to broaden your watchlist and compare fresh opportunities. Pinpoint companies that combine value and quality by reviewing the 52 high quality undervalued stocks. Focus on resilience and capital preservation by scanning the 82 resilient stocks with low risk scores. Get ahead of the crowd by checking the screener containing 18 high quality undiscovered gems. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include IFF. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

International Flavors & Fragrances Inc. IFF reported second-quarter 2026 adjusted earnings of 82 cents per share, missing the Zacks Consensus Estimate of $1.14. The company’s second-quarter 2025 adjusted earnings came in at 77 cents, excluding the results from discontinued operations.Including one-time items, the company reported earnings of 20 cents per share compared with $2.33 in the prior-year quarter.In late May, International Flavors announced that it inked a deal with CVC Capital Partners to sell its Food Ingredients business. The deal is in sync with International Flavors’ portfolio transformation strategy, which is expected to solidify its focus on its innovation-driven businesses. Starting second-quarter 2026, the Food Ingredients disposal group is reported as discontinued operations. International Flavors & Fragrances Inc. price-consensus-eps-surprise-chart | International Flavors & Fragrances Inc. Quote Net sales rose 1.8% year over year to $1.95 billion but missed the consensus estimate of $2.68 billion. Comparable currency-neutral sales advanced 6%, supported by broad-based growth across Taste, Health & Biosciences, and Scent.International Flavors’ Q2 Gross Margin Improves Y/YIn the reported quarter, IFF’s cost of goods sold increased 0.5% year over year to $1.10 billion. Gross profit rose 3.5% to $853 million. The gross margin came in at 43.7% compared with 42.9% in the year-ago quarter.Research and development expenses remained flat year over year at $170 million. Selling and administrative expenses increased 6.8% to $437 million in the second quarter. Adjusted operating EBITDA came in at $408 million, up 2.3% from the prior-year quarter’s $399 million. The adjusted operating EBITDA margin was 20.9% compared with 20.8% in the year-ago quarter. Net sales in the Taste segment increased 5.2% year over year to $688 million in the June-end quarter. The figure surpassed our estimate of $647 million. Adjusted operating EBITDA was $124 million, up 6% year over year from $117 million, driven by volume growth and favorable net pricing. Our estimate for the segment’s adjusted EBITDA was $127 million. The segment’s adjusted operating EBITDA margin was 18% compared with 17.9% in the prior-year quarter.Sales generated in the Health & Biosciences segment were $601 million, growing 7.5% from the year-earlier quarter’s $559 million. The figure matched our estimate. Growth was led by Grain Processing, Food Biosciences and Animal Nutrition.Adjusted operating EBITDA was $150 million in the quarter, up 7.9% year over year from $139 million. Our estimate for the segment’s adjusted EBITDA was $154 million. The segment’s adjusted operating EBITDA margin was 25% compared with 24.9% a year ago.The Scent segment’s sales were $665 million, up 10.3% year over year from $603 million. Our estimate was $624 million. The upside was driven by double-digit growth in Fragrance Ingredients and high-single-digit growth in Consumer Fragrance. Fine Fragrance posted low-single-digit growth, with results affected by the Middle East conflict.Adjusted operating EBITDA increased 10.7% to $134 million from $121 million in the prior-year quarter. Our model had projected EBITDA of $131 million. The adjusted operating EBITDA margin was 20.2% compared with 20.1% in the year-ago quarter. IFF had cash and cash equivalents of $569 million at the end of the second quarter of 2026, down from $590 million at the end of 2025. Long-term debt was $4.74 billion at June 30, 2026, largely unchanged from the end of 2025. Net debt to credit-adjusted EBITDA was 2.5X.International Flavors generated $679 million in cash from operating activities in the first six months of 2026, up from $368 million in the prior-year period. For 2026, International Flavors expects sales from continuing operations of $7.4 billion to $7.6 billion. Adjusted operating EBITDA is projected between $1.53 billion and $1.60 billion. The outlook excludes $3.2 billion in sales and $520 million in adjusted operating EBITDA related to discontinued operations.The company expects comparable currency-neutral sales growth of 2-4% and comparable currency-neutral adjusted operating EBITDA growth of 4-8%. Foreign exchange is projected to benefit sales growth by 1% and adjusted operating EBITDA growth by 2%.IFF also authorized an enhanced $2.5-billion share repurchase program, including a planned $500-million accelerated repurchase in the second half of 2026. The remaining $2 billion is expected to be executed after the Food Ingredients divestiture closes, with completion targeted by the end of 2027. IFF currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here. In the past year, the company’s shares have gained 17.3% compared with the industry’s growth of 3.7%. Image Source: Zacks