Ingredion Inc Earnings Overview
Ingredion Incorporated has reported its earnings for the third quarter of 2025, revealing a nuanced financial landscape marked by both resilience in certain segments and challenges in others. The company, a prominent global player in ingredient solutions, showcased the strengths of its diversified business portfolio despite several operational hurdles.
For the third quarter, both reported and adjusted operating incomes saw decreases of 7% and 10%, respectively, compared to the same period last year. Similarly, the reported and adjusted earnings per share (EPS) dipped to $2.61 and $2.75, down from $2.83 and $3.05, respectively, in the third quarter of 2024. This decline has prompted Ingredion to adjust its full-year EPS guidance, now projected to range from $11.11 to $11.31 for reported EPS and $11.10 to $11.30 for adjusted EPS.
Ingredion Inc Financial Results
The table below highlights key financial metrics for Ingredion Inc:
| Financial Metric | Q3 2024 | Q3 2025 | % Change YoY |
|---|---|---|---|
| Total Revenue | $1.75 billion | $1.65 billion | -3% |
| Reported EPS | $2.83 | $2.61 | -7.8% |
| Adjusted EPS | $3.05 | $2.75 | -9.8% |
| Reported Operating Income | $268 million | $249 million | -7.1% |
| Adjusted Operating Income | $284 million | $254 million | -10.6% |
Looking at the results, the decrease in revenue and operating income not only reflects the company's challenges, particularly in the Food & Industrial Ingredients segments but also the resilience demonstrated by the Texture & Healthful Solutions segment. While the total revenue was $1.65 billion, a 3% decrease from the third quarter of 2024, these results underscore the complex dynamics Ingredion faces in today's volatile market environment.
Revenue Breakdown
The revenue performance of Ingredion across its major segments is detailed in the table below:
| Segment | Q3 2024 Revenue | Q3 2025 Revenue | % Change YoY |
|---|---|---|---|
| Texture & Healthful Solutions | $630 million | $655 million | +4% |
| Food & Industrial Ingredients U.S./CAN | $530 million | $515 million | -2.8% |
| Food & Industrial Ingredients LATAM | $590 million | $516 million | -12.5% |
Analysis of Segment Performance
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Texture & Healthful Solutions : This segment was a bright spot for Ingredion, delivering a solid performance with a 4% increase in sales volume. This growth was remarkably driven by a robust demand for clean label ingredient solutions, particularly in North America and Asia-Pacific. The segment benefited from lower raw material costs and a strategic focus on customized, differentiated product offerings.
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Food & Industrial Ingredients (U.S./CAN) : This segment faced significant challenges, with a reported 2.8% decline in revenue. The drop primarily resulted from operational difficulties at Ingredion's largest U.S. facility, exacerbated by a fire in June and waning consumer demand driven by rising retail prices.
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Food & Industrial Ingredients (LATAM) : Revenue from this segment decreased by 12.5%, influenced by weaker brewing industry demand and consumer demand softness attributable to economic challenges in the region, including high inflation and interest rates.
Key Developments
The quarter's notable developments revolved around Ingredion's strategic responses to its operational hurdles and evolving market demands. Significant operational difficulties at one of their large U.S. facilities, among other headwinds, were offset by the outperformance of the Texture & Healthful Solutions segment. The company has announced plans to complete investments in new specialty solutions capacity to bolster their offerings, particularly in meeting rising customer reformulation needs.
Comments from Company Officers
Jim Zallie, President and CEO of Ingredion, remarked on the quarter’s mixed results:
"The benefits of Ingredion's diversified business portfolio were evident in the quarter as our Texture & Healthful Solutions segment delivered another strong quarter of sales volume and operating income growth, while our F&II businesses were impacted by lower volume demand and operational challenges at our largest facility in the U.S."
Zallie also highlighted the company's strategic focus:
"Our strategic pillars continue to guide our focus on delivering profitable growth, accelerating innovation, and driving operating excellence against a changing and uncertain macroeconomic climate."
Dividends and Share Repurchases
Ingredion has maintained its commitment to returning capital to shareholders, underscored by the payment of $54 million in dividends during the quarter. The company also declared an $0.82 per share quarterly dividend, marking the 11th consecutive annual increase, and executed share repurchases totaling $134 million up to September 30, 2025.
Ingredion Inc Stock Forecast
Analyzing Ingredion's financial performance, business developments, and prevailing market conditions leads to a cautious yet optimistic stock outlook. Despite the reported challenges affecting segments like Food & Industrial Ingredients, the company's continued investment in Texture & Healthful Solutions and adherence to strategic pillars suggest a commitment to growth and resilience.
Hence, market projections for Ingredion Inc's stock price might range from a high of $112 — driven by successful operational recoveries and segment expansions — to a low of $95, should ongoing operational challenges linger without significant resolution.
In conclusion, while Ingredion Inc navigates a landscape of both external pressures and internal challenges, its diversified portfolio and strategic initiatives indicate resilience. The company's results and projections reflect a careful balance of current difficulties and anticipation of future growth avenues.
