Ingredion (INGR) Q4 2025 earnings summary

Executive summary

• Achieved record full-year 2025 financial results, with reported EPS of $11.18 and adjusted EPS of $11.13, up from $9.71 and $10.65 in 2024, respectively, led by Texture & Healthful Solutions and strong LATAM performance, despite operational setbacks at the Argo facility and industry volume softness.

• Clean label and solutions businesses drove robust growth, with clean label volumes up across Asia-Pacific and U.S./Canada, and protein fortification business delivering over 40% net sales growth.

• Operational excellence initiatives exceeded cost savings targets, delivering $59 million in run rate savings.

• Record operating income was achieved in the LATAM segment, supported by FX benefits and network optimization.

• Cash from operations was $944 million, with $435 million returned to shareholders, including $224 million in share repurchases.

Financial highlights

• Full-year 2025 net sales were $7.2 billion, down 3% year-over-year, with gross profit up 2% to $1,828 million and gross margin up to 25.3%.

• Q4 net sales: $1.8B, down 2% YoY; gross profit down 4%, gross margin at 24.5%.

• Reported operating income rose 15% to $1,016 million; adjusted operating income increased 1% to $1,028 million; adjusted EPS up 4.5% to $11.13.

• Net income attributable to shareholders was $729 million, up 13% from 2024.

• Cash from operations decreased to $944 million from $1,436 million in 2024, reflecting higher working capital investment.

Outlook and guidance

• 2026 net sales expected up low to mid-single digits; operating income up low single digits; adjusted EPS guidance: $11–$11.80.

• Cash from operations projected at $820–$940 million; CapEx: $400M–$440M.

• Texture & Healthful Solutions and LATAM segments expected to see net sales and operating income up low to mid-single digits; U.S./Canada segment projected flat; All Other to improve.

• Q1 2026 net sales expected down low single digits, operating income down mid double digits due to tough prior-year comparison.

• Adjusted effective tax rate expected between 25.5% and 27.0%.