International Flavors & Fragrances

IFF
Financial Analysis · Updated May 13, 2026 · Coverage 2026-Q2
Latest Q Revenue
$2.6B
Q4 2025 · -8% YoY
TTM ROIC
5.8%
FY2025 · Adj. NOPAT / Avg. Invested Capital; Invested Capital = Total Equity + Total Debt - Cash; Adj. NOPAT = Adj. EBITDA - D&A × (1 - tax rate ~20%) · WACC ~8% · Moat spread +-2.2pp

Financial Snapshot

ticker: IFF step: 04 generated: 2026-05-13 source: quick-research

International Flavors & Fragrances Inc. (IFF) — Financial Snapshot

Income Statement Summary

Metric FY2022 FY2023 FY2024 YoY
Revenue $12.44B $11.48B $11.48B ~flat
Gross Margin ~35% ~35% ~36%
Operating Margin ~5% ~-5% (impairments) ~7%
Net Income ~$500M ~-$2.5B (write-downs) ~$250M
EPS (diluted) ~$2.00 ~-$10.00 (non-cash) ~$1.00

FY2023 GAAP net loss driven by large non-cash goodwill impairments on the 2021 N&B acquisition — not reflective of operating performance. Adjusted EBITDA is the more relevant metric: ~$2.0B in FY2024 (target: $2.0-2.15B in 2025). Q1 2025 revenue: $2.84B.

Cash Flow & Balance Sheet (FY2024)

Metric Value
Free Cash Flow $607M
Capital Expenditures $1.07B (elevated; normalizing)
Adjusted EBITDA ~$2.0B
Total Debt ~$10B+ (post-N&B merger)
Net Debt / EBITDA ~3.0x (target: <3x post-divestitures)

Key Ratios (approximate)

  • P/E: ~20x (adj.) | EV/EBITDA: ~10x | FCF Yield: ~4%
  • Revenue Growth (FY2024): ~flat | Adj. EBITDA Margin: ~17%
  • Fitch upgrade to 'BBB' (investment grade) after debt reduction

Growth Profile

IFF is in a multi-year restructuring phase following the overpriced 2021 N&B acquisition (~$26B). Revenue has been flat as divestitures and weak organic growth offset each other. The $2.85B Pharma Solutions sale (completed May 2025) and ongoing Food Ingredients exploration provide deleveraging capital. FY2025 guidance: revenue $10.6-10.9B (lower, reflecting Pharma Solutions divestiture) with adjusted EBITDA $2.0-2.15B — EBITDA margin expansion is the core recovery story.

Forward Estimates

  • FY2026 Guidance: 1-4% sales growth; 3-8% EBITDA growth; net debt/EBITDA target <2.5x
  • Analyst avg. price target: ~$83-99 (JPMorgan $92, Citi $96)
  • Return on capital improvement: from 2.77% to 5.32% over last 12 months; projected 6.37%
  • Capital allocation: $1.2B debt tender completed; revolving credit facility undrawn ($2B capacity)

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $IFF.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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Markdown: /stocks/iff/financials/md · → thesis · → memo