Ingredion cuts 2026 profit forecast after Q3 profit miss

Ingredion (INGR) cut its full-year 2026 forecast after third-quarter adjusted earnings of $2.28 per share missed the $2.65 consensus estimate. The company now expects adjusted EPS of $9.25 to $9.70 per share, down from $10.30 to $10.90 on Aug. 4.

Shares were little changed at 10:02 a.m. ET, from a $97.36 close.

The shortfall came mainly from the Argo facility in the Food & Industrial Ingredients U.S./CAN segment, where manufacturing costs rose.

Here's how the company did:

• Adjusted EPS: $2.28 vs. $2.75 a year earlier, missing the $2.65 consensus estimate
• Reported EPS: $2.23 vs. $2.61 a year earlier
• Revenue: $1.79 billion vs. $1.82 billion a year earlier, below the $1.84 billion estimate
• Adjusted operating income: $206 million vs. $254 million, down 19%

Net sales fell 1% from a year earlier, mainly because of the sale of a majority stake in the Pakistan business. Excluding Pakistan, net sales rose 2%.

On a GAAP basis, net income fell in each of the last three quarters, from $171.0 million in the third quarter of 2025 to $114.0 million in the second quarter of 2026.

2026 guidance

The company now expects reported diluted EPS of $8.04 to $8.49 per share for 2026, down from $9.15 to $9.75 on Aug. 4. Adjusted operating income is now expected to fall in the mid-teens percent for the year, reflecting operational challenges at U.S./CAN.

U.S./CAN operating income is now expected to fall 35% to 40%, against the 20% to 25% decline forecast in August. The company expects net sales to be flat for the year, and cash from operations of $650 million to $750 million. Capital expenditures are still expected to be $450 million to $490 million.

The guidance reflects tariff levels in effect at the end of October.

Chairman, President and CEO Jim Zallie said: "Our third quarter results fell short of our expectations, largely due to Argo's slower than anticipated financial recovery."

Segment results

Texture & Healthful Solutions net sales rose 1% to $610 million, and volume grew for a tenth consecutive quarter. Operating income fell 10% to $95 million from $105 million, as tapioca costs and manufacturing expenses rose.

Food & Industrial Ingredients – LATAM operating income fell 6% to $109 million from $116 million. Higher volumes were offset by a stronger Mexican peso and the August earthquake in Colombia.

Food & Industrial Ingredients – U.S./CAN operating income fell 36% to $52 million from $81 million. Higher manufacturing expenses at the Argo facility and volume declines were partly offset by favorable price mix.

Costs and capital returns

The company recorded $11 million of acquisition and integration costs and $3 million of impairment charges in operating income. It also booked a $17 million restructuring benefit, mainly from the sale of land in Lane Cove, Australia.

Total debt was $1.8 billion and cash, including short-term investments, was $993 million at Sept. 30.

On Sept. 17 the company declared a quarterly dividend increase to 83 cents per share, paid Oct. 20. It was the 12th consecutive year of dividend increases.

Through Sept. 30 the company had repurchased $85 million of common stock and is on track to meet its $100 million full-year repurchase target.

The company is also pursuing a pending all-cash acquisition of Tate & Lyle.