IFF has reported a strong second quarter performance, highlighting robust sales growth, improved profitability and significant cash generation as the company moves ahead with a major portfolio transformation following the planned divestiture of its Food Ingredients business.

 

The company reported second-quarter 2026 results on a continuing operations basis, excluding the Food Ingredients disposal group and the Soy Crush, Concentrates and Lecithin (SCL) businesses, which are now classified as discontinued operations.

 

IFF delivered $2.0 billion in reported sales, $408 million in adjusted operating EBITDA, and an operating EBITDA margin of 20.9% during the quarter. Adjusted earnings per share, excluding amortization, reached $0.82.

 

For the first six months of 2026, IFF reported $3.9 billion in sales, $841 million in adjusted operating EBITDA, and a 21.8% operating EBITDA margin, reflecting continued operational discipline and stronger execution across its core businesses.

 

“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.”

 

Fyrwald said the Food Ingredients divestiture represents a major milestone in reshaping 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.”

 

IFF also announced its plan for deploying proceeds from the Food Ingredients divestiture, prioritizing debt reduction and shareholder returns.

 

“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 company’s Board of Directors has authorized an enhanced $2.5 billion share repurchase program, including a $500 million accelerated share repurchase expected in the second half of 2026.

 

“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.”

 

IFF said second-quarter sales increased 2% year over year to $1.95 billion, with comparable currency-neutral sales rising 6%, driven by broad-based growth across its remaining businesses.

 

Scent delivered high-single-digit growth, while Taste and Health & Biosciences posted mid-single-digit gains.

 

Including discontinued operations, second-quarter net sales totaled $2.78 billion, including $827 million from discontinued operations.

 

Adjusted operating EBITDA for the quarter reached $408 million, while comparable currency-neutral adjusted operating EBITDA increased 6% year over year, supported by higher volumes and productivity improvements. Including discontinued operations, adjusted operating EBITDA totaled $548 million.

 

IFF reported second-quarter diluted EPS of $0.13, while adjusted EPS excluding amortization was $0.82 per diluted share.

 

Cash generation also strengthened, with operating cash flow for the first six months of 2026 reaching $679 million, up $311 million year over year. Free cash flow totaled $378 million, an increase of $284 million compared with the prior-year period.

 

With Food Ingredients now classified as discontinued operations, IFF introduced full-year 2026 financial guidance based on its continuing operations.

 

“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.”

 

The company said the new structure provides investors with clearer visibility into a more focused business centered on Taste, Scent, and Health & Biosciences, while supporting long-term growth, improved margins and enhanced shareholder returns.