Financial Data and Key Metrics Changes - For Q4 2025, net sales were $1.8 billion, down 2% year-over-year, with gross profit dollars decreasing by 4% and gross margin slightly lower at 24.5% [18] - Full year 2025 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% [21] - Adjusted operating income for Q4 was $228 million, while full year adjusted operating income was $1.028 billion [18][21] Business Line Data and Key Metrics Changes - Texture and Healthful Solutions segment saw net sales up 1% for the full year, driven by 4% sales volume growth, while operating income increased by 16% [23] - Food and Industrial Ingredients LATAM reported a 4% decline in net sales, primarily due to weaker volumes in brewing adjuncts, but operating income increased to $493 million with a margin of 21.1% [24] - Food and Industrial Ingredients US/Canada experienced a 7% decline in net sales, with a 4% decrease in sales volume attributed to operational challenges at the Argo facility [24] 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 the food industry [6][7] - In LATAM, food ingredient sales experienced modest growth, while brewing adjunct demand was recovering from long-term contracted customers [8] Company Strategy and Development Direction - The company is focusing on solutions and clean label offerings, which have significantly enhanced results in the Texture and Healthful segment [12] - Strategic capital growth and cost savings investments were completed, including a starch modernization project and the expansion of a blending center [9] - The company aims to drive profitable growth through innovation and operational excellence, with a focus on higher-margin products and customer engagement [15][32] Management's Comments on Operating Environment and Future Outlook - Management acknowledged unforeseen challenges in 2025 but highlighted record operating income and margins, emphasizing the resilience of the LATAM business [10][16] - 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 [26][30] Other Important Information - The company repurchased $224 million of outstanding common shares and paid out $211 million in dividends, marking the 11th consecutive annual dividend increase [25] - A transition in CFO is underway, with Jim Gray set to retire in March 2026, and a search for his successor has begun [17] 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 [35][37][39] Question: Texture and Healthful Solutions pricing and ASP - Management noted that pricing for Texture and Healthful Solutions was slightly down, with expectations for volume gains year-over-year, but not fully covering manufacturing cost inflation [72][73] Question: LATAM business volume movements - Management clarified that Q4 sales volume in LATAM declined by 3%, primarily due to brewing adjuncts, while food and beverage volumes showed positive growth [58] 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 [90] Question: Expected recovery from Argo facility in 2026 - Management anticipates recovering about $20 million of the Argo impact in the second half of 2026, with ongoing challenges expected in Q1 [97]

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]

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 and Targets - Ingredion reported 2024 total net sales of $7.4 billion[24] - The company achieved adjusted diluted EPS of $10.65 in 2024[26, 54] - Ingredion's adjusted operating income for 2024 was $1016 million[35, 54] - The company targets net sales growth of 2%-4% CAGR from 2025-2027, building from a 2024 base of $7.4 billion[54] - Ingredion aims for adjusted operating income growth of 5%-7% CAGR from 2025-2027, based on a 2024 figure of $1016 million[54] - The company projects adjusted EPS growth of 7%-9% CAGR from 2025-2027, starting from a 2024 base of $10.65[54] Segment Performance and Outlook - Texture & Healthful Solutions (T&HS) segment net sales were $2.4 billion in 2024[35] - Food & Industrial Ingredients—LATAM segment net sales were $2.4 billion in 2024[35] - Food & Industrial Ingredients—U S /CAN segment net sales were $2.2 billion in 2024[35] - T&HS segment is expected to grow at a CAGR of 4%-6% from 2025-2027, with a 2024 base of $2.4 billion[101]

