AI Takeaway
IFF reported a challenging FY2025 with revenue declining 5.2% to $10.89B and a swing to an operating loss of -$382M, though the company significantly reduced long-term debt by 36.6% and maintained a positive gross margin of 36.2%.
Revenue
$10.89B
-5.17% YoY
EPS (Basic)
$-1.41
-235.58% YoY
Gross Margin
36.2%
++0.25% YoY
Operating Income
$-382M
-149.87% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Total revenue fell 5.2% year-over-year from $11.48B to $10.89B in FY2025, reflecting broad-based demand softness and portfolio rationalization efforts as IFF continues to reshape its business mix.
Source: Source: 10-K Income Statement
Operating income deteriorated sharply from a gain of $766M in the prior year to a loss of -$382M in FY2025, a -149.9% decline, likely driven by impairment charges or restructuring costs beyond normal operating expenses, as gross margin remained relatively stable at 36.2%.
Source: Source: 10-K Income Statement
Long-term debt was reduced by 36.6% from $8.89B to $5.64B, a reduction of approximately $3.25B, suggesting IFF used proceeds from asset divestitures (evidenced by investing cash inflows of $2.27B) to deleverage its balance sheet.
Source: Source: 10-K Balance Sheet & Cash Flow Statement
2 more insights available
Upgrade to unlockEven after reducing long-term debt by $3.25B to $5.64B, IFF carries a substantial debt load relative to its operating cash flow of $850M. The debt-to-equity ratio remains significant, and any further deterioration in operating performance could strain debt service capacity.
Source: Source: 10-K Balance Sheet & Cash Flow Statement
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $0.80 versus the $0.83 analyst consensus — a -4.2% miss for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $10.89B | $11.48B | -5.17% |
Cost of Revenue | $6.95B | $7.36B | -5.54% |
Gross Profit | $3.94B | $4.12B | -4.51% |
Operating Income | $-382M | $766M | -149.87% |
EPS (Basic) | $-1.41 | $1.04 | -235.58% |
EPS (Diluted) | $-1.41 | $1.04 | -235.58% |
R&D Expense | $694M | $671M | +3.43% |
SG&A Expense | $1.83B | $2B | -8.07% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $25.54B | $28.72B | -11.09% |
Current Assets | $5.59B | $7.97B | -29.79% |
Current Liabilities | $3.93B | $4.35B | -9.63% |
Stockholders' Equity | $14.15B | $13.83B | +2.31% |
Cash & Equivalents | $590M | $469M | +25.80% |
Long-Term Debt | $5.64B | $8.89B | -36.60% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $850M | $1.07B | -20.56% |
Investing Cash Flow | $2.27B | $326M | +596.01% |
Financing Cash Flow | $-3.09B | $-1.61B | -92.47% |
Share Buybacks | $38M | $0 | — |
D&A | $962M | $1.01B | -5.22% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 36.2% | 35.9% | +0.25% |
Operating Margin | -3.5% | 6.7% | -10.18% |
Current Ratio | $1.422 | — | — |
Other companies in Specialty Chemicals
IFF reported a 5.2% revenue decline to $10.89B and swung to an operating loss of -$382M in FY2025, compared to operating income of $766M the prior year. However, the company made significant progress on its balance sheet, reducing long-term debt by 36.6% to $5.64B, likely through asset divestitures that generated $2.27B in investing cash flows.
IFF's operating income swung from a $766M gain to a -$382M loss in FY2025, a $1.15B deterioration, even though gross margin remained relatively stable at 36.2%. This divergence strongly suggests large non-cash charges such as goodwill impairments or restructuring costs were recorded below the gross profit line, which investors should verify in the full 10-K filing.
IFF reduced long-term debt by approximately $3.25B, from $8.89B to $5.64B, a 36.6% reduction in a single year. This was funded primarily by proceeds from asset divestitures, as evidenced by investing cash inflows of $2.27B, with financing cash outflows of -$3.09B confirming substantial debt repayment activity.
IFF's short-term liquidity appears adequate with a current ratio of 1.42 and positive operating cash flow of $850M, and its debt load has improved significantly. However, the operating loss of -$382M and negative EPS of -$1.41 highlight ongoing profitability challenges that investors should monitor closely in upcoming quarters.
IFF's revenue declined 5.2% year-over-year from $11.48B to $10.89B in FY2025, reflecting continued demand softness and the potential removal of divested business revenues from the consolidated results. Despite the revenue decline, gross margin improved slightly to 36.2% from 35.9%, suggesting some resilience in the core business.