Ingredion Cuts 2026 Outlook as Argo Recovery Lags
Lower earnings and weaker demand weighed on Ingredion’s third-quarter results, prompting the company to reduce its full-year profit outlook.
Key takeaways
- Third-quarter diluted EPS was $2.23 reported and $2.28 adjusted.
- Operating income fell 19% to $201 million on a reported basis.
- Ingredion lowered its 2026 reported and adjusted EPS outlook.
Ingredion lowered its 2026 earnings outlook after third-quarter reported operating income fell 19% year over year to $201 million. Reported diluted earnings per share were $2.23, down from $2.61 a year earlier.
Adjusted diluted EPS was $2.28, compared with $2.75 in the prior-year quarter. Adjusted operating income declined 19% to $206 million.
Chief Executive Jim Zallie said results missed the company’s expectations, largely because the financial recovery at its Argo facility was slower than anticipated. Higher input costs and weak consumer demand also weighed on performance.
The company now expects full-year reported diluted EPS of $8.04 to $8.49 and adjusted diluted EPS of $9.25 to $9.70. Ingredion said it lowered its outlook mainly to reflect a slower profit recovery in its U.S. and Canada food and industrial ingredients business, along with higher input costs and softer demand.
The company expects full-year reported operating income to decline by a low double-digit percentage, and adjusted operating income to fall by a mid-teens percentage. Texture & Healthful Solutions recorded its 10th consecutive quarter of net sales volume growth, but higher tapioca and manufacturing costs reduced segment operating income.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
