WESTCHESTER, Ill., Dec. 12, 2025 (GLOBE NEWSWIRE) -- Ingredion Incorporated (NYSE: INGR), a leading global provider of ingredient solutions, announced today that its board of directors has declared a quarterly dividend of $0.82 per share on the Company’s common stock. The quarterly dividend will be payable on Jan. 20, 2026, to stockholders of record at the close of business on Jan. 2, 2026. For additional information about Ingredion Incorporated, including investor relations, financial updates, and upcoming ...

Core Thesis - Ingredion Incorporated is viewed positively due to its transition towards higher-growth plant-based proteins and alternative sweeteners, aligning with consumer preferences [3][5] - The company is recognized for its solid profitability and disciplined cost control, despite mixed financial performance [3][4] Company Overview - Ingredion is a century-old food ingredients manufacturer serving various industries, including food, paper, textiles, and biomaterials [2] - The company's share price was $107.68 as of December 2nd, with trailing and forward P/E ratios of 10.78 and 9.51 respectively [1] Financial Performance - Ingredion's five-year annualized revenue growth is in the low single digits, with a 5.2% decline over the past year, underperforming the S&P 500 [3] - The company returned approximately $426 million to shareholders in 2024 through dividends and buybacks, including the repurchase of 1.65 million shares [4] - Owners' earnings have shown mid-double-digit returns over the past five years, while free cash flow growth was more modest at 10.46% [4] Market Position - Morningstar assigns Ingredion a narrow economic moat due to its specialty ingredients business, which benefits from pricing power and customer switching costs [2] - The company is considered a high-quality, dividend-paying small-cap in the consumer staples sector [2]

Core Insights - Ingredion Incorporated (NYSE: INGR) has been identified as one of the overlooked dividend stocks to consider for investment [1] - UBS has lowered its price target for Ingredion from $130 to $119 following disappointing Q3 results and operational challenges [2] Financial Performance - For Q3 2025, Ingredion reported revenue of $1.82 billion, reflecting a 3% decline year-over-year and falling $74.6 million short of analysts' expectations [3] - The company's operating income decreased by 7% year-over-year, while adjusted operating income dropped by 10% [3] - The Food & Industrial Ingredients segment experienced an 18% decline in operating income, primarily due to production issues at the Chicago plant and reduced consumer demand [3] Business Segments - Despite challenges, the diversified business model of Ingredion helped mitigate some impacts, with the Texture & Healthful Solutions segment showing solid sales and operating income growth [4] - Ingredion serves as a global supplier of ingredient solutions for food and beverage manufacturers [4]

Financial Performance - Net income attributable to Ingredion for year-to-date 2025 increased to $564 million from $552 million for year-to-date 2024, including a $90 million pre-tax gain from the sale of the South Korea business in February 2024 [88]. - Operating income increased 10 percent year over year to $796 million for year-to-date 2025 from $721 million for year-to-date 2024, driven by higher gross profit and lower restructuring charges [88]. - Gross profit increased 4 percent to $1,398 million for year-to-date 2025 from $1,342 million for year-to-date 2024, primarily due to lower corn and input costs [88]. - Net sales decreased 3 percent to $5,462 million for year-to-date 2025 from $5,630 million for year-to-date 2024, primarily due to lower price mix from lower raw material input costs [88]. - T&HS net sales increased 1 percent to $1,806 million for year-to-date 2025 from $1,785 million for year-to-date 2024, attributed to higher volumes and favorable foreign exchange impacts [116]. - F&II–LATAM net sales decreased 6 percent to $1,754 million for year-to-date 2025 from $1,866 million for year-to-date 2024, primarily due to lower volumes and unfavorable foreign exchange impacts [118]. - F&II–U.S./Canada net sales decreased 6 percent to $1,550 million for year-to-date 2025 from $1,644 million for year-to-date 2024, driven by lower volumes and unfavorable price mix [120]. Liquidity and Debt - Total available liquidity as of September 30, 2025, was $3.8 billion, including $1.4 billion in domestic liquidity and $2.4 billion in international liquidity [124][125]. - Total debt outstanding as of September 30, 2025, was $1.8 billion, with a weighted average interest rate of approximately 4.0 percent [126]. - The company anticipates sufficient liquidity from available cash balances, future cash flow from operations, and access to debt markets for at least the next twelve months [128]. - The company may need to raise additional capital or incur indebtedness for less predictable strategic initiatives, such as acquisitions [128]. Cash Flow and Capital Expenditures - Cash provided by operating activities decreased to $539 million year-to-date 2025 from $1,000 million year-to-date 2024, primarily due to a $487 million change in working capital [129]. - Capital expenditures for year-to-date 2025 were $298 million, up from $170 million in year-to-date 2024, with full-year capital investment commitments expected between $400 million and $425 million [130]. - Cash used for financing activities decreased to $340 million year-to-date 2025 from $601 million year-to-date 2024, reflecting the absence of commercial paper borrowings [131]. Shareholder Returns - Dividends paid increased slightly to $157 million year-to-date 2025 from $156 million year-to-date 2024, with the quarterly dividend rate rising to $0.82 per share from $0.80 [132]. - The company repurchased 1,036 thousand shares of common stock at a net cost of $134 million year-to-date 2025, compared to 762 thousand shares at a net cost of $87 million in year-to-date 2024 [131]. Other Information - The company entered into a new revolving credit agreement providing a five-year unsecured revolving credit facility with an aggregate principal amount of $1.0 billion, maturing on August 27, 2030 [127]. - The company received proceeds of $255 million from the sale of its South Korea business in year-to-date 2024, compared to $12 million in year-to-date 2025 [130]. - The company has not made any changes to its critical accounting policies and estimates during year-to-date 2025 [133].

