Turpaz Industries Ltd. Announces Record Third Quarter & Nine-month 2026 Results

Turpaz Continues Its Global Growth Momentum with Double-Digit Sales Growth and an Annual Sales Run-Rate of Approximately $390 Million

Record Sales of $267.9 Million in the First Nine Months of 2026, Up 33.6% Compared with the Corresponding Period Last Year

Nine-Month Net Income Up 55.1% to $25.8 Million

English Results Webinar Scheduled at 10am Eastern Time (5pm Israel Time)

CAESAREA, Israel, Nov. 10, 2026 /PRNewswire/ -- Turpaz Industries Ltd. (TASE: TRPZ), a global company that develops, manufactures, markets and sells thousands of flavor extracts, fragrance extracts and specialty fine ingredients to customers in more than 100 countries around the world, today announced record financial results for the third quarter and first nine months ended September 30, 2026, reflecting double-digit growth in revenues, gross profit and adjusted EBITDA in both periods and the successful combination of organic growth with the Company's merger and acquisition strategy.

Financial Highlights

• Nine-month revenues grew 33.6% to a record $267.9 million, with organic growth of 6.0% excluding currency effects; third quarter revenues grew 22.6% to a record $94.0 million;
• Core activity (Taste and Fragrance) grew approximately 39.0% in the first nine months, including organic growth of approximately 7.4%, and approximately 29.1% in the third quarter, including organic growth of approximately 5.6%;
• Nine-month gross profit grew 40.2% to $112.1 million (41.8% of revenues, up from 39.9%); third quarter gross profit grew 24.9% to $39.6 million (42.1% of revenues, up from 41.4%);
• Nine-month adjusted EBITDA increased 31.5% to $61.7 million; third quarter adjusted EBITDA increased 16.1% to $21.7 million;
• Nine-month net income grew 55.1% to $25.8 million; third quarter net income grew 9.4% to $6.6 million;
• Current annual revenue run-rate of approximately $390 million, following the acquisitions completed in the U.S., France and South Africa.

Management Comment

Karen Cohen Khazon, Chief Executive Officer of Turpaz Industries, said, "Our continued growth reflects the value we create for our customers through high-quality flavor and fragrance solutions, innovation, and advanced development and manufacturing capabilities, tailored to their needs."

"The acquisitions we have completed since the beginning of the year in the United States, France and South Africa expand our geographic footprint, bring us closer to customers in growing markets and strengthen the range of products and capabilities we offer them. Executing our growth strategy, which is based on strategic acquisitions and organic growth, enables us to continue creating value for our customers and to strengthen the Group's growth engines."

Third Quarter and First Nine Months 2026 Summary

Turpaz Industries Group, a global company that develops, manufactures, markets and sells flavor extracts, fragrance extracts and specialty fine ingredients, today reported record results for the third quarter and first nine months of 2026.

First Nine Months 2026 Results

Core activity, which includes the Taste and Fragrance segments, grew approximately 39.0% compared with the corresponding period last year, including high organic growth of approximately 7.4%.

Group revenues in the first nine months of 2026 grew by 33.6% to a record $267.9 million, compared with the corresponding period last year. The growth was driven by organic growth of 6.0%, excluding currency effects, together with the contribution of the acquisitions completed during 2025 and in the first nine months of 2026.

As of the date of this report, Turpaz's revenues, together with those of the companies acquired in the U.S., France and South Africa during 2026, reflect an annual revenue run-rate of approximately $390 million.

Gross profit in the first nine months grew by 40.2% to $112.1 million. Gross margin improved to 41.8%, compared with 39.9% in the corresponding period. The increase in gross profit stemmed mainly from the growth in revenues, while the improvement in gross margin reflects efficiency measures and the realization of synergies among the Group's companies. Adjusted EBITDA also grew at a high double-digit rate, increasing 31.5% to $61.7 million, compared with $46.9 million in the corresponding period.

Net income grew by 55.1% to $25.8 million in the first nine months of the year. The increase in net income stemmed mainly from profitable growth, the acquisitions completed during the period and the synergies generated from them.

