Ingredion Inc

Previous wording

Most of our products are made locally and sold locally. We sell the vast majority of our products to customers in the U.S., Mexico and Canada, where trade is governed by the United States-Mexico-Canada Agreement (“USMCA”). Our operations in the U.S. source corn produced in the U.S., and our subsidiaries outside the U.S. utilize both supplies of corn from their local regions, as well as corn imported from other geographic areas, including the U.S. In response to escalating tariff actions, we have activated a tariff response hub to continually assess our fluid business environment so that we may work with customers to navigate the complexity in the most cost-effective and least-disruptive manner. Although our efforts to date have been successful, we continue to monitor changing tariff requirements and reciprocal actions, as well as indirect effects in the economic environment, which may adversely affect our operations.

Current wording

We continue to monitor changing tariff requirements and reciprocal actions, as well as indirect effects in the economic environment, which may adversely affect our operations, although these factors have had an immaterial impact on our results for year-to-date 2025. Most of our products are made locally and sold locally. We sell the vast majority of our products to customers in the U.S., Mexico and Canada, where trade is governed by the United States-Mexico-Canada Agreement. Our operations in the U.S. source corn produced in the U.S., and our subsidiaries outside the U.S. utilize both supplies of corn from their local regions, as well as corn imported from other geographic areas. Our tariff response hub continually assesses ongoing tariff actions so that we work effectively with customers to navigate supply chain complexity in a cost effective and less disruptive manner.

Previous wording

Net sales. Net sales decreased 4 percent to $1,813 million for the first quarter of 2025 compared to $1,882 million for the first quarter of 2024. The decrease was due primarily to lower raw material costs, foreign exchange impacts and the impact of our South Korea business in the first quarter of 2024, partially offset by T&HS volume increases.

Current wording

Net sales. Net sales decreased 2 percent to $1,833 million for the second quarter of 2025 compared to $1,878 million for the second quarter of 2024. The decrease was due primarily to price mix, primarily from lower raw material costs, and lower volume in each of the F&II segments, partially offset by T&HS volume increases.

Previous wording

Cost of sales. Cost of sales decreased 8 percent to $1,347 million for the first quarter of 2025 compared to $1,465 million for the first quarter of 2024. The decrease was due primarily to lower raw material and input costs, compared to the same quarter last year. As a result, gross profit margin increased to 26 percent for the first quarter of 2025 from 22 percent for the first quarter of 2024.

Current wording

Cost of sales. Cost of sales decreased 5 percent to $1,356 million for the second quarter of 2025 compared to $1,432 million for the second quarter of 2024. The decrease was due primarily to lower raw material and input costs and lower volumes. As a result, gross profit margin increased to 26 percent for the second quarter of 2025 from 24 percent for the second quarter of 2024.

Previous wording

Operating expenses. Operating expenses increased 2 percent to $193 million for the first quarter of 2025 compared to $189 million for the first quarter of 2024,. Operating expenses as a percentage of net sales were 11 percent for the first quarter of 2025 and 10 percent for the first quarter of 2024.

Current wording

Operating expenses. Operating expenses increased 9 percent to $208 million for the second quarter of 2025 compared to $191 million for the second quarter of 2024. Operating expenses as a percentage of net sales were 11 percent for the second quarter of 2025 and 10 percent for the second quarter of 2024. The increase is primarily related to increased employee costs.

Previous wording

Net sales. T&HS net sales increased to $602 million for the first quarter of 2025 compared to $597 million for the first quarter of 2024. Net sales increased primarily due to volumes, partially offset by unfavorable price mix.

Current wording

Net sales. T&HS net sales increased to $599 million for the second quarter of 2025 compared to $588 million for the second quarter of 2024. Net sales increased primarily due to higher volumes and favorable foreign exchange impacts, partially offset by unfavorable price mix.

Previous wording

Operating income. F&II - LATAM operating income increased 26 percent to $127 million for the first quarter of 2025 from $101 million for the first quarter of 2024. The quarter’s results benefited from the lapping of the devaluation of the Argentine peso on prior year results of our Argentina joint venture. Excluding the joint venture’s results, segment operating income increased due to lower raw material costs that were partially offset by lower volumes.

Current wording

Adjusted operating income. F&II - LATAM adjusted operating income decreased 2 percent to $127 million for the second quarter of 2025 compared to $130 million for the second quarter of 2024. The quarter results were negatively impacted by the floating exchange rate for the Argentine peso and the corresponding impact on the Argentina joint venture results. Apart from the joint venture results, segment adjusted operating income increased primarily due to favorable raw material costs that were partially offset by lower volumes.

