- First quarter 2025 reported and adjusted* operating income increased 30% and 26% compared to prior year
- First quarter 2025 reported and adjusted EPS were $3.00 and $2.97, compared with $3.23 and $2.08 in the first quarter 2024
- Improving guidance for full-year reported EPS to be in the range of $10.93 to $11.63 and adjusted EPS to be in the range of $10.90 to $11.60
WESTCHESTER, Ill., May 06, 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 first quarter results.
"Our strong results demonstrate the company's continued ability to deliver sales volume and operating income growth," said Jim Zallie, president and CEO of Ingredion. "While tariff changes are creating uncertainty, we are reassured by the fact that the vast majority of our products are made locally and sold locally."
"The Texture & Healthful Solutions segment delivered a robust 34% increase in operating income, driven by strong sales volume across all geographies, and especially from our clean label solutions."
"In the Food and Industrial Ingredient businesses, both the LATAM and U.S./Canada segments also delivered strong results. Double digit operating income growth in F&II-LATAM was driven by the unexpected stability of the Argentine peso, favorable market mix and lower costs, with Mexico achieving another record quarter. The F&II-U.S./Canada segment exceeded expectations due to favorable product mix, efficient cost management, and excellent market execution. Additionally, while winter disruptions are common in our industry, winterization upgrades implemented last year provided operational benefits."
"Based upon our successful first-quarter performance, we are improving our full-year earnings forecast. We remain guided by our commitment to be preferred by our customers as we leverage the experience of our team to navigate this complex business environment with agility. Our focus on sustainable growth, disciplined cost management, and a strong balance sheet provides opportunities and optionality to create future value for shareholders."
* 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)
| 1Q24 | 1Q25 | |||||
| Reported Diluted EPS | $ | 3.23 | $ | 3.00 | ||
| Impairment charges | - | 0.08 | ||||
| Restructuring and resegmentation costs | 0.03 | 0.02 | ||||
| Net gain on sale of business | (1.09 | ) | - | |||
| Tax items and other matters | (0.09 | ) | (0.13 | ) | ||
| Adjusted Diluted EPS** | $ | 2.08 | $ | 2.97 | ||
Estimated factors affecting changes in Reported and Adjusted EPS
| 1Q25 | ||
| Total items affecting EPS** | 0.89 | |
| Total operating items | 0.61 | |
| Margin | 0.60 | |
| Volume | (0.11 | ) |
| Foreign exchange | (0.05 | ) |
| Other income | 0.17 | |
| Total non-operating items | 0.28 | |
| Financing costs | 0.10 | |
| Tax rate | 0.13 | |
| Shares outstanding | 0.05 | |
| ** Totals may not sum due to rounding | ||
Other Financial Items
- At March 31, 2025, total debt was $1,784 million, and cash, including short-term investments, was $846 million, versus $1,831 million and $1.0 billion at Dec. 31, 2024.
- In the first quarter, net financing costs were $9 million, compared to $19 million for the year-ago first quarter, driven by lower net interest expense and benefitting from favorable foreign exchange impacts.
- Reported and adjusted effective tax rates for the quarter were 25.5% and 25.4%, respectively, compared to 21.0% and 28.4% for the year-ago period. The increase in the reported effective tax rate was primarily driven by favorable tax treatment on the sale of our South Korea business during the first quarter of 2024.
- Net capital expenditures in 2025 were $92 million through March 31, 2025.
Business Review
Total Ingredion
Net Sales
| $ in millions | 2024 | FX Impact | Volume | S. Korea Volume* | Price Mix | 2025 | Change | Change excl. FX | |||||
| First Quarter | 1,882 | (40) | 43 | (24) | (48) | 1,813 | (4%) | (2%) | |||||
| * Represents loss of volume due to the sale of our South Korea business | |||||||||||||
Reported Operating Income
| $ in millions | 2024 | FX Impact | Business Drivers | Restructuring/ Impairment | Other | 2025 | Change | Change excl. FX | |||||
| First Quarter | 213 | (5) | 62 | (4) | 10 | 276 | 30% | 32% | |||||
Adjusted Operating Income
| $ in millions | 2024 | FX Impact | Business Drivers | 2025 | Change | Change excl. FX | |||
| First Quarter | 216 | (5) | 62 | 273 | 26% | 29% | |||
Net Sales
- First quarter net sales decreased 4%. The decrease was driven by price mix primarily from lower raw material costs, foreign exchange impacts and the impact of the sale of our South Korea business in the first quarter of 2024, partially offset by T&HS volume increases.
Operating Income
- First quarter reported and adjusted operating income were $276 million and $273 million respectively. The difference in reported versus adjusted operating income was primarily attributable to insurance recoveries and a favorable judgment related to certain indirect taxes in Brazil, partially offset by impairment charges related to certain equity investments. Excluding foreign exchange impacts, reported operating income was up 32% and adjusted operating income was up 29% from a year ago.
