Ingredion Inc
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +3.54%.
Did INGR Beat Earnings? Q2 2025 Results
Ingredion posted a mixed second quarter for 2025, beating earnings expectations while falling short on revenue, as a standout performance in its specialty ingredients unit helped cushion softness elsewhere. Adjusted diluted EPS came in at $2.87, clearing the consensus estimate of $2.79 by roughly 2.99%, even as net sales slipped 2.4% year over year to $1.83 billion, missing analyst expectations of $1.89 billion by 3.01%. The clearest engine behind the earnings beat was the Texture and Healthful Solutions segment, which delivered a 29% surge in operating income to $111.00 million, fueled by lower raw material costs, stronger clean label volumes, and sharper procurement execution. That momentum helped offset an 18% decline in Food and Industrial Ingredients U.S./Canada operating income, where a mechanical fire at the Chicago plant temporarily curtailed output. Looking ahead, management raised its full-year 2025 adjusted EPS guidance to a range of $11.10 to $11.60, with full-year net sales expected flat and both reported and adjusted operating income guided up mid-single-digits.
- Texture & Healthful Solutions segment delivered 29% operating income growth driven by lower raw material costs, increased volumes especially for clean label solutions, and operating excellence in demand forecasting and procurement
- Lower raw material and input costs across segments contributed to margin improvement
- Adjusted operating income growth of 1% year-over-year; reported operating income up 13%
- Favorable margin contribution of $0.22 to adjusted EPS partially offset by $0.16 volume headwind
- Share count reduction contributed $0.05 to EPS
“Ingredion delivered another solid quarter, underscoring the strength and resilience of our diversified business model. Our Texture & Healthful Solutions segment delivered 2% net sales and 29% operating income growth. These results were driven by sales volume growth, especially for clean label solutions, and operating excellence as better demand forecasting and procurement efforts contributed to the segment's performance.”
Ingredion CEO, on the earnings call
Forward Guidance & Outlook
Ingredion raised its full-year 2025 guidance. Reported EPS is now expected in the range of $11.25 to $11.75, and adjusted EPS in the range of $11.10 to $11.60. Full-year net sales are expected to be flat, with T&HS volume growth offset by lower price mix and FX impacts. Both reported and adjusted operating income are expected to be up mid-single-digits. By segment: T&HS operating income is now expected up low double-digits; F&II—LATAM up low single-digits; F&II—U.S./Canada down low single-digits; and All Other to approach breakeven. Corporate costs are expected up high single-digits due to IT investments. Full-year effective tax rate is expected at 26.0%–27.5%. Cash from operations is expected at $825–$950 million and capex at approximately $400–$425 million. For Q3 2025, net sales are expected flat to up low single-digits with operating income flat to down low single-digits. Guidance reflects tariff levels in effect as of end of July 2025.
INGR YoY Financials
INGR Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.