Core Viewpoint - Ingredion Incorporated (INGR) reported its Q4 and full-year results, which were positively received, leading to an increase in its share price for the day [1]. Group 1: Financial Performance - The company experienced mixed performance across different markets, with some performing well while others did not [1]. - Overall profitability was highlighted in the report, indicating a solid financial standing despite market variances [1].

Core Viewpoint - Ingredion Incorporated (INGR) reported its Q4 and full-year results, which were positively received, leading to an increase in its share price for the day [1]. Group 1: Financial Performance - The company experienced mixed performance across different markets, with some performing well while others did not [1]. - Overall profitability was highlighted in the report, indicating a solid financial standing despite market variances [1].

Financial Data and Key Metrics Changes - For Q4 2025, net sales were $1.8 billion, down 2% year-over-year, with gross profit dollars decreasing by 4% and gross margin slightly lower at 24.5% [17][20] - Full year 2025 net sales were $7.2 billion, down 3% compared to the previous year, while gross profit dollars increased by 2% and gross margin improved to 25.3% [20] - Adjusted operating income for Q4 was $228 million, while full year adjusted operating income was $1.028 billion [17][20] Business Line Data and Key Metrics Changes - Texture and Healthful Solutions segment saw net sales up 1% for the full year, driven by 4% sales volume growth, while operating income increased by 16% [22] - Food and Industrial Ingredients LATAM reported a 4% decrease in net sales for the full year, but operating income increased to $493 million, achieving a record operating income margin of 21.1% [22] - Food and Industrial Ingredients U.S./Canada net sales declined by 7% for the full year, with operating income down 16% due to production challenges at the Argo facility [23] Market Data and Key Metrics Changes - In LATAM, brewing adjunct volume demand began to recover, but challenges remained in the confectionery and paper sectors, leading to overall volume declines [7] - In the U.S./Canada, beverage sweetener volumes faced softness, contributing to lower sales in the Food and Industrial Ingredients segment [10] Company Strategy and Development Direction - The company is focusing on clean label ingredients and solutions, which are among the fastest-growing areas in the food industry, supported by proprietary technology and consumer insights [6] - Strategic capital growth and cost savings investments were completed, including a starch modernization project and the expansion of a blending center, expected to drive revenue potential [8] - The company aims to enhance operational excellence and productivity, with a target of $400-$440 million in capital expenditures for 2026 [78] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in recovering from operational challenges at the Argo facility, with expectations for gradual improvement throughout 2026 [10][32] - The company anticipates low single-digit to mid-single-digit growth in net sales for 2026, reflecting greater volume demand, despite facing manufacturing inflation [25][29] - Management highlighted the importance of maintaining flexibility for strategic M&A opportunities while committing to a minimum of $100 million in share repurchases for 2026 [75][76] Other Important Information - The company reported a full year cash from operations of $944 million and returned $435 million to shareholders through dividends and share repurchases [24][32] - The CFO announced retirement effective March 31, 2026, with a search for a successor already underway [16] Q&A Session Summary Question: Impact of Argo facility on volume decline - Management indicated that the Argo facility's operational challenges had a $16 million impact in Q4 and a total of $40 million for 2025, with expectations for recovery in 2026 [36][39] Question: Texture and Healthful Solutions pricing and ASP - Management noted that pricing for Texture and Healthful Solutions was slightly down, with expectations for volume gains year-over-year, but not fully covering manufacturing cost inflation [71][72] Question: LATAM business volume movements - Management clarified that Q4 sales volume in LATAM declined by 3%, primarily due to brewing adjunct volume declines, while food and beverage volumes showed positive growth [55] Question: Breakdown of food versus beverage sales in Mexico - Management estimated that brewing adjunct and beverages account for about 40% of sales, with food and industrial products making up the remainder [89][90] Question: Expected recovery from Argo facility in 2026 - Management projected that approximately $20 million of the $40 million impact from Argo could be recovered in the second half of 2026 [94]

