Sensient Technologies reported strong second-quarter 2025 results, with consolidated revenue increasing 2.7% to $414.2 million compared to the prior year. Operating income surged 16.2% to $57.7 million, demonstrating significant operational leverage. Diluted earnings per share (GAAP) was $0.88, up 20.5% from Q2 2024.
The Color Group delivered robust performance, with revenue up 6.9% and operating income increasing 23.6%, driven by strong growth in food and pharmaceutical product lines. The Asia Pacific Group also showed solid growth, with revenue up 10.8% and operating income increasing 13.5% across nearly all geographies. The Flavors & Extracts Group experienced a 2.8% revenue decline due to lower volumes in natural ingredients, but still managed an 8.8% increase in operating income.
Sensient reaffirmed its full-year 2025 guidance, projecting mid-single-digit local currency revenue growth and high single-digit local currency adjusted EBITDA growth. Adjusted EPS is expected to grow at a high single-digit to double-digit rate, with GAAP EPS forecast between $3.13 and $3.23. The company launched 'Marine Blue Capri' and 'Sienna Fortis' natural colors, bolstering its innovation story.
Capital expenditure plans for 2025 are set at $80 million to $90 million, aimed at supporting growth in the natural color market. The company absorbed $3.3 million in restructuring costs related to its Portfolio Optimization Plan during the quarter. Net debt stood at a credit-adjusted EBITDA leverage ratio of 2.4x for the trailing twelve months.
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