Third Quarter 2026 Results

Core activity grew approximately 29.1% compared with the corresponding quarter last year, including organic growth of approximately 5.6%, against the backdrop of high double-digit core organic growth of approximately 11.6% in the corresponding quarter last year.

Group revenues in the third quarter of 2026 grew by 22.6% to a record $94.0 million. The growth in revenues was mainly attributable to the contribution of the companies whose acquisitions were completed. Gross profit grew by 24.9% to $39.6 million, representing 42.1% of revenues, an improvement from 41.4% in the corresponding quarter last year. Adjusted EBITDA increased by 16.1% to $21.7 million, representing 23.1% of revenues, and net income grew by 9.4% to $6.6 million.

Continued Execution of the Growth Strategy

Since 2017, Turpaz has completed 29 acquisitions worldwide, which have expanded its geographic footprint, strengthened its development and manufacturing capabilities and deepened the range of products and solutions it offers its customers. Since the beginning of 2025 through the date of this report, the Company has completed nine merger and acquisition transactions in South Africa, the U.S., France, the U.K., Belgium, Poland and India, which expanded the Group's activity and deepened its global footprint.

Turpaz identified at an early stage the trends shaping the industry, including the strengthening of the fine fragrance segment. Accordingly, over the past year the Company deepened its activity through three strategic acquisitions, in the U.S., in Grasse, France - the global center of perfumery - and in South Africa, and established a broad global platform that enables it to benefit from the industry's growth trends. Following these acquisitions, Fragrance sales grew by 106.1% in the first nine months to $69.5 million and now represent 26% of Group sales, compared with approximately 17% in the corresponding period last year. The acquisitions significantly expanded the Group's operations in North America and Europe, deepened its activity in fine fragrance, strengthened its development, manufacturing and marketing capabilities, and create significant potential for synergies and continued improvement in profitability.

The Company continues to present a particularly strong capital structure, positive cash flow and good access to sources of financing that support the Group's acquisition strategy. Total equity stands at $320 million and the net debt to adjusted EBITDA ratio is 2.0, reflecting a balanced level of leverage that allows the Company to continue evaluating acquisition opportunities while maintaining financial discipline. The Group also has good access to financing sources that support its continued growth.

English Results Webinar

The Company will be hosting a webinar later today via Zoom, starting at 10am Eastern Time and 5pm Israel Time. On the call, Ms. Karen Cohen Khazon, Chief Executive Officer, and Mr. Guy Gill, Executive Vice President and Chief Financial Officer, will review and present the results and will be available to answer investor questions.

To participate in the Zoom webinar, please register at the following link: https://us06web.zoom.us/webinar/register/WN_hUwaVL_HSualGHL8YeSN3Q

Following registration, investors will be sent the link to the webinar which is accessible either via the Zoom app, or alternatively from a dial-in telephone number. If you have an issue with registration, please contact the Turpaz investor relations team, well in advance of the webinar.

For those unable to participate, the call will be available for replay through the same link, or from a link to the recording on the Turpaz investor relations website, the day following the webinar.

About Turpaz Industries Ltd.

Turpaz Industries Group is a global company operating in the fields of flavor extracts, fragrance extracts and specialty fine ingredients. The Group develops, manufactures, markets and sells thousands of products to more than 5,100 customers in over 100 countries around the world. Turpaz operates 32 manufacturing sites, research and development centers, laboratories and sales, marketing and regulatory offices worldwide, and employs more than 1,200 people. Since 2017, the Company has completed 29 acquisitions worldwide, which have expanded its geographic footprint, strengthened its development and manufacturing capabilities and broadened the range of products and solutions offered to its customers. The Company's business strategy is based on organic growth at a rate higher than market growth, and the successful and systematic implementation of strategic acquisitions.