Financial Data and Key Metrics Changes - In Q1 2025, net sales were $1.8 billion, down 4% year-over-year, while gross profit dollars increased by 12%, with margins up 350 basis points to 25.7% [17][18] - Adjusted operating income rose by 26% year-over-year to $273 million, driven by lower raw material costs and greater sales volume [17][18] - Adjusted EPS increased by $0.89 per share, primarily due to an operating margin increase of $0.60 and other income of $0.17 [22] Business Line Data and Key Metrics Changes - The Texture and Healthful Solutions segment saw net sales up 1% and operating income up 34%, with a margin of 16.4%, reflecting lower input costs and greater volumes [20] - Food and Industrial Ingredients LATAM experienced a 7% decline in net sales, but operating income improved by 26% to $127 million due to lower raw material costs [20] - In the U.S./Canada segment, net sales were down 4%, but operating income increased by 6% to $92 million, driven by lower raw material costs [21] Market Data and Key Metrics Changes - Organic growth was driven by a 3% increase in net sales volume, with Texture and Healthful Solutions growing by 7% across all geographies [8] - LATAM's net sales volumes decreased by 2%, primarily due to soft volumes in brewing, while the U.S./Canada segment saw strong volumes in brewing offset by weaker specialty starch sales [9][10] Company Strategy and Development Direction - The company is focusing on three strategic pillars: business growth, cost competitiveness, and a people-centric culture, with significant investments in expanding specialty industrial starch capacity [12][13][14] - The commitment to sustainability is highlighted by recognitions from Fortune and Ethisphere, reflecting the company's ethical practices and environmental efforts [14][16] - The company is actively monitoring the evolving trade environment and has set up a tariff response hub to navigate complexities [28] Management's Comments on Operating Environment and Future Outlook - Management remains cautiously optimistic about 2025, citing customer collaborations driving volume growth and a diversified ingredient portfolio [29][30] - Key economic indicators such as low unemployment and moderating food inflation are viewed as positive signs for future performance [30] - The company anticipates minimal impact from current tariffs, with a strong local production and sales model [27][30] Other Important Information - The company repurchased $55 million of outstanding common shares and paid out $52 million in dividends in the first quarter [23] - Full-year cash from operations is expected to be between $825 million and $950 million, reflecting updates to working capital investments [25] Q&A Session Summary Question: Can you provide insights on the updated guidance for Q2? - Management indicated that Q2 guidance is against a record year and expects solid performance in Texture and Healthful Solutions, while LATAM may see seasonal weakness [32][34] Question: What are the implications of recent corn planting data on costs? - Management noted that while some corn costs are unhedged, they have hedged 80-85% of their needs, which helps stabilize pricing [36][37] Question: How does the company view volumes amid consumer uncertainty? - Management remains optimistic about volume growth, particularly in Texture and Healthful Solutions, driven by affordable formulation trends [44][46] Question: What is the outlook for the LATAM segment? - The LATAM segment is expected to perform well, with positive operating income growth despite some volume declines in beverages [64][66] Question: How does the company plan to handle potential trade downs in consumer behavior? - Management stated that their product mix is resilient, with growth in private label products and clean label solutions, which are in demand regardless of economic conditions [58][60]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported net sales of $1.8 billion, a decrease of 4% compared to the prior year, while gross profit dollars increased by 12%, leading to a gross margin of 25.7%, up 350 basis points [16][19][20] - Adjusted operating income rose by 26% year over year to $273 million, driven by lower raw material costs and increased sales volume [16][19] - Adjusted earnings per share (EPS) for the quarter increased by $0.89, primarily due to an operating margin increase and lower financing costs [22][26] Business Line Data and Key Metrics Changes - The Texture and Healthful Solutions segment saw net sales increase by 1% and operating income grow by 34%, with a margin of 16.4%, up 400 basis points from the previous year [19][20] - Food and Industrial Ingredients LATAM reported a 7% decrease in net sales, but operating income improved by 26% to $127 million, benefiting from lower raw material costs [19][20] - In the U.S./Canada segment, net sales decreased by 4%, while operating income increased by 6% to $92 million, driven by lower raw material costs [19][20] Market Data and Key Metrics Changes - The company achieved a 3% organic growth in net sales volume, with a 7% increase in the Texture and Healthful Solutions segment [7][19] - The LATAM segment experienced a 2% decline in net sales volumes, primarily due to soft demand in brewing, although there was recovery in confectionery and bakery markets [8][19] - The U.S./Canada segment's strong volumes in brewing were offset by weaker sales of specialty starches for papermaking and packaging [8][19] Company Strategy and Development Direction - The company is focused on three strategic pillars: business growth, cost competitiveness, and a people-centric performance culture [10][12][13] - A $50 million investment was announced for the Cedar Rapids facility to expand specialty industrial starch capacity and support innovation in sustainable food packaging [11] - The company is committed to reducing earnings volatility through expanded hedging practices and operational excellence [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for the remainder of 2025, highlighting customer collaborations driving volume growth and the importance of monitoring economic indicators such as unemployment and food inflation [29][30] - The company does not anticipate significant financial impacts from current tariffs, as most products are produced and sold locally [27][30] - Management is actively monitoring the evolving trade environment and has set up a tariff response hub to navigate complexities [28][30] Other Important Information - The company received several recognitions, including being named one of Fortune's World's Most Admired Companies and one of Ethisphere's World's Most Ethical Companies [13][14] - Cash generated from operations was $77 million, with capital expenditures of $92 million planned for organic growth initiatives [22][23] Q&A Session Summary Question: Can you provide insights on the updated guidance for Q2 and segment performance? - Management indicated that Q2 guidance is against a strong prior year, with expectations for the U.S./Canada segment to remain strong despite seasonal weakness in LATAM [34][35] Question: How do you view the impact of recent prospective plantings on corn costs? - Management noted that while some corn costs are unhedged, they have hedged 80-85% of their needs, which helps stabilize pricing [38] Question: What are the expectations for volumes in the context of consumer uncertainty? - Management remains optimistic about mid-single-digit sales volume growth, driven by trends towards affordable formulations [46][49] Question: How does the sales mix look in light of potential consumer trade downs? - Management stated that the ingredients supplied to private label customers are not significantly impacted by trade downs, and clean label solutions are performing well [56][60] Question: Can you elaborate on the performance in LATAM and any portfolio shifts? - Management highlighted improved performance in LATAM due to a stable Argentine peso and strategic shifts in product mix to higher-margin uses [65][66] Question: What is the size of the Pakistan affiliate business and potential sale implications? - Management indicated that the Pakistan business is similar in size to the South Korea business, but details on potential sale proceeds are not yet available [68][70]