Investment Research Linde plc LIN reported second-quarter 2026 adjusted earnings of $4.50 per share, up 10% from $4.09 per share a year ago. The bottom line topped the Zacks Consensus Estimate of $4.49 per share by 0.22%.Linde’s sales increased 9% to $9.29 billion from $8.49 billion in the prior-year quarter, surpassing the Zacks Consensus Estimate of $8.96 billion by 3.68%.PPG Industries, Inc. PPG reported adjusted earnings of $2.23 per share in the second quarter of 2026, up 0.5% year over year and missed the Zacks Consensus Estimate of $2.26.PPG Industries’ sales rose 7.2% year over year to $4.5 billion and topped the consensus mark of $4.36 billion by 3.1%. Organic sales increased 4%, aided equally by higher volumes and selling prices.Ecolab Inc. ECL reported second-quarter 2026 adjusted earnings of $2.09 per share, up 10.6% year over year. The figure surpassed the Zacks Consensus Estimate by 0.4%.Ecolab sales rose 9.7% year over year to $4.42 billion, surpassing the consensus estimate by 0.5%. Organic sales increased 5%, aided by stronger pricing, volume growth and solid demand across Ecolab’s core businesses and growth engines. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report International Flavors & Fragrances Inc. (IFF) : Free Stock Analysis Report Ecolab Inc. (ECL) : Free Stock Analysis Report PPG Industries, Inc. (PPG) : Free Stock Analysis Report Linde PLC (LIN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

International Flavors (IFF) came out with quarterly earnings of $0.82 per share, missing the Zacks Consensus Estimate of $1.14 per share. This compares to earnings of $1.15 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -28.07%. A quarter ago, it was expected that this ingredients producer for food, cosmetics and consumer products industries would post earnings of $1.08 per share when it actually produced earnings of $1.25, delivering a surprise of +15.74%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. International Flavors, which belongs to the Zacks Chemical - Specialty industry, posted revenues of $1.95 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 27.16%. This compares to year-ago revenues of $2.76 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. International Flavors shares have added about 19.6% since the beginning of the year versus the S&P 500's gain of 11%. While International Flavors has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for International Flavors was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.14 on $2.73 billion in revenues for the coming quarter and $4.52 on $10.75 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Chemical - Specialty is currently in the top 34% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Green Plains Renewable Energy (GPRE), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This ethanol production, marketing and commodities company is expected to post quarterly earnings of $0.65 per share in its upcoming report, which represents a year-over-year change of +258.5%. The consensus EPS estimate for the quarter has been revised 11.3% lower over the last 30 days to the current level. Green Plains Renewable Energy's revenues are expected to be $528.9 million, down 4.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report International Flavors & Fragrances Inc. (IFF) : Free Stock Analysis Report Green Plains, Inc. (GPRE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Delivered Strong Sales, Profit and Cash Flow Performance in Second Quarter 2026 Provides Full Year 2026 Financial Guidance on a Continuing Operations Basis Announces Enhanced $2.5B Share Repurchase Authorization; Including $500M Accelerated Share Repurchase in the second half of 2026 NEW YORK, August 04, 2026--(BUSINESS WIRE)--IFF (NYSE: IFF) reported financial results for the second quarter ended June 30, 2026. Results are presented on a continuing operations basis, excluding the Food Ingredients business and other minor perimeter adjustments (the "Food Ingredients disposal group"), and the Soy Crush, Concentrates, and Lecithin businesses (the "SCL disposal group"). The Food Ingredients disposal group and the SCL disposal group are reported as discontinued operations. Second Quarter 2026 Consolidated Summary of Results, on a continuing operations basis1: First Six Months 2026 Consolidated Summary of Results, on a continuing operations basis1: Management Commentary "IFF delivered a strong first half of 2026 on a continuing operations basis," said Erik Fyrwald, CEO of IFF. "Performance was driven by volume growth, disciplined margin execution and robust free cash flow generation. These results reflect the strength of our commercial and innovation pipelines and the actions underway to improve efficiency and cash flow across the company." "This quarter marked a defining step in our portfolio transformation with the announced agreement to divest Food Ingredients. The transaction sharpens IFF's focus on Taste, Scent, and Health & Biosciences, creating a simpler, higher-growth, higher-margin company with enhanced cash generation. As part of this transformation, we are taking decisive action to eliminate related stranded costs and will execute with urgency." "We are also providing greater