Ingredion's plant is running again. Why is its profit outlook falling?
Stable production at Argo has not delivered the earnings recovery Ingredion expected. A comparison with August's forecast shows how far the outlook has slipped.
Ticker Byline
Ingredion Incorporated
Ingredion supplies plant-based ingredients to food, beverage and industrial customers.
- Ticker
- INGR
- Exchange
- XNYS
- SEC CIK
- 0001046257
Ingredion makes ingredients from corn, tapioca and other plant-based materials for food, beverages and industrial uses. Its businesses span specialty texture and healthful ingredients, food and industrial ingredients in the United States and Canada, and food and industrial ingredients in Latin America. It trades on the New York Stock Exchange under INGR.
Latest quarterly results
| Measure | Q3 2025 | Q3 2026 |
|---|---|---|
| Net sales | $1,816 | $1,792 |
| Reported operating profit | $249 | $201 |
| Adjusted operating profit | $254 | $206 |
| Net income attributable to Ingredion | $171 | $142 |
| Diluted earnings per share | $2.61 | $2.23 |
| Adjusted diluted earnings per share | $2.75 | $2.28 |
Adjusted results exclude acquisition and integration items, impairment charges, restructuring items, certain Argo event costs and specified tax effects. The quarterly operating-profit adjustments also remove a net restructuring benefit, largely from a land sale. Higher ongoing manufacturing costs remain part of adjusted results.
What changed in the outlook
The November forecast for full-year 2026 adjusted earnings is $9.25 to $9.70 a share, down from $10.30 to $10.90 in August. Reported earnings are forecast at $8.04 to $8.49 a share. The annual operating cash-flow target is $650 million to $750 million, while capital spending is expected to be $450 million to $490 million.
The U.S. and Canada ingredients business is expected to earn 35% to 40% less operating profit than in 2025, compared with the earlier forecast of a 20% to 25% decline. Argo's production has stabilized, but high manufacturing costs and softer demand are delaying the financial recovery. Texture & Healthful Solutions continues to grow volumes while facing cost and sales-mix pressure.
Cash and debt
At September 30, 2026, cash and cash equivalents were $989 million, with another $4 million in short-term investments. Borrowings totaled about $1.78 billion on the balance sheet, comprising $533 million of short-term borrowings and $1.24 billion of long-term debt.
Operating cash flow for the first nine months was $389 million, down from $539 million a year earlier. Capital expenditures and mechanical stores purchases used $313 million, with $36 million received from property disposals. The company spent $85 million on share repurchases through September.
Completed and pending transactions
Ingredion completed the sale of a 51% stake in Rafhan, its Pakistan business, on June 30, 2026. It received $165 million in gross cash consideration, or $127 million after removing the cash held by that business. It retained an interest of about 20%, now accounted for through its share of earnings rather than consolidating the business's sales.
In the first quarter of 2026, Ingredion bought the remaining minority shares of PureCircle for $7 million, taking its ownership to 100%. The planned Tate & Lyle acquisition remains pending. The latest results do not include Tate & Lyle as an acquired operating business.
The key operating development is the gap between improved plant reliability and weaker profits. Lower Argo costs, a recovery in demand and the progress of the pending acquisition are the main developments to follow.
Latest reporting