Ingredion Cuts 2026 Outlook as Argo Costs Weigh on Profit
Ingredion reported Q3 net sales of $1.79B and diluted EPS of $2.23, cut full-year adjusted EPS guidance to $9.25–$9.70, and cited slower Argo recovery.
Ingredion Incorporated reported third-quarter net sales of $1.792 billion on Thursday, down 1% from $1.816 billion a year earlier, and cut its full-year earnings outlook after profit fell at its U.S. and Canada ingredients business.
Reported diluted earnings were $2.23 a share, compared with $2.61 a year earlier. Adjusted diluted earnings were $2.28 a share, versus $2.75, according to the Westchester, Illinois-based company’s release. Yahoo Finance, citing Zacks, said the adjusted figure missed a $2.55 consensus estimate. Net income attributable to Ingredion was $142 million, down 17% from $171 million.
Profit squeeze at Argo
Reported and adjusted operating income both fell 19%, to $201 million and $206 million. Food & Industrial Ingredients–U.S./Canada operating income dropped 36% to $52 million from $81 million, which the company tied to higher manufacturing expenses at its Argo facility and lower volume, partly offset by favorable price mix.
Chairman, president and CEO Jim Zallie said results fell short largely because of Argo’s slower-than-expected financial recovery, plus higher input costs and softer consumer demand. Texture & Healthful Solutions posted a 10th straight quarter of net sales volume growth, with segment operating income of $95 million, down 10% from a year earlier.
Lower full-year targets
Ingredion now expects 2026 reported diluted EPS of $8.04 to $8.49 and adjusted diluted EPS of $9.25 to $9.70. It expects full-year net sales to be flat and adjusted operating income to fall by the mid-teens. Cash from operations is projected at $650 million to $750 million; capital spending is still expected near $450 million to $490 million.
Through Sept. 30, the company repurchased $85 million of common stock toward a $100 million full-year target and paid a raised quarterly dividend of $0.83 a share on Oct. 20. Integration planning continues for its pending Tate & Lyle acquisition, the company said.
Sources: Ingredion Incorporated (company release), Nasdaq company release, Yahoo Finance
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