clarity on our intended use of proceeds from the divestiture of the Food Ingredients business through a sequenced capital allocation framework. Our objective is to maintain a strong balance sheet and financial flexibility to deliver our growth ambitions with leverage in the range of 2.0x to 2.5x net debt to EBITDA. Therefore we will apply net proceeds to reduce outstanding debt by over $1 billion. The Board has also authorized an enhanced $2.5 billion share repurchase program, beginning with $500 million to be executed in the second half of 2026, reflecting our confidence in IFF’s long-term value creation opportunity and the compelling return profile of repurchases at current valuation levels. We expect to execute the remaining $2.0 billion of the authorization following the anticipated transaction close, with completion of this repurchase program targeted by the end of 2027." "With Food Ingredients now reported as discontinued operations, we are introducing full-year 2026 guidance on a continuing operations basis. The underlying performance in the three business units is consistent with previous guidance given. The new presentation provides greater visibility into the growth and margin profile of our go-forward portfolio, reinforcing the outlook for IFF’s continuing operations and our ability to create long-term shareholder value." Second Quarter 2026 Consolidated Financial Results1 Reported net sales for the second quarter were $1.95 billion, an increase of 2% versus the prior-year period. On a comparable basis3, currency neutral sales2 increased 6% versus the prior-year period led by broad-based growth including high-single digit performance in Scent and mid-single digit growth in Taste and Health & Biosciences. Inclusive of discontinued operations net sales of $827 million, net sales for the second quarter were $2.78 billion. Income from continuing operations before taxes on a reported basis for the second quarter was $64 million. Adjusted operating EBITDA2 for the second quarter was $408 million. On a comparable basis3, currency neutral adjusted operating EBITDA2 improved 6% versus the prior-year period, driven primarily by volume growth and productivity gains. Inclusive of discontinued operations adjusted operating EBITDA2 of $140 million, adjusted operating EBITDA2 for the second quarter was $548 million. Reported earnings per share (EPS) for the second quarter was $0.13 per diluted share. Adjusted EPS excluding amortization2 was $0.82 per diluted share. Cash flows from operations for the first six months of the year for continuing and discontinued operations was $679 million, increasing $311 million year-over-year, and free cash flow2, defined as cash flows from operations less capital expenditures, totaled $378 million, increasing $284 million year-over-year. Total debt to trailing twelve months net income at the end of the second quarter was 22.6x. Net debt to credit adjusted EBITDA2 at the end of the second quarter was 2.5x, and includes the effects of both continuing and discontinued operations. Second Quarter 2026 Segment Summary1: Growth vs. Prior Year Taste Segment On a reported basis, second quarter sales were $688 million. On a comparable basis3, currency neutral sales2 increased 4% with broad-based growth in all regions. Taste adjusted operating EBITDA2 was $124 million and adjusted operating EBITDA margin2 was 18.0% in the second quarter. On a comparable basis3, currency neutral adjusted operating EBITDA2 increased 6% driven primarily by volume growth and favorable net pricing. Health & Biosciences Segment On a reported basis, second quarter sales were $601 million. On a comparable basis3, currency neutral sales2 increased 5% with growth in all businesses, led by Grain Processing, Food Biosciences & Animal Nutrition. Health & Biosciences adjusted operating EBITDA2 was $150 million and adjusted operating EBITDA margin2 was 25.0% in the second quarter. On a comparable basis3, currency neutral adjusted operating EBITDA2 increased 6% primarily driven by volume growth. Scent Segment On a reported basis, second quarter sales were $665 million. On a comparable basis3, currency neutral sales2 increased 8% led by double-digit growth in Fragrance Ingredients and a high single-digit performance in Consumer Fragrance. Fine Fragrance increased low-single digits compared to the prior year period as it was impacted by the Middle East conflict. Scent adjusted operating EBITDA2 was $134 million and adjusted operating EBITDA margin2 was 20.2% in the second quarter. On a comparable basis3, currency neutral adjusted operating EBITDA2 increased 5% driven primarily by volume growth and productivity. Sale of Food Ingredients Disposal Group On May 29, 2026, IFF announced that it had entered into a definitive agreement to sell its Food Ingredients disposal group, which was included in the Food Ingredients segment, to CVC Capital Partners for net cash proceeds of approximately $3.8 billion, subject to customary transaction adjustments. The transaction is expected to close by the end of the second quarter of 2027, subject to customary closing conditions and receipt of regulatory approvals. As part of the transaction, IFF will retain an approximately 10% minority equity interest