For more information, please visit Turpaz's website, at: https://www.turpaz.co.il/Investors

International Investor Relations Ehud Helft EK Global Investor Relations [email protected] (US) [phone]

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
		September 30,				December 31,
		2026		2025		2025
		Unaudited				Audited
		U.S. dollars in thousands
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		37,674		139,355		143,095
Trade receivables		69,924		56,854		51,262
Other accounts receivable		8,598		6,597		7,317
Inventories		71,882		52,281		55,021
Financial assets		1,089		1,020		1,054
		189,167		256,107		257,749
NON-CURRENT ASSETS:
Deferred taxes		4,327		2,149		2,913
Property, plant and equipment, net		77,570		67,098		70,756
Right-of-use assets, net		38,004		24,337		24,813
Intangible assets, net		453,271		314,947		332,522
Investment in companies accounted for at equity		25,084		25,024		25,181
		598,256		433,555		456,185
		787,423		689,662		713,934

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
LIABILITIES AND EQUITY		September 30,
						December 31,
		2026		2025		2025
		Unaudited				Audited
		U.S. dollars in thousands
CURRENT LIABILITIES:
Credit from banks and current maturities of long- term loans from banks and others		79,720		63,838		51,951
Trade payables		29,183		26,790		24,843
Other accounts payable		25,264		22,286		21,202
Short-term liabilities in respect of acquisition of activity		82,062		10,038		12,388
Current maturities of lease liabilities		6,066		4,101		4,089
		222,295		127,053		114,473
NON-CURRENT LIABILITIES:
Long-term loans from banks, less current maturities		119,589		117,595		127,344
Provision for waste removal		1,176		1,176		1,176
Long-term leases liabilities		33,597		21,623		22,211
Long-term liabilities in respect of acquisition of activity		62,415		122,172		134,530
Deferred taxes		27,510		17,950		19,913
Employee benefit liabilities		1,122		814		848
		245,409		281,330		306,022
EQUITY:
Equity attributable to equity holders of the company:
Share capital (*)		1		1		1
Share premium		187,724		177,136		177,521
Other capital reserves		(4,045)		(6,755)		(6,563)
Reserve in respect of translation differences		11,951		2,765		8,167
Retained earnings		84,981		65,874		70,658
		280,612		239,021		249,784
Non-controlling interests		39,107		42,258		43,655
Total equity		319,719		281,279		293,439
		787,423		689,662		713,934
*) Less than $ 1 thousand.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
		Nine months ended September 30,				Three months ended September 30,				Year ended December 31,
		2026		2025		2026		2025		2025
		Unaudited								Audited
		U.S. dollars in thousands (except per share data)
Revenues from sales		267,887		200,481		94,017		76,704		275,148
Cost of sales		155,816		120,527		54,414		44,984		165,127
Gross profit		112,071		79,954		39,603		31,720		110,021
Research and development expenses		12,541		7,590		4,545		3,109		11,046
Selling and marketing expenses		28,016		18,833		10,089		7,603		26,286
General and administrative expenses		31,300		21,438		10,967		8,032		29,464
Company's share of earnings of companies accounted for at equity, net		(848)		(633)		(126)		(34)		(764)
Other expenses		2,249		(203)		289		(363)		559
Operating income		38,813		32,929		13,839		13,373		43,430
Finance expenses, net		5,155		10,287		4,577		4,725		13,218
Income before taxes on income		33,658		22,642		9,262		8,648		30,212
Taxes on income		7,851		6,002		2,688		2,641		7,557
Net income		25,807		16,640		6,574		6,007		22,655
Other comprehensive income (net of tax effect):
Amounts that will not be reclassified subsequently to profit or loss:
Adjustments arising from translating financial statements from functional currency to presentation currency		11,882		14,662		(9,679)		5,790		27,649
Amounts that will be or that have been reclassified to profit or loss when specific conditions are met:
Adjustments arising from translating financial statements of foreign operations		(9,057)		(574)		6,849		(2,705)		(8,079)
Comprehensive income		28,632		30,728		3,744		9,092		42,225
Net income attributable to:
Equity holders of the Company		21,123		12,934		4,889		4,376		17,718
Non-controlling interests		4,684		3,706		1,685		1,631		4,937
		25,807		16,640		6,574		6,007		22,655
Comprehensive income attributable to:
Equity holders of the Company		24,907		23,068		2,371		7,295		33,254
Non-controlling interests		3,725		7,660		1,373		1,797		8,971
		28,632		30,728		3,744		9,092		42,225
Earnings per share attributable to equity holders of the Company (in U.S. dollars):
Basic and diluted earnings per share		0.19		0.12		0.04		0.04		0.17

SOURCE Turpaz Industries