Financial Analysis

2. Acquisition On February 14, 2025, the Company acquired Biolie SAS , a natural color extraction business located in France. The Company paid $4.9 million in cash for this acquisition, which is net of $0.2 million in debt assumed. The assets acquired and liabilities assumed were recorded at their estimated fair value as of the acquisition date. The Company acquired net assets of $0.3 million, with the remaining $4.6 million allocated to goodwill. This business is part of the Color segment.

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15. Commitments and Contingencies The Company is subject to various claims and litigation arising in the normal course of business. The Company establishes reserves for claims and proceedings when it is probable that liabilities exist and reasonable estimates of loss can be made. While it is not possible to predict the outcome of these matters, based on our assessment of the facts and circumstances now known, we do not believe that these matters, individually or in the aggregate, will have a material adverse effect on our financial position. However, actual outcomes may be different from those expected and could have a material effect on our results of operations or cash flows in a particular period.

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6. Debt Long-term Debt Long-term debt consisted of the following obligations at December 31: (In thousands) 2025 2024 4.19 % senior notes due November 2025 $ - $ 25,000 6.08% senior notes due November 2026 35,000 35,000 6.14% senior notes due November 2027 35,000 35,000 4.94 % senior notes due May 2028 75,000 75,000 4.83% senior notes due November 2029 60,000 - 6.34% senior notes due November 2029 35,000 35,000 1.71 % Euro-denominated senior notes due May 2027 46,981 41,416 4.15% Euro-denominated senior notes due May 2028 46,981 41,416 4.62% Euro-denominated senior notes due November 2029 46,981 41,416 2.76 % British Pound-denominated notes due November 2025 - 31,289 Euro-denominated term loan 88,090 77,657 Revolving Credit Facilities 240,488 175,125 Various other notes 369 536 Total debt 709,890 613,855 Less debt fees (429 ) (133 ) Less current portion (229 ) (199 ) Total long-term debt $ 709,232 $ 613,523 In June 2025, the Company entered into a Fourth Amended and Restated Credit Agreement (Credit Agreement). The Credit Agreement provides for a $400 million senior unsecured revolving credit facility, with up to $20 million of the facility being available as a sub-facility for standby and commercial letters of credit and sub-limits of up to $50 million on swing line loans. The Credit Agreement amended and restated the Companys Third Amended and Restated Credit Agreement to, among other things, (i) increase the aggregate revolving commitment amount from $350 million to $400 m …

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8. Share-Based Compensation In April 2022, the shareholders of the Company approved the Amended and Restated 2017 Stock Plan authorizing 2.15 million shares for issuance as non-vested stock in the form of restricted stock, restricted stock units, performance stock units, non-qualified stock options, incentive stock options, and stock appreciation rights. As of December 31, 2025, there were 0.5 million shares available to issue as non-vested stock under the Companys Amended and Restated 2017 Stock Plan. The Company may also issue up to 0.2 million shares of stock pursuant to its 1999 Amended and Restated Directors Deferred Compensation Plan . The Company recognizes expense for shares of non-vested stock over a three-year vesting period with a pro-rata vesting upon retirement. During the period of restriction, the holder of non-vested stock has voting rights and is entitled to receive all dividends and other distributions paid with respect to the stock. The holders of performance stock units are not entitled to vote or receive dividends and other distributions paid with respect to the stock, until the units have vested and shares of stock issued . Grants issued to elected officers consist of 60% performance stock unit awards and 40% non-vested restricted stock awards. The performance stock unit awards are based on a three-year performance period and a three-year vesting period with a pro-rata vesting upon retirement. Starting with the December 2024 grant, grants issued to certa …

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13. Fair Value Measurements ASC 820, Fair Value Measurement , defines fair value for financial assets and liabilities, establishes a framework for measuring fair value in GAAP, and expands disclosures about fair value measurements. As of December 31, 2025 and 2024, the Companys assets and liabilities subject to this standard are forward exchange contracts. The net fair value of the forward exchange contracts based on current pricing obtained for comparable derivative products (Level 2 inputs) was an asset of $0.3 million and a liability of $0.8 million as of December 31, 2025 and 2024, respectively. The carrying values of the Companys cash and cash equivalents, trade accounts receivable, trade accounts payable, accrued expenses, and short-term borrowings were approximately the same as the fair values as of December 31, 2025. The fair value of the Companys long-term debt, including current maturities, is estimated using discounted cash flows based on the Companys current incremental borrowing rates for similar types of borrowing arrangements (Level 2 inputs). The carrying value of the long-term debt at December 31, 2025 and 2024, was $709.5 million and $613.7 million, respectively. The fair value of the long-term debt at December 31, 2025 and 2024, was $720.9 million and $622.0 million, respectively. …

