Ingredion Inc.: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 5 November 2026: press release. Guidance figures: 7 lowered, 1 new, 4 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Operating income fell 19%: Reported operating income was $201 million and adjusted operating income $206 million, both down 19% from the prior year. Excluding foreign exchange, both were down 21%. Source
• Diluted EPS fell 15%: Reported diluted EPS was $2.23 against $2.61, and adjusted diluted EPS was $2.28 against $2.75. Net sales were $1,792 million, down 1%, and down 3% excluding foreign exchange. Source
• U.S./CAN operating income down 36%: F&II - U.S./CAN net sales were $504 million, down 1%, and flat excluding foreign exchange. Segment operating income was $52 million against $81 million. Source
• Argo manufacturing costs weighed on gross profit: Gross profit fell 12% to $399 million. Management tied the decline to manufacturing costs, with softer demand also affecting profitable volume growth. Source
• Clean label demand drove T&HS volume: T&HS volume grew for a tenth consecutive quarter. Management linked this to clean label demand, with customers reformulating for simpler labels, affordability and nutrition. Source
• Building toward a stronger company: Management said integration planning for the pending Tate & Lyle acquisition is under way, aimed at greater growth, innovation and shareholder value in 2027 and beyond. Source

“Our third quarter results fell short of our expectations, largely due to Argo’s slower than anticipated financial recovery, with incremental pressure from higher input costs and consumer softness”

Jim Zallie, chairman, president and CEO of Ingredion

Guidance

What changed from last quarter

• Guidance lowered: Full-year diluted EPS ranges reduced: reported to $8.04 to $8.49 from $9.15 to $9.75, adjusted to $9.25 to $9.70 from $10.30 to $10.90. Source
• Guidance lowered: Full-year net sales now expected flat, down from flat to up low single digits. Source
• Guidance lowered: Full-year adjusted operating income now expected down mid-teens, from down mid-single digits. Source
• Guidance lowered: T&HS full-year operating income now expected flat to up low single digits, from up mid-to-high single digits. Source
• Guidance lowered: F&II - LATAM full-year operating income now expected down mid-to-high single digits, from down low single digits. Source
• Guidance lowered: F&II - U.S./CAN full-year operating income now expected down 35 to 40 percent, from down 20 to 25 percent. Source
• Guidance lowered: Full-year cash from operations now expected $650 million to $750 million, from $700 million to $800 million. Source
• New guidance: Company gave a separate full-year net sales expectation excluding the Pakistan business. Source
• New: Diego Reynoso, executive vice president and chief financial officer, is named as co-host of the results call; the prior call named Jason Payant as interim CFO. Source
• New: Third quarter included a charge tied to the sale of the Vanscoy, Canada facility and an equity investment impairment. Source
• New: Company declared a quarterly dividend increase to $0.83 per share, up from $0.82, paid October 20, 2026. Source

Results and growth drivers

• Operating income fell 19%: Reported operating income was $201 million and adjusted operating income $206 million, both down 19% from the prior year. Excluding foreign exchange, both were down 21%. Source
• Diluted EPS fell 15%: Reported diluted EPS was $2.23 against $2.61, and adjusted diluted EPS was $2.28 against $2.75. Net sales were $1,792 million, down 1%, and down 3% excluding foreign exchange. Source
• Nine-month EPS down 28%: Year-to-date reported diluted EPS was $6.24 against $8.61. Year-to-date adjusted diluted EPS was $7.45 against $8.60, and net sales were $5,434 million, down 1%. Source

Segments and regions

• Texture & Healthful Solutions profit fell: T&HS net sales rose 1% to $610 million. Segment operating income fell 10% to $95 million, down $10 million. Source
• LATAM sales up 7%, profit down 6%: F&II - LATAM net sales rose 7% to $624 million. Segment operating income fell 6% to $109 million, mainly on Mexico’s transactional currency impact and the Colombia earthquake. Source
• U.S./CAN operating income down 36%: F&II - U.S./CAN net sales were $504 million, down 1%, and flat excluding foreign exchange. Segment operating income was $52 million against $81 million. Source
• All Other sales fell on Pakistan sale: All Other net sales fell 55% to $54 million. The operating loss was $11 million against $4 million, partly offset by Protein Fortification improvements. Source

“For Texture and Healthful Solutions, net sales volume growth was a bright spot again this quarter.”

