Ingredion (INGR) investor relations material

Executive summary

• Q3 2025 net sales declined 3% year-over-year to $1,816M, with adjusted operating income down 10% to $254M and adjusted EPS down $0.30 to $2.75; year-to-date net sales fell 3% to $5,462M, but adjusted operating income rose 4% to $800M and adjusted EPS increased $0.58 to $8.60.

• Net income for year-to-date 2025 rose to $564M from $552M year-over-year, despite a $90M gain from a business sale in 2024, driven by higher gross profit and lower restructuring charges, partially offset by increased operating expenses.

• Texture & Healthful Solutions segment delivered strong sales volume and operating income growth, while Food & Industrial Ingredients segments faced lower demand and operational challenges, including production disruptions at the Argo (Chicago) plant.

• Despite Q3 challenges, the company remains on track for profitable growth in 2025, supported by a diversified business portfolio and ongoing cost savings initiatives.

• Sale of the South Korea business in 2024 and agreement to sell 51% of the Pakistan business impacted year-over-year comparisons.

Financial highlights

• Q3 2025 net sales: $1,816M (down 3% year-over-year); gross profit: $455M (down 5%); operating income: $249M (down 7%); adjusted operating income: $254M (down 10%).

• Year-to-date 2025 net sales: $5,462M (down 3%); gross profit: $1,398M (up 4%); operating income: $796M (up 10%); adjusted operating income: $800M (up 4%).

• Q3 2025 EPS: $2.66 basic, $2.61 diluted (down from $2.83); adjusted EPS: $2.75 (down from $3.05); year-to-date EPS: $8.76 basic, $8.61 diluted; adjusted EPS: $8.60 (up from $8.02).

• Cash from operations year-to-date was $539M; capital expenditures were $298M; dividends paid: $157M; share repurchases: $134M.

• Q3 gross margin: 25.1%; year-to-date gross margin: 25.6%; Q3 adjusted operating margin: 14.0%; year-to-date adjusted operating margin: 14.7%.

Outlook and guidance

• Full-year 2025 net sales expected to be flat to down low single digits; adjusted operating income up low to mid-single digits; adjusted EPS guidance narrowed to $11.10–$11.30.

• Cash from operations for 2025 expected at $800–$900M; capital expenditures projected at $400–$425M.

• Segment outlook: Texture & Healthful Solutions net sales up low single digits, operating income up high double digits; F&II LATAM net sales down mid-single digits, operating profit flat to up low single digits; F&II U.S./Canada net sales down mid-single digits, operating income down low double digits.

• Effective tax rate for 2025 expected at 25.5%–26.5%; adjusted effective tax rate at 26%–27%.

• Management expects available cash, future cash flow, and borrowing capacity to be sufficient for anticipated needs for at least the next twelve months and foreseeable future.