Ingredion Incorporated : 1Q 2026 Earnings Presentation

Published: 2026-05-05 06:29:07 ET INGR

Published on 05/05/2026 at 06:29 am EDT

Jim Zallie

Chairman, President and CEO

Jason Payant

Vice President and Interim CFO

Polyols Expansion in Mogi Guaçu, Brazil Q1 2026

Agenda

CEO Perspective

CFO Financial Update Closing Remarks Q&A

CEO Perspective

A slower than expected Argo recovery and strong prior-year comps challenged Q1 growth

Q1 Net Sales

$ in millions

Q1 Adjusted Operating Income*

$ in millions

-1%

1,813 1,792

-22%

273

212

Q1 2025 Q1 2026 Q1 2025 Q1 2026

T&HS maintained net sales volume growth

Net Sales Volume

Highlights

Texture & Healthful Solutions

+2%

8th consecutive quarter of sales volume growth

Clean label sales growth up double digits in EMEA and APAC

Solutions sales continue to exceed segment growth

Food & Industrial Ingredients-LATAM

Overall volumes in line with expectations

-1%

Weakness in brewery, beverages, and confectionery

Modest growth in food ingredients

Food & Industrial Ingredients-U.S./CAN

-7%

Ongoing operational issues at Argo plant constrained available volumes

Continued weakness in food and beverage sweetener volumes

Ingredion -2%

Totals may not sum due to rounding

*See appendix for a reconciliation of this non-GAAP financial measure to the comparable GAAP financial measure

Argo challenges drove lower-than-expected Q1 results

Higher manufacturing costs vs Q1 estimates

Incremental maintenance spend

Elevated rework negatively impacted costs

Increased freight costs to service customers

Leveraged U.S./CAN network to minimize customer impacts

Q1 stabilization actions

Leveraging internal and external refinery expertise to diagnose and remedy

Downstream production operating at normal run-rates as we exited Q1

Go forward assumptions are based on sustaining current levels of reliability and yield

April 10: Corn germ processing thermal event

Isolated to corn germ processing; no impact to

Incremental Argo Q1 Costs vs. Q1 Estimate (in millions)

$15

$40

front-end grind or refinery operations

Q1 Estimate Manufacturing

Expenses

Logistics Decreased

Yields

Actual

Solutions continue to drive T&HS growth and higher-value mix

Solutions sales outpacing segment growth

o Clean label continues to be a significant growth driver

Leveraging in-house formulation expertise to deliver bespoke customer solutions

AI is enabling accelerated innovation

o Significantly shortening the "customer brief-to-solution" cycle time

More meaningful

consumer insights

Faster approvals

and speed to market

Stronger, co-created briefs

Customized blends and formulations

Formulation and scaling expertise

Higher product

success rates

Revenue Growth

Clean taste solutions for sugar reduction and pea protein isolates are propelling solid revenue growth

Protein Fortification

Revenue Growth

Assessing the direct and secondary impacts of increased energy prices

Increased packaging costs

Freight and shipping

Consumer confidence FX and purchasing power

TBU

Financial Update

Q1: Income statement highlights

$ in millions, unless noted

Q1 2025

Q1 2026

Change

Net Sales

$1,813

$1,792

-1%

Gross Profit

Gross Profit Margin

$466

25.7%

$401

22.4%

-14%

(330) bps

Reported Operating Income Reported Diluted EPS

$276

$3.00

$203

$2.22

-26%

$(0.78)/share

Adjusted Operating Income* Adjusted Diluted EPS*

$273

$2.97

$212

$2.34

-22%

$(0.63)/share

Totals may not sum due to rounding 12

*See appendix for a reconciliation of these non-GAAP financial measures to the comparable GAAP financial measures

Q1: Net sales bridge

$ in millions

$1,813

$33

($32)

$1,792

($22)

