Ingredion Inc.: Q3 FY2025 earnings call

What management said about Q3 FY2025, from the documents filed with the SEC on 4 November 2025: press release. Guidance figures: 1 raised, 8 lowered, 2 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Reported EPS fell 8% on quarter: Reported diluted EPS was $2.61 against $2.83 a year earlier; adjusted diluted EPS was $2.75 against $3.05. Source
• Operating income declined in quarter: Reported operating income was $249 million, down 7%; adjusted operating income was $254 million, down 10%. Net sales were $1,816 million, down 3%. Source
• T&HS operating income rose 9%: T&HS net sales rose 1% to $605 million. Operating income rose 9% to $105 million, or 7% excluding foreign exchange. Source
• U.S./Canada operating income fell 18%: U.S./Canada net sales fell 7% to $507 million. Operating income fell 18% to $81 million, which the company tied to production challenges at its Chicago plant after a fire. Source
• Full-year EPS ranges lowered: Both full-year EPS ranges were lowered from the August release, and the top of the adjusted range moved down. Source
• Segment guidance split by segment: Full-year T&HS operating income guidance was raised, while LATAM and U.S./Canada guidance was lowered. All Other still approaches breakeven. Source

“while our F&II businesses were impacted by lower volume demand and operational challenges at our largest facility in the U.S.”

Jim Zallie, president and CEO of Ingredion

Guidance

What changed from last quarter

• Guidance lowered: Full-year reported and adjusted EPS ranges were lowered from the August release. Source
• Guidance lowered: Full-year net sales expectation moved from flat to flat to down low single-digits. Source
• Guidance lowered: Full-year operating income growth range now starts at low single-digits, from mid-single-digits previously. Source
• Guidance raised: T&HS full-year operating income growth expectation was raised from low double-digits to high double-digits. Source
• Guidance lowered: LATAM full-year operating income expectation was lowered from up low single-digits to flat to up low single-digits. Source
• Guidance lowered: U.S./CAN full-year operating income expectation was lowered from a decline of low single-digits to low double-digits. Source
• Guidance lowered: Full-year cash from operations range was lowered from $825 million to $950 million. Source
• Guidance lowered: Full-year adjusted effective tax rate high end was lowered from 27.5% to 27.0%. Source

Results and growth drivers

• Reported EPS fell 8% on quarter: Reported diluted EPS was $2.61 against $2.83 a year earlier; adjusted diluted EPS was $2.75 against $3.05. Source
• Operating income declined in quarter: Reported operating income was $249 million, down 7%; adjusted operating income was $254 million, down 10%. Net sales were $1,816 million, down 3%. Source
• Currency-neutral declines were larger: Excluding foreign exchange, reported operating income fell 8% and adjusted operating income fell 11% from a year earlier. Source
• Nine-month EPS higher than prior year: Nine-month reported diluted EPS was $8.61 against $8.29. The prior-year period included pre-tax gains on the South Korea sale of $90 million. Source
• Net sales fell on F&II volume: Net sales fell 3% to $1,816 million. The company cited lower volume from each F&II segment and lower price mix from lower raw material costs, partly offset by T&HS volume. Source

Segments and regions

• T&HS operating income rose 9%: T&HS net sales rose 1% to $605 million. Operating income rose 9% to $105 million, or 7% excluding foreign exchange. Source
• LATAM operating income fell 11%: LATAM net sales fell 6% to $585 million. Operating income fell 11% to $116 million, or 12% excluding foreign exchange, which the company tied to brewing volumes and mix management. Source
• U.S./Canada operating income fell 18%: U.S./Canada net sales fell 7% to $507 million. Operating income fell 18% to $81 million, which the company tied to production challenges at its Chicago plant after a fire. Source
• All Other loss flat at $4 million: All Other net sales rose 17% to $119 million. The operating loss was $4 million, flat, as plant-based protein improved and Pakistan profits fell. Source

“We will continue to deploy capital toward organic growth opportunities and M&A that expand and strengthen our Texture & Healthful Solutions portfolio.”

