Sensient Technologies Corporation, a provider of flavors and colors for the food, pharmaceutical, and personal care markets, posted solid financial results for the fourth quarter ended December 31, 2025. The company's reported revenue surged 4.5% to $393.4 million compared to the prior year's fourth quarter results of $376.4 million. When viewed on a local currency basis, revenue increased by 2.0%.
However, operating income decreased by 9.1% to $38.2 million, with the company incurring $6.3 million in costs related to its portfolio optimization plan – a substantial increase from the $0.9 million recorded in the same period the previous year. Reported earnings per share also fell by 15.5% to 60 cents in the fourth quarter of 2025 compared to 71 cents in the fourth quarter of 2024. Local currency adjusted diluted EPS, on the other hand, increased by 6.2% in the fourth quarter.
Breaking down the results by segment, the Flavors & Extracts group reported a decrease in revenue by 0.6% and a significant decline in operating income by 10.0%. The Color group, however, achieved a substantial increase in revenue by 10.9% and a notable rise in operating income by 12.2%. The Asia Pacific group's revenue dipped by 1.0%, but operating income improved by 2.4%.
Looking ahead, the company has set its current guidance for local currency revenue growth at mid-single-digit to double-digit levels and local currency adjusted EBITDA growth at the same range. The guidance for diluted EPS (GAAP) is between $3.60 and $3.80, while local currency adjusted diluted EPS is expected to grow at a mid-single-digit to high single-digit rate. Sensient's outlook is based on current conditions and economic and market trends, with its guidance being subject to various risks and uncertainties. As a result of these announcements, the company's shares have moved 0.0% on the market, and are now trading at a price of $97.30. If you want to know more, read the company's complete 8-K report here.
