Ingredion(US:INGR)2026-02-17 21:26Financial Performance - Net income attributable to Ingredion for 2025 was $729 million, a 13% increase from $647 million in 2024[156]. - Diluted earnings per share for 2025 were $11.18, compared to $9.71 for 2024[156]. - Net sales decreased 3% to $7.2 billion in 2025 from $7.4 billion in 2024, primarily due to unfavorable price mix and lower volumes[158]. - Gross profit margin increased to 25% in 2025 from 24% in 2024, with cost of sales decreasing 4% to $5.4 billion[159]. - Operating income for 2025 was $1,016 million, a 15% increase from $883 million in 2024[156]. - Adjusted EBITDA for 2025 was $1.244 billion, slightly up from $1.230 billion in 2024, demonstrating stable operational performance[205]. - Net income for 2025 was reported at $736 million, an increase from $654 million in 2024, indicating improved profitability[193]. - The effective income tax rate for 2025 was 24.4%, down from 29.8% in 2024, contributing to higher net income[198]. - The company achieved an adjusted operating income, net of tax, of $763 million in 2025, compared to $748 million in 2024, showing growth in operational efficiency[193]. Sales and Segment Performance - T&HS net sales increased 1% to $2,397 million in 2025, driven by increased volumes for starches and clean label solutions[168]. - F&II–LATAM net sales decreased 4% to $2,341 million in 2025, while operating income increased 2% to $493 million[170]. - F&II–U.S./Canada net sales decreased 7% to $2,013 million in 2025, with operating income decreasing 16% to $315 million[171]. Liquidity and Debt Management - Total available liquidity as of December 31, 2025, was $3.9 billion, including $641 million in cash and cash equivalents[177]. - Cash provided by operating activities decreased to $944 million in 2025 from $1,436 million in 2024, primarily due to a reduction in cash from working capital[185]. - Net Debt to Adjusted EBITDA ratio improved to 0.6 in 2025 from 0.7 in 2024, indicating better leverage management[202]. - Total net debt decreased to $757 million in 2025 from $823 million in 2024, reflecting a reduction in financial leverage[205]. - The company aims to maintain a Net Debt to Adjusted EBITDA ratio of 2.5 or less, successfully achieving a ratio of 0.6 in 2025[202]. Investments and R&D - The company spent $63 million on environmental control and wastewater treatment equipment in 2025, with an expected investment of approximately $57 million for 2026[63]. - The R&D team consists of over 500 scientists and engineers, focusing on high-performance, value-added ingredient solutions[51]. - The company evaluates and refines R&D investments to align with long-term business strategy and drive sustainable growth[52]. Regulatory and Compliance - The company has not experienced any material fines related to regulatory compliance in 2025[62]. - The company expects no material expense from future environmental compliance costs based on current laws and regulations[64]. - The company utilizes derivative hedging contracts to protect gross margins in its Food and Industrial Ingredient segments[48]. Workforce and Facilities - As of December 31, 2025, the company employed approximately 11,200 people, with 3,200 located in the U.S. and Canada[57]. - Approximately 33% of U.S. and Canadian employees are members of labor unions, with collective bargaining agreements expiring in 2026 for about 160 employees[57]. - The company entered into a lease for a new Global Innovation headquarters facility in Bridgewater, New Jersey, expected to be ready in the first half of 2028[52]. Asset Management - The company recorded $10 million in pre-tax impairment charges in 2025, a significant decrease from $109 million in 2024, reflecting better asset management[201]. - Total equity increased to $4.295 billion in 2025 from $3.823 billion in 2024, indicating a stronger financial position[193]. - Adjusted Return on Invested Capital (ROIC) for 2025 was 15.5%, up from 14.8% in 2024, exceeding the long-term objective of 10%[198]. - The company owns more than 1,800 patents and patents pending as of December 31, 2025[54].