Ingredion Posts Q3 2025 Results

• Third quarter 2025 reported and adjusted^* operating income decreased 7% and 10% compared to the third quarter 2024
• Third quarter 2025 reported and adjusted EPS were $2.61 and $2.75, compared with $2.83 and $3.05 in the third quarter 2024
• Adjusting full-year guidance for reported EPS to be in the range of $11.11 to $11.31 and adjusted EPS to be in the range of $11.10 to $11.30

WESTCHESTER, Ill., Nov. 04, 2025 (GLOBE NEWSWIRE) -- Ingredion Incorporated (NYSE: INGR), a leading global provider of ingredient solutions to the food and beverage manufacturing industry, today reported its 2025 third quarter results.

"The benefits of Ingredion's diversified business portfolio were evident in the quarter as our Texture & Healthful Solutions segment delivered another strong quarter of sales volume and operating income growth while our F&II businesses were impacted by lower volume demand and operational challenges at our largest facility in the U.S.," stated Jim Zallie, president and CEO of Ingredion.

"Texture & Healthful Solutions delivered a solid performance with 4% sales volume growth, led by double digit sales increases for clean label ingredient solutions in U.S./Canada and Asia-Pacific. Our solutions portfolio, comprised of customized formulations and differentiated products, outpaced the segment's net sales growth. New specialty solutions capacity investments to be completed in the next few quarters will further position us to meet growing customer reformulation requirements."

"Our Food & Industrial Ingredients-U.S./CAN segment operating income dipped 18%, primarily due to ongoing production challenges at our Chicago plant following the fire we experienced in late June, as well as reduced consumer beverage and food demand in response to rising retail prices. Our F&II-LATAM segment operating income decreased 11% versus last year, driven by our brewing customer and product mix management and weaker overall brewing industry demand. Furthermore, consumer demand softened throughout LATAM in the quarter as higher inflation, interest rates, and uncertainty impacted GDP growth."

"Our strategic pillars continue to guide our focus on delivering profitable growth, accelerating innovation, and driving operating excellence against a changing and uncertain macroeconomic climate. We will continue to deploy capital toward organic growth opportunities and M&A that expand and strengthen our Texture & Healthful Solutions portfolio. We also remain committed to returning capital to shareholders through dividends and share repurchases."

* Reported results are in accordance with U.S. generally accepted accounting principles ("GAAP"). Adjusted financial measures are non-GAAP financial measures. See "II. Non-GAAP Information" in the Supplemental Financial Information that follows the Condensed Consolidated Financial Statements for a reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures.

Diluted Earnings Per Share (EPS)

Estimated factors affecting changes in Reported and Adjusted EPS

** Totals may not sum or recalculate due to rounding

Business Review

Total Ingredion Net Sales

* Represents loss of volume due to the sale of our South Korea business

• Third quarter net sales decreased 3% from the same quarter last year. The decrease was driven by lower volume from each of the F&II segments and price mix, primarily from lower raw material costs, partially offset by T&HS volume increases.

Reported Operating Income

Adjusted Operating Income

Operating Income

• Third quarter reported and adjusted operating income were $249 million and $254 million. The difference in reported versus adjusted operating income was primarily attributable to restructuring costs from our Cost2Compete initiatives. Excluding foreign exchange impacts, reported operating income was down 8% and adjusted operating income was down 11% from a year ago.

Texture & Healthful Solutions Net Sales

Segment Operating Income

• Third quarter operating income for Texture & Healthful Solutions was $105 million, an increase of $9 million from a year ago, driven by lower raw material costs and favorable volume impacts, partially offset by unfavorable price mix. Excluding foreign exchange impacts, segment operating income was up 7%.

Food & Industrial Ingredients-LATAM Net Sales

Segment Operating Income

• Third quarter operating income for Food & Industrial Ingredients-LATAM was $116 million, a decrease of $15 million from a year ago, driven primarily by lower brewing industry volumes, customer and product mix management and softer consumer demand. Excluding foreign exchange impacts, segment operating income was down 12%.

