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Sensient Technologies (SXT) Q3 2026 Earnings Report
SXT Q3 2026 EPS Results
- Actual EPS
- $1.13
- Consensus EPS
- $1.09
- Beat/Miss
- Beat by +$0.04
- One Year Ago EPS
- $0.96
SXT Q3 2026 Revenue Results
- Actual Revenue
- $455.84M
- Expected Revenue
- $459.05M
- Beat/Miss
- Missed by -$3.21M
- YoY Revenue Growth
- +10.61%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/30/2026
- Time
- Before Open
- Conference Call
- Friday, October 30, 2026
Sensient Technologies's next earnings date is estimated for February 5, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
The call was strongly positive. Sensient reported broad-based third-quarter growth, strong Color and Asia Pacific performance, continued natural color conversion wins, increased EPS guidance, and confidence in its long-term $1 billion natural color opportunity. The main challenges discussed were seasonal fourth-quarter ordering, personal care lumpiness, higher debt and investment-related cash flow demands, supply chain execution, and customer launch timing, but management characterized the underlying business trends and outlook as favorable.
For 2026, Sensient expects local currency revenue to be up high single to low double digits and local currency adjusted EBITDA and EPS growth in the mid to high teens; Color Group local currency revenue growth in the high teens, Flavors & Extracts Group local currency revenue growth of mid-single digits, and Asia Pacific Group low double-digit revenue growth. EBITDA margins are expected to be in the mid-20s for Color Group and Asia Pacific Group and in the high teens for Flavors & Extracts Group, with full-year interest expense around $34 million, a tax rate around 25%, corporate expense approximately $66 million, and GAAP EPS of $4.15-$4.20; fourth-quarter currency impact on EPS is expected to be immaterial. Consolidated capital expenditures are expected to be around $160 million, natural color capital around $250 million, with the majority in 2026 and 2027, and incremental natural color sales are expected to approach a $1 billion run rate as Sensient exits 2028, with a substantial number of conversions in 2027 and conversion activity continuing into 2028.
- Strong Third-Quarter Companywide GrowthSensient delivered 10% local currency revenue growth, 15% local currency adjusted EBITDA growth, and 18% local currency adjusted EPS growth in the third quarter of 2026. Revenue was $455.8 million versus $412.1 million in the prior-year quarter, while operating income increased to $72.4 million from $57.7 million.
- Color Group Delivered Excellent ResultsThe Color Group generated 17% local currency revenue growth and 21% local currency operating profit growth in the third quarter. Adjusted EBITDA margin was 25.1%, up 40 basis points from the prior year, and management continued to expect high-teens local currency revenue growth for the full year.
- Natural Color Conversion MomentumThe Color Group recognized approximately $30 million of new natural color conversion revenue in the third quarter, in addition to the $45 million cumulatively recognized through the second quarter. Management said annualized actual conversion revenue could be north of $160 million and estimated that approximately 20% of the $1 billion target could be achieved by the end of 2026.
- Long-Term Natural Color Sales Target Remains IntactSensient remains committed to achieving $1 billion in incremental natural color sales and expects to approach that run rate as it exits 2028. Management expects a substantial number of conversions in 2027, with conversion activity continuing into 2028 based on customer wins and projected launch dates.
- Broad Adoption of Natural ColorsManagement reported that 85% of all new launches in the United States during the third quarter were naturally colored. Total FDA synthetic color certifications declined nearly 10% over the last 12 months, and customers were described as de-stocking synthetic colors and replacing them across their portfolios.
- Strong Sales Wins and Customer PipelineSensient continued to generate strong new sales wins across each group, attributed to its innovative product portfolio, service levels, and customer collaboration. The natural color sales pipeline continues to grow, supported by technical and commercial teams and more than 15 years of R&D, capital, and supply chain investment.
- Flavors & Extracts Profit GrowthThe Flavors & Extracts Group delivered 3% local currency revenue growth and 9% local currency operating profit growth in the third quarter. Agricultural ingredients had notable volume growth, adjusted EBITDA margin increased 80 basis points to 18.5%, and management expects mid-single-digit local currency revenue growth for the full year.
