Ingredion(US:INGR)2025-11-04 11:11Financial Performance - Third quarter 2025 reported and adjusted operating income decreased by 7% and 10% compared to the third quarter 2024[5] - Third quarter 2025 reported diluted EPS was $2.61, down from $2.83 in the same quarter last year, while adjusted diluted EPS was $2.75, down from $3.05[6] - Third quarter net sales decreased by 3% year-over-year to $1.816 billion, driven by lower volume from F&II segments and price mix[8] - Food & Industrial Ingredients–U.S./Canada segment operating income decreased by 18% to $81 million, primarily due to production challenges and lower consumer demand[17] - Net income attributable to Ingredion for the three months ended September 30, 2025, was $171 million, a decrease of 9% from $188 million in 2024[38] - Earnings per share (EPS) for the three months ended September 30, 2025, were $2.66, down 8% from $2.88 in the same period of 2024[38] - Total operating income for the nine months ended September 30, 2025, was $796 million, an increase of 10% from $721 million in the same period of 2024[53] Sales and Segment Performance - Texture & Healthful Solutions segment achieved 4% sales volume growth, with double-digit increases in clean label ingredient solutions in U.S./Canada and Asia-Pacific[4] - Ingredion's net sales for the three months ended September 30, 2025, were $1.816 billion, a decrease of 3% compared to $1.870 billion in the same period of 2024[38] - Texture & Healthful Solutions segment reported net sales of $605 million in Q3 2025, a 1% increase from $600 million in Q3 2024[43] - LATAM Food & Industrial Ingredients segment saw a 6% decline in net sales to $585 million in Q3 2025 from $620 million in Q3 2024[43] - U.S./Canada Food & Industrial Ingredients segment reported net sales of $507 million, down 7% from $548 million in Q3 2024[43] Guidance and Projections - Full-year 2025 reported EPS guidance adjusted to a range of $11.11 to $11.31, with adjusted EPS expected between $11.10 and $11.30[21] - Full-year 2025 net sales are expected to be flat to down low single-digits, reflecting volume growth in Texture & Healthful Solutions offset by lower price mix[22] - The expected GAAP EPS for full-year 2025 is projected to range from $11.11 to $11.31[57] - The expected adjusted EPS for full-year 2025 is projected to range from $11.10 to $11.30[57] - The expected GAAP effective income tax rate for full-year 2025 is projected to range from 25.5% to 26.5%[59] - The expected adjusted effective income tax rate for full-year 2025 is projected to range from 26.0% to 27.0%[59] Cash Flow and Capital Expenditures - Cash from operations for full-year 2025 is projected to be between $800 million and $900 million, with capital expenditures expected around $400 to $425 million[26] - Cash provided by operating activities for the nine months ended September 30, 2025, was $539 million, a decrease from $1 billion in 2024[41] - Capital expenditures for the nine months ended September 30, 2025, were $298 million, compared to $170 million in 2024[41] - Cash and cash equivalents at the end of the period on September 30, 2025, were $915 million, down from $997 million at the beginning of the period[41] Debt and Assets - Total debt as of September 30, 2025, was $1.8 billion, with cash and short-term investments totaling $921 million[20] - Total assets as of September 30, 2025, were $7.833 billion, an increase from $7.444 billion as of December 31, 2024[40] - Ingredion's total liabilities as of September 30, 2025, were $3.509 billion, a slight decrease from $3.554 billion as of December 31, 2024[40] Other Financial Metrics - For the three months ended September 30, 2025, the income before income taxes was $241 million, with an effective tax rate of 28.6%[55] - The adjusted non-GAAP income before income taxes for the same period was $246 million, reflecting an effective tax rate of 26.4%[55] - For the nine months ended September 30, 2025, the income before income taxes was $767 million, with an effective tax rate of 25.8%[55] - The adjusted non-GAAP income before income taxes for the nine months ended September 30, 2025, was $771 million, with an effective tax rate of 26.3%[55] Dividends - The company paid $54 million in dividends during the third quarter and declared a quarterly dividend of $0.82 per share, marking the 11th consecutive annual increase[21] Restructuring and Impairment - Restructuring and resegmentation costs are expected to contribute $0.09 to the adjusted EPS for full-year 2025[57] - Impairment charges are expected to contribute $0.06 to the adjusted EPS for full-year 2025[57]