Core Points - Ingredion Incorporated's Board of Directors has waived the mandatory retirement policy for CEO James P. Zallie, allowing him to continue in his role beyond April 2026 when he turns 65 [1][2] - The Board expressed full confidence in Zallie's leadership, particularly in driving the company's innovation-driven growth strategy [2] - Ingredion reported annual net sales of approximately $7.4 billion for 2024, serving customers in over 120 countries with a focus on ingredient solutions for various markets [3] Company Overview - Ingredion is headquartered in Westchester, Illinois, and operates globally, providing ingredient solutions for food, beverage, animal nutrition, brewing, and industrial markets [3] - The company employs more than 11,000 people and has innovation centers known as Ingredion Idea Labs® around the world [3] - Ingredion's mission is to combine the potential of people, nature, and technology to enhance quality of life [3]

Core Insights - Ingredion Incorporated reported a decline in both net sales and adjusted earnings per share (EPS) for Q3 2025 compared to Q3 2024, with reported EPS at $2.61 and adjusted EPS at $2.75, down from $2.83 and $3.05 respectively [2][4][22] Financial Performance - Net sales for Q3 2025 were $1.816 billion, a decrease of 3% from $1.870 billion in Q3 2024, primarily due to changes in pricing mix and reduced sales volume in the Food & Industrial Ingredients segments [6][40] - Reported operating income for Q3 2025 was $249 million, down 7% from $268 million in Q3 2024, while adjusted operating income was $254 million, a 10% decrease from $282 million [9][40] - The company expects full-year 2025 reported EPS to be in the range of $11.11 to $11.31, and adjusted EPS to be between $11.10 and $11.30 [4][22] Segment Performance - The Texture & Healthful Solutions segment saw a slight increase in net sales to $605 million, up 1% from $600 million in Q3 2024, driven by strong growth in clean label ingredient solutions [10][40] - The Food & Industrial Ingredients segment in Latin America reported net sales of $585 million, a decline of 6% from $620 million in Q3 2024, attributed to weak demand in the brewing industry and overall consumer demand [13][40] - The U.S./Canada Food & Industrial Ingredients segment experienced a 7% decrease in net sales to $507 million, down from $548 million in Q3 2024, primarily due to production challenges following a fire at a major manufacturing facility [15][40] Strategic Outlook - The company plans to continue investing in organic growth opportunities and acquisitions to enhance its Texture & Healthful Solutions portfolio [4][21] - Ingredion aims to return capital to shareholders through dividends and share repurchases, having paid $54 million in dividends in Q3 2025 [21][23] - The company anticipates low to mid-single-digit growth in both reported and adjusted operating income for the full year 2025 [22][24]