Jim Zallie, chairman, president and CEO of Ingredion

Costs, margins and pricing

• Argo manufacturing costs weighed on gross profit: Gross profit fell 12% to $399 million. Management tied the decline to manufacturing costs, with softer demand also affecting profitable volume growth. Source
• Tapioca costs cut T&HS profit: Higher tapioca costs and manufacturing input cost inflation hurt T&HS profit growth. The segment also cited unfavorable price mix, partly offset by positive volumes. Source
• Operating expenses rose 6%: Operating expenses rose $12 million to $215 million. Cost of sales rose to $1,393 million from $1,361 million. Source
• Tax rate fell year on year: Reported effective tax rate was 26.8% against 28.6%; adjusted was 26.4% in both years. Brazil ICMS credit ruling also helped, partly offset by the peso. Source

Demand, volumes and customers

• Clean label demand drove T&HS volume: T&HS volume grew for a tenth consecutive quarter. Management linked this to clean label demand, with customers reformulating for simpler labels, affordability and nutrition. Source
• Argo production held steady: Argo production has been stable for two consecutive quarters, and inventories are largely rebuilt, according to management. Source
• Guidance cut cites softer demand: Management cut full-year guidance mainly for the slower U.S./CAN earnings recovery, and cited higher input costs and softer demand. Source

Capital, cash and returns

• Total debt and cash at quarter-end: At September 30, 2026, total debt was $1.8 billion and cash including short-term investments was $993 million. Year-end 2025 figures were $1.8 billion and $1.0 billion. Source
• Capex and property sale proceeds: Capital expenditures totaled $313 million for the nine months, partly offset by $36 million from property sales. Source
• Dividend raised to $0.83: The Company declared a quarterly dividend of $0.83 per share, up from $0.82. Dividends paid in the third quarter totaled $53 million. Source
• Operating cash flow fell for nine months: Cash provided by operating activities was $389 million for the nine months, against $539 million a year earlier. Changes in other working capital used $219 million. Source

Strategy, leadership and integration

• Building toward a stronger company: Management said integration planning for the pending Tate & Lyle acquisition is under way, aimed at greater growth, innovation and shareholder value in 2027 and beyond. Source
• Cost discipline and spend management: Management said it is acting on operating cost discipline and spend management while continuing to invest in specialty growth platforms. Source
• Vanscoy facility sale charge: The third quarter included a charge tied to the sale of the Vanscoy, Canada facility, plus an impairment on an equity investment. Source
• Pakistan sale gain in nine months: Nine-month results include a $44 million net pre-tax gain on the Pakistan sale. The sale removed $65 million of third-quarter net sales volume. Source
• Diego Reynoso hosted results call: Diego Reynoso, executive vice president and CFO, co-hosted the call with the CEO. The prior quarter's call was hosted by Jason Payant as interim CFO. Source
• Argo reliability and cost focus: Management said plant reliability has improved and its focus has shifted to sustainably lowering operating costs and improving volume growth. Source

Coming up, as management said on 5 November 2026

• Tate & Lyle integration planning continues: Management said integration planning for the pending Tate & Lyle acquisition is in progress. The documents give no completion date. Source
• Cost actions expected to lift earnings: Management expects its operating cost and volume actions to improve earnings. The documents give no timing for that effect. Source

Figures management reported

Risks management discussed

• Operational: Management cited Argo’s slower-than-anticipated financial recovery as the main reason for the lower U.S./CAN earnings view. Source
• Operational: The August earthquake in Colombia disrupted Andean operations, reducing F&II - LATAM results. Source
• External: Continued strength of the Mexican peso affects reported LATAM results through currency effects. Source
• Demand: Management named consumer softness and higher input costs as incremental pressure on results. Source
• Financial: Impairment charges were $6 million in the quarter and $39 million for the nine months. Source
• Regulatory: Full-year guidance assumes tariff levels in effect at the end of October 2026. Source

Earlier plans management reported on

• Missed: Management said third-quarter results fell short of its expectations. Source
• Delayed: Management said the Argo recovery is taking longer than it had expected. Source
• On track: Management said it is on track to complete the $100 million full-year share repurchase target. Source

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 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.