Ingredion (INGR) Q2 2026 earnings summary

Executive summary

• Q2 2026 net sales increased 1% year-over-year to $1.85 billion, while adjusted operating income declined 5% to $258 million, impacted by operational challenges, macroeconomic pressures in Mexico, and impairment/restructuring costs.

• Texture & Healthful Solutions (T&HS) delivered strong growth, with Q2 net sales up 5% to $627 million and operating income up 5% to $117 million, marking its second highest quarterly operating income ever.

• Net income for the first half of 2026 fell to $256 million from $393 million year-over-year, mainly due to acquisition-related costs and FX hedging losses tied to the pending Tate & Lyle acquisition, partially offset by a $44 million gain from the Pakistan business sale.

• Shareholder approval for the pending Tate & Lyle acquisition was received, with integration planning underway and expected to deliver $130 million in synergies by 2030 and >15% adjusted EPS accretion in the first year post-acquisition.

• Strategic focus remains on profitable growth, innovation, and enterprise productivity, including network optimization and portfolio transformation.

Financial highlights

• Q2 2026 net sales rose 1% to $1.85 billion, driven by favorable FX and higher volumes, partially offset by unfavorable price mix.

• Adjusted operating income declined 5% to $258 million, while reported operating income dropped 31% to $188 million due to impairment and restructuring charges.

• Adjusted diluted EPS for Q2 2026 was $2.82, down from $2.87 in Q2 2025; reported diluted EPS was $1.78, down from $2.99.

• Year-to-date 2026 net sales were flat at $3.64 billion, with adjusted operating income down 14% to $470 million.

• Gross profit margin contracted by 300 bps in Q2 and 320 bps YTD, reflecting inflation and operational impacts.

Outlook and guidance

• Full-year 2026 net sales expected to be flat to up low single digits; adjusted operating income projected to be down mid-single digits, and reported operating income down low double digits.

• Adjusted EPS guidance reaffirmed at $10.30–$10.90; reported EPS expected in $9.15–$9.75 range; cash from operations forecasted at $700–$800 million.

• Capital expenditures for 2026 anticipated at $450–$490 million.

• Segment guidance: T&HS net sales and operating income up mid to high single digits; U.S./CAN net sales and operating income down 20–25%; LATAM net sales up low single digits, operating income down low single digits.