Ingredion Restores Sales Growth After First-Quarter Drop

The Tip Desk · August 4, 2026 · 3 min read

Second-quarter net sales were $1.85 billion, up 1%, as Texture & Healthful Solutions posted a ninth straight quarter of volume growth.

Ingredion Incorporated (INGR), a global provider of ingredient solutions to the food and beverage manufacturing industry, reported second-quarter 2026 net sales of $1.85 billion, up 1% from $1.83 billion a year earlier, reversing a 1% year-over-year sales decline in the first quarter.

Reported operating income fell 31% to $188 million from $271 million a year earlier. Adjusted operating income was $258 million, down 5% from $273 million. Reported diluted earnings were $1.78 a share versus $2.99 a year earlier; adjusted diluted earnings were $2.82 a share versus $2.87.

The sales increase was driven primarily by higher net sales volume in Texture & Healthful Solutions and favorable foreign exchange in Food & Industrial Ingredients–LATAM, partially offset by less favorable overall price mix and lower volume in Food & Industrial Ingredients–U.S./CAN.

Texture & Healthful Solutions net sales were $627 million, up 5% from $599 million a year earlier. Chairman, president and CEO Jim Zallie said the segment delivered its ninth consecutive quarter of broad-based net sales volume growth, citing continued customer demand for solutions offerings, including clean-label ingredients. Segment operating income was $117 million, up 5% from $111 million, reflecting volume growth, partially offset by unfavorable price mix and higher tapioca costs.

Food & Industrial Ingredients–LATAM net sales were $611 million, up 3% from $596 million a year earlier, reflecting favorable foreign exchange. Segment operating income was $118 million, down 7% from $127 million, driven primarily by Mexico’s transactional currency impacts and a more challenging demand environment.

Food & Industrial Ingredients–U.S./CAN net sales were $488 million, down 7% from $523 million a year earlier. Segment operating income was $58 million, down 33% from $86 million. The decline resulted from lower production at its Argo facility, which had normalized by the end of the quarter, as well as softer volumes and price mix. Zallie said reliability at Argo improved, with sequentially better production rates and yields, and that the plant is operating at normal production rates across all major operating units.

All Other net sales were $124 million, up 8% from $115 million a year earlier. All Other operating income was $6 million versus a $1 million loss a year earlier, reflecting continued improvements in the Protein Fortification business.

Net financing costs were $55 million in the second quarter versus $12 million a year earlier, primarily due to a $47 million mark-to-market foreign exchange loss on derivatives used to hedge British pound sterling exposure related to the pending Tate & Lyle acquisition. At June 30, 2026, total debt was $1.8 billion and cash, including short-term investments, was $952 million.

Ingredion completed the sale of a majority stake in the Pakistan business. Tate & Lyle shareholders accepted the company’s 595 pence all-cash offer on July 28, 2026. Integration planning for the pending acquisition has commenced.

The company reaffirmed full-year 2026 guidance after reflecting the Pakistan sale: reported EPS of $9.15 to $9.75 and adjusted EPS of $10.30 to $10.90, versus the first-quarter ranges of $9.60 to $10.30 reported and $10.45 to $11.15 adjusted. It still expects full-year 2026 net sales to be flat to up low single digits, with reported operating income down low double digits and adjusted operating income down mid-single digits after the Pakistan sale.

For the third quarter of 2026 versus the same quarter last year, Ingredion expects net sales to be up low single digits and both reported and adjusted operating income to be down mid-single digits, reflecting the Pakistan sale.