Group 1 - The company is hosting its 2025 Investor Day in New York, indicating a focus on engaging with investors and stakeholders [1] - The company has undergone significant transformation since the last Investor Day, suggesting a shift in strategy or operations [2] - The executive team will present the company's vision for the future and outline strategic priorities, highlighting a forward-looking approach [2] Group 2 - The Senior Vice President of Texture & Healthful Solutions will provide updates on the strategy for this segment, indicating ongoing development and focus on product offerings [3] - The presentation will include accomplishments since the last Texture Day, showcasing progress and achievements in the company's initiatives [3]

Summary of Ingredion's 2025 Investor Day Company Overview - **Company**: Ingredion (NYSE: INGR) - **Industry**: Ingredient solutions provider primarily for food and beverage, with growing segments in industrial, pharma, and beauty/home markets [9][10] Core Points and Arguments Business Transformation and Strategy - **Transformation Journey**: Ingredion has undergone significant transformation focusing on strategy development, portfolio optimization, and innovation [5][6] - **Strategic Vision**: The company aims to transition from being an ingredients provider to a solutions provider, enhancing value creation through disciplined capital allocation and strong risk management [7][12] - **Long-term Growth Targets**: New targets set for 2% to 4% net sales growth, 5% to 7% adjusted operating income growth, and 7% to 9% adjusted EPS growth for the next three years [33] Financial Performance - **Record Financials**: Achieved record levels of EBITDA, earnings per share, and cash, with increased gross profit margins [11] - **Cost Competitiveness**: Exceeded cost competitiveness targets, reinvesting savings into manufacturing and R&D [11][12] Market Position and Segmentation - **Market Segmentation**: Focus on texture and healthful solutions, with a strategy to leverage global reach and local expertise [14][19] - **Emerging Markets**: Significant growth potential in emerging markets, particularly in Asia-Pacific, with a focus on co-creating and reformulating products [35][54] Innovation and R&D - **Innovation Focus**: Emphasis on clean label products and texture solutions, with investments in R&D to drive innovation from "soil to shelf" [20][25] - **Predictive Formulation**: Utilizing advanced technologies to link consumer preferences to product development, enhancing speed to market [45][57] Operational Excellence - **Global Operating Model**: Transitioned to a global operating model to improve efficiency and service quality, with a focus on centralized procurement and supply chain management [29][59] - **Capacity for Growth**: Investments of over $300 million in recent years to enhance operational capacity and support growth initiatives [36][60] Important but Overlooked Content - **Customer Relationships**: Strong emphasis on leveraging deep customer relationships to identify growth pockets and co-create solutions [12][20] - **Sustainability Initiatives**: Focus on sustainable food packaging and biodegradable solutions in response to regulatory changes [28] - **Cultural Transformation**: Acknowledgment of the cultural shift within the organization to support solution selling and operational agility [41][66] Conclusion - **Future Outlook**: Ingredion is well-positioned for future growth with a strong focus on innovation, operational excellence, and market expansion, particularly in texture and healthful solutions [12][65]

Financial Performance and Targets - Ingredion reported 2024 total net sales of $7.4 billion[24] - The company achieved adjusted diluted EPS of $10.65 in 2024[26, 54] - Ingredion's adjusted operating income for 2024 was $1016 million[35, 54] - The company targets net sales growth of 2%-4% CAGR from 2025-2027, building from a 2024 base of $7.4 billion[54] - Ingredion aims for adjusted operating income growth of 5%-7% CAGR from 2025-2027, based on a 2024 figure of $1016 million[54] - The company projects adjusted EPS growth of 7%-9% CAGR from 2025-2027, starting from a 2024 base of $10.65[54] Segment Performance and Outlook - Texture & Healthful Solutions (T&HS) segment net sales were $2.4 billion in 2024[35] - Food & Industrial Ingredients—LATAM segment net sales were $2.4 billion in 2024[35] - Food & Industrial Ingredients—U S /CAN segment net sales were $2.2 billion in 2024[35] - T&HS segment is expected to grow at a CAGR of 4%-6% from 2025-2027, with a 2024 base of $2.4 billion[101]

