Ingredion misses Q4 estimates on soft sweetener demand
Full-year 2025 results hit record levels despite quarterly weakness; 2026 guidance remains steady
Ingredion Incorporated reported fourth-quarter earnings that fell short of analyst expectations, weighed down by weaker demand for sweeteners and operational challenges in its North American business, even as the ingredients supplier delivered record full-year performance.
The Westchester, Illinois-based company posted adjusted earnings per share of $2.53 for the quarter ending December 31, 2025, missing the consensus estimate of $2.60 by 3%. Net sales declined 2% to $1.76 billion, compared with the same period a year earlier. Excluding foreign exchange impacts, sales were down 4% year-over-year.
Despite the quarterly shortfall, Ingredion's full-year 2025 results reached new heights. Reported diluted EPS climbed to $11.18, up from $9.71 in fiscal year 2024, while net sales totaled $7.22 billion for the year. Operating income surged 15% to $1.02 billion, demonstrating strength in the company's core business.
"We delivered record full-year financial results driven by continued strength in Texture & Healthful Solutions and solid results from our Food & Industrial Ingredients—LATAM business," said Jim Zallie, president and CEO of Ingredion, in the earnings release.
The Texture & Healthful Solutions segment delivered solid quarterly performance with 4% sales volume growth, fueled by robust demand for clean label products and an expanding portfolio of ingredient solutions. The company also completed specialty starch modernization upgrades at its Indianapolis facility during the quarter, which executives said improved reliability and expanded capacity for texture solutions.
However, challenges in the Food & Industrial Ingredients—U.S./CAN business offset these gains. The segment faced operational issues and weaker sweetener demand, primarily attributed to higher retail prices for canned beverages. When beverage prices rise, consumers often switch to alternatives, reducing demand for the sweeteners Ingredion supplies.
Looking ahead, Ingredion issued full-year 2026 guidance for reported and adjusted EPS between $11.00 and $11.80, representing a steady outlook despite the fourth-quarter softness. The company projects net sales growth in the low single-digit to mid-single-digit range, driven by greater volume demand and foreign exchange impacts, partially offset by price mix.
Operating income is expected to increase in the low single digits, while cash from operations is forecast between $820 million and $940 million. Capital expenditures are anticipated to range from $400 million to $440 million.
Zallie expressed optimism about 2026, noting the company expects to build on Texture & Healthful Solutions momentum and anticipates the U.S./Canada business will overcome the operational setbacks experienced in 2025. He highlighted the company's strong cash generation and healthy balance sheet, which support disciplined capital allocation to create long-term shareholder value.
During fiscal year 2025, Ingredion returned $435 million to shareholders through a combination of dividends and share repurchases. The company paid $211 million in dividends and repurchased $224 million worth of shares.
Shares of Ingredion, which trade on the New York Stock Exchange under the ticker INGR, were little changed in Tuesday morning trading. The stock has declined approximately 7% over the past year, underperforming the broader consumer staples sector.
The company's forward price-to-earnings ratio of 10.3 suggests the market views the shares as reasonably valued relative to growth prospects. Analysts maintain a cautious but positive outlook, with a consensus target price of $124.33, according to market data. The current dividend yield stands at 2.75%.
Ingredion's performance reflects broader trends in the food ingredients industry, where companies face pressure from input cost volatility and shifting consumer preferences. The company's focus on higher-margin specialty ingredients like clean label solutions positions it to capture growth opportunities in healthier and more natural food products, even as traditional sweetener markets face cyclical challenges.