INGR.NYSEIngredion INC
10-Q: Ingredion Reports Lower Q2 Profit Amid Acquisition Costs
Sentiment:
Ingredion Incorporated's Q2 2026 results show a significant drop in net income and operating income, impacted by acquisition expenses and operational issues, though net sales remained stable.
Summary
- Ingredion Incorporated reported a decrease in net income attributable to Ingredion to $114 million for the second quarter of 2026, down from $196 million in the same period of 2025.
- For the six months ended June 30, 2026, net income attributable to Ingredion decreased to $256 million from $393 million in the prior year.
- Operating income for the second quarter of 2026 was $188 million, a decrease from $271 million in Q2 2025.
- Year-to-date operating income fell to $391 million from $547 million in the comparable period of 2025.
- Net sales for the second quarter of 2026 were $1,850 million, a slight increase from $1,833 million in Q2 2025.
- Year-to-date net sales were $3,642 million, nearly flat compared to $3,646 million in the prior year.
- The company incurred $53 million in acquisition-related costs for the pending Tate & Lyle acquisition, including $47 million in foreign exchange hedging losses.
- A gain of $44 million was recognized from the sale of the majority ownership of the Pakistan business in the second quarter of 2026.
Sentiment
Score: 4
Explanation: StockSavvy.ai views this filing as having a negative sentiment due to a significant decrease in net income and operating income, largely driven by acquisition-related costs and operational challenges, despite a stable net sales figure.
Positives
- Net sales remained stable, increasing slightly by 1% to $1,850 million in Q2 2026 and remaining flat year-to-date at $3,642 million.
- The Texture & Healthful Solutions segment saw a 5% increase in operating income to $117 million in Q2 2026.
- The Food & Industrial Ingredients LATAM segment's net sales increased by 3% to $611 million in Q2 2026.
- The All Other segment's net sales increased by 8% to $124 million in Q2 2026, driven by the protein fortification business.
- The company recognized a $44 million net gain on the sale of its majority ownership in the Pakistan business.
- Total available liquidity, excluding acquisition-related credit facilities, was $3.9 billion as of June 30, 2026.
Negatives
- Net income attributable to Ingredion decreased by 42% to $114 million in Q2 2026 compared to $196 million in Q2 2025.
- Year-to-date net income attributable to Ingredion decreased by 35% to $256 million from $393 million.
- Operating income decreased by 31% to $188 million in Q2 2026 from $271 million in Q2 2025.
- Year-to-date operating income decreased by 29% to $391 million from $547 million.
- Cost of sales increased by 5% in Q2 2026 to $1,424 million, impacting gross profit margin, which fell to 23% from 26%.
- Restructuring and impairment charges increased significantly to $45 million in Q2 2026 from $3 million in Q2 2025, primarily due to the closure of the Cabo, Brazil facility.
- Financing costs surged to $55 million in Q2 2026 from $12 million in Q2 2025, largely due to $47 million in acquisition-related foreign exchange hedging losses.
- The effective income tax rate increased to 33.7% in Q2 2026 from 23.6% in Q2 2025.
Risks
- The pending acquisition of Tate & Lyle is subject to conditions, including antitrust clearances, which may not be satisfied, potentially impacting the company's stock price and business relationships.
- Business and financial uncertainties while the acquisition is pending could cause customers, partners, and suppliers to delay decisions or renegotiate relationships.
- The company has incurred and expects to continue incurring substantial non-recurring costs related to the Tate & Lyle acquisition, regardless of completion.
- Post-acquisition, the combined group will have significantly more indebtedness, potentially reducing financial flexibility and increasing borrowing costs.
- Failure to effectively manage the expanded operations and integrate the Tate & Lyle business could prevent the realization of anticipated benefits and synergies.
- The company faces risks related to potential loss of customers, distributors, suppliers, and renegotiation of contracts following the acquisition.
- The market price of Ingredion's common stock may decline if the expected benefits of the Tate & Lyle acquisition are not realized or if transaction costs exceed expectations.
- The company is exposed to foreign currency fluctuations, particularly with the British pound sterling, related to the Tate & Lyle acquisition, with potential for material gains or losses.
Key Dates
| Date | Description |
|---|---|
| 2025-11-03 | Board of Directors approved a stock repurchase program authorizing the purchase of up to 8.0 million shares until December 31, 2028. |
| 2026-01-01 | Start of the six-month period for which financial results are reported. |
| 2026-02-01 | Second installment payment of 18 billion South Korean won received for the sale of the South Korea business. |
| 2026-04-01 | Start of the second quarter for which financial results are reported. |
| 2026-05-01 | Committed to a plan to cease operations at the Cabo, Brazil facility. |
| 2026-05-28 | Entered into a joint venture arrangement with Sanstar Limited. |
| 2026-06-05 | Paid $57 million for derivative instruments to mitigate foreign currency exposure for the Tate & Lyle acquisition. |
| 2026-06-08 | Reached an agreement with Tate & Lyle PLC on terms of an all-cash recommended offer for acquisition. |
| 2026-06-24 | Entered into a delayed draw term loan agreement. |
| 2026-06-30 | Completed the sale of 51 percent of Rafhan Maize Products Co. Ltd. (Pakistan business). |
| 2026-07-28 | Tate & Lyle shareholders approved the Scheme of Arrangement for the acquisition. |
| 2026-08-05 | Latest practicable date for reporting outstanding shares. |
| 2026-08-07 | Date of the Form 10-Q filing. |
| 2027-02-01 | Expected final installment payment for the South Korea business sale. |
| 2027-02-08 | Expiration date for certain derivative instruments related to the Tate & Lyle acquisition. |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
| 2027-02-08 | Commitments under the Bridge Loan Agreement and DDTL Agreement will terminate (subject to extension). |
Keywords
ingredient solutions, Tate & Lyle acquisition, financial results, operating income, net sales, acquisition costs, hedging losses, divestiture
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