Ingredion (INGR) Q2 2025 earnings summary

Executive summary

• Adjusted operating income for Q2 2025 reached $273M, up 1% year-over-year, and for H1 2025 rose 12% to $546M, despite a 2–3% decline in net sales due to divestitures and lower volumes.

• Texture & Healthful Solutions segment led growth with 2% net sales and 29% operating income increase, driven by clean label and wellness trends.

• Gross margin expanded to 26% in Q2 2025, up from 23.7% in Q2 2024, reflecting improved cost management and lower input costs.

• Food & Industrial Ingredients LATAM faced macroeconomic and FX headwinds, while U.S./Canada was impacted by a mechanical fire at the Chicago plant.

• Net income attributable to shareholders rose to $196M in Q2 2025 and $393M year-to-date, with reported EPS at $2.99.

Financial highlights

• Q2 2025 net sales were $1,833M, down 2% year-over-year; gross profit up 7% to $477M.

• Adjusted operating income: $273M in Q2 (+1% YoY); $546M for H1 (+12% YoY).

• Q2 2025 adjusted diluted EPS flat at $2.87; reported diluted EPS up 35% to $2.99.

• Gross margin: 26% in Q2, up 230 bps YoY; adjusted operating margin stable at 14.9%.

• Cash from operations in H1: $262M; capex net of disposals: $193M.

Outlook and guidance

• FY25 net sales expected flat; adjusted operating income projected up mid-single digits.

• Adjusted EPS guidance for FY25 is $11.10–$11.60; reported EPS $11.25–$11.75; effective tax rate expected at 26.0%–27.5%.

• Capital expenditures forecast at $400M–$425M; cash from operations for FY25 anticipated at $825M–$950M.

• Texture & Healthful Solutions operating income outlook raised to low double digits; LATAM up low single digits; U.S./Canada down low single digits.

• Q3 2025: net sales flat to up low single digits; operating income flat to down low single digits.