in the business enabling continued collaboration and cooperation between IFF and Food Ingredients. Stranded costs related to this transaction represent approximately $100 million of corporate and functional expenses previously allocated to the Food Ingredients business that are expected to remain with IFF following the close of the transaction. IFF has a remediation plan in place, with actions underway, and expects to eliminate approximately two thirds of these costs within the first year following the transaction close, and substantially all within two years following transaction close. On March 2, 2026, the Company completed the divestiture of the SCL disposal group, which was also included in the Food Ingredients segment. The divestitures were part of a combined strategy by IFF to divest the majority of its Food Ingredients segment and strengthen its portfolio. As a result, beginning in the second quarter of 2026, the financial results of the Food Ingredients disposal group and the financial results of the SCL disposal group prior to its divestiture on March 2, 2026, are reflected in IFF’s Consolidated Financial Statements as discontinued operations, along with comparative periods. The classification of the Food Ingredients and SCL businesses as discontinued operations reflects the Company’s continued focus on its remaining innovation-led, higher-growth and higher-margin segments: Taste, Scent and Health & Biosciences. On a continuing operations basis, the Company delivered second quarter 2026 Adjusted Operating EBITDA margin of 20.9%, an improvement compared to 19.7% including discontinued operations. Share Repurchase Authorization The Company announced that its Board of Directors has authorized an enhanced share repurchase authorization with a total value of $2.5 billion; this amount included approximately $400 million remaining on its prior authorization. Under the program, the Board of Directors also authorized an accelerated share repurchase of $500 million, which the Company expects to execute in the second half of 2026. The remaining $2.0 billion share repurchase is expected to be executed following the closing of the Food Ingredients disposal group divestiture, with an expected completion of the program by the end of 2027. The Board will review the share repurchase program periodically and may authorize adjustment of its term and size. The Company plans to fund repurchases from cash provided by operating activities, short-term debt and net cash proceeds provided by the divestiture of the Food Ingredients disposal group. Financial Guidance1 The Company has provided financial guidance to reflect the separation of the Food Ingredients disposal group and SCL disposal group as discontinued operations. For continuing operations, the Company expects full year 2026 sales to be in the range of $7.4 billion to $7.6 billion excluding approximately $3.2 billion related to discontinued operations. For the full year 2026 adjusted operating EBITDA is expected to be in the range of $1.53 billion to $1.60 billion, excluding approximately $520 million related to discontinued operations. On a continuing operations basis, the Company expects comparable currency neutral sales growth to be between 2% to 4%, and comparable currency neutral adjusted operating EBITDA growth to be 4% to 8%. Based on recent market foreign exchange rates, the Company continues to expect that foreign exchange will have an approximately 1% positive impact on sales growth and have an approximately 2% positive impact on adjusted operating EBITDA growth in 2026. Audio Webcast A live webcast to discuss the Company’s second quarter 2026 financial results will be held on August 5, 2026, at 9:00 a.m. ET. The webcast and accompanying slide presentation may be accessed on the Company’s IR website at ir.iff.com. For those unable to listen to the live webcast, a recorded version will be made available on the Company’s website approximately one hour after the event and will remain available on IFF’s website for one year. Cautionary Statement Under The Private Securities Litigation Reform Act of 1995 This press release includes statements that are not historical facts and are "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management’s current assumptions, estimates and expectations, including with respect to our financial and operational outlook (sales, adjusted operating EBITDA and cash flow), portfolio optimization initiatives (including the pending divestiture for our Food Ingredients segment), pricing, productivity and cost-discipline actions, capital allocation, future operations, growth potential, strategic investments and the expected effects of foreign exchange. These statements reflect management’s present views, are based on a series of expectations, assumptions, estimates and projections about the Company, are subject to change, and involve uncertainties that could cause actual results to differ materially. Certain of such forward-looking information may be identified by such terms as "expect", "anticipate", "believe", "intend", "outlook", "may", "will", "would", "estimate", "should", "predict", "plan", "project", "could", "potential", "seek", "target", "continue", "future", and similar terms or