Texture & Healthful Solutions
Net Sales
| $ in millions | 2024 | FX Impact | Volume | Price Mix | 2025 | Change | Change excl. FX |
| First Quarter | 597 | (3) | 40 | (32) | 602 | 1% | 1% |
Segment Operating Income
| $ in millions | 2024 | FX Impact | Business Drivers | 2025 | Change | Change excl. FX | ||
| First Quarter | 74 | - | 25 | 99 | 34% | 34% | ||
- First quarter operating income for Texture & Healthful Solutions was $99 million, an increase of $25 million from a year ago, driven by lower raw material and input costs and increased volumes, partially offset by unfavorable price mix.
Food & Industrial Ingredients-LATAM
Net Sales
| $ in millions | 2024 | FX Impact | Volume | Price Mix | 2025 | Change | Change excl. FX | |||||
| First Quarter | 616 | (28) | (10) | (5) | 573 | (7%) | (2%) | |||||
Segment Operating Income
| $ in millions | 2024 | FX Impact | Business Drivers | Argentina JV | 2025 | Change | Change excl. FX | |||
| First Quarter | 101 | (3) | 10 | 19 | 127 | 26% | 29% | |||
- First quarter operating income for Food & Industrial Ingredients-LATAM was $127 million, an increase of $26 million. The quarter's results benefited from the lapping of the devaluation of the Argentine peso on prior year results of our Argentina joint venture. Excluding the joint venture's results, segment operating income increased due to lower raw material costs that were partially offset by lower volumes. Excluding foreign exchange impacts, segment operating income was up 29%.
Food & Industrial Ingredients-U.S./Canada
Net Sales
| $ in millions | 2024 | FX Impact | Volume | Price Mix | 2025 | Change | Change excl. FX | ||||
| First Quarter | 541 | (6) | - | (15) | 520 | (4%) | (3%) | ||||
Segment Operating Income
| $ in millions | 2024 | FX Impact | Business Drivers | 2025 | Change | Change excl. FX | |||
| First Quarter | 87 | (2) | 7 | 92 | 6% | 8% | |||
- First quarter operating income for Food & Industrial Ingredients-U.S./Canada was $92 million, an increase of $5 million from a year ago. The increase was driven by lower raw material costs and improved product mix. Excluding foreign exchange impacts, segment operating income was up 8%.
All Other**
Net Sales
| $ in millions | 2024 | FX Impact | Volume | S. Korea Volume* | Price Mix | 2025 | Change | Change excl. FX | ||||
| First Quarter | 128 | (3) | 13 | (24) | 4 | 118 | (8%) | (5%) | ||||
| * Represents loss of volume due to the sale of our South Korea business | ||||||||||||
Segment Operating Income (loss)
| $ in millions | 2024 | FX Impact | Business Drivers | 2025 | Change | Change excl. FX |
| First Quarter | (4) | - | 4 | 0 | nm | nm |
- First quarter operating income (loss) for All Other improved $4 million from the prior year, primarily driven by improvements in our plant-based protein 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.
Dividends and Share Repurchases
In the first quarter, the Company paid $52 million in dividends to shareholders. On March 12, 2025, the Company declared a quarterly dividend of $0.80 per share that was paid on April 22, 2025. During the quarter, the Company repurchased $55 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 $10.93 to $11.63 and adjusted EPS to be in the range of $10.90 to $11.60.
This guidance reflects tariff levels in effect as of the end of April 2025 and does not consider future changes in tariffs or trade restrictions. In addition, this guidance excludes any acquisition-related integration and restructuring costs, as well as any potential impairment costs.
The Company expects full-year 2025 net sales to be up low single-digits, reflecting greater volume demand, partially offset by price mix and foreign exchange impacts. Reported operating income is expected to be up high teens as we lap prior-year impairment charges, and adjusted operating income is expected to be up mid-single-digits for full-year 2025.
The 2025 full-year outlook further assumes the following: Texture and Healthful Solutions operating income is expected to be up mid-single-digits to high single-digits, driven by sales volume growth; Food & Industrial Ingredients-LATAM operating income is expected to be up mid-single-digits; Food & Industrial Ingredients-US/CAN operating income is expected to be flat to down low single-digits; and All Other operating income is anticipated to approach breakeven profitability.
Corporate costs for full-year 2025 are expected to be up mid-single-digits to high single-digits.
For full-year 2025, the Company expects both a reported and adjusted effective tax rate of 26.0% to 27.5%.
Cash from operations for full-year 2025 is expected to be in the range of $825 million to $950 million, which reflects a return to investing in working capital balances based upon expected growth in net sales. Capital expenditures for the full year are expected to be approximately $400 to $450 million.
For the second quarter of 2025, the Company expects net sales to be flat to up low single-digits compared to the same quarter last year, with operating income expected to be flat to down low single-digits.
Conference Call and Webcast Details
Ingredion will host a conference call on Tuesday, May 6, 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
