- First quarter 2025 reported and adjusted* operating income increased 30% and 26% compared to prior year
- First quarter 2025 reported and adjusted EPS were $3.00 and $2.97, compared with $3.23 and $2.08 in the first quarter 2024
- Improving guidance for full-year reported EPS to be in the range of $10.93 to $11.63 and adjusted EPS to be in the range of $10.90 to $11.60
WESTCHESTER, Ill., May 06, 2025 (GLOBE NEWSWIRE) -- Ingredion Incorporated (NYSE: INGR), a leading global provider of ingredient solutions to the food and beverage manufacturing industry, today reported its 2025 first quarter results.
“Our strong results demonstrate the company's continued ability to deliver sales volume and operating income growth,” said Jim Zallie, president and CEO of Ingredion. “While tariff changes are creating uncertainty, we are reassured by the fact that the vast majority of our products are made locally and sold locally.”
“The Texture & Healthful Solutions segment delivered a robust 34% increase in operating income, driven by strong sales volume across all geographies, and especially from our clean label solutions.”
"In the Food and Industrial Ingredient businesses, both the LATAM and U.S./Canada segments also delivered strong results. Double digit operating income growth in F&II—LATAM was driven by the unexpected stability of the Argentine peso, favorable market mix and lower costs, with Mexico achieving another record quarter. The F&II—U.S./Canada segment exceeded expectations due to favorable product mix, efficient cost management, and excellent market execution. Additionally, while winter disruptions are common in our industry, winterization upgrades implemented last year provided operational benefits.”
“Based upon our successful first-quarter performance, we are improving our full-year earnings forecast. We remain guided by our commitment to be preferred by our customers as we leverage the experience of our team to navigate this complex business environment with agility. Our focus on sustainable growth, disciplined cost management, and a strong balance sheet provides opportunities and optionality to create future value for shareholders."
* Reported results are in accordance with U.S. generally accepted accounting principles “GAAP.” Adjusted financial measures are non-GAAP financial measures. See “II. Non-GAAP Information” in the Supplemental Financial Information that follows the Condensed Consolidated Financial Statements for a reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures.
Diluted Earnings Per Share (EPS)
| 1Q24 | 1Q25 | |||||
| Reported Diluted EPS | $ | 3.23 | $ | 3.00 | ||
| Impairment charges | — | 0.08 | ||||
| Restructuring and resegmentation costs | 0.03 | 0.02 | ||||
| Net gain on sale of business | (1.09 | ) | — | |||
| Tax items and other matters | (0.09 | ) | (0.13 | ) | ||
| Adjusted Diluted EPS** | $ | 2.08 | $ | 2.97 | ||
Estimated factors affecting changes in Reported and Adjusted EPS
| 1Q25 | ||
| Total items affecting EPS** | 0.89 | |
| Total operating items | 0.61 | |
| Margin | 0.60 | |
| Volume | (0.11 | ) |
| Foreign exchange | (0.05 | ) |
| Other income | 0.17 | |
| Total non-operating items | 0.28 | |
| Financing costs | 0.10 | |
| Tax rate | 0.13 | |
| Shares outstanding | 0.05 | |
| ** Totals may not sum due to rounding | ||
Other Financial Items
- At March 31, 2025, total debt was $1,784 million, and cash, including short-term investments, was $846 million, versus $1,831 million and $1.0 billion at Dec. 31, 2024.
- In the first quarter, net financing costs were $9 million, compared to $19 million for the year-ago first quarter, driven by lower net interest expense and benefitting from favorable foreign exchange impacts.
- Reported and adjusted effective tax rates for the quarter were 25.5% and 25.4%, respectively, compared to 21.0% and 28.4% for the year-ago period. The increase in the reported effective tax rate was primarily driven by favorable tax treatment on the sale of our South Korea business during the first quarter of 2024.
- Net capital expenditures in 2025 were $92 million through March 31, 2025.