Financial Data and Key Metrics Changes - For Q4 2025, net sales were $1.8 billion, down 2% year-over-year, with gross profit dollars decreasing by 4% and gross margin slightly lower at 24.5% [18] - Full year 2025 net sales were $7.2 billion, down 3% compared to the previous year, while gross profit dollars increased by 2% and gross margin improved to 25.3% [21] - Adjusted operating income for Q4 was $228 million, while full year adjusted operating income was $1.028 billion [18][21] Business Line Data and Key Metrics Changes - Texture and Healthful Solutions segment saw net sales up 1% for the full year, driven by 4% sales volume growth, while operating income increased by 16% [23] - Food and Industrial Ingredients LATAM reported a 4% decline in net sales, primarily due to weaker volumes in brewing adjuncts, but operating income increased to $493 million with a margin of 21.1% [24] - Food and Industrial Ingredients US/Canada experienced a 7% decline in net sales, with a 4% decrease in sales volume attributed to operational challenges at the Argo facility [24] Market Data and Key Metrics Changes - Clean label ingredient volumes grew significantly in Q4 and throughout the year, particularly in Asia-Pacific and US/Canada, highlighting its importance in the food industry [6][7] - In LATAM, food ingredient sales experienced modest growth, while brewing adjunct demand was recovering from long-term contracted customers [8] Company Strategy and Development Direction - The company is focusing on solutions and clean label offerings, which have significantly enhanced results in the Texture and Healthful segment [12] - Strategic capital growth and cost savings investments were completed, including a starch modernization project and the expansion of a blending center [9] - The company aims to drive profitable growth through innovation and operational excellence, with a focus on higher-margin products and customer engagement [15][32] Management's Comments on Operating Environment and Future Outlook - Management acknowledged unforeseen challenges in 2025 but highlighted record operating income and margins, emphasizing the resilience of the LATAM business [10][16] - For 2026, the company anticipates low single-digit growth in net sales and operating income, with expectations of continued volume demand and challenges from manufacturing inflation [26][30] Other Important Information - The company repurchased $224 million of outstanding common shares and paid out $211 million in dividends, marking the 11th consecutive annual dividend increase [25] - A transition in CFO is underway, with Jim Gray set to retire in March 2026, and a search for his successor has begun [17] Q&A Session Summary Question: Impact of Argo facility on volume decline - Management indicated that the Argo facility's operational challenges had a $16 million impact in Q4 and a total of $40 million for 2025, with expectations of recovery in 2026 [35][37][39] Question: Texture and Healthful Solutions pricing and ASP - Management noted that pricing for Texture and Healthful Solutions was slightly down, with expectations for volume gains year-over-year, but not fully covering manufacturing cost inflation [72][73] Question: LATAM business volume movements - Management clarified that Q4 sales volume in LATAM declined by 3%, primarily due to brewing adjuncts, while food and beverage volumes showed positive growth [58] Question: Breakdown of food versus beverage sales in Mexico - Management estimated that brewing adjunct and beverages account for about 40% of sales, with food and industrial products making up the remainder [90] Question: Expected recovery from Argo facility in 2026 - Management anticipates recovering about $20 million of the Argo impact in the second half of 2026, with ongoing challenges expected in Q1 [97]

Financial Data and Key Metrics Changes - Net sales for Q4 2025 were $1.8 billion, down 2% year-over-year, with gross profit dollars decreasing by 4% and gross margin slightly lower at 24.5% [17][18] - Full-year net sales were $7.2 billion, down 3% compared to the previous year, while gross profit dollars increased by 2%, and gross margin improved to 25.3% [19][20] Business Line Data and Key Metrics Changes - Texture and Healthful Solutions net sales increased by 1% for the full year, driven by a 4% sales volume growth, while operating income rose by 16% [21][22] - Food and Industrial Ingredients LATAM reported a 4% decline in net sales, but operating income increased to $493 million, achieving a record operating income margin of 21.1% [22] - Food and Industrial Ingredients US/Canada saw a 7% decline in net sales, with a 4% decrease in sales volume primarily due to operational challenges at the Argo facility [23] Market Data and Key Metrics Changes - Clean label ingredient volumes grew significantly in Q4 and throughout the year, particularly in Asia-Pacific and US/Canada, highlighting its importance in meeting consumer preferences [5] - In LATAM, brewing adjunct volume demand began to recover, but challenges persisted in the confectionery and paper sectors, leading to overall volume declines [6][57] Company Strategy and Development Direction - The company is focused on driving profitable growth through solutions and clean label offerings, with a strong pipeline and growth momentum expected in 2026 [11][31] - Strategic capital investments, such as the starch modernization project in Indianapolis, aim to enhance production efficiency and capacity [8][14] - The company is transitioning its operational excellence strategy towards long-term enterprise productivity, with a commitment to cost competitiveness [14][31] Management's Comments on Operating Environment and Future Outlook - Management acknowledged unforeseen challenges in 2025 but highlighted record operating income and margins, demonstrating resilience in a volatile environment [9][15] - For 2026, the company anticipates low single-digit growth in net sales and operating income, with expectations of continued volume demand and challenges from manufacturing inflation [25][26] Other Important Information - The company repurchased $224 million of outstanding shares and paid $211 million in dividends, marking the 11th consecutive annual dividend increase [24] - A CFO transition is underway, with Jim Gray set to retire in March 2026, prompting a search for his successor [16] Q&A Session Summary Question: Impact of Argo facility on volume decline - Management indicated that the Argo facility's operational challenges had a $16 million impact in Q4 and a total of $40 million for 2025, with expectations of recovery in 2026 [34][35][36] Question: Texture and Healthful Solutions pricing and margin expectations - Management noted that while pricing was slightly down, they anticipate covering raw material cost changes and expect volume gains year-over-year, though manufacturing cost inflation may hold gross margins flat [72][74] Question: LATAM business volume movements - Management clarified that Q4 net sales were up 1%, with brewing adjunct volume declines being the primary driver of volume decreases, while food and beverage volumes showed positive growth [56][57] Question: Breakdown of food versus beverage sales in Mexico - Management estimated that brewing adjunct and beverages account for about 40% of sales, with food and industrial products making up the remainder [91][92] Question: Expectations for Argo recovery in 2026 - Management projected that approximately $20 million of the Argo impact could be recovered in the second half of 2026, with ongoing challenges expected in Q1 [98][99]