Core Points - Ingredion Incorporated will host its 2025 Investor Day on September 17, 2025, starting at 9 a.m. (ET) and concluding around Noon (ET) [1] - The event will feature presentations from the CEO, CFO, and other executive leadership team members, followed by a Q&A session [2] - A live webcast of the presentation will be available, and a replay will be archived on the company's website for one year [2] Company Overview - Ingredion Incorporated is a leading global ingredient solutions provider, serving customers in over 120 countries [3] - The company reported annual net sales of approximately $7.4 billion for 2024, transforming various plant-based materials into value-added ingredient solutions for multiple markets [3] - With over 11,000 employees and innovation centers worldwide, Ingredion focuses on co-creating with customers to enhance the quality of life through the integration of people, nature, and technology [3]

Core Viewpoint - Value investing remains a preferred strategy for identifying strong stocks, utilizing fundamental analysis and traditional valuation metrics to find undervalued stocks in the market [2] Group 1: Associated British Foods (ASBFY) - ASBFY holds a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [4] - The stock is currently trading at a P/E ratio of 10.34, significantly lower than the industry average of 15.65 [4] - ASBFY's Forward P/E has fluctuated between 9.40 and 12.63 over the past year, with a median of 11.29 [4] - The P/B ratio for ASBFY is 1.39, which is attractive compared to the industry's average P/B of 1.90 [5] - Over the past 52 weeks, ASBFY's P/B has ranged from 1.18 to 1.65, with a median of 1.47 [5] - The stock's strong earnings outlook further supports its classification as an impressive value stock [8] Group 2: Ingredion (INGR) - INGR also holds a Zacks Rank of 2 (Buy) and a Value score of A, making it another solid value stock in the Food - Miscellaneous sector [6] - The current Forward P/E ratio for INGR is 10.78, with a PEG ratio of 0.98, both lower than the industry averages of 15.65 and 1.18 respectively [6] - Over the last 12 months, INGR's P/E has varied from 10.74 to 14.44, with a median of 12.02 [7] - INGR's P/B ratio stands at 1.92, slightly above the industry's average of 1.90, with a 52-week range of 1.91 to 2.54 and a median of 2.21 [7] - The combination of these metrics suggests that INGR is likely undervalued at present [8]

Group 1: Lam Research Corporation - Lam Research reported revenues of $5.17 billion and a gross margin of 50.1% for the quarter ending June 2025, with net income rising to $1.72 billion or $1.35 per diluted share, up from $1.03 in the prior quarter [1] - The company expects revenues around $5.2 billion next quarter, with earnings per share near $1.20, indicating continued strength in its core business [1] - Lam Research's stock has climbed 34.72% over the past year, with a strong 41% gain so far in 2025, reflecting growing confidence in the demand for advanced chips [3] - The company announced a quarterly dividend of $0.26 per share, up from $0.23, payable on October 15, 2025, marking its commitment to returning value to shareholders [6] - Lam Research continues to innovate with the launch of the ALTUS Halo tool for advanced chip production and has invested in Zettabyte, focusing on the growing AI market [7] Group 2: Ingredion Incorporated - Ingredion increased its quarterly payout to $0.82 per share on August 27, 2025, reflecting a commitment to returning value to shareholders [5] - The company reported a 13% jump in operating income to $271 million in Q2 2025, with earnings per share rising to $2.99 from $2.22 in the previous year [11] - Ingredion's stock has declined by 5.17% over the past year, but it offers a dividend yield of 2.5% and has increased dividends for 15 consecutive years, indicating potential value for investors [10] - The company is expanding its partnership with Univar Solutions to distribute plant-based ingredients and is investing $50 million to enhance its Cedar Rapids facility, showing a focus on growth beyond food ingredients [12] Group 3: Nordson Corporation - Nordson reported sales of $742 million in Q3 2025, a 12% increase compared to the prior year, with adjusted earnings per share jumping 13% to $2.73 [17] - The company offers a dividend yield of 1.04% and has increased dividends for 63 straight years, with a payout ratio under 30% [16] - Analysts are positive on Nordson's future, with all surveyed giving it a consensus "Moderate Buy" rating and an average price target of $256.44, indicating roughly 15% upside from the current price [19] Group 4: Market Overview - Recent dividend increases from Lam Research, Ingredion, and Nordson indicate confidence in their ability to generate steady cash flows amid uncertain economic conditions [20] - The semiconductor equipment sector, represented by Lam Research, shows strong growth potential, while Ingredion combines growth with a focus on healthier food options [20]

