Texture & Healthful Solutions Outperforms in Q3 2025, Offsetting Broader Volume Weakness
Ingredion’s third-quarter 2025 report reflects a business in transition—one that is balancing strong segment performance against industry and operational headwinds. While overall net sales declined 3% from a year ago, the Texture & Healthful Solutions (T&HS) segment delivered notable growth, signaling a bright spot in Ingredion’s portfolio.
T&HS Delivers 4% Sales Volume Growth, Led by Clean Label Ingredient Solutions
The company’s T&HS segment recorded a 4% increase in sales volume, with double-digit growth in clean label solutions across U.S./Canada and Asia-Pacific. Operating income for the segment rose by $9 million (up 9% to $105 million), driven by favorable raw material costs and higher demand for specialized formulations.
| Segment | Q3 2024 Operating Income ($M) | Q3 2025 Operating Income ($M) | Change (%) |
|---|---|---|---|
| Texture & Healthful Solutions | 96 | 105 | 9% |
| Food & Industrial Ingredients-LATAM | 131 | 116 | -11% |
| Food & Industrial Ingredients-U.S./CAN | 99 | 81 | -18% |
Broader Business Faces Headwinds—F&II Segments Under Pressure
Other Ingredion segments weren’t as fortunate. The Food & Industrial Ingredients-U.S./CAN segment saw operating income decline 18%, reflecting production challenges at its Chicago facility following a fire in June and lower beverage and food demand amid retail price increases. LATAM’s segment operating income dropped 11%, weighed by softer consumer demand, a weaker brewing industry, and macroeconomic uncertainty.
Earnings Down Year-Over-Year; Adjusted Guidance Reflects Current Realities
Reported operating income for the quarter came in at $249 million, down 7% from the prior year. Adjusted diluted EPS was $2.75, compared to $3.05 in Q3 2024, mirroring declines in both volume and margins, despite some currency tailwinds.
| Q3 2024 | Q3 2025 | |
|---|---|---|
| Adjusted Operating Income ($M) | 282 | 254 |
| Adjusted Diluted EPS | 3.05 | 2.75 |
| Reported Net Sales ($M) | 1,870 | 1,816 |
Full-year adjusted EPS guidance was revised to $11.10–$11.30, with reported EPS guided to $11.11–$11.31. Ingredion expects full-year net sales to be flat or slightly lower as T&HS growth is offset by headwinds in other segments and pass-through of lower raw material costs.
Balance Sheet and Shareholder Returns Remain Stable
At quarter’s end, Ingredion held $915 million in cash and $1.8 billion in total debt. The company continued its practice of shareholder returns, paying $54 million in Q3 dividends and increasing its quarterly payout to $0.82 per share—the 11th consecutive annual raise. Year-to-date, share repurchases have totaled $134 million.
Guidance Shows Confidence in Specialty Solutions, Focus on Operational Improvements
Looking forward, management anticipates high double-digit operating income growth for T&HS and flat-to-slightly-up performance in LATAM. However, U.S./CAN F&II segment income is expected to decline low double-digits, with ‘All Other’ operating income approaching breakeven. Corporate costs will likely be up high single-digits due to continued IT investments.
| 2025 Full-Year Segment Outlook | Operating Income Expectation |
|---|---|
| Texture & Healthful Solutions | Up high double-digits |
| Food & Industrial Ingredients-LATAM | Flat to up low single-digits |
| Food & Industrial Ingredients-U.S./CAN | Down low double-digits |
| All Other | Approaching breakeven |
Takeaway: Segment Strength Offsets Challenges—Investor Focus Turns to T&HS and Operational Recovery
Ingredion’s performance highlights the value of a diversified portfolio, as gains in specialty ingredient solutions help absorb shocks from operational and market challenges. The next few quarters will test management’s ability to deliver on innovation-driven growth in T&HS while restoring momentum in F&II segments.
For investors, the big question is whether Ingredion’s continued investment in high-value segments can drive sustainable growth even as some core businesses reset. The focus remains on segment leadership, cost discipline, and how quickly operations can normalize after recent setbacks.
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