Ingredion Incorporated Reports Third Quarter 2026 Results

(NYSE: INGR) Ingredion Incorporated reported third quarter 2026 results, with performance falling short of expectations due to Argo's slower financial recovery, higher input costs, and softer consumer demand. Production at Argo remained stable for a second consecutive quarter, and inventories are largely rebuilt, but high manufacturing costs and weak food and beverage demand impacted profitable volume growth. Texture & Healthful Solutions achieved net sales volume growth for the tenth consecutive quarter, driven by strong global demand for clean label products, though higher tapioca and manufacturing input costs negatively affected profit growth. In Food & Industrial Ingredients—LATAM, stronger volume from brewing and beverage customers in Mexico and Brazil was offset by foreign exchange impacts from a stronger Mexican peso and the August earthquake in Colombia. The company lowered its full-year outlook, primarily due to slower earnings recovery in Food & Industrial Ingredients—U.S./CAN, higher input costs, and softer demand. Third quarter reported diluted EPS was $2.23, down from $2.61 in the prior year, while adjusted diluted EPS was $2.28, down from $2.75. Third quarter reported and adjusted operating income were $201 million and $206 million, respectively, both down 21% year-over-year excluding FX impacts. Total Ingredion net sales for the third quarter were $1,792 million, down 1% from $1,816 million in the prior year, primarily reflecting the sale of the majority stake in the Pakistan business. Texture & Healthful Solutions third quarter net sales were $610 million, up 1%, with operating income of $95 million, down $10 million year-over-year. Food & Industrial Ingredients–LATAM third quarter net sales were $624 million, up 7%, with operating income of $109 million, down $7 million year-over-year. Food & Industrial Ingredients–U.S./CAN third quarter net sales were $504 million, down 1%, with operating income of $52 million, down $29 million year-over-year. All Other segment third quarter net sales were $54 million, down 55%, with an operating loss of $11 million, an increase of $7 million from the prior year. At September 30, 2026, total debt was $1.8 billion and cash, including short-term investments, was $993 million. Net adjusted financing costs were $10 million in third quarter 2026, compared to $7 million in third quarter 2025. The reported effective tax rate for the third quarter was 26.8%, and the adjusted effective tax rate was 26.4%. Capital expenditures totaled $313 million through September 30, 2026, partially offset by $36 million in proceeds from property sales. The company paid $53 million in dividends in the third quarter and declared a quarterly dividend increase to $0.83 per share, paid on October 20, 2026, marking the 12th consecutive year of dividend increases. Through September 30, the company repurchased $85 million of common stock and is on track to complete its $100 million full-year share repurchase target. For full-year 2026, reported diluted EPS is expected to be in the range of $8.04 to $8.49, and adjusted diluted EPS in the range of $9.25 to $9.70. Full-year 2026 net sales are expected to be flat, with reported operating income expected to be down low double digits and adjusted operating income down mid-teens. Texture & Healthful Solutions operating income is expected to be flat to up low single-digits, Food & Industrial Ingredients—LATAM operating income down mid-to-high single-digits, Food & Industrial Ingredients—U.S./CAN operating income down 35-40%, and All Other’s operating loss anticipated to be approximately $(15) million. Corporate costs for full-year 2026 are expected to be down mid-single digits. The company expects a reported effective tax rate of 27.9% to 28.9% and an adjusted effective tax rate of 26.5% to 27.5% for 2026. Cash from operations for the full year 2026 is expected to be in the range of $650 million to $750 million. Capital expenditures for the full year are expected to be approximately $450 to $490 million. The company is progressing integration planning for the pending acquisition of Tate & Lyle. A conference call hosted by Jim Zallie, chairman, president and CEO, and Diego Reynoso, executive vice president and CFO, will be held on November 5, 2026.