variations thereof. These statements are not guarantees of future performance and are subject to risks and uncertainties that could lead to materially different outcomes. Such risks, uncertainties and other factors include, among others, the following: (1) demand trends, competitive dynamics and customer concentration in our end markets; (2) execution of our strategic transformation and other strategic transactions, divestitures, acquisitions, collaborations and joint ventures; (3) working capital and inventory management; (4) outcomes of legal claims, disputes, regulatory investigations and litigation; (5) tariffs and trade actions, supply chain disruptions and macro events, including geopolitical developments, climate events, natural disasters, public health crises; (6) volatility in input costs (such as raw materials, transportation and energy); (7) attraction, retention and turnover of key employees and executives; (8) product innovation, time-to-market, product safety and quality; (9) cybersecurity incidents, artificial intelligence related risks, data privacy and compliance with data protection laws; (10) exposure to emerging markets, foreign currency fluctuations and international regulatory and political risks; (11) capital allocation, dividend policy and potential impairments of tangible or intangible assets; (12) our indebtedness, credit rating, liquidity, and access to capital; (13) pension and postretirement obligations; (14) compliance with federal, state, local and international rules and regulations, and regulatory, environmental, anti-corruption and sanctions laws and related ethical business practices; (15) protection and enforcement of intellectual property; (16) changes in tax laws and policies, tax audits and outcomes, including potential tax liabilities related to prior transactions; and (17) changes in federal, state, local and international rules and regulations. The foregoing list of important factors does not include all such factors, nor necessarily present them in order of importance. Important factors are described under "Risk Factors" in our most recent Annual Report on Form 10-K and in our subsequent filings with the SEC, and those disclosures are incorporated herein by reference. We intend our forward-looking statements to speak only as of the time of such statements and do not undertake or plan to update or revise them as more information becomes available or to reflect changes in expectations, assumptions or results, whether as a result of new information, future events or otherwise. We can give no assurance that such expectations or forward-looking statements will prove to be correct. An occurrence of, or any material adverse change in, one or more of the risk factors or risks and uncertainties referred to in this press release or included in our other periodic reports filed with the SEC could materially and adversely impact our operations and our future financial results. Any public statements or disclosures made by us following this press release that modify or impact any of the forward-looking statements contained in or accompanying this press release will be deemed to modify or supersede such outlook or other forward-looking statements in or accompanying this press release. Use of Non-GAAP Financial Measures We provide in this press release non-GAAP financial measures, including: (i) comparable currency neutral sales; (ii) adjusted operating EBITDA and comparable currency neutral adjusted operating EBITDA; (iii) adjusted operating EBITDA margin; (iv) adjusted EPS ex amortization; (v) free cash flow; and (vi) net debt to credit adjusted EBITDA. Unless otherwise noted, all amounts and percentages in this press release reflect the results from continuing operations, with the exception of the Statements of Cash Flows and net debt to credit adjusted EBITDA which are presented on a combined continuing and discontinued basis. Our non-GAAP financial measures are defined below. Currency Neutral metrics eliminate the effects that result from translating non-U.S. currencies to U.S. dollars. We calculate currency neutral numbers by translating current year invoiced sale amounts at the exchange rates used for the corresponding prior year period. We use currency neutral results in our analysis of segment performance. We also use currency neutral numbers when analyzing our performance against that of our competitors. Comparable results for the second quarter exclude the impact of divestitures. Adjusted operating EBITDA and adjusted operating EBITDA margin exclude depreciation and amortization, interest expense, other expense, net, and certain non-recurring or unusual items that are not part of recurring operations such as impairment of goodwill, restructuring and other charges, losses (gains on business disposals, loss on assets classified as held for sale, divestiture costs, strategic initiatives costs, regulatory costs, gain on debt extinguishment, entity realignment and other items. Adjusted EPS ex Amortization excludes the impact of non-operational items including restructuring and other charges, divestiture costs, losses (gains) on business disposals, strategic initiatives costs, regulatory costs and other items that are not a part of recurring