Ingredion (INGR) Q1 2025 earnings summary

Executive summary

• Q1 2025 net sales declined 4% year-over-year to $1,813M, mainly due to lower raw material costs, FX impacts, and the South Korea divestiture, but adjusted operating income rose 26% to $273M and reported operating income increased 30% to $276M, driven by improved mix, operational execution, and strong segment performance in Texture & Healthful Solutions and Food & Industrial Ingredients.

• Gross profit margin expanded to 25.7%–26% from 22%–22.2% in Q1 2024, reflecting continued margin strength across segments.

• Adjusted diluted EPS increased 43% to $2.97, while reported diluted EPS was $3.00, down from $3.23 due to one-time gains in the prior year.

• Strong volume growth in Texture & Healthful Solutions (+7%) and overall volume up 3% excluding South Korea divestiture.

• Operational excellence initiatives and cost savings are on track to meet or exceed a $50M run-rate target for 2025.

Financial highlights

• Net sales for Q1 2025 were $1.8 billion, down 4% year-over-year; adjusted operating income was $273 million, up 26%; reported operating income was $276 million, up 30%.

• Gross profit increased 12% to $466 million; gross margin up 350 basis points to 25.7%.

• Adjusted EPS guidance for 2025 raised to $10.90–$11.60; reported EPS guidance at $10.93–$11.63.

• Cash from operations was $77 million in Q1 2025, down from $209 million in Q1 2024, with full-year projection at $825–$950 million.

• $55 million in share repurchases and $52 million in dividends paid YTD.

Outlook and guidance

• Full-year 2025 guidance maintained for all segments, with expectations for sales volume growth and operating income improvement; net sales expected up low single digits, operating income up high teens (reported) and mid-single digits (adjusted).

• Adjusted EPS guidance: $10.90–$11.60; effective tax rate expected at 26.0%–27.5%.

• Cash from operations projected at $825–$950 million; capex expected at $400–$450 million.

• Q2 2025 net sales expected to be flat to up low single digits; operating income flat to down low single digits due to tough comps.

• Guidance reflects tariffs as of April 30, 2025; future changes not included.