Economic Overview - U.S. consumer confidence dropped to 97.4 in August from 98.7 in July, indicating a decline of 1.3 points, with short-term expectations for income, business conditions, and employment also falling to 74.8 [4][5] - Concerns about the economy have been exacerbated by tariffs imposed by President Trump, which have raised inflation fears and impacted consumer confidence [5][6] - A weak labor market, characterized by slow job additions, has further fueled recession fears, despite low layoffs and unemployment rates [7] Investment Recommendations - Given the economic uncertainty, it is advisable to invest in low-beta defensive stocks from the utility and consumer staples sectors, which include Atmos Energy Corporation (ATO), Fortis, Inc. (FTS), Northwest Natural Holding Company (NWN), Ingredion Incorporated (INGR), and Carriage Services, Inc. (CSV) [2][10] - These stocks are characterized by a beta greater than 0 but less than 1, indicating lower volatility, and they also offer high dividend yields [3] Company Profiles - **Atmos Energy Corporation (ATO)**: Engaged in regulated natural gas distribution and storage, serving approximately 3.3 million customers across eight states. Expected earnings growth rate is 7.2% for the current year, with a beta of 0.75 and a dividend yield of 2.09% [8][9] - **Fortis, Inc. (FTS)**: Operates in the electric and gas utility sector, primarily in Canada and the Caribbean. Expected earnings growth rate is 4.6% for the current year, with a beta of 0.48 and a dividend yield of 3.57% [10][11] - **Northwest Natural Holding Company (NWN)**: Focuses on natural gas distribution systems and pipeline projects, serving residential, commercial, and industrial customers. Expected earnings growth rate is 25.3% for the current year, with a beta of 0.59 and a dividend yield of 4.72% [12][13] - **Ingredion Incorporated (INGR)**: Provides ingredient solutions specializing in nature-based sweeteners and starches, serving various sectors. Expected earnings growth rate is 6.7% for the current year, with a beta of 0.77 and a dividend yield of 2.47% [14] - **Carriage Services, Inc. (CSV)**: A leading provider of death care services in the U.S., offering a range of funeral and burial services. Expected earnings growth rate is 23.4% for the current year, with a beta of 0.86 and a dividend yield of 1.03% [15][16]

Company Overview - Ingredion Incorporated is a leading global ingredient solutions provider headquartered in the suburbs of Chicago, serving customers in over 120 countries [2] - The company reported annual net sales of approximately $7.4 billion for 2024, transforming grains, fruits, vegetables, and other plant-based materials into value-added ingredient solutions for various markets [2] - Ingredion operates innovation centers called Idea Labs globally and employs more than 11,000 people, focusing on co-creating with customers to enhance life through the integration of people, nature, and technology [2] Dividend Announcement - The board of directors declared a quarterly dividend of $0.82 per share on the common stock, marking the 11th consecutive year of dividend increases in the third quarter [1] - The dividend is scheduled to be payable on October 21, 2025, to stockholders of record as of the close of business on October 1, 2025 [1]

Core Viewpoint - Ingredion (INGR) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is effective for individual investors as it focuses on earnings estimate revisions, which are crucial for near-term stock price movements [2][4]. - Changes in earnings estimates are strongly correlated with stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [4]. Company Performance and Outlook - The upgrade for Ingredion reflects an improvement in its underlying business, suggesting that investor sentiment may lead to increased stock prices [5]. - Over the past three months, the Zacks Consensus Estimate for Ingredion has increased by 1.4%, with expected earnings of $11.36 per share for the fiscal year ending December 2025, indicating no year-over-year change [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - The upgrade to Zacks Rank 2 places Ingredion in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [10].

