INGREDION INC (NYSE:INGR) Q3 2025 Earnings Fall Short of Estimates, Stock Declines

Ingredion Incorporated (NYSE:INGR) reported financial results for the third quarter of 2025 that fell short of analyst expectations, leading to a negative reaction in pre-market trading. The ingredient solutions provider faced a mix of operational challenges and shifting consumer demand that impacted its bottom line during the quarter.

Earnings and Revenue Performance Versus Estimates

The company's third-quarter performance did not meet Wall Street's projections on key financial metrics. Both revenue and earnings per share came in below what analysts had anticipated, contributing to investor concerns about near-term profitability.

• Revenue: Reported $1.82 billion, missing the analyst estimate of $1.94 billion.
• Adjusted EPS: Reported $2.75, below the estimated $2.94.
• Year-Over-Year Comparison: Net sales decreased 3% from the $1.87 billion reported in the third quarter of 2024.

The miss on the top line was primarily driven by lower volume in the company's Food & Industrial Ingredients segments and unfavorable price mix, partially offset by growth in the Texture & Healthful Solutions segment.

Market Reaction

The market's immediate response to the earnings release was negative. In pre-market trading, Ingredion stock was down approximately 3.6%. This price action suggests investors were disappointed by the earnings and revenue miss, as well as the company's revised outlook for the full year. The stock has also seen declines over the past month, down about 5%, indicating some investor caution leading into the earnings report.

Updated Full-Year Outlook

Ingredion adjusted its full-year 2025 guidance, which now sits below current analyst expectations. This revision likely played a significant role in the negative market sentiment.

• Adjusted EPS Guidance: The company expects $11.10 to $11.30, which is below the analyst estimate of $11.65.
• Revenue Guidance: The company expects net sales to be flat to down low single-digits, compared to the analyst sales estimate of $7.57 billion.

Management cited ongoing operational challenges and a mixed demand environment as reasons for the tempered expectations.

Press Release Summary

The earnings report highlighted a tale of two businesses: one facing headwinds and the other showing resilience.

• Segment Performance: The Texture & Healthful Solutions segment was a bright spot, delivering a 9% increase in operating income to $105 million, driven by a 4% growth in sales volume. In contrast, the Food & Industrial Ingredients segments struggled. The U.S./Canada segment saw an 18% drop in operating income due to production challenges from a June fire at its Chicago plant and lower beverage demand. The LATAM segment experienced an 11% decline, attributed to softer consumer demand and a weaker brewing industry.
• Profitability Metrics: Reported operating income decreased 7% to $249 million, while adjusted operating income fell 10% to $254 million compared to the prior year.
• Capital Return: The company continued its commitment to returning capital to shareholders, repurchasing $134 million of stock year-to-date and raising its quarterly dividend for the eleventh consecutive year.

For a detailed look at historical earnings, future estimates, and analyst projections for Ingredion, you can review the data here.

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