Nov 5, 2026, 6:12 AM ETConsumer Defensive

Ingredion Incorporated — Third Quarter 2026 Earnings Summary

INGRINGREDION INC

Financial Performance

Reported diluted EPS was $2.23 and adjusted diluted EPS was $2.28 for the third quarter of 2026, compared to $2.61 and $2.75, respectively, in the third quarter of 2025.
Reported operating income decreased 19% to $201 million in the third quarter of 2026 from $249 million in the prior year period; adjusted operating income decreased 19% to $206 million.
Net sales for the third quarter were $1.792 billion, a 1% decrease from $1.816 billion in the prior year; excluding the Pakistan business sale, net sales increased 2%.
Year-to-date net sales were $5.434 billion, a 1% decrease from $5.462 billion in the prior year.
Year-to-date reported operating income was $592 million, a 26% decrease from $796 million in the prior year; adjusted operating income was $676 million, a 16% decrease.
Total debt was $1.8 billion as of September 30, 2026, compared to $1.8 billion at December 31, 2025.
Cash and short-term investments totaled $993 million as of September 30, 2026, compared to $1.0 billion at December 31, 2025.
Net adjusted financing costs were $10 million in the third quarter of 2026, compared to $7 million in the prior year.
Reported effective tax rate was 26.8% and adjusted effective tax rate was 26.4% for the third quarter of 2026, compared to 28.6% and 26.4%, respectively, in the prior year.
Capital expenditures totaled $313 million through September 30, 2026.

Full-year 2026 reported diluted EPS guidance is lowered to a range of $8.04 to $8.49; adjusted diluted EPS guidance is lowered to a range of $9.25 to $9.70.
Full-year 2026 net sales are expected to be flat, reflecting volume growth and favorable foreign exchange offset by lower price mix and the Pakistan business sale; excluding Pakistan, sales are expected to be flat to up low single digits.
Full-year 2026 reported operating income is expected to be down low double digits; adjusted operating income is expected to be down mid-teens.
Full-year 2026 cash from operations is expected to be in the range of $650 million to $750 million.
Full-year 2026 capital expenditures are expected to be approximately $450 million to $490 million.
Full-year 2026 reported effective tax rate is expected to be 27.9% to 28.9%; adjusted effective tax rate is expected to be 26.5% to 27.5%.
Full-year 2026 corporate costs are expected to be down mid-single digits.
Segment outlook for 2026: Texture & Healthful Solutions operating income expected to be flat to up low single-digits; Food & Industrial Ingredients–LATAM operating income expected to be down mid-to-high single-digits; Food & Industrial Ingredients–U.S./CAN operating income expected to be down 35-40%; All Other operating loss expected to be approximately $(15) million.

Texture & Healthful Solutions (T&HS) delivered its 10th consecutive quarter of net sales volume growth, driven by clean label demand.
T&HS third quarter net sales were $610 million (up 1%); operating income was $95 million (down 10%), impacted by higher tapioca costs and manufacturing input inflation.
Food & Industrial Ingredients–LATAM third quarter net sales were $624 million (up 7%); operating income was $109 million (down 6%), driven by higher volumes in Mexico and Brazil offset by foreign exchange impacts and the August earthquake in Colombia.
Food & Industrial Ingredients–U.S./CAN third quarter net sales were $504 million (down 1%); operating income was $52 million (down 36%), impacted by higher manufacturing expenses at the Argo facility and volume declines.
All Other third quarter net sales were $54 million (down 55%); operating loss was $11 million, reflecting the sale of the majority stake in the Pakistan business.
The pending acquisition of Tate & Lyle is in integration planning.

T&HS continues to gain share in strategic categories, including clean label growth globally, as customers reformulate for simpler labels, affordability, and nutrition.
Consumer softness in food and beverage demand is impacting profitable volume growth.
The Mexican peso remains strong, creating foreign exchange headwinds for LATAM operations.
The company faces higher input costs, including tapioca and manufacturing expenses.

The Argo facility is experiencing a slower than anticipated financial recovery, with high manufacturing costs impacting profitability.
The August earthquake in Colombia impacted Andean operations.
The sale of the majority stake in the Pakistan business resulted in a loss of volume and reduced earnings contribution in the second half of the year.
Higher input cost inflation and softer demand are pressuring profit growth.
Foreign exchange impacts from a stronger Mexican peso and the value of the Mexican peso relative to the U.S. dollar affect results.

CEO Jim Zallie stated results fell short of expectations due to Argo's slower recovery, higher input costs, and consumer softness.
Management noted that while production at Argo remained stable and inventories are rebuilt, the recovery is taking longer than expected.
The focus has shifted to sustainably lowering operating costs and improving volume growth.
Management is taking action to improve financial performance through operating cost discipline and spend management while continuing to invest in specialty growth platforms.
The company is building a foundation for a stronger combined entity with Tate & Lyle to create shareholder value in 2027 and beyond.

The Company declared a quarterly dividend increase to $0.83 per share on September 17, 2026, marking the 12th consecutive year of dividend increases.
The Company paid $53 million in dividends in the third quarter.
Through September 30, 2026, the Company repurchased $85 million of common stock and is on track to complete its $100 million full-year share repurchase target.
The Company recorded a net pre-tax gain of $44 million related to the sale of its Pakistan business during the nine months ended September 30, 2026.
The Company recorded pre-tax impairment charges of $39 million and a pre-tax restructuring benefit of $17 million during the nine months ended September 30, 2026.
Acquisition/integration costs related to the pending Tate & Lyle acquisition totaled $59 million for the nine months ended September 30, 2026.