International Flavors & Fragrances Inc. (IFF) Q4 2025 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy IFF?
Source: SeekingAlpha
Net Debt to Credit Adjusted EBITDA 2.6x, improved from 3.8x at the end of 2024. This improvement reflects a more disciplined capital allocation strategy.
Sales Growth 4% average over the last 2 years. In 2025, Taste grew by 4%, Health & Biosciences by 3%, and Scent by 3%. Reasons include new wins, innovation, and productivity gains.
EBITDA Growth 7% for 2025, with 100 basis points of margin expansion. Driven by volume and productivity gains as well as favorable net pricing.
Taste Segment EBITDA $94 million in Q4, a 17% increase. Driven by favorable net pricing and cost discipline.
Food Ingredients Sales $802 million in Q4, down 4%. Decline due to soft demand, strategic exit of low-margin business, and sanctions in Russia.
Food Ingredients EBITDA $82 million in Q4, down 11%. Decline due to volume declines and unfavorable net pricing.
Health & Biosciences Sales $589 million in Q4, up 5%. Growth driven by Food Biosciences and Animal Nutrition (both double digits) and Home & Personal Care (high single digits).
Health & Biosciences EBITDA $155 million in Q4, up 20%. Growth due to volume growth and productivity gains.
Scent Segment Sales $610 million in Q4, up 4%. Growth driven by Fine Fragrance (10%) and Consumer Fragrance (mid-single digits).
Scent Segment EBITDA $106 million in Q4, up 1%. Growth due to volume growth and productivity gains, partially offset by unfavorable net pricing in Fragrance Ingredients.
Cash Flow from Operations $850 million for 2025. Free cash flow was $256 million, impacted by $300 million of Reg G-related charges and $166 million working capital outflow.
CapEx $594 million for 2025, approximately 5.5% of sales. Focused on capacity expansion, network optimization, and innovation.
Gross Debt $6 billion at the end of 2025, a decrease of nearly $3 billion compared to 2024.
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Analyst Views on IFF
Wall Street analysts forecast IFF stock price to fall
9 Analyst Rating
6 Buy
3 Hold
0 Sell
Moderate Buy
Current: 81.500
Low
68.00
Averages
80.66
High
89.00
Current: 81.500
Low
68.00
Averages
80.66
High
89.00
About IFF
International Flavors & Fragrances Inc. is a creator and manufacturer of food, beverage, health and biosciences, scent, and complementary adjacent products. The Company's segment includes Taste, Food Ingredients, Health & Biosciences, and Scent. The Taste segment consists of a range of flavor compounds and natural taste solutions used in food and beverage applications. The Food Ingredients segment includes a broad portfolio of natural and plant-based specialty ingredients that provide texturizing and food protection capabilities, as well as soy and pea protein solutions, emulsifiers, and sweeteners. Its Health & Biosciences segment consists of the development and production of an advanced biotechnology-derived portfolio of enzymes, food cultures, probiotics and specialty ingredients for food and non-food applications. Its Scent segment creates fragrance compounds and fragrance ingredients that are integral elements in perfumes and household and personal care products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Strategic Restructuring Progress: CEO Fyrwald highlighted the completion of several divestitures and the initiation of the sale process for the Food Ingredients business, aiming to optimize the portfolio and focus on high-value, innovation-driven businesses to enhance market competitiveness.
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IFF Directors and Officers Buy Shares in Last Six Months
- Insider Buying Activity: International Flavors & Fragrances Inc. (IFF) has seen three directors and officers purchase shares in the past six months, indicating strong confidence in the company's future, which may enhance market sentiment towards its stock.
- ETF Holdings Analysis: IFF constitutes 1.97% of the First Trust Materials AlphaDEX Fund, with a total holding value of $4,196,163, making it the 23rd largest holding, reflecting investor recognition of its potential value.
- Industry Trends: Approximately 10.2% of the underlying holdings in the First Trust Materials AlphaDEX Fund have experienced insider buying in the past six months, suggesting a growing confidence in the materials sector that could attract more investor interest.
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IFF Ex-Dividend Notification - December 19, 2025
Dividend Predictability: The predictability of dividends can be uncertain, but historical data can provide insights into the likelihood of IFF's recent dividend continuation and the reasonableness of its estimated yield of 2.48%.
Stock Performance: IFF shares have a 52-week range with a low of $59.14 and a high of $88.09, currently trading at $64.81, reflecting a slight increase of about 0.6% on the day.
Market Analysis: The performance of IFF shares is compared against its 200-day moving average, indicating the stock's trend over the past year.
Author's Perspective: The views expressed in the article are those of the author and do not necessarily represent the opinions of Nasdaq, Inc.