- Asia Pacific OutperformanceThe Asia Pacific Group delivered 15% local currency revenue growth and 32% local currency operating profit growth in the third quarter. Adjusted EBITDA margin increased 330 basis points to 27.5%, and management raised its full-year expectation to low double-digit revenue growth.
- Full-Year Guidance Increased and MaintainedSensient increased the low end of its GAAP EPS guidance to $4.15 from $4.10 and narrowed the range to $4.15-$4.20. The company continued to expect local currency revenue growth of high single to low double digits and local currency adjusted EBITDA and EPS growth at mid- to high-teen rates. Management said guidance had increased during the year from an initial $360 million-$380 million range to $415 million-$420 million.
- Positive Margin OutlookManagement expects Color Group EBITDA margins to remain around 25%, with potential quarter-to-quarter movement of approximately 30 basis points plus or minus due primarily to depreciation timing. Flavors & Extracts EBITDA margins are expected to be in the high teens for the year, while Color and Asia Pacific margins are expected to be in the mid-20s.
- Natural Color Investment Program ContinuesSensient expects consolidated capital expenditures of around $160 million in 2026 and continues to expect approximately $250 million of natural color capital spending, with the majority occurring in 2026 and 2027. The company is continuing to invest in production capabilities, capacity, working capital, R&D, and supply chain infrastructure.
- Consumer Research Supports Natural Color OpportunitySensient's Value of Color research has engaged more than 12,000 U.S. consumers and tested more than 70 products across seven food, beverage, and pet food categories. The research found that color influences perceived taste, that consumers are willing to pay more for natural colors in cereal, and that natural color use increases purchase intent across categories.
- Color Technology and Product PositioningManagement said most customers are seeking to match synthetic colors rather than remove color or use a duller match. R&D remains focused on closing performance gaps between synthetic and natural colors, while the company is concentrating on technically differentiated products that management said generally command higher margins.
- Strong Pricing and Continued Personal Care OpportunityManagement said pricing execution for the year was successful. Although personal care was slower in the quarter, profit growth remained strong, base-business win rates continued to build, and management expects personal care revenue growth of mid-single digits for the year with improvement in the fourth quarter.
- Balance Sheet Supports Planned InvestmentsCash flow from operations was $40 million in the third quarter, and net debt-to-credit-adjusted EBITDA was 2.3x as of September 30, 2026. Management said the balance sheet remains well-positioned to support capital expenditures, sensible acquisition opportunities, and the company's long-standing dividend.
- Long-Term Return on Invested Capital GoalSensient maintains a goal of increasing ROIC to the mid-teens over the next few years, compared with approximately 9%-10% currently, as the company approaches peak natural color conversion activity.
- Supply Chain Prepared for Expected Conversion ActivityManagement said service levels remain strong, with suppliers and programs across the world and substantial coordination among formulation, production, and supply chain teams. Food color working capital increased by more than $70 million to support additional suppliers, raw materials, finished goods, and expected 2027 launches.
SXT Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 05, 2027 | 2026 (Q4) | 0.83- | 0.72 | ― | ― |
| Oct 30, 2026 | 2026 (Q3) | 1.091.13 | 0.96 | 17.71% (+0.17) | |
| Jul 24, 2026 | 2026 (Q2) | 1.031.20 | 0.94 | 27.66% (+0.26) | |
| Apr 24, 2026 | 2026 (Q1) | 0.841.04 | 0.86 | 20.93% (+0.18) | |
| Feb 13, 2026 | 2025 (Q4) | 0.770.72 | 0.65 | 10.77% (+0.07) | |
| Oct 31, 2025 | 2025 (Q3) | 0.900.96 | 0.8 | 20.00% (+0.16) | |
| Jul 25, 2025 | 2025 (Q2) | 0.880.94 | 0.77 | 22.08% (+0.17) | |
| Apr 25, 2025 | 2025 (Q1) | 0.820.86 | 0.79 | 8.86% (+0.07) | |
| Feb 14, 2025 | 2024 (Q4) | 0.640.65 | 0.51 | 27.45% (+0.14) | |
| Oct 25, 2024 | 2024 (Q3) | 0.780.80 | 0.75 | 6.67% (+0.05) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
