Did Ingredion beat earnings in Q4 2025?

Ingredion missed on both metrics in Q4 2025 — revenue of $1.757B came in below the ~$1.80B consensus (-2.4%), and adjusted EPS of $2.53 missed the $2.61 estimate (-3.1%). The misses were driven by ongoing operational challenges at the Argo facility and weaker volume demand.

What is Ingredion's 2026 guidance?

Ingredion guided FY 2026 adjusted EPS of $11.00-$11.80 (midpoint $11.40, roughly flat to +6% YoY), with net sales up low-single to mid-single digits. Q1 2026 expected to be weak with operating income down mid-double-digits.

How did Ingredion's Texture & Healthful Solutions segment perform?

T&HS was the standout, delivering record operating income of $405M (+16% YoY) with 4% sales volume growth for the 7th consecutive quarter. Clean label solutions grew double-digits in the U.S./Canada.

Ingredion (INGR)·Q4 2025 Earnings Summary

Ingredion Q4 2025: Texture & Healthful Solutions Hits Record Profit Despite Overall Headwinds

February 03, 2026 · by Fintool AI Agent

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Ingredion reported mixed Q4 2025 results, with revenue and EPS both missing estimates while the high-margin Texture & Healthful Solutions segment delivered record profitability. Full-year adjusted EPS of $11.13 came in within the prior guidance range of $11.10-$11.30, but persistent operational issues at the Argo facility and softer demand weighed on the quarter.

Did Ingredion Beat Earnings?

No — INGR missed on both revenue and EPS in Q4:

Metric	Q4 2025 Actual	Consensus Est.	Surprise
Revenue	$1,757M	~$1,800M	-2.4%
Adjusted EPS	$2.53	$2.61	-3.1%

For the full year, results were mixed:

Metric	FY 2025	FY 2024	YoY Change
Net Sales	$7,219M	$7,430M	-3%
Adj. Operating Income	$1,028M	$1,016M	+1%
Adj. Diluted EPS	$11.13	$10.65	+4.5%
Gross Margin	25.3%	24.1%	+120 bps

The gross margin expansion to 25.3% represents a new company record, marking the third consecutive year of improvement.

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What's Driving the Segment Divergence?

The story of Q4 and FY 2025 is a tale of two businesses: the specialty-focused T&HS segment thriving while the commoditized F&II segments struggled.

Segment Breakdown

Texture & Healthful Solutions: The Bright Spot

T&HS delivered its 7th consecutive quarter of volume growth (+4% in Q4) and posted record operating income of $405M for the full year, up 16% YoY.

Key drivers:

Clean label ingredient sales grew double-digits in U.S./Canada in Q4 and full year
Solutions sales growth outpaced the segment's overall growth
Record quarterly sales for pea protein isolate business in Q4, with production doubled vs prior year
Completed Belcamp facility expansion adding ~$30M revenue capacity for blending solutions
Indianapolis modernization project went live, lowering specialty starch costs and expanding capacity

F&II—U.S./Canada: Argo Challenges Persist

The U.S./Canada segment remained the problem child, with operating income down 16% for the full year to $315M.

The culprits:

Argo facility operational setbacks — estimated $40M negative impact in 2025 from higher maintenance costs, lower yields, and fixed cost absorption
Lower co-product values realized
Weak industry sweetener volumes due to lower food and beverage demand
Q4 net sales down 9%, with 7% volume decline

Management noted recovery plans are underway and expect meaningful improvement in 2026.

F&II—LATAM: Steady Despite Headwinds

LATAM delivered $493M in operating income (+2% YoY) with margin expansion to 21.1% from 19.7%, despite a 4% revenue decline.

Brewing volume improved sequentially in Q4
Confectionary and paper/corrugating volumes remained weak
Modest food ingredient growth

What Did Management Guide for 2026?

Ingredion provided the following FY 2026 outlook:

Metric	FY 2026 Guidance
Net Sales	Up low-single to mid-single digits
Adjusted Operating Income	Up low-single digits
Adjusted EPS	$11.00 - $11.80
Adjusted Effective Tax Rate	25.5% - 27.0%
Cash from Operations	$820 - $940 million
Capital Expenditures	~$400 - $440 million

Guidance reflects tariff levels in effect as of January 31, 2026. Management noted very little impact from new U.S. tariffs as most products are made and sold locally.

Segment Outlook for 2026:

Segment	Net Sales	Operating Income
T&HS	Up low-single to mid-single digits	Up low-single to mid-single digits
F&II—LATAM	Up low-single to mid-single digits	Flat to up low-single digits
F&II—U.S./CAN	Flat to down low-single digits	Flat
All Other	Up high-single digits	Improve $5-$10M

Q1 2026 Warning: Management expects Q1 net sales to be down low-single digits with operating income down mid-double-digits.

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How Did the Stock React?

Metric	Value
Last Close (Feb 2)	$117.31
After-Hours	$116.00 (-1.1%)
52-Week High	$141.78
52-Week Low	$102.31
Market Cap	~$7.5B

The stock is trading 17% below its 52-week high, reflecting concerns about the ongoing Argo facility issues and softer demand environment. The weak Q1 2026 guidance (operating income down mid-double-digits) may pressure shares in the near term.

What Changed From Last Quarter?

Positives:

Gross margin hit record 25.3% (was 25.1% at Q3) — third consecutive year of improvement
Cost Compete program delivered $59M run-rate savings, exceeding targets
Pea protein business doubled production and achieved record quarterly sales
Capacity investments completed — Belcamp and Indianapolis facilities operational

Concerns:

Argo recovery slower than expected — $40M impact estimated for 2025, recovery plans underway
Q1 2026 guided down significantly — operating income down mid-double-digits
Working capital consumed $75M in 2025 vs contributing $396M in 2024

Capital Allocation & Shareholder Returns

FY 2025 cash from operations came in at $944M, within the updated guidance range of $800-$900M. Capital allocation:

Use of Cash	FY 2025 Amount
Capital Expenditures	$433M
Dividend Payments	$211M
Share Repurchases	$224M
Total to Shareholders	$435M

Management noted that cash flow from operations will "continue at these levels" in 2026, guiding to $820-$940M.

Strategic Priorities for 2026

Management outlined key strategic pillars:

Profitable Growth — Solutions including clean label ingredients gaining momentum, outpacing T&HS segment growth in H2 2025
Innovation — Leveraging rising raw material costs (especially cocoa) driving customer reformulation demand; improving sugar reduction taste modulation capabilities
Operational Excellence — Introducing "Enterprise Productivity" as a new strategic pillar to drive long-term effectiveness and cost efficiency; closed three plants to optimize manufacturing network

What to Watch Going Forward

Argo Facility Recovery: The $40M headwind from operational challenges needs to reverse. Management stated recovery plans are underway — watch for progress updates in Q1.

Q1 2026 Execution: With operating income guided down mid-double-digits, any upside surprise could restore confidence.

T&HS Momentum: The premium segment continues to outperform. Watch for sustained volume growth and margin expansion.

Tariff Developments: Guidance reflects tariffs as of Jan 31, 2026. Any escalation could impact results despite localized manufacturing footprint.

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Upcoming Events

CAGNY 2026 — Orlando, February 17
JP Morgan Consumer Ingredients Forum — London, March 10
BNP Paribas Exane Consumer Ingredients Conference — London, March 10-11

Read the full Q4 2025 Earnings Slides | View INGR Company Profile