Core Insights - Yacktman Asset Management sold 135,400 shares of Ingredion, valued at approximately $17.45 million, reducing its stake in the company [2][3] Company Overview - Ingredion is a leading global ingredient solutions provider with a diversified product portfolio and broad geographic reach [5] - The company generates revenue by processing corn and other starch-based materials into ingredients for various applications, including food, beverage, brewing, and industrial uses [8] Financial Performance - Ingredion reported a total revenue of $7.32 billion and a net income of $676 million for the trailing twelve months (TTM) [4] - The company has a dividend yield of 2.98% and has increased its dividend payments by 5% annually over the last decade [10] Stock Performance - As of November 3, 2025, Ingredion's stock price was $114.13, reflecting a 14.85% decline over the past year, underperforming the S&P 500 by 32 percentage points [3] - The stock trades at 10 times earnings, indicating low market expectations [11] Investment Position - Following the sale, Ingredion now represents 2.42% of Yacktman Asset Management's assets under management (AUM), down from 2.9% [3][9] - Despite the reduction, Ingredion remains the 13th-largest holding in Yacktman's portfolio [9]

Financial Data and Key Metrics Changes - Net sales for Q3 2025 were $1.8 billion, down 3% year-over-year, with gross profit dollars decreasing by 5% and gross margin slightly lower at 25.1% [18][19] - Reported and adjusted operating income were $249 million and $254 million respectively, with a decrease in operating margin impacting earnings per share [18][23] - Year-to-date net sales were approximately $5.5 billion, down 3% versus the prior year, while gross profit dollars grew by 4% and gross margin increased to 25.6% [24][25] Business Line Data and Key Metrics Changes - Texture and Healthful Solutions segment saw net sales up 1% with operating income up 9%, achieving a 17.4% operating income margin [20] - Food and Industrial Ingredients LATAM reported a net sales decrease of 6%, with operating income at $116 million and a margin of 19.8% [21] - Food and Industrial Ingredients U.S./Canada experienced a 7% decline in net sales, with operating income down 18% to $81 million due to production challenges at the Argo plant [22] Market Data and Key Metrics Changes - The U.S. market for sweeteners saw a notable drop in demand in July and August, recovering in September, while LATAM faced challenges due to inflation and interest rates impacting consumer spending [41][42] - The brewing industry in LATAM experienced a significant decline, attributed to cooler weather and strategic customer mix adjustments [6][11] Company Strategy and Development Direction - The company is focused on driving profitable growth in the Texture and Healthful Solutions segment, emphasizing clean label ingredients and solutions [12][13] - Innovation remains a key pillar, with a focus on integrated solutions and cost-effective ingredient alternatives to help customers maintain quality while reducing costs [14][15] - Operational excellence initiatives are aimed at maximizing asset utilization and achieving significant cost savings, with a target of over $55 million in run rate savings by 2025 [16][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the diversified business portfolio despite recent challenges, anticipating operating income growth for the full year [5][28] - The outlook for 2025 includes expectations for flat to low single-digit net sales, with adjusted operating income projected to increase in the low to mid-single digits [27][29] - The company is closely monitoring macroeconomic conditions, particularly in LATAM, where inflation and interest rates are affecting consumer behavior [41][102] Other Important Information - The company has repurchased $134 million of outstanding shares, exceeding its target, and has increased the share repurchase target for 2025 to $200 million [32][108] - A new share repurchase program has been authorized for up to 8 million shares over the next three years, reflecting confidence in future growth [32][108] Q&A Session Summary Question: Demand environment and stabilization signs - Management noted that inflation and high interest rates in LATAM are impacting consumer spending, with a forecasted GDP growth of only 0.5% in Mexico and 2% in Brazil [41][42] Question: Texture and Healthful Solutions segment outlook - The segment is benefiting from a diverse customer base and strong demand for clean label solutions, with expectations for continued growth [46][48] Question: Volume impact from macro weakening and specific events - Approximately 40% of the revenue decline in LATAM was due to soft brewing volumes, while 12 million of the 18 million decline in U.S./Canada was attributed to the Argo plant issues [60][61] Question: Price-cost dynamics into 2026 - Management anticipates inflationary pressures on input costs will prolong customer commitments, with a cautious outlook for contracting in 2026 [64][65] Question: Impact of proposed taxation in Mexico - The proposed sweetness tax is expected to have an initial impact on consumer behavior, but historical trends suggest consumers may adjust over time [75][78]