Fourth Quarter and Full Year 2025 Earnings Call Jim Zallie President and CEO James Gray Executive Vice President and CFO 3 Non-GAAP Financial Measures This presentation provides information about adjusted diluted earnings per share ("adjusted EPS"), adjusted operating income, adjusted effective income tax rate, and other financial measures (collectively, the "non- GAAP financial measures") which are not measurements of financial performance calculated in accordance with U.S. generally accepted accounting pr ...

Core Viewpoint - Ingredion reported quarterly earnings of $2.53 per share, missing the Zacks Consensus Estimate of $2.59 per share, and down from $2.63 per share a year ago [1][2] Financial Performance - The earnings surprise was -2.32%, with the company previously expected to post earnings of $2.73 per share but actually reporting $2.75 per share in the prior quarter, resulting in a surprise of +0.73% [2] - Revenues for the quarter were $1.76 billion, missing the Zacks Consensus Estimate by 1.51%, and down from $1.8 billion year-over-year [3] Stock Performance - Ingredion shares have increased by approximately 6.4% since the beginning of the year, outperforming the S&P 500, which gained 1.9% [4] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $2.81 on revenues of $1.75 billion, and for the current fiscal year, it is $11.37 on revenues of $7.15 billion [8] - The estimate revisions trend for Ingredion was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [7] Industry Context - The Food - Miscellaneous industry, to which Ingredion belongs, is currently in the bottom 24% of over 250 Zacks industries, suggesting potential challenges ahead [9]

Financial Performance - Reported and adjusted EPS for full-year 2025 were $11.18 and $11.13, respectively, compared to $9.71 and $10.65 for full-year 2024, reflecting a significant increase [4]. - Operating income for full-year 2025 was $1,016 million, a 15% increase from 2024, while adjusted operating income was $1,028 million, a 1% increase [14]. - Net income attributable to Ingredion for full-year 2025 was $729 million, a 13% increase from $647 million in 2024 [40]. - Net income for the year ended December 31, 2025, increased to $736 million, up from $654 million in 2024, representing a growth of 12.5% [44]. - Adjusted operating income for the twelve months ended December 31, 2025, was $1,028 million, reflecting a slight increase of 1% from $1,016 million in 2024 [54]. Sales and Revenue - Fourth quarter 2025 net sales decreased by 2% to $1,757 million, and full-year 2025 net sales decreased by 3% to $7,219 million, primarily due to lower volume and price mix [7]. - Net sales for full-year 2025 were approximately $7.2 billion, a decrease of 3% from $7.43 billion in 2024 [40]. - Total net sales for the twelve months ended December 31, 2025, were $7,219 million, a decrease of 3% compared to $7,430 million in 2024 [45]. - The Texture & Healthful Solutions segment reported net sales of $2,397 million for the year ended December 31, 2025, a 1% increase from $2,366 million in 2024 [45]. - The U.S./Canada segment experienced a 7% decline in net sales for the year ended December 31, 2025, totaling $2,013 million compared to $2,155 million in 2024 [45]. Cash Flow and Investments - Cash from operations for full-year 2025 was $944 million, with $435 million returned to shareholders, including $224 million in share repurchases [4]. - Cash from operations for full-year 2025 was $944 million, down 34% from $1,436 million in 2024, due to investments in working capital [27]. - Cash provided by operating activities for the year ended December 31, 2025, was $944 million, down from $1,436 million in 2024 [44]. - Capital expenditures for full-year 2026 are projected to be approximately $400 million to $440 million [28]. - Net capital expenditures for full-year 2025 were $433 million, an increase of $138 million from 2024 [27]. Future Outlook - The company expects full-year 2026 reported and adjusted EPS to be in the range of $11.00 to $11.80, with net sales anticipated to increase by low single-digits to mid-single-digits [23][24]. - Full-year 2026 operating income for Texture & Healthful Solutions is expected to grow by low single-digits to mid-single-digits, while Food & Industrial Ingredients–LATAM is expected to be flat to up low single-digits [25]. - The company expects cash from operations for full-year 2026 to be in the range of $820 million to $940 million [28]. - For the first quarter of 2026, net sales are expected to decline by low single-digits compared to the same quarter last year [29]. Tax and Corporate Costs - Corporate costs for full-year 2026 are expected to be flat to up low single-digits, with effective tax rates projected to be between 25.5% and 27.0% [26]. - Reported effective tax rate for the fourth quarter of 2025 was 19.3%, significantly lower than 36.2% in the prior-year period [27]. - The expected effective tax rate (ETR) for full-year 2026 is estimated to be between 25.5% and 27.0% [61]. - The adjusted non-GAAP effective income tax rate for the twelve months ended December 31, 2025, was 25.8%, with income before income taxes of $988 million [57]. Segment Performance - Texture & Healthful Solutions segment reported full-year 2025 operating income of $405 million, up 16% from the previous year, driven by lower raw material costs and improved volumes [12]. - Food & Industrial Ingredients–U.S./Canada segment reported a full-year operating income of $315 million, a decrease of 16% from 2024, due to production challenges and lower demand [17]. Restructuring and Charges - The company recorded pre-tax restructuring charges of $6 million and $13 million for the three and twelve months ended December 31, 2025, respectively [51]. - Restructuring and resegmentation costs for the three months ended December 31, 2025, amounted to $6 million [57]. - Impairment charges for the twelve months ended December 31, 2025, totaled $10 million [57].