Food & Industrial Ingredients-U.S./Canada Net Sales

Segment Operating Income

• Third quarter operating income for Food & Industrial Ingredients-U.S./Canada was $81 million, a decrease of $18 million from a year ago. The decrease resulted primarily from continued production challenges at one of our large manufacturing facilities and lower-than-expected beverage and food volume demand.

All Other^** Net Sales

* Represents loss of volume due to the sale of our South Korea business

Segment Operating Loss

• Third quarter operating loss for All Other was flat from the prior year, reflecting improvements in the plant-based protein business offset by lower profits from the Pakistan business.

** All Other consists of the businesses of multiple operating segments that are not individually or collectively classified as reportable segments. Net sales from All Other are generated primarily by sweetener and starch sales by our Pakistan business, sales of stevia and other ingredients from our PureCircle and Sugar Reduction businesses, and pea protein ingredients from our Protein Fortification business.

Other Financial Items

• At September 30, 2025, total debt was $1.8 billion, and cash, including short-term investments, was $921 million, versus $1.8 billion and $1.0 billion at December 31, 2024.
• In the third quarter, net financing costs were $7 million, compared to $1 million for the third quarter of 2024, driven by lower foreign exchange gains this quarter.
• Reported and adjusted effective tax rates for the third quarter were 28.6% and 26.4%, respectively, compared to 30.8% and 26.9%, respectively, for the year-ago period. The decrease in the reported effective tax rate was primarily driven by an adverse ruling by tax authorities in the prior year quarter and the change in value of the Mexican peso against the U.S. dollar. These impacts were partially offset by the change in our permanent reinvestment status of a certain foreign affiliate during the third quarter of 2025 and the tax treatment related to the sale of our South Korea business in 2024.
• Net capital expenditures were $298 million through September 30, 2025.

Dividends and Share Repurchases

In the third quarter, the Company paid $54 million in dividends to shareholders and on August 27, 2025, declared a quarterly dividend of $0.82 per share that was paid on October 21, 2025 (compared to the prior quarterly dividend of $0.80 per share), which represents the 11^th consecutive annual increase. Year-to-date through September 30, 2025, the Company repurchased $134 million shares of common stock.

Updated Full-Year 2025 Outlook

The Company expects its full-year 2025 reported EPS to be in the range of $11.11 to $11.31 and adjusted EPS to be in the range of $11.10 to $11.30.

This guidance reflects tariff levels in effect as of the end of October 2025. In addition, this guidance excludes any acquisition-related integration and restructuring costs, as well as any potential impairment costs.

The Company now expects full-year 2025 net sales to be flat to down low single-digits, reflecting volume growth in T&HS, offset by lower price mix on pass through of lower raw material costs and expected foreign exchange impacts.

Reported and adjusted operating income are both expected to be up low single-digits to mid-single-digits for full-year 2025.

The 2025 full-year outlook further assumes the following: Texture & Healthful Solutions operating income is now expected to be up high double-digits, driven by sales volume growth; Food & Industrial Ingredients-LATAM operating income is now expected to be flat to up low single-digits; Food & Industrial Ingredients-U.S./CAN operating income is now expected to be down low double-digits; and All Other operating income is still anticipated to approach breakeven profitability.

Corporate costs for full-year 2025 are still expected to be up high single-digits, driven by IT investments and project-related costs to advance our digital infrastructure.

For full-year 2025, the Company expects a reported effective tax rate of 25.5% to 26.5%, and an adjusted effective tax rate of 26.0% to 27.0%.

Cash from operations for full-year 2025 is expected to be in the range of $800 million to $900 million, which includes a return to investing in working capital balances. Capital expenditures for the full year are expected to be approximately $400 to $425 million.

Conference Call and Webcast Details

Ingredion will host a conference call on Tuesday, November 4, 2025, at 8 a.m. CT/ 9 a.m. ET, hosted by Jim Zallie, president and chief executive officer, and James Gray, executive vice president and chief financial officer. The call will be webcast in real time and can be accessed at https://ir.ingredionincorporated.com/events-and-presentations. A presentation containing additional financial and operating information will be accessible through the Company's website and available to