Jim Zallie, president and CEO of Ingredion

Products and customers

• Clean label sales drove T&HS volume: T&HS sales volume rose 4%, led by double-digit sales increases for clean label ingredient solutions in U.S./Canada and Asia-Pacific. Source
• Customized solutions outgrew segment sales: The company said its solutions portfolio, made of customized formulations and differentiated products, grew faster than segment net sales. Source
• Customer reformulation drives specialty capacity: Management tied new specialty solutions capacity to growing customer reformulation requirements. Source

Costs, margins and pricing

• Cost2Compete restructuring created gap: The gap between reported and adjusted operating income was mainly restructuring costs from the Cost2Compete initiatives. Source
• Margin and volume cut adjusted EPS: Operating items reduced adjusted diluted EPS by $0.31 against last year: margin $0.22 and volume $0.12. Source
• Net financing costs rose: Net financing costs were $7 million against $1 million, which the company attributed to lower foreign exchange gains. Source
• Reported tax rate above adjusted: Reported effective tax rate was 28.6% and adjusted 26.4%, against 30.8% and 26.9% a year earlier. The company cited a prior-year tax ruling and peso movement. Source

“We also remain committed to returning capital to shareholders through dividends and share repurchases.”

Jim Zallie, president and CEO of Ingredion

Demand and volumes

• LATAM consumer demand softened: Management said consumer demand softened across LATAM as higher inflation, interest rates and uncertainty affected GDP growth. Source
• Brewing industry demand declined: Management cited brewing industry demand alongside its own customer and product mix management in LATAM. Source
• Beverage and food demand fell: Management tied reduced U.S./Canada beverage and food demand to rising retail prices. Source

Full-year guidance changes

• Full-year EPS ranges lowered: Both full-year EPS ranges were lowered from the August release, and the top of the adjusted range moved down. Source
• Operating income growth range trimmed: Full-year operating income growth range now runs from low single-digits, against mid-single-digits in the prior release. Source
• Segment guidance split by segment: Full-year T&HS operating income guidance was raised, while LATAM and U.S./Canada guidance was lowered. All Other still approaches breakeven. Source
• Cash from operations range lowered: Full-year cash from operations guidance was lowered and includes a return to investing in working capital balances. Source
• Guidance reflects tariff levels: Guidance reflects tariff levels in effect at the end of October 2025, against tariff levels at the end of July 2025 in the prior release. Source

Capital, cash and returns

• Cash and investments rose from June: Cash including short-term investments was $921 million at September 30, against $868 million at June 30 and $1.0 billion at December 31, 2024. Total debt was $1.8 billion. Source
• Nine-month operating cash flow lower: Cash provided by operations was $539 million for the nine months, against $1,000 million a year earlier. Source
• Net capital spending through September: Net capital expenditures were $298 million through September 30, against $193 million through June 30 in the prior release. Source
• Share repurchases rose year to date: Year-to-date share repurchases totaled $134 million, against $55 million through June 30. Source
• Quarterly dividend raised to $0.82: The quarterly dividend was declared at $0.82, against $0.80 before. The company paid $54 million in dividends in the quarter. Source

Strategy and investment

• Strategic pillars guide the focus: Management said its pillars of profitable growth, innovation and operating excellence guide its focus amid an uncertain macro climate. Source
• Capital directed to T&HS growth: Capital will go to organic growth and M&A that expand and strengthen the T&HS portfolio. Source
• Shareholder returns remain part of plan: Management said returns to shareholders through dividends and repurchases remain part of its approach. Source

Coming up, as management said on 4 November 2025

• Specialty capacity completion in coming quarters: Management said the new specialty solutions capacity investments are to be completed in the next few quarters. Source

Figures management reported

Risks management discussed

• Operational: Production challenges continued at the Chicago plant after the late June fire, weighing on U.S./Canada operating income. Source
• Demand: Management said consumer demand softened across LATAM as inflation, interest rates and uncertainty affected GDP growth. Source
• Demand: Management cited weaker overall brewing industry demand as a factor in LATAM operating income. Source
• External: Management cited expected foreign exchange impacts among the factors offsetting volume growth in full-year net sales. Source
• Regulatory: Full-year guidance is based on tariff levels in effect at the end of October 2025. Source

Earlier plans management reported on

• Not stated: Management said it remains committed to returning capital through dividends and share repurchases. Source
• Not stated: The prior release anticipated offsetting some of the fire impact through the second half. This release does not say whether that happened.
• Not stated: The prior release gave third quarter net sales and operating income expectations. This release reports third quarter net sales down 3% and operating income down 7%.

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.