operations. Free Cash Flow is operating cash flow (i.e., cash flow from operations) less capital expenditures. Net debt to credit adjusted EBITDA is the leverage ratio used in our credit agreements and defined as net debt (which is debt for borrowed money less cash and cash equivalents) divided by the trailing 12-month credit adjusted EBITDA. Credit adjusted EBITDA is defined as income (loss) before interest expense, income taxes, depreciation and amortization, specified items and non-cash items. These non-GAAP measures are intended 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. In discussing our historical and expected future results and financial condition, we believe it is meaningful for investors to be made aware of and to be assisted in a better understanding of, on a period-to-period comparable basis, financial amounts both including and excluding these identified items, as well as the impact of exchange rate fluctuations. These non-GAAP measures should not be considered in isolation or as substitutes for analysis of the Company’s results under GAAP and may not be comparable to other companies’ calculation of such metrics. The Company cannot reconcile its expected adjusted operating EBITDA under "Financial Guidance" without unreasonable effort because certain items that impact net income and other reconciling metrics are out of the Company's control and/or cannot be reasonably predicted at this time. These items include but are not limited to divestiture costs, gains (losses) on business disposals, and regulatory costs. Welcome to IFF At IFF (NYSE: IFF), we make joy through science, creativity and heart. As the global leader in flavors, fragrances, and health and biosciences, we deliver groundbreaking, sustainable innovations that elevate everyday products—advancing wellness, delighting the senses and enhancing the human experience. Learn more at iff.com, LinkedIn, Instagram and Facebook. The following table reconciles cash and cash equivalents between the Company's statement of cash flows for the periods ended June 30, 2026 and June 30, 2025 to the amounts reported on the Company's balance sheet: International Flavors & Fragrances Inc.GAAP to Non-GAAP Reconciliation(Unaudited) The following information and schedules provide reconciliation information between reported GAAP amounts and non-GAAP certain adjusted amounts. This information and schedules are not intended as, and should not be viewed as, a substitute for reported GAAP amounts or financial statements of the Company prepared and presented in accordance with GAAP. For the three months ended June 30, 2026 and 2025, there was no difference between Reported (GAAP) and Adjusted (Non-GAAP) gross profit. International Flavors & Fragrances Inc.GAAP to Non-GAAP Reconciliation(Unaudited) The following information and schedules provide reconciliation information between reported GAAP amounts and non-GAAP certain adjusted amounts. This information and schedules are not intended as, and should not be viewed as, a substitute for reported GAAP amounts or financial statements of the Company prepared and presented in accordance with GAAP. International Flavors & Fragrances Inc.GAAP to Non-GAAP Reconciliation(Unaudited) The following information and schedules provide reconciliation information between reported GAAP amounts and non-GAAP certain adjusted amounts. This information and schedules are not intended as, and should not be viewed as, a substitute for reported GAAP amounts or financial statements of the Company prepared and presented in accordance with GAAP. For the six months ended June 30, 2026 and 2025, there was no difference between Reported (GAAP) and Adjusted (Non-GAAP) gross profit. International Flavors & Fragrances Inc.GAAP to Non-GAAP Reconciliation(Unaudited) The following information and schedules provide reconciliation information between reported GAAP amounts and non-GAAP certain adjusted amounts. This information and schedules are not intended as, and should not be viewed as, a substitute for reported GAAP amounts or financial statements of the Company prepared and presented in accordance with GAAP. International Flavors & Fragrances Inc.Debt Covenants(Amounts in millions)(Unaudited) The following information and schedules provide reconciliation information between reported GAAP amounts and non-GAAP certain adjusted amounts. This information and schedules are not intended as, and should not be viewed as, a substitute for reported GAAP amounts or financial statements of the Company prepared and presented in accordance with GAAP. International Flavors & Fragrances Inc.Comparable Currency Neutral Segment Performance(Amounts in millions)(Unaudited) The following information and schedule provides reconciliation information between reported GAAP amounts and non-GAAP certain adjusted amounts. This information and schedule is not intended as, and should not be viewed as, a substitute for reported GAAP amounts or financial statements of the Company prepared and presented in accordance with GAAP. View source version on businesswire.com: https://www.businesswire.com/news/home/20260804962836/en/ Contacts Media Relations:Jennifer [email protected] Investor Relations:Michael [email protected]

