Sensient Technologies Corporation (NYSE: SXT) has released its financial results for the second quarter ended June 30, 2025. The company reported a 2.7% increase in revenue to $414.2 million compared to last year's second quarter results of $403.5 million.
Operating income also saw a significant increase, rising by 16.2% to $57.7 million compared to $49.7 million in the second quarter of 2024. Adjusted for local currency, operating income and EBITDA increased by 16.9% and 14.1%, respectively.
Earnings per share (EPS) showed a notable increase of 20.5%, reaching 88 cents in the second quarter of 2025 compared to 73 cents in the same period in 2024. Adjusted for local currency, diluted EPS increased by 20.8% in the second quarter.
In terms of revenue by group, the flavors & extracts segment reported a decrease of 2.8%, while the color segment saw a significant increase of 6.9%, and the Asia Pacific segment reported a robust 10.8% growth.
The flavors & extracts group reported a second-quarter revenue of $203.3 million, representing a decrease of $6.0 million compared to the prior year's second quarter, driven by lower volumes in natural ingredients. However, the segment's operating income increased by $2.3 million despite the decline in revenues, attributed to the strong profitability of certain product lines.
Conversely, the color group reported revenue of $179.3 million in the second quarter of 2025, marking an increase of $11.6 million compared to the prior year's second quarter. The segment's operating income also increased by $7.4 million compared to the prior year's second quarter results.
The Asia Pacific group reported revenue of $42.7 million in the second quarter of 2025, reflecting an increase of $4.2 million compared to the prior year's second quarter, with revenue growth across nearly all geographies. Segment operating income for the Asia Pacific group was $8.9 million in the quarter, an increase of $1.1 million compared to the prior year's second quarter.
Looking ahead, Sensient Technologies Corporation provided its 2025 outlook, with current guidance indicating mid-single-digit growth in local currency revenue and high single-digit growth in local currency adjusted EBITDA. The company also expects high single-digit to double-digit growth in local currency adjusted diluted EPS.
The company's guidance is subject to various risks and uncertainties, and the financial outlook includes approximately 20 cents of portfolio optimization plan costs.
These results and outlook demonstrate Sensient Technologies Corporation's continued focus on customer service and innovation, as highlighted by the company's leadership. Following these announcements, the company's shares moved 3.61%, and are now trading at a price of $113.975. For the full picture, make sure to review SENSIENT TECHNOLOGIES CORP's 8-K report.