Business Review
Total Ingredion
Net Sales
| $ in millions | 2024 | FX Impact |
Volume | S. Korea Volume* |
Price Mix |
2025 | Change | Change excl. FX |
|||||
| First Quarter | 1,882 | (40) | 43 | (24) | (48) | 1,813 | (4%) | (2%) | |||||
| * Represents loss of volume due to the sale of our South Korea business | |||||||||||||
Reported Operating Income
| $ in millions | 2024 | FX Impact |
Business Drivers |
Restructuring/ Impairment |
Other | 2025 | Change | Change excl. FX |
|||||
| First Quarter | 213 | (5) | 62 | (4) | 10 | 276 | 30% | 32% | |||||
Adjusted Operating Income
| $ in millions | 2024 | FX Impact |
Business Drivers |
2025 | Change | Change excl. FX |
|||
| First Quarter | 216 | (5) | 62 | 273 | 26% | 29% | |||
Net Sales
- First quarter net sales decreased 4%. The decrease was driven by price mix primarily from lower raw material costs, foreign exchange impacts and the impact of the sale of our South Korea business in the first quarter of 2024, partially offset by T&HS volume increases.
Operating Income
- First quarter reported and adjusted operating income were $276 million and $273 million respectively. The difference in reported versus adjusted operating income was primarily attributable to insurance recoveries and a favorable judgment related to certain indirect taxes in Brazil, partially offset by impairment charges related to certain equity investments. Excluding foreign exchange impacts, reported operating income was up 32% and adjusted operating income was up 29% from a year ago.
Texture & Healthful Solutions
Net Sales
| $ in millions | 2024 | FX Impact |
Volume | Price Mix |
2025 | Change | Change excl. FX |
| First Quarter | 597 | (3) | 40 | (32) | 602 | 1% | 1% |
Segment Operating Income
| $ in millions | 2024 | FX Impact |
Business Drivers |
2025 | Change | Change excl. FX |
||
| First Quarter | 74 | — | 25 | 99 | 34% | 34% | ||
- First quarter operating income for Texture & Healthful Solutions was $99 million, an increase of $25 million from a year ago, driven by lower raw material and input costs and increased volumes, partially offset by unfavorable price mix.
Food & Industrial Ingredients—LATAM
Net Sales
| $ in millions | 2024 | FX Impact |
Volume | Price Mix |
2025 | Change | Change excl. FX |
|||||
| First Quarter | 616 | (28) | (10) | (5) | 573 | (7%) | (2%) | |||||
Segment Operating Income
| $ in millions | 2024 | FX Impact |
Business Drivers |
Argentina JV |
2025 | Change | Change excl. FX |
|||
| First Quarter | 101 | (3) | 10 | 19 | 127 | 26% | 29% | |||
- First quarter operating income for Food & Industrial Ingredients—LATAM was $127 million, an increase of $26 million. The quarter’s results benefited from the lapping of the devaluation of the Argentine peso on prior year results of our Argentina joint venture. Excluding the joint venture’s results, segment operating income increased due to lower raw material costs that were partially offset by lower volumes. Excluding foreign exchange impacts, segment operating income was up 29%.
Food & Industrial Ingredients—U.S./Canada
Net Sales
| $ in millions | 2024 | FX Impact |
Volume | Price Mix |
2025 | Change | Change excl. FX |
||||
| First Quarter | 541 | (6) | — | (15) | 520 | (4%) | (3%) | ||||
Segment Operating Income
| $ in millions | 2024 | FX Impact |
Business Drivers |
2025 | Change | Change excl. FX |
|||
| First Quarter | 87 | (2) | 7 | 92 | 6% | 8% | |||
- First quarter operating income for Food & Industrial Ingredients—U.S./Canada was $92 million, an increase of $5 million from a year ago. The increase was driven by lower raw material costs and improved product mix. Excluding foreign exchange impacts, segment operating income was up 8%.
All Other**
Net Sales
| $ in millions | 2024 | FX Impact | Volume | S. Korea Volume* | Price Mix | 2025 | Change | Change excl. FX | ||||
| First Quarter | 128 | (3) | 13 | (24) | 4 | 118 | (8%) | (5%) | ||||
| * Represents loss of volume due to the sale of our South Korea business | ||||||||||||
Segment Operating Income (loss)
| $ in millions | 2024 | FX Impact | Business Drivers | 2025 | Change | Change excl. FX |
| First Quarter | (4) | — | 4 | 0 | nm | nm |
- First quarter operating income (loss) for All Other improved $4 million from the prior year, primarily driven by improvements in our plant-based protein business.