Core Insights - Ingredion Incorporated reported record full-year financial results for 2025, driven by strong performance in Texture & Healthful Solutions and the LATAM segment, despite challenges in the U.S./CAN business [2][5]. Financial Performance - Reported diluted EPS for full-year 2025 was $11.18, up from $9.71 in 2024, while adjusted diluted EPS was $11.13 compared to $10.65 in 2024 [3][5]. - Cash from operations for 2025 was $944 million, down from $1,436 million in 2024, with $435 million returned to shareholders, including $224 million in share repurchases [5][28]. - The company expects full-year 2026 reported and adjusted EPS to be in the range of $11.00 to $11.80 [22]. Segment Performance - Texture & Healthful Solutions achieved 4% sales volume growth in Q4 2025, driven by demand for clean label offerings, with full-year net sales of $2,397 million, a 1% increase from 2024 [11][12]. - Food & Industrial Ingredients—LATAM segment reported a 1% increase in Q4 2025 net sales, with full-year sales of $2,341 million, down 4% from 2024 [13][14]. - Food & Industrial Ingredients—U.S./Canada experienced a 9% decline in Q4 2025 net sales, with full-year sales of $2,013 million, a 7% decrease from 2024 [15][16]. Operating Income - Reported operating income for Q4 2025 was $220 million, a 36% increase from Q4 2024, while adjusted operating income was $228 million, down 8% [9][12]. - Full-year reported operating income was $1,016 million, a 15% increase from 2024, while adjusted operating income was $1,028 million, up 1% [9][12]. Shareholder Returns - The company paid $211 million in dividends for 2025 and declared a quarterly dividend of $0.82 per share [21]. - Share repurchases totaled 1.8 million shares at a net cost of $224 million during 2025 [21]. 2026 Outlook - The company anticipates low single-digit to mid-single-digit growth in net sales for 2026, with operating income expected to increase low single-digits [23][24]. - Corporate costs for 2026 are expected to remain flat to increase low single-digits, with effective tax rates projected between 25.5% to 27.0% [25].

Core Insights - Ingredion Incorporated has been recognized as a Top Employer in eight countries, including the United States for the first time in 2026, highlighting its commitment to a people-centric growth culture [1][2][3] Group 1: Recognition and Awards - The company has received Top Employer certification in Thailand, India, China, Germany, the United Kingdom, Malaysia, Singapore, and the United States [1][3] - Ingredion has maintained its Top Employer status in Singapore and Thailand for six consecutive years, while China, Germany, Malaysia, and the UK have been recognized for four years [3] Group 2: Company Overview - Ingredion is a leading global provider of ingredient solutions with annual net sales of approximately $7.4 billion in 2024, serving customers in nearly 120 countries [4] - The company specializes in turning grains, fruits, vegetables, and other plant-based materials into value-added ingredient solutions for various markets, including food, beverage, and industrial sectors [4]