Part I Financial Information [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Ingredion Incorporated for the three and six months ended June 30, 2025, and 2024, including income, comprehensive income, balance sheets, equity changes, and cash flows, with accompanying notes [Condensed Consolidated Statements of Income](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Q2 2025 net sales decreased to $1,833 million, while net income attributable to Ingredion increased to $196 million, with year-to-date net income growing to $393 million from higher operating income Consolidated Income Statement Highlights (in millions, except EPS) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $1,833 | $1,878 | $3,646 | $3,760 | | **Gross Profit** | $477 | $446 | $943 | $863 | | **Operating Income** | $271 | $240 | $547 | $453 | | **Net Income Attributable to Ingredion** | $196 | $148 | $393 | $364 | | **Diluted EPS** | $2.99 | $2.22 | $5.99 | $5.46 | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased to $7,781 million, primarily due to higher accounts receivable, while total liabilities slightly decreased and stockholders' equity grew to $4,197 million Balance Sheet Summary (in millions) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $3,517 | $3,355 | | **Total Assets** | $7,781 | $7,444 | | **Total Current Liabilities** | $1,264 | $1,281 | | **Total Liabilities** | $3,505 | $3,554 | | **Total Ingredion Stockholders' Equity** | $4,197 | $3,804 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash provided by operating activities for the six months ended June 30, 2025, decreased to $262 million due to working capital changes, with $215 million used for investing and $204 million for financing activities Cash Flow Summary - Six Months Ended June 30 (in millions) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | **Cash provided by operating activities** | $262 | $521 | | **Cash (used for) provided by investing activities** | $(215) | $125 | | **Cash used for financing activities** | $(204) | $(526) | | **(Decrease) increase in cash and cash equivalents** | $(136) | $104 | [Notes to the Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, divestitures, investments, and segment performance, highlighting the South Korea business sale, a new joint venture with Agrana, and ongoing share repurchases - On February 1, 2024, the company completed the sale of its South Korea business for approximately **$294 million**, recognizing a pre-tax net gain of **$82 million**[25](index=25&type=chunk) - In June 2025, the company entered into a joint venture with Agrana Stärke GmbH, acquiring a **49%** equity interest for **$19 million** to develop starch production in Romania[26](index=26&type=chunk) - Year-to-date 2025, the company repurchased **409,000** shares of common stock for **$55 million**. As of June 30, 2025, **2.9 million** shares remained available for repurchase under the current program[47](index=47&type=chunk) Segment Net Sales to Unaffiliated Customers - YTD 2025 vs 2024 (in millions) | Segment | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | | T&HS | $1,201 | $1,185 | | F&II - LATAM | $1,169 | $1,246 | | F&II - U.S./Canada | $1,043 | $1,096 | | All Other | $233 | $233 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 and YTD 2025 financial results, noting increased net income driven by higher operating income as input costs declined faster than net sales, covering segment performance, liquidity, and cash flow activities - Year-to-date 2025 net income attributable to Ingredion increased to **$393 million** from **$364 million** in 2024, primarily due to a **21%** increase in operating income, driven by corn and input costs declining faster than net sales[81](index=81&type=chunk) - The company maintains a strong liquidity position with **$3.7 billion** available as of June 30, 2025, comprising cash, short-term investments, and borrowing capacity[117](index=117&type=chunk) - Capital investment commitments for the full year 2025 are anticipated to be between **$400 million** and **$425 million**[123](index=123&type=chunk) [Results of Operations - Second Quarter 2025](index=29&type=section&id=Results%20of%20Operations%20-%20Second%20Quarter%202025) Q2 2025 net sales decreased 2% to $1,833 million, while gross profit margin improved to 26% as cost of sales fell 5%, leading to a 32% increase in net income attributable to Ingredion, reaching $196 million Q2 2025 vs Q2 2024 Performance (in millions) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $1,833 | $1,878 | -2% | | Cost of Sales | $1,356 | $1,432 | -5% | | Operating Income | $271 | $240 | +13% | | Net Income Attributable to Ingredion | $196 | $148 | +32% | - The effective tax rate decreased to **23.6%** in Q2 2025 from **34.8%** in Q2 2024, primarily due to the changing value of the Mexican peso and the tax impact of a 2024 impairment charge[92](index=92&type=chunk) [Segment Results - Second Quarter 2025](index=30&type=section&id=Segment%20Results%20-%20Second%20Quarter%202025) In