** All Other consists of the businesses of multiple operating segments that are not individually or collectively classified as reportable segments. Net sales from All Other are generated primarily by sweetener and starch sales by our Pakistan business, sales of stevia and other ingredients from our PureCircle and Sugar Reduction businesses, and pea protein ingredients from our Protein Fortification business.
Dividends and Share Repurchases
In the first quarter, the Company paid $52 million in dividends to shareholders. On March 12, 2025, the Company declared a quarterly dividend of $0.80 per share that was paid on April 22, 2025. During the quarter, the Company repurchased $55 million shares of common stock.
Updated Full-Year 2025 Outlook
The Company expects its full-year 2025 reported EPS to be in the range of $10.93 to $11.63 and adjusted EPS to be in the range of $10.90 to $11.60.
This guidance reflects tariff levels in effect as of the end of April 2025 and does not consider future changes in tariffs or trade restrictions. In addition, this guidance excludes any acquisition-related integration and restructuring costs, as well as any potential impairment costs.
The Company expects full-year 2025 net sales to be up low single-digits, reflecting greater volume demand, partially offset by price mix and foreign exchange impacts. Reported operating income is expected to be up high teens as we lap prior-year impairment charges, and adjusted operating income is expected to be up mid-single-digits for full-year 2025.
The 2025 full-year outlook further assumes the following: Texture and Healthful Solutions operating income is expected to be up mid-single-digits to high single-digits, driven by sales volume growth; Food & Industrial Ingredients—LATAM operating income is expected to be up mid-single-digits; Food & Industrial Ingredients—US/CAN operating income is expected to be flat to down low single-digits; and All Other operating income is anticipated to approach breakeven profitability.
Corporate costs for full-year 2025 are expected to be up mid-single-digits to high single-digits.
For full-year 2025, the Company expects both a reported and adjusted effective tax rate of 26.0% to 27.5%.
Cash from operations for full-year 2025 is expected to be in the range of $825 million to $950 million, which reflects a return to investing in working capital balances based upon expected growth in net sales. Capital expenditures for the full year are expected to be approximately $400 to $450 million.
For the second quarter of 2025, the Company expects net sales to be flat to up low single-digits compared to the same quarter last year, with operating income expected to be flat to down low single-digits.
Conference Call and Webcast Details
Ingredion will host a conference call on Tuesday, May 6, 2025, at 8 a.m. CT/ 9 a.m. ET, hosted by Jim Zallie, president and chief executive officer, and James Gray, executive vice president and chief financial officer. The call will be webcast in real-time and can be accessed at https://ir.ingredionincorporated.com/events-and-presentations. A presentation containing additional financial and operating information will be accessible through the Company’s website and available to download a few hours before the start of the call. A replay will be available for a limited time at https://ir.ingredionincorporated.com/financial-information/quarterly-results.
About the Company
Ingredion Incorporated (NYSE: INGR), headquartered in the suburbs of Chicago, is a leading global ingredient solutions provider serving customers in nearly 120 countries. With 2024 annual net sales of approximately $7.4 billion, the Company turns grains, fruits, vegetables, and other plant-based materials into value-added ingredient solutions for the food, beverage, animal nutrition, brewing and industrial markets. With Ingredion Idea Labs® innovation centers located around the world and more than 11,000 employees, the Company co-creates with customers and fulfills its purpose of bringing the potential of people, nature, and technology together to make life better. Visit ingredion.com for more information and the latest Company news.
Forward-Looking Statements
This news release contains or may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Ingredion intends these forward-looking statements to be covered by the safe harbor provisions for such statements.
Forward-looking statements include, among others, any statements regarding our expectations for second quarter 2025 net sales and operating income, full-year 2025 reported and adjusted earnings per share, net sales, reported and adjusted operating income, segment operating income, corporate costs, reported and adjusted effective tax rate, cash from operations, and capital expenditures, and any other statements regarding our prospects and our future operations, financial condition, volumes, cash flows, expenses or other financial items, including management’s plans or strategies and objectives for any of the foregoing and any assumptions, expectations, or beliefs underlying any of the foregoing.
