International Flavors & Fragrances (IFF) AI Stock Analysis

Company Guidance

IFF introduced full‑year 2026 continuing‑operations guidance of $7.4–$7.6B in sales (2%–4% growth vs. a pro‑forma 2025 base of ≈$7.2B) and adjusted EBITDA of $1.53–$1.60B (4%–8% growth vs. a pro‑forma ≈$1.44B), with FX expected to add ~+1 ppt to sales and ~+2% to EBITDA; the company ended H1 with trailing 12‑month credit‑adjusted EBITDA just over $2.0B, net debt/credit‑adjusted EBITDA of 2.5x, cash of $569M, H1 free cash flow of $378M (up $284M YoY) and operating cash flow of $679M. Management expects FY free cash flow to be higher than 2025 despite potential H2 working‑capital headwinds of a “couple hundred million” related to the Food Ingredients stand, plans CapEx of roughly 5%–6% of sales (toward the upper end next 1–2 years), R&D at ~9% of sales, SG&A ~17%–18% of sales, and longer‑term cash conversion (EBITDA–CapEx)/sales in the mid‑to‑high teens. Following the announced Food Ingredients sale (~$4.3B value, ~10x EV/EBITDA), IFF plans to use >$1B to reduce debt, target net debt/EBITDA of 2.0–2.5x by end‑2027, and execute a $2.5B buyback program (≈$500M in H2‑2026, remainder by end‑2027); management also expects to remove ~ two‑thirds of ~$100M stranded costs within 12 months and the remainder by the second full year post‑close.