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4. Goodwill and Intangible Assets At December 31, 2025 and 2024, goodwill is the only intangible asset that is not subject to amortization. The following table summarizes intangible assets with determinable useful lives by major category as of December 31, 2025 and 2024: 2025 2024 (In thousands except weighted average amortization years) Weighted Average Amortization Years Cost Accumulated Amortization Cost Accumulated Amortization Technological know-how 11.7 $ 6,672 $ (4,351 ) $ 6,643 $ (3,119 ) Customer relationships 19.0 9,637 (4,206 ) 9,611 (3,672 ) Patents, trademarks, non-compete agreements, and other 15.4 12,749 (10,380 ) 12,121 (9,701 ) Total finite-lived intangibles 15.8 $ 29,058 $ (18,937 ) $ 28,375 $ (16,492 ) Amortization of intangible assets was $2.1 million in 2025, $1.7 million in 2024, and $2.3 million in 2023. Estimated amortization expense, for the five years subsequent to December 31, 2025, is $1.6 million in 2026; $1.2 million in 2027; $1.0 million in 2028; $0.9 million in 2029; and $0.9 million in 2030. The changes in goodwill for the years ended December 31, 2025 and 2024, by reportable business segment, were as follows: (In thousands) Flavors & Extracts Color Asia Pacific Consolidated Balance as of December 31 , 2023 $ 103,313 $ 316,181 $ 4,571 $ 424,065 Currency translation impact (3,070 ) (9,001 ) (219 ) (12,290 ) Balance as of December 31 , 2024 $ 100,243 $ 307,180 $ 4,352 $ 411,775 Currency translation impact 5,060 18,254 60 23,374 Acquisitions …

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11. Income Taxes Earnings before income taxes were as follows: (In thousands) 2025 2024 2023 United States $ 66,358 $ 57,318 $ 45,900 Foreign 111,189 105,480 83,951 Total $ 177,547 $ 162,798 $ 129,851 The provision for income taxes was as follows: (In thousands) 2025 2024 2023 Current income tax expense: Federal $ 13,395 $ 20,307 $ 11,153 State 1,936 3,375 2,814 Foreign 30,432 33,048 27,590 45,763 56,730 41,557 Deferred expense (benefit): Federal 46 (12,743 ) (4,656 ) State (1,338 ) (581 ) (813 ) Foreign (1,413 ) (5,274 ) 369 (2,705 ) (18,598 ) (5,100 ) Income taxes $ 43,058 $ 38,132 $ 36,457 Payments of income taxes were as follows: (In thousands) 2025 Federal $ 13,686 State 3,211 Germany 7,389 Thailand 4,904 Mexico 3,846 China 3,141 France 2,408 Foreign - Other 10,221 Total $ 48,806 The company adopted ASU 2023-09 prospectively in 2025. The 2025 reconciliation between the U.S. Federal tax rate and the actual effective tax rate under ASU 2023-09 is below. The reconciliation for 2024 and 2023 under the prior guidance follows. 2025 Amount Percent Taxes at statutory rate $ 37,285 21.0 % State income taxes, net of federal income tax benefit Wisconsin 1 (1,053 ) (0.6 ) Other state income taxes 1 1,140 0.6 Tax credits Research and Development tax credits (3,674 ) (2.1 ) Foreign tax effects Germany Foreign statutory tax rate difference (1,622 ) (0.9 ) Enacted change in tax rate impact on deferred items (1,726 ) (1.0 ) Local taxes 4,039 2.3 Other foreign jurisdictions 6,823 3.9 Effe …

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5. Leases The Company leases certain office space, warehouses, land, and equipment under operating lease arrangements. Some of the Companys leases include options to extend the leases for up to an additional five years. Some of the Companys lease agreements also include rental payments that are adjusted periodically for inflation (i.e., Consumer Price Index ). The Company recorded operating lease expense, which includes short-term lease expense and variable lease costs, of $14.0 million, $13.4 million, and $11.9 million during the years ended December 31, 2025, 2024, and 2023, respectively. For the years ended December 31, 2025, 2024, and 2023, the Company paid $13.3 million, $11.5 million , and $ 10.3 million, respectively, in cash for operating leases, not including short-term lease expense or variable lease costs. The Company entered into operating leases that resulted in $12.0 million, for the year ended December 31, 2025, and $9.0 million, for each of the years ended December 31, 2024 and 2023, of right-of-use assets in exchange for operating lease obligations. The Company i ncluded $39.9 million and $36.4 million of right-of-use assets in Other Assets on the Companys Consolidated Balance Sheets as of December 31, 2025 and 2024, respectively. The Company included $29.2 million and $28.7 million of operating lease liabilities in Other Liabilities on the Companys Consolidated Balance Sheets as of Dec ember 31, 2025 and 2024, respectively. The Company included $10.6 million …