Previous wording

Net sales. F&II - U.S./Canada net sales decreased 4 percent to $520 million for the first quarter of 2025 from $541 million for the first quarter of 2024. Net sales decreased primarily due to unfavorable price mix due to lower raw material costs that we passed through to customers.

Current wording

Net sales. F&II - U.S./Canada net sales decreased 6 percent to $523 million for the second quarter of 2025 from $555 million for the second quarter of 2024. Net sales decreased primarily due to lower volumes.

Previous wording

Net sales. All Other net sales decreased 8 percent to $118 million for the first quarter of 2025 from $128 million for the first quarter of 2024. Net sales decreased primarily due to the sale of our South Korea business on February 1, 2024. Excluding the sale of our South Korea business, net sales increased 13 percent.

Current wording

Net sales. All Other net sales increased 10 percent to $115 million for the second quarter of 2025 from $105 million for the second quarter of 2024. The increase was primarily due to net sales increases in the plant-based protein business.

Previous wording

Operating income (loss). All Other operating (loss) was $0 million for the first quarter of 2025 compared to $(4) million for the first quarter of 2024. The increase was primarily due to improvements in our plant-based protein business.

Current wording

Adjusted operating loss. All Other adjusted operating loss was $1 million for the second quarter of 2025 compared to $10 million for the second quarter of 2024. The decrease was primarily due to improvements in the plant-based protein business.

Previous wording

Provision for income taxes. Our effective income tax rate for the first quarter of 2025 and 2024 was 25.5 percent and 21.0 percent. The increase was primarily due to favorable tax treatment on the sale of our South Korea business in the first quarter of 2024.

Current wording

Provision for income taxes. Our effective income tax rate for year-to-date 2025 decreased to 24.5 percent from 27.3 percent for year-to-date 2024. The decrease in the effective tax rate was primarily driven by the change in value of the Mexican peso against the U.S. dollar and the tax impact from the impairment of an equity method investment during the second quarter of 2024. These impacts were partially offset by the favorable tax treatment on the sale of our South Korea business in 2024.

Previous wording

Net income attributable to Ingredion. Net income attributable to Ingredion for the first quarter of 2025 decreased to $197 million from $216 million for the first quarter of 2024. The decrease was primarily due to the $82 million gain on the sale of our South Korea business in the first quarter of 2024.

Current wording

Net income attributable to Ingredion. Net income attributable to Ingredion for year-to-date 2025 increased to $393 million from $364 million for year-to-date 2024. Excluding the impact of the $82 million gain on the sale of our South Korea business in 2024 and lower income taxes and lower financing costs in 2025, the increase was primarily due to the increase in operating income.

Previous wording

Net sales. F&II - LATAM net sales decreased 7 percent to $573 million for the first quarter of 2025 from $616 million for the first quarter of 2024. Net sales decreased primarily due to unfavorable foreign exchange impacts, primarily in Brazil, and lower volumes.

Current wording

Net sales. F&II - LATAM net sales decreased 6 percent to $1,169 million for year-to-date 2025 from $1,246 million for year-to-date 2024. The decrease was primarily due to unfavorable foreign exchange impacts and lower volumes, partially offset by favorable price mix.

Previous wording

As of March 31, 2025, we had total available liquidity of $3.8 billion. Domestic liquidity of $1.5 billion consisted of $471 million in cash and cash equivalents and $1.0 billion available through our commercial paper program. The commercial paper program is backed by $1.0 billion of borrowing availability under a five-year revolving credit agreement.

Current wording

As of June 30, 2025, we had total available liquidity of $3.7 billion. Domestic liquidity of $1.4 billion consisted of $447 million in cash and cash equivalents and $1.0 billion available through our commercial paper program. The commercial paper program is backed by $1.0 billion of borrowing availability under a five-year revolving credit agreement.

Previous wording

As of March 31, 2025, we had international liquidity of $2.3 billion, consisting of $366 million of cash and cash equivalents and $9 million of short-term investments held by our operations outside the U.S., as well as $1.9 billion of unused operating lines of credit in foreign countries where we operate. As the parent company, we guarantee certain obligations of our consolidated subsidiaries. These guarantees totaled $34 million as of March 31, 2025. We believe that those consolidated subsidiaries will be able to meet their financial obligations as they become due.

Current wording

As of June 30, 2025, we had international liquidity of $2.3 billion, consisting of $414 million of cash and cash equivalents and $7 million of short-term investments held by our operations outside the U.S., as well as $1.9 billion of unused operating lines of credit in foreign countries where we operate. As the parent company, we guarantee certain obligations of our consolidated subsidiaries, which totaled $38 million as of June 30, 2025. We believe that our consolidated subsidiaries will be able to meet their financial obligations as they become due.