Financial Data and Key Metrics Changes - Net sales for Q3 2025 were $1.8 billion, down 3% year-over-year, with gross profit dollars decreasing by 5% and gross margins slightly lower at 25.1% [16][18] - Reported and adjusted operating income were $249 million and $254 million, respectively [16] - Year-to-date cash from operations was $539 million, with capital expenditures net of disposals at $298 million [21][22] Business Line Data and Key Metrics Changes - Texture and Healthful Solutions net sales increased by 1%, driven by a 4% sales volume growth [16][17] - Food and Industrial Ingredients LATAM reported a net sales decrease of 6%, primarily due to weaker brewing demand and macroeconomic conditions [17][18] - Food and Industrial Ingredients U.S./Canada net sales declined by 7%, with a 5% decline in sales volume attributed to production challenges at the Argo plant [17][18] Market Data and Key Metrics Changes - LATAM market showed signs of weakening demand due to higher inflation and interest rates impacting consumer spending [9][10] - In the U.S., demand for sweeteners decreased in July and August but recovered in September [27][28] Company Strategy and Development Direction - The company is focused on driving profitable growth, particularly in Texture and Healthful Solutions, with an emphasis on clean-label ingredients [11][12] - Innovation remains a key pillar, with ongoing development of cost-effective ingredient solutions to help customers maintain quality while reducing costs [12][13] - Operational excellence initiatives are expected to yield significant savings, with a target of over $55 million in run-rate savings by the end of 2025 [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the diversified business portfolio despite recent challenges, anticipating operating income growth for the full year [4][5] - The outlook for 2025 includes expectations for net sales to be flat to down low single digits, with adjusted operating income expected to increase low to mid-single digits [22][23] Other Important Information - The company has authorized a new share repurchase program of up to eight million shares over the next three years, reflecting confidence in future growth [25][60] - The effective tax rate for 2025 is projected to be between 25.5% and 26.5% [23] Q&A Session Summary Question: Demand environment and stabilization signs - Management noted that inflation and high interest rates in LATAM are impacting consumer spending, with GDP growth forecasts for Mexico and Brazil being low [27][28] Question: Texture and Healthful Solutions segment outlook - The outlook change is driven by a diverse customer base and strong demand in food service and private label sectors [29][30] Question: Volume impacts from macro weakening and company-specific events - Approximately 12 million of the decline in U.S. Canada F&I was attributed to Argo plant issues, with the remainder related to market weakness [31][34] Question: Fourth-quarter contracting season and price-cost dynamics - Management anticipates that contracting will be influenced by inflationary pressures and higher input costs, with a cautious outlook for 2026 [37][38] Question: LATAM market and taxation impacts - The proposed sweetness tax in Mexico is expected to impact consumer behavior, but management believes the company is well-positioned to adapt [41][44] Question: Share repurchase strategy - The company plans to exceed $200 million in share repurchases in 2025, with a healthy cash balance supporting this strategy [60][61]

Financial Performance - Q3 2025 - Net sales decreased by 3% from $1.87 billion in Q3 2024 to $1.816 billion in Q3 2025[16, 34] - Adjusted operating income decreased by 10% from $282 million in Q3 2024 to $254 million in Q3 2025[17, 34] - Adjusted diluted EPS decreased from $3.05 in Q3 2024 to $2.75 in Q3 2025, a decrease of $0.30 per share[34] Financial Performance - Year-to-Date (YTD) 2025 - Net sales decreased by 3% from $5.63 billion in YTD 2024 to $5.462 billion in YTD 2025[15, 45] - Adjusted operating income increased by 4% from $768 million in YTD 2024 to $800 million in YTD 2025[17, 45] - Adjusted diluted EPS increased from $8.02 in YTD 2024 to $8.60 in YTD 2025, an increase of $0.58 per share[45] Segment Performance - Q3 2025 - Texture & Healthful Solutions net sales increased by 1%[37, 39] - Food & Industrial Ingredients—LATAM net sales decreased by 6%[37, 41] - Food & Industrial Ingredients—U.S./CAN net sales decreased by 7%[37, 43] Full Year 2025 Outlook - Net sales are expected to be flat to down low single-digits[49] - Adjusted EPS is expected to be between $11.10 and $11.30[49] - Cash from operations is expected to be between $800 million and $900 million[49]