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Recently Adopted Accounting Pronouncements In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which requires the Company to disclose specified additional information in its income tax rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. This ASU also requires the Company to disaggregate its income taxes paid disclosure by federal , state, and foreign taxes, with further disaggregation required for significant individual jurisdictions. This ASU is effective for fiscal years beginning after December 15, 2024. The Company adopted this ASU in the fourth quarter of 2025 using a prospective transition method. The Company updated the disclosures included in Note 11, Income Taxes , as a result of adopting this ASU, and the adoption did not have a material impact on the Companys consolidated financial statements. Recently Issued Accounting Pronouncements In November 2024 , the FASB issued ASU No. 2024-03, Income Statement Reporting Comprehensive Income Expense Disaggregation Disclosures (Subtopic 220-40) Disaggregation of Income Statement Expenses , which will require the Company to disclose disaggregated information about certain income statement expense line items. This ASU is effective for fiscal years beginning after December 15, 2026 and interim periods within fiscal years beginning afte …

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9. Retirement Plans The Company provides benefits under defined contribution plans including a savings plan and an employee stock ownership plan (ESOP). The savings plan covers substantially all domestic salaried and certain non-union hourly employees and provides for matching contributions up to 4% of each employees salary. The ESOP covers substantially all domestic employees and provides for contributions based on a percentage of each employees compensation as determined by the Companys Board of Directors. Total expense for the Companys defined contribution plans was $9.1 million in 2025, $8.0 million in 2024, and $8.2 million in 2023. Although the Company intends for these defined contribution plans to be the primary retirement benefit for most employees, the Company also has several defined benefit plans. The funded status of the defined benefit plans was as follows at December 31: (In thousands) 2025 2024 Benefit obligation at beginning of year $ 30,887 $ 36,413 Service cost 1,506 1,736 Interest cost 1,817 1,839 Foreign currency exchange rate changes 1,284 (979 ) Benefits paid (1,854 ) (5,266 ) Actuarial loss (gain) 678 (2,856 ) Benefit obligation at end of year 34,318 30,887 Plan assets at beginning of year 18,972 21,270 Company contributions 801 4,192 Foreign currency exchange rate changes 1,137 (544 ) Benefits paid (1,854 ) (5,266 ) Actual gain (loss) on plan assets 714 (680 ) Plan assets at end of year 19,770 18,972 Funded status $ (14,548 ) $ (11,915 ) Accumulated b …

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12. Segment and Geographic Information The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Company evaluates performance based on operating income before share-based compensation (except for share-based compensation expense associated with stock grants to certain business unit leaders) , restructuring and other charges, including the Portfolio Optimization Plan costs, interest expense, and income taxes (segment operating income). Total revenue and segment operating income by business segment and geographic region include both sales to customers, as reported in the Companys Consolidated Statements of Earnings, and intersegment sales, which are accounted for at prices that approximate market prices and are eliminated in consolidation. Assets by business segment and geographic region are those assets used in the Companys operations in each segment and geographic region. Segment assets reflect the allocation of goodwill to each segment. Corporate & Other assets consist primarily of accounts receivables from the securitization program, investments, deferred tax assets, and fixed assets. During 2025, the Company changed the name of its Natural Ingredients product line to Agricultural Ingredients within the Flavors & Extracts segment to clearly distinguish it from the natural color activities within the Food & Pharmaceutical Colors product line within the Color segment. Segment Information The Com …

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1. Summary of Significant Accounting Policies Nature of Operations Sensient Technologies Corporation, together with its subsidiaries (the Company or Sensient), is a leading global manufacturer and marketer of colors, flavors, and other specialty ingredients. The Company uses advanced technologies at facilities around the world to develop specialty food and beverage systems; personal care, essential oils, pharmaceutical, and nutraceutical systems; specialty colors; and other specialty and fine chemicals. The Companys three reportable segments are the Flavors & Extracts Group and the Color Group, which are managed on a product line basis, and the Asia Pacific Group, which is managed on a geographic basis. The Companys corporate expenses, share-based compensation (except for share-based compensation expense associated with stock grants to certain business unit leaders), restructuring and other charges, including the Portfolio Optimization Plan costs, and other costs are included in the Corporate & Other category. Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of the Company and have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). All significant intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of the consolidated financial statements requires the use of managements estimates and a …

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16. Subsequent Event On January 16, 2026 , the Company announced its quarterly dividend of 41 cents per share would be payable on March 2, 2026 .

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