Financial Data and Key Metrics Changes - Net sales for Q4 2025 were $1.8 billion, down 2% year-over-year, with gross profit dollars decreasing by 4% and gross margin slightly lower at 24.5% [17][18] - Full-year net sales were $7.2 billion, down 3% compared to the previous year, while gross profit dollars increased by 2%, and gross margin improved to 25.3% [19][20] Business Line Data and Key Metrics Changes - Texture and Healthful Solutions net sales increased by 1% for the full year, driven by a 4% sales volume growth, while operating income rose by 16% [21][22] - Food and Industrial Ingredients LATAM reported a 4% decline in net sales, but operating income increased to $493 million, achieving a record operating income margin of 21.1% [22] - Food and Industrial Ingredients US/Canada saw a 7% decline in net sales, with a 4% decrease in sales volume primarily due to operational challenges at the Argo facility [23] Market Data and Key Metrics Changes - Clean label ingredient volumes grew significantly in Q4 and throughout the year, particularly in Asia-Pacific and US/Canada, highlighting its importance in meeting consumer preferences [5] - In LATAM, brewing adjunct volume demand began to recover, but challenges persisted in the confectionery and paper sectors, leading to overall volume declines [6][57] Company Strategy and Development Direction - The company is focused on driving profitable growth through solutions and clean label offerings, with a strong pipeline and growth momentum expected in 2026 [11][31] - Strategic capital investments, such as the starch modernization project in Indianapolis, aim to enhance production efficiency and capacity [8][14] - The company is transitioning its operational excellence strategy towards long-term enterprise productivity, with a commitment to cost competitiveness [14][31] Management's Comments on Operating Environment and Future Outlook - Management acknowledged unforeseen challenges in 2025 but highlighted record operating income and margins, demonstrating resilience in a volatile environment [9][15] - For 2026, the company anticipates low single-digit growth in net sales and operating income, with expectations of continued volume demand and challenges from manufacturing inflation [25][26] Other Important Information - The company repurchased $224 million of outstanding shares and paid $211 million in dividends, marking the 11th consecutive annual dividend increase [24] - A CFO transition is underway, with Jim Gray set to retire in March 2026, prompting a search for his successor [16] Q&A Session Summary Question: Impact of Argo facility on volume decline - Management indicated that the Argo facility's operational challenges had a $16 million impact in Q4 and a total of $40 million for 2025, with expectations of recovery in 2026 [34][35][36] Question: Texture and Healthful Solutions pricing and margin expectations - Management noted that while pricing was slightly down, they anticipate covering raw material cost changes and expect volume gains year-over-year, though manufacturing cost inflation may hold gross margins flat [72][74] Question: LATAM business volume movements - Management clarified that Q4 net sales were up 1%, with brewing adjunct volume declines being the primary driver of volume decreases, while food and beverage volumes showed positive growth [56][57] Question: Breakdown of food versus beverage sales in Mexico - Management estimated that brewing adjunct and beverages account for about 40% of sales, with food and industrial products making up the remainder [91][92] Question: Expectations for Argo recovery in 2026 - Management projected that approximately $20 million of the Argo impact could be recovered in the second half of 2026, with ongoing challenges expected in Q1 [98][99]