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1. Company Snapshot

1.a. Company Description

Ingredion Incorporated, together with its subsidiaries, produces and sells starches and sweeteners for various industries.It operates through four segments: North America; South America; Asia-Pacific; and Europe, Middle East and Africa.The company offers sweetener products comprising glucose syrups, high maltose syrups, high fructose corn syrups, caramel colors, dextrose, polyols, maltodextrins, and glucose syrup solids, as well as food-grade and industrial starches, biomaterials, and nutrition ingredients.


It also provides edible corn oil; refined corn oil to packers of cooking oil and to producers of margarine, salad dressings, shortening, mayonnaise, and other foods; and corn gluten feed used as protein feed for chickens, pet food, and aquaculture, as well as fruit and vegetable products, such as concentrates, purees and essences, pulse proteins, and hydrocolloids systems and blends.The company's products are derived primarily from processing corn and other starch-based materials, such as tapioca, potato, and rice.It serves food, beverage, brewing, and animal nutrition industries.


The company was formerly known as Corn Products International, Inc.and changed its name to Ingredion Incorporated in June 2012.Ingredion Incorporated was founded in 1906 and is headquartered in Westchester, Illinois.

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1.b. Last Insights on INGR

Ingredion Incorporated's recent performance was negatively impacted by decreased operating income and EPS in Q3 2025, with reported and adjusted operating income declining 7% and 10% compared to Q3 2024. The company's EPS was $2.61 and $2.75, compared to $2.83 and $3.05 in Q3 2024. Additionally, Yacktman Asset Management sold 135,400 shares, valued at $17,451,241. Despite this, the company raised its dividend to $0.82 per share and targets 2%-4% annual revenue growth and 7%-9% EPS growth through 2027.

1.c. Company Highlights

2. Ingredion's Q3 2025 Earnings: A Challenging Quarter with Signs of Stabilization

Ingredion reported net sales of $1.8 billion for Q3 2025, a 3% decrease year-over-year, with gross profit dollars declining by 5% and gross margin at 25.1%. The company's adjusted EPS came in at $2.75, beating estimates of $2.73. Operating income was $249 million, with adjusted operating income at $254 million. The company's Texture & Healthful Solutions segment saw a 1% increase in net sales, driven by 4% sales volume growth, while other segments experienced decreases.

Publication Date: Nov -09

📋 Highlights
  • Net Sales & Margin Decline:: Q3 net sales fell 3% YoY to $1.8B, with gross profit down 5% and margin at 25.1%, driven by Argo plant issues and weaker demand in LatAm.
  • Segment Performance:: Texture & Healthful Solutions grew 1% (4% volume up), while Food & Industrial Ingredients, LatAm, and U.S./Canada segments declined, with U.S./Canada F&II down $18M (-12M from Argo, $6M market weakness).
  • Revised Full-Year Outlook:: Net sales expected flat to down <3%, adjusted operating income up 1-3%, and EPS narrowed to $11.10–$11.30, with $200M+ share repurchase target for 2025.
  • Argo Plant Impact:: $22M operating income drag from production halts in Q2–Q3; September saw recovery with improved production rates, but inventory rebuilding remains.
  • Cost Savings & Capital Returns:: Cost2Compete program to exceed $55M in 2025 run-rate savings, plus $200M+ share buybacks over three years, reflecting focus on operational efficiency and shareholder returns.

Segment Performance

The Texture & Healthful Solutions segment had a strong quarter, with operating income growth in the high single digits, driven by a diversified customer base and growth in clean label solutions. The company has retrained its sales and technical service force to focus on solution selling, which includes differentiated ingredients, customized blends, and solutions around consumer benefit platforms. In contrast, the Food & Industrial business saw a decline in volume, partly due to company-specific events like the Argo plant issue, which had a $12 million impact, and partly due to market weakness.

Operational Challenges and Cost Savings

Ingredion faced operational challenges at its Argo plant, which impacted results. The company's CFO mentioned an estimated $22 million operating income impact from the Argo plant challenges across both the second and third quarters. However, production rates at the Argo plant improved in September, and the team is focused on stabilizing production and rebuilding inventories in Q4. The company's Cost2Compete savings target is expected to exceed $55 million in run-rate savings by the end of 2025.