Q2 2025, T&HS adjusted operating income increased 29%, F&II - LATAM decreased 2%, F&II - U.S./Canada fell 18%, and the All Other segment significantly reduced its operating loss Q2 2025 Adjusted Operating Income by Segment (in millions) | Segment | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Texture & Healthful Solutions | $111 | $86 | +29% | | Food & Industrial Ingredients - LATAM | $127 | $130 | -2% | | Food & Industrial Ingredients - U.S./Canada | $86 | $105 | -18% | | All Other | $(1) | $(10) | +90% | [Results of Operations - Year-to-Date 2025](index=31&type=section&id=Results%20of%20Operations%20-%20Year-to-Date%202025) For YTD 2025, net sales decreased 3% to $3,646 million, but a 7% drop in cost of sales improved gross profit margin to 26% and increasing operating income by 21% to $547 million, with net income attributable to Ingredion rising to $393 million - Excluding the impact of the South Korea business sale in 2024, net sales decreased **2%** year-over-year[102](index=102&type=chunk) - Gross profit margin increased to **26%** for YTD 2025 from **23%** in YTD 2024, as raw material and input costs decreased faster than sales[103](index=103&type=chunk) - Financing costs decreased **28%** to **$21 million** due to lower average debt balances[107](index=107&type=chunk) [Liquidity and Cash](index=32&type=section&id=Liquidity%20and%20Cash) As of June 30, 2025, Ingredion had $3.7 billion in liquidity and $1.8 billion in debt, with cash from operations decreasing to $262 million due to working capital changes and cash used for capital expenditures, financing, dividends, and share repurchases Liquidity Position as of June 30, 2025 (in billions) | Component | Amount | | :--- | :--- | | Total Available Liquidity | $3.7 | | Total Debt Outstanding | $1.8 | - Cash from operating activities decreased to **$262 million** YTD 2025 from **$521 million** YTD 2024, primarily due to a **$250 million** change in working capital from increased trade accounts receivables[122](index=122&type=chunk) - The quarterly dividend was increased to **$0.80 per share** in 2025 from **$0.78 per share** in 2024[125](index=125&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=29&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section states that there have been no material changes in the company's market risk exposures, including interest rates, raw material and energy costs, and foreign currencies, during the first six months of 2025 compared to the information provided in the 2024 Annual Report on Form 10-K - There have been no material changes in the information provided with respect to market risks during year-to-date 2025[137](index=137&type=chunk) [Controls and Procedures](index=29&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that as of June 30, 2025, the company's disclosure controls and procedures are effective[138](index=138&type=chunk) - There were no changes in internal control over financial reporting during the quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, internal controls[139](index=139&type=chunk) Part II Other Information [Legal Proceedings](index=30&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no material developments in environmental proceedings related to its Bedford Park, Illinois facility and does not anticipate material adverse effects from other ordinary course claims - There have been no material developments in the environmental proceedings related to the Bedford Park, Illinois manufacturing facility as of the date of this report[140](index=140&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=30&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No common stock shares were repurchased during Q2 2025, with 2.9 million shares remaining available under the existing repurchase program authorized through December 31, 2025 - No shares of common stock were repurchased during the second quarter of 2025[142](index=142&type=chunk) - As of June 30, 2025, **2.9 million** shares were available for repurchase under the stock repurchase program authorized until December 31, 2025[142](index=142&type=chunk) [Other Information](index=30&type=section&id=Item%205.%20Other%20Information) On May 7, 2025, CEO James P. Zallie and SVP Larry Fernandes entered into Rule 10b5-1 plans for common stock sales, commencing August 6, 2025 - CEO James P. Zallie entered into a Rule 10b5-1 plan to sell up to **195,155** shares of common stock, commencing August 6, 2025[143](index=143&type=chunk) - SVP Larry Fernandes entered into a Rule 10b5-1 plan to sell up to **13,161** shares of common stock, commencing August 6, 2025[144](index=144&type=chunk) [Exhibits](index=31&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications under Sarbanes-Oxley Sections 302 and 906, and various XBRL data files - The exhibits filed with the report include CEO and CFO certifications under Sarbanes-Oxley Sections 302 and 906, as well as XBRL data files[145](index=145&type=chunk)