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- Airbnb Upgraded to Buy: Deutsche Bank upgrades Airbnb from hold to buy, stating that while it faces AI disruption risks, its unique supply chain offers more insulation compared to peers, which is likely to draw more investor attention.
- CrowdStrike's Attractive Valuation: HSBC upgrades CrowdStrike from hold to buy, citing attractive current valuation and projecting a non-GAAP EPS CAGR of 38.3% over FY26-29, indicating strong growth potential.
See More
International Flavors & Fragrances Q4 2025 Earnings Call Insights
- Strong Financial Performance: IFF reported nearly $2.6 billion in revenue for Q4 2025, with growth across nearly all divisions, and EBITDA of $437 million, reflecting a 7% year-over-year increase, indicating robust market performance and enhanced profitability.
- Strategic Restructuring Progress: CEO Fyrwald highlighted the completion of several divestitures and the initiation of the sale process for the Food Ingredients business, aiming to optimize the portfolio and focus on high-value, innovation-driven businesses to enhance market competitiveness.
- Cautious Future Outlook: CFO Deveau projected 2026 sales between $10.5 billion and $10.8 billion, indicating a slight decline in growth expectations compared to 2025, yet still relying on the continued momentum from the Taste, Health & Biosciences, and Scent segments.
- Cash Flow Management Priority: Management emphasized that cash generation and improvements in operating cash flow will be key focuses for 2026, alongside disciplined CapEx management, to ensure financial stability amid macroeconomic uncertainties.
See More
HubSpot Reports Strong Q3 Earnings, Shares Surge 9.4%
- Earnings Beat: HubSpot reported quarterly earnings of $3.09 per share, surpassing analyst expectations of $2.99, indicating robust profitability and boosting market confidence in the company's future performance.
- Significant Revenue Growth: The quarterly revenue reached $846.75 million, exceeding the Street estimate of $830.54 million and marking a 20.4% increase from $703.17 million in the same period last year, showcasing HubSpot's competitive strength in the market.
- Stock Price Surge: Following the positive earnings report, HubSpot's shares jumped 9.4% to $228.93 on Thursday, reflecting investor optimism about the company's growth potential and likely attracting more investor interest.
- Mixed Market Performance: While U.S. stocks showed mixed results overall, HubSpot's strong performance distinguished it among many stocks, demonstrating relative resilience and appeal in a fluctuating market.
See More
U.S. Jobs and Inflation Data Set for Release
- Job Data Expectations: The U.S. is expected to add 60,000 jobs in January, up from 50,000 in December, which could influence the Fed's monetary policy direction amidst ongoing economic uncertainty.
- Inflation Metrics Analysis: The January Consumer Price Index is projected to rise by 0.29% month-over-month and 2.5% year-over-year, showing improvement but still falling short of the Fed's 2% target, potentially affecting investor rate expectations.
- Market Reaction and Risks: Recent signs of labor market weakness, including an ADP report indicating only 22,000 new private sector jobs, may heighten expectations for further Fed rate cuts, although investors remain optimistic about economic resilience.
- Stock Market Rotation Trend: A significant rotation within the stock market is underway, with the Dow Jones Industrial Average rising over 2% this week, reflecting confidence in economic recovery, despite ongoing weakness in tech stocks.
See More
IFF Directors and Officers Buy Shares in Last Six Months
- Insider Buying Activity: International Flavors & Fragrances Inc. (IFF) has seen three directors and officers purchase shares in the past six months, indicating strong confidence in the company's future, which may enhance market sentiment towards its stock.
- ETF Holdings Analysis: IFF constitutes 1.97% of the First Trust Materials AlphaDEX Fund, with a total holding value of $4,196,163, making it the 23rd largest holding, reflecting investor recognition of its potential value.
- Industry Trends: Approximately 10.2% of the underlying holdings in the First Trust Materials AlphaDEX Fund have experienced insider buying in the past six months, suggesting a growing confidence in the materials sector that could attract more investor interest.
- Comparative Analysis: Similar to IFF, Fastenal Co. has also seen four directors and officers purchase shares during the same period, indicating a widespread internal confidence within the industry that may positively influence investor decisions.
See More
IFF Ex-Dividend Notification - December 19, 2025
Dividend Predictability: The predictability of dividends can be uncertain, but historical data can provide insights into the likelihood of IFF's recent dividend continuation and the reasonableness of its estimated yield of 2.48%.
Stock Performance: IFF shares have a 52-week range with a low of $59.14 and a high of $88.09, currently trading at $64.81, reflecting a slight increase of about 0.6% on the day.
Market Analysis: The performance of IFF shares is compared against its 200-day moving average, indicating the stock's trend over the past year.
Author's Perspective: The views expressed in the article are those of the author and do not necessarily represent the opinions of Nasdaq, Inc.
See More
