Earnings of Ingredion climb up in Q2; Future income projected for Q3 and FY25
Ingredion Inc. (INGR) Reports Q2 2025 Earnings and Raises Full-Year Guidance
Ingredion Inc. (INGR) has reported an increase in net income and earnings per share (EPS) for the second quarter of 2025, with reported EPS of $2.99 and adjusted EPS of $2.87. The company also raised its full-year 2025 EPS guidance.
The Texture & Healthful Solutions (T&HS) segment was a key driver, showing a 29% increase in operating income. Despite a 2% decline in net sales, Ingredion's profitability improved through operational efficiencies and growth in certain segments.
Ingredion reported an increase in net income attributable to the company for the second quarter of 2025, amounting to $196 million compared to $148 million in the same period last year. However, on an adjusted basis, net income decreased to $188 million from $192 million in the previous year. Adjusted EPS remained constant at $2.87 compared to the previous year.
The company's net sales for the second quarter of 2025 decreased 2% to $1.83 billion from $1.88 billion in the previous year. Some segments, such as Food & Industrial Ingredients, faced challenges, with a 18% operating income decline in the U.S./Canada region due to a mechanical fire and a 2% decrease in LATAM operating income. Financing costs rose modestly from $10 million to $12 million year-over-year.
Looking ahead, Ingredion expects full-year 2025 net sales to remain flat. The company projects volume growth in the T&HS segment to offset a weaker price mix. For the third quarter of 2025, Ingredion expects net sales to be flat to up low single digits year over year, while operating income is projected to be flat to down low single digits.
Ingredion's full-year 2025 reported EPS is projected to be between $11.25 and $11.75, and the adjusted earnings per share is projected to be between $11.10 and $11.60. Both reported and adjusted operating income are expected to increase by mid-single digits for full-year 2025. These projections are based on tariff levels as of July 2025, excluding integration, restructuring, and potential impairment costs.
In pre-market trading, Ingredion is 0.79% lower at $130.50 on the New York Stock Exchange. The company maintains a strong balance sheet with $868 million in cash and short-term investments and $1.8 billion in total debt.
The raised EPS guidance indicates solid financial strength and growth prospects for Ingredion, supported by a healthy cash position and ongoing shareholder returns through dividends and share repurchases. The company expects continued profit growth driven by its strategic focus on healthful and textured food solutions and operational improvements across segments.
Investors may be interested in Ingredion's decision to invest in its Texture & Healthful Solutions segment, given its significant contribution to the company's operating income. To further bolster its financial position, Ingredion plans to continue returning capital to its shareholders through dividends and share buybacks.
