Sensient Technologies (NYSE:SXT) reported a 4.5% increase in fourth-quarter revenue, fueled by a surge in new business wins that helped offset the heavy lifting of a multi-year corporate restructuring.
The Milwaukee-based provider of flavors and colors posted revenue of $393.4 million for the period ended Dec. 31, 2025, up from $376.4 million a year earlier.
While the top line showed momentum, reported operating income fell 9.1% to $38.2 million.
The decline was largely driven by a sharp uptick in costs related to the company’s "Portfolio Optimization Plan," which totaled $6.3 million in the quarter compared to just $0.9 million in the prior-year period.
On an adjusted basis, which strips out the impact of the restructuring and currency swings, the company’s performance remained resilient.
Local currency adjusted diluted EPS rose 6.2% for the quarter, while full-year adjusted diluted EPS climbed 16% to $3.48.
Looking ahead, Sensient reiterated its confidence in a robust 2026.
The company’s Board recently declared a quarterly dividend of $0.41 per share, payable on March 2, 2026, marking a continuation of its steady return-of-capital policy.
Management is targeting mid-to-double-digit growth in both revenue and earnings for the coming year, supported by a favorable regulatory environment as U.S. and European markets move away from synthetic dyes.