These statements can sometimes be identified by the use of forward-looking words such as “may,” “will,” “should,” “anticipate,” “assume,” “believe,” “plan,” “project,” “estimate,” “expect,” “intend,” “continue,” “pro forma,” “forecast,” “outlook,” “opportunities,” “potential,” or other similar expressions or the negative thereof. All statements other than statements of historical facts therein are “forward-looking statements.”
These statements are based on current circumstances or expectations, but are subject to certain inherent risks and uncertainties, many of which are difficult to predict and beyond our control. Although we believe our expectations reflected in these forward-looking statements are based on reasonable assumptions, investors are cautioned that no assurance can be given that our expectations will prove correct.
Actual results and developments may differ materially from the expectations expressed in or implied by these statements, based on various risks and uncertainties, including changes in consumer practices, preferences, demand and perceptions that may lessen demand for the products we make; geopolitical conflicts and actions arising from them, including the impacts on the availability and prices of raw materials and energy supplies, supply chain interruptions, and volatility in foreign exchange and interest rates; the effects of global economic conditions and the general political, economic, business, and market conditions that affect customers and consumers in the various geographic regions and countries in which we buy our raw materials or manufacture or sell our products, and the impact these factors may have on our sales volumes, the pricing of our products and our ability to collect our receivables from customers; our reliance on purchases of our products by major industries which we serve and from which we derive a significant portion of our sales, including, without limitation, the food, beverage, animal nutrition and brewing industries; the risks associated with pandemics; our ability to develop or acquire new products and services at rates or of qualities sufficient to gain market acceptance; increased competitive and/or customer pressure in the corn-refining industry and related industries, including with respect to the markets and prices for our primary products and our co-products, particularly corn oil, and the ability to pass through price increases in our key inputs; price fluctuations, supply chain disruptions, tariffs, duties and shortages affecting inputs to our procurement, production processes and delivery channels, including raw materials, energy costs and availability and cost of freight and logistics; our ability to contain costs, achieve budgets and realize expected synergies, including our ability to complete planned maintenance and investment projects on time and on budget as well as to effectively manage freight and shipping costs and hedging activities; operating difficulties at our manufacturing facilities and liabilities relating to product safety and quality; the effects of climate change and legal, regulatory, and market measures to address climate change; our ability to successfully identify and complete acquisitions, divestitures, or strategic alliances on favorable terms, as well as to successfully conduct due diligence, integrate acquired businesses or implement and maintain strategic alliances and achieve anticipated synergies with respect to such transactions; economic, political and other risks inherent in conducting operations in foreign countries and in foreign currencies; the failure to maintain satisfactory labor relations; our ability to attract, develop, motivate, and maintain good relationships with our workforce; the impact of legal and regulatory proceedings, lawsuits, claims and investigations; the impact of any impairment charges on our goodwill or long-lived assets; the impact on our business of political events, trade and international disputes, war, threats or acts of terrorism, and natural disasters; changes in government policy, law, or regulation and costs of legal compliance, including compliance with environmental regulation or the occurrence of other significant events beyond our control; changes in our tax rates or exposure to additional income tax liability; risks affecting our ability to raise funds at reasonable rates and other factors affecting our access to sufficient funds for future growth and expansion; increases in interest rates that could increase our borrowing costs; interruptions, security incidents, or failures with respect to information technology systems, processes, and sites; risks affecting the continuation of our dividend policy; and our ability to maintain effective internal control over financial reporting.
Our forward-looking statements speak only as of the date on which they are made, and we do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of the statement as a result of new information or future events or developments or otherwise. If we do update or correct one or more of these statements, investors and others should not conclude that we will make additional updates or corrections. For a further description of these and other risks, see “Risk Factors” and other information included in our Annual Report on Form 10-K for the year ended December 31, 2024, and our subsequent reports on Form 10-Q and Form 8-K filed with the Securities and Exchange Commission.
CONTACTS:
Investors: Noah Weiss, 773-896-5242
Media: Rick Wion, 708-209-6323
To view full release, please visit: https://www.globenewswire.com/news-release/2025/05/06/3074833/0/en/Ingredion-Incorporated-Reports-Strong-First-Quarter-Results-and-Improves-Full-Year-Outlook.html