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. International Flavors & Fragrances has recovered from a sharp pullback over the last five years, with the share price still down 41.1% over that period, while the latest intrinsic value work using a Discounted Cash Flow model points to meaningful upside and the market multiples suggest the stock screens on the expensive side. That split leaves investors weighing a discounted cash flow based view of value against a richer read from earnings based ratios. Over the last five years the stock has declined 41.1%, which keeps longer term holders under pressure even after the more recent rebound. Future cash flow and margin expectations can support the Discounted Cash Flow intrinsic value estimate, while any setback in execution or a weaker cash generation profile may put more weight on the view that current earnings multiples already price in a lot of optimism. The company scores 3 out of 6 on Simply Wall St's broad valuation checks, which is a mixed picture rather than a clear bargain or clear overvaluation, and you can see the breakdown at 3. The issue now is whether International Flavors & Fragrances' current price more closely reflects the discounted cash flow based intrinsic value estimate or the richer signal from market multiples. International Flavors & Fragrances delivered 16.9% returns over the last year. See how this stacks up to the rest of the Chemicals industry. The Discounted Cash Flow model estimates what International Flavors & Fragrances might be worth based on the cash it can generate for shareholders. On this view, the company is currently producing about $478.8 million in free cash flow over the latest twelve months, with analysts and internal assumptions used to project cash flows over the next decade. Feeding those projections into the 2 Stage Free Cash Flow to Equity framework gives an estimated intrinsic value of about $126.62 per share. Compared with the current share price, that suggests the stock trades at a 36.4% discount to this cash flow based estimate, so the market price sits below the value indicated by this model, assuming those cash flow assumptions hold. On this DCF view, International Flavors & Fragrances stock appears undervalued relative to its projected cash generation based on the model’s assumptions. Our Discounted Cash Flow (DCF) analysis suggests International Flavors & Fragrances is undervalued by 36.4%. Track this in your watchlist or portfolio, or discover 53 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for International Flavors & Fragrances. The P/E multiple suits International Flavors & Fragrances because earnings are a core focus for many investors in established chemical companies. The stock currently trades on a P/E of about 24.9x, which is close to the Chemicals industry average of roughly 25.0x and below the peer group average of about 51.4x. On simple comparisons, the valuation does not look stretched against the broader industry. The more tailored fair P/E ratio for International Flavors & Fragrances is estimated at 18.7x, which reflects its specific mix of growth, margins, size and risks. Against this fair ratio, the current 24.9x suggests investors are paying a premium to what this framework implies, even if the stock does not look extreme versus sector averages. On the P/E multiple, International Flavors & Fragrances stock screens as overvalued relative to this fair value benchmark. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for International Flavors & Fragrances sit between the cash flow and earnings signals above, and explain what kind of future growth, margins and earnings profile would make the stock worth materially more or less than today’s price on the Community page. Each narrative links its valuation number to a clear view on how growth, profitability and risk could change, which you can revisit as new information becomes available. International Flavors & Fragrances attracts very different readings from the community, with one camp leaning into a recovery story and the other focused on execution and balance sheet risks. Bull case: 23% undervalued Read the full Bull Case to see why International Flavors & Fragrances could be undervalued Bear case: roughly fairly valued Read the full Bear Case to see why International Flavors & Fragrances could be overvalued Do you think there's more to the story for International Flavors & Fragrances? Head over to our Community to see what others are saying! International Flavors & Fragrances sits between two readings on value. The Discounted Cash Flow (DCF) intrinsic value estimate points to a sizeable discount, while the P/E based view flags the stock as overvalued against its tailored fair multiple. That split reflects different emphasis on future cash flows versus current growth expectations and market sentiment. The key question from here is whether International Flavors & Fragrances can deliver the cash flow and margin profile implied in the intrinsic value work, or whether execution and integration risk means the current premium multiple is already capturing the more optimistic scenario. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include IFF. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]