-1%

Q1 2025 FX Volume Price/Mix Q1 2026

Q1: Net sales variance by segment

Foreign Exchange

Sales Volume

Price Mix

Net Sales Change

Texture & Healthful Solutions

-2%

Food & Industrial Ingredients-LATAM

-1%

Food & Industrial Ingredients-U.S./CAN

-7%

-2%

-9%

Ingredion

-2%

-1%

Texture & Healthful Solutions

Q1 Net Sales

$ in millions

Absent FX impacts 0%

Food & Industrial Ingredients-LATAM

Q1 Net Sales

$ in millions

Absent FX impacts

-2%

+1%

+2%

602 617

573 579

Q1 2025

Q1 2026

Q1 Op Income $

$99

$100

Q1 Op Inc Margin

16.4%

16.2%

Q1 2025 Q1 2026

Q1 Op Income $ $127 $115

Q1 Op Inc Margin 22.2% 19.9%

Food & Industrial

Ingredients-U.S./CAN All Other

Q1 Net Sales

$ in millions

520

475

-9%

Absent FX impacts

-9%

Q1 Net Sales

$ in millions

+3%

118 121

Absent FX impacts

+3%

Q1 2025 Q1 2026

Q1 Op Inc Margin 17.7%

7.2%

$34

$92

Q1 Op Income $

Q1 Op Income $ $0 $3

Q1: EPS bridge

Amounts in dollars per share

Q1 2025 Q1 2026

Reported Diluted EPS $ 3.00 $2.22

Impairment charges 0.08 -

Restructuring/resegmentation costs 0.02 0.15

Tax items and other matters (0.13) (0.03)

Adjusted Diluted EPS* $2.97 $2.34

$(0.63)

Total change in adjusted diluted EPS

Total operating items (0.70)

Margin (0.71)

Volume (0.14)

Foreign exchange 0.07

Other income 0.08

Total non-operating items 0.07

Financing costs -

Tax rate 0.01

Shares outstanding 0.06

Other Non-Operating Items -

Totals may not sum or recalculate due to rounding

*See appendix for a reconciliation of this non-GAAP financial measure to the comparable GAAP financial measure

Q1 cash from operations and capital allocation

Year End 2025

March 2026

YTD Cash Impact

A/R

1,185

1,358

(173)

Inventory

1,227

1,183

A/P

1,268

1,194

(74)

Other items

(2)

Change in WC

(205)

$ millions

Net income

Q1 2026

$144

Depreciation and amortization

$55

Change in working capital

$(205)

Other

$39

Cash from operations

$33

Capital allocation

Capital expenditures, net

$(110)

To shareholders

Dividend payments to INGR shareholders

$(52)

Repurchases of common stock $(14)

Totals may not sum due to rounding 18

Full year 2026 outlook1

Net sales

Flat to up low single-digits

Adjusted operating income*

Flat to down low single-digits

Financing costs

$35 - $45 million

Corporate costs

Flat to prior year

Adjusted effective tax rate*

26.0% - 27.5%

Adjusted EPS*

$10.45 to $11.15

Diluted weighted avg. shares outstanding

63.5 - 64.5 million shares

Cash from operations

$725 - $825 million

CAPEX

Approximately $400 - $440 million

1 This guidance reflects tariff levels in effect as of April 30, 2026.

*Excluding acquisition-related integration and restructuring costs, as well as any potential impairment costs;

2026 Full year outlook by segment

2026

vs. 2025

Texture & Healthful Solutions

Expect net sales to be up low single-digits to mid-single-digits

Expect operating income to be up low single-digits

All Other

INGR Q2 2026

Expect net sales to be flat to down low single-digits

Food & Industrial-LATAM

Expect operating income to be down low single-digits

Food & Industrial-U.S./CAN

Expect net sales to be down low single-digits

Expect operating income to be down low double-digits

Expect net sales to be up high single-digits

Expect operating income to improve $5M-$10M

Expect net sales to be flat to up low single-digits

Expect adjusted operating income to be down high single-digits

*Excluding acquisition-related integration and restructuring costs, as well as any potential impairment costs;

2026 outlook reflects tariff levels in effect as of April 30, 2026 and does not consider future changes in tariffs or trade restrictions.

Disclaimer

Ingredion Incorporated published this content on May 05, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 05, 2026 at 10:28 UTC.