Previous wording

As of March 31, 2025, we had total debt outstanding of $1.8 billion. Of our outstanding debt, $1.7 billion consists of senior notes that do not require principal repayment until 2026 through 2050. The weighted average interest rate on our total indebtedness was approximately 4.0 percent for the first quarter of 2025 and approximately 4.1 percent for the first quarter of 2024.

Current wording

As of June 30, 2025, we had total debt outstanding of $1.8 billion. Of our outstanding debt, $1.7 billion consists of senior notes that do not require repayment until 2026 through 2050. The weighted average interest rate on our total indebtedness was approximately 3.9 percent for the second quarter of 2025 and approximately 4.2 percent for the second quarter of 2024.

Previous wording

Our cash provided by operating activities was $77 million for the first quarter of 2025 compared to cash provided by operating activities of $209 million for the first quarter of 2024. The decrease was primarily attributable to a $223 million change in working capital resulting from increased trade accounts receivables due to reduced utilization of customer financing programs and higher volumes.

Current wording

Our cash provided by operating activities was $262 million for year-to-date 2025 compared to cash provided by operating activities of $521 million for year-to-date 2024. The decrease was primarily attributable to a $250 million change in working capital resulting from increased trade accounts receivables due to reduced utilization of customer financing programs and higher volumes.

Previous wording

We used $92 million of cash for capital expenditures and mechanical stores purchases to update, expand and improve our facilities during the first quarter of 2025 compared to $65 million we applied during the first quarter of 2024 for the same purposes. Capital investment commitments for the remainder of 2025 are anticipated to be between $400 million and $450 million.

Current wording

We used $193 million of cash for capital expenditures and mechanical stores purchases to update, expand and improve our facilities year-to-date 2025 compared to $120 million we applied year-to-date 2024 for the same purposes. Capital investment commitments for the full year of 2025 are anticipated to be between $400 million and $425 million. In addition, we received $247 million in proceeds for the sale of our South Korea business year-to-date 2024, in contrast to investing $19 million in the Agrana joint venture year-to-date 2025.

Previous wording

We used $154 million of cash for financing activities during the first quarter of 2025 compared to cash used for financing activities of $347 million for the first quarter of 2024. The difference was primarily reflected the absence of commercial paper borrowings during the first quarter of 2025 compared to $312 million net repayments of commercial paper during the first quarter of 2024. The impact of this was partially offset by an increase in payments of debt of $48 million net in during first quarter 2025 compared to $15 million of net proceeds during first quarter 2024 and an increase in repurchases of common stock to $55 million in the first quarter 2025 compared to $1 million in the first quarter 2024.

Current wording

We used $204 million of cash for financing activities year-to-date 2025 compared to cash used for financing activities of $526 million year-to-date 2024. The difference was primarily reflected the absence of commercial paper borrowings year-to-date 2025 compared to $327 million net repayments of commercial paper year-to-date 2024.

Previous wording

We declare and pay cash dividends to our common stockholders of record on a quarterly basis. Dividends paid, including those to non-controlling interests, was $52 million during the first quarter of 2025 compared to $51 million during the first quarter of 2024. The increase in dividend payments was due to an increase in our quarterly dividend to $0.80 per share during the first quarter of 2025 from $0.78 per share during the first quarter of 2024.

Current wording

We declare and pay cash dividends to our common stockholders of record on a quarterly basis. Dividends paid, including those to non-controlling interests, was $106 million year-to-date 2025 compared to $104 million year-to-date 2024. The increase in dividend payments was due to an increase in our quarterly dividend to $0.80 per share in 2025 from $0.78 per share in 2024.

Previous wording

During the first quarter of 2025, we repurchased 409 thousand outstanding shares of common stock in open market transactions at a net cost of $55 million. During the first quarter of 2024, we repurchased 5 thousand outstanding shares of common stock at a net cost of $1 million.

Current wording

For year-to-date 2025, we repurchased 409 thousand outstanding shares of common stock in open market transactions at a net cost of $55 million. For year-to-date 2024, we repurchased 577 thousand outstanding shares of common stock at a net cost of $66 million.

Previous wording

Our critical accounting policies and estimates are described in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2024. There have been no changes to our critical accounting policies and estimates during the first quarter of 2025.

Current wording

Our critical accounting policies and estimates are described in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2024. There have been no changes to our critical accounting policies and estimates during year-to-date 2025.

Previous wording

This Form 10-Q contains or may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (“Exchange Act”). Ingredion Incorporated intends these forward-looking statements to be covered by the safe harbor provisions for such statements.

Current wording

This Form 10-Q contains or may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (“Exchange Act”).