Outlook and Valuation

The company revised its full-year 2025 outlook, expecting net sales to be flat to down low single digits and adjusted operating income to be up low to mid-single digits. The adjusted EPS range was narrowed to $11.10 to $11.30. With a P/E Ratio of 10.59 and an EV/EBITDA of 6.65, the market appears to have factored in some of the challenges the company is facing. Analysts estimate next year's revenue growth at 1.6%, indicating a relatively stable outlook.

Share Repurchase and Capital Return

Ingredion announced a new share repurchase program of up to 8 million shares over the next three years and increased its 2025 share repurchase target to $200 million. The company's CEO emphasized its focus on operational excellence, strategic priorities, and returning capital to shareholders. With a Dividend Yield of 2.97% and a Free Cash Flow Yield of 12.12%, Ingredion presents an attractive return profile for investors.

3. NewsRoom

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Edgestream Partners L.P. Purchases Shares of 24,283 Ingredion Incorporated $INGR

Dec -04

Source: defenseworld.net

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Ingredion (NYSE:INGR) vs. TDH (NASDAQ:PETZ) Head-To-Head Survey

Dec -04

Source: defenseworld.net

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Boston Partners Grows Stake in Ingredion Incorporated $INGR

Nov -28

Source: defenseworld.net

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Creative Planning Has $1.90 Million Position in Ingredion Incorporated $INGR

Nov -27

Source: defenseworld.net

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Aviva PLC Invests $504,000 in Ingredion Incorporated $INGR

Nov -14

Source: defenseworld.net

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Ingredion Board of Directors Waives Mandatory Retirement for Jim Zallie; Will Continue as Ingredion President & CEO

Nov -07

Source: globenewswire.com

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Yacktman Asset Management Dumps $18 Million of Ingredion (NYSE: INGR) Shares: Is the Stock a Sell?

Nov -05

Source: fool.com

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Ingredion Incorporated (INGR) Q3 2025 Earnings Call Transcript

Nov -04

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.00%)

6. Segments

Starches and Sweeteners

Expected Growth: 1.0%

Ingredion's Starches and Sweeteners segment growth is driven by increasing demand for clean label and plant-based products, expansion in emerging markets, and strategic acquisitions. Additionally, the company's focus on innovation and R&D investments in specialty starches and sweeteners, such as tapioca and rice-based products, contributes to its 1.0% growth.

7. Detailed Products

Starches

Ingredion's starches are derived from corn, tapioca, potato, and rice, and are used as thickeners, stabilizers, and emulsifiers in food products.

Sweeteners

Ingredion's sweeteners include sugar, high-fructose corn syrup, and specialty sweeteners like stevia and erythritol.

Flavor Systems

Ingredion's flavor systems include natural and artificial flavors, flavor enhancers, and seasonings.

Texture and Stability Systems

Ingredion's texture and stability systems include emulsifiers, stabilizers, and thickeners.

Biomaterials

Ingredion's biomaterials include biodegradable polymers and composites used in packaging, disposable cutlery, and other applications.

Animal Nutrition

Ingredion's animal nutrition products include specialty ingredients for poultry, swine, and ruminant nutrition.

8. Ingredion Incorporated's Porter Forces

Forces Ranking

Threat Of Substitutes

Ingredion Incorporated faces moderate threat from substitutes due to the availability of alternative sweeteners and starches in the market.

Bargaining Power Of Customers

Ingredion Incorporated's customers, including food and beverage manufacturers, have significant bargaining power due to their large scale of operations and ability to switch suppliers.

Bargaining Power Of Suppliers

Ingredion Incorporated has a diverse supplier base, which reduces the bargaining power of individual suppliers, and the company's large scale of operations also gives it negotiating power.

Threat Of New Entrants

The threat of new entrants is low due to the high capital requirements and regulatory barriers to entry in the specialty ingredients industry.

Intensity Of Rivalry

The specialty ingredients industry is highly competitive, with several established players competing for market share, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 37.85%
Debt Cost 6.71%
Equity Weight 62.15%
Equity Cost 7.99%
WACC 7.51%
Leverage 60.90%

11. Quality Control: Ingredion Incorporated passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

108.24$

Current Price

108.24$

Potential

-0.00%

Expected Cash-Flows