Ingredion reports Q1FY2026 results miss amid operational headwinds
Net sales declined about 1% year over year, while reported and adjusted operating income decreased 26% and 22%, respectively, versus Q1 2025.
USA – Ingredion Incorporated, a leading global provider of ingredient solutions to the food and beverage manufacturing industry, reported its first quarter 2026 financial results, revealing a period marked by operational setbacks and a revised full-year earnings outlook.
First quarter 2026 reported and adjusted earnings per share came in at US$2.22 and US$2.34, respectively, compared to US$3.00 and US$2.97 in the same period of 2025.
Reported and adjusted operating income declined 26% and 22% year-over-year.
Revenue of US$1.79 billion met analyst expectations but declined 1.0% from US$1.81 billion in the year-ago quarter, while adjusted net income came in at US$150 million.
The primary drag on results was traced to a single facility.
Jim Zallie, chairman, president and CEO of Ingredion, stated: “While we expected a challenging first quarter after last year’s strong first quarter, results were weaker than anticipated in Food & Industrial Ingredients — U.S./CAN due to operational challenges at our Argo facility.”
He added that performance in the Texture & Healthful Solutions and Food & Industrial Ingredients – Latin America segments was in line with expectations despite an increasingly uncertain macroeconomic environment.
A bright spot emerged in the company’s speciality segment.
Texture & Healthful Solutions delivered an eighth consecutive quarter of broad-based net sales volume growth, driven by continued strong customer demand, including for clean-label ingredients.
The segment saw net sales increase 2% to $617 million, driven by strong consumer interest in clean-label ingredients and health-conscious reformulations. Notable performers included pea protein isolates, which grew by more than 50%, and stevia-based solutions, which rose 6%.
First quarter operating income for the All Other segments also increased by US$3 million from the prior year, reflecting continued improvements in the plant-based protein business.
On the balance sheet, total debt stood at US$1.8 billion as of March 31, 2026, with cash and short-term investments of US$918 million, compared to US$1.0 billion in cash at the close of 2025.
Net capital expenditures reached US$110 million through the end of March, and the company paid US$52 million in dividends to shareholders during the quarter.
Looking ahead, Ingredion revised its full-year 2026 guidance, now projecting reported EPS of US$9.60 to US$10.30 and adjusted EPS of US$10.45 to US$11.15.
Food & Industrial Ingredients: US/Canada operating income is now expected to be down in the low double digits, driven by operational challenges at the Argo facility.
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