INGR

Download the Complete Report Here Key Takeaways: Record revenue and improved sequential growth reinforce BOIL’s transition from commercial platform buildout toward scaled execution. BOIL reported record revenue of $1.4 million in 2Q26, up 28% y/y from $1.1 million and 11% sequentially from $1.3 million in 1Q26, a meaningful acceleration from the ~1% sequential increase reported last quarter. 1H26 revenue reached $2.7 million, up 26% from $2.1 million in 1H25 and equivalent to 59% of full-year 2025 revenue of $4.5 million. The quarter lifts BOIL’s annualized revenue run-rate to ~$5.6 million from roughly $5.0 million entering 2Q26, while BOIL continued to invest in the U.S. direct-sales infrastructure supporting larger strategic customers. We believe the combination of improved sequential revenue growth and broader enterprise activity supports the view that BOIL is moving further into the revenue-execution phase, with broader deployments and recurring consumption representing the next stage of scale. Gross margin moderated as BOIL absorbed early rollout and channel-transition costs, while commercial investment remained focused on supporting U.S. execution. Gross profit was $0.59 million in 2Q26 versus $0.62 million y/y, with gross margin declining to 42.2% from 56.3% in 2Q25 and 53.1% in 1Q26 as inventory and channel mix, early U.S. customer servicing costs, and new-market expansion weighed on profitability. Total operating expenses increased 27% y/y to $3.01 million from $2.37 million, driven primarily by a 63% increase in sales and marketing expense to $1.62 million from $0.99 million as BOIL expanded its U.S. direct-sales team, pilot activity, and customer training. G&A remained relatively stable at $1.16 million versus $1.18 million y/y, while R&D increased modestly to $0.23 million from $0.20 million. The expense mix remains concentrated on commercialization rather than product development, while management expects lower inventory costs and a larger contribution from direct U.S. sales to support gross-profit improvement as deployments scale. Commercial traction continues to broaden across food retail, fast food, and casual dining, providing multiple pathways for BOIL to scale recurring U.S. revenue. Recent progress across supermarket, fast-food and premium casual-dining customers, alongside distribution through Sysco Los Angeles, has expanded BOIL’s base of multi-site commercial activity. Product validation now spans 100+ U.S. locations, with several relationships moving beyond pilot activity into paid deployment and broader rollout. This broadening customer base strengthens the setup heading into 2H26, with location expansion, repeat orders and recurring consumption increasingly becoming the key indicators of execution. S. direct strategic accounts remain the primary growth focus, with customer validation now extending across more than 100 locations. BOIL indicated that direct U.S. work includes three large food operators collectively representing thousands of potential locations. The company has also streamlined parts of its distributor portfolio, discontinuing master-distribution agreements with Latitude in the U.S. and Ukraine and T&J Oil in Australia, while transitioning its Indian relationship with Deep Frying Solutions to a non-exclusive structure. Distribution remains an important part of the model, with 25 distributors covering more than 50 countries, but is increasingly positioned as a complement to direct selling rather than the primary commercial engine for large strategic accounts. This hybrid approach should give BOIL greater control over pricing, implementation and recurring customer economics for tier-one accounts, while continuing to use distributors for local logistics, smaller customers and geographies where direct infrastructure would be inefficient. Several strategic relationships are now moving beyond initial validation into paid deployment and broader multi-site rollout, providing early evidence of the direct-account model progressing toward recurring commercial usage. The expanded U.S. commercial organization should increasingly shift the focus from infrastructure buildout toward conversion efficiency. During its July management webinar, BOIL highlighted that the organization has grown from approximately 20 employees at year-end 2024 to ~45 currently, with most incremental hiring focused on sales, marketing and commercial execution, particularly in the U.S. Enterprise sales cycles can currently exceed six months across engagement, pilot, broader market testing and rollout, with the company targeting an average of approximately three months over time as reference customers and implementation experience accumulate. Against 2Q26 sales and marketing expense of $1.6 million, improving conversion speed and revenue productivity across the expanded organization should become increasingly important indicators of operating leverage. Customer economics remain central to adoption, with ROI complemented by operational benefits at the kitchen level. Illustrative company examples show annual net savings of approximately $8,640 per European restaurant and $9,458 per U.S. restaurant, with oil life extending from approximately 3-5 days to 21 days in the illustrated cases, while implementation requires no new equipment or material capex. Improved food consistency, easier fryer cleaning and lower waste further support adoption, which is important because enterprise rollout ultimately depends on both procurement-level economics and restaurant-level acceptance. Manufacturing capacity remains substantially ahead of current revenue, providing meaningful headroom for enterprise rollout without near-term capacity constraints. During the July webinar, BOIL indicated that existing manufacturing capabilities can support ~$100 million of annual sales, roughly 18x the current ~$5.6 million annualized revenue run-rate and materially above the >$50 million capacity previously discussed. BOIL can also add North American or other regional manufacturing as demand develops. The existing headroom is strategically important because broader enterprise conversion could translate into materially higher revenue without requiring a proportional manufacturing build, supporting stronger fixed-cost absorption as volumes scale. Operating investment remains ahead of the current revenue base, with improved gross-profit conversion becoming increasingly important to earnings leverage. BOIL reported a 2Q26 operating loss of $2.4 million versus $1.8 million y/y and a 1H26 operating loss of $4.5 million versus $3.5 million, reflecting continued commercial investment ahead of revenue scale. Net loss totaled $2.1 million, or $0.03 per share, versus $0.9 million, or $0.01 per share, although the y/y comparison was affected by approximately $1.7 million of non-cash warrant revaluation gains in 2Q25 versus roughly $0.3 million in 2Q26. As direct U.S. sales scale and gross margin improves, higher gross-profit dollars relative to the existing commercial cost base should become the key indicator of progress toward operating leverage. Working-capital dynamics reflect the timing of larger commercial activity, with receivable conversion providing an expected source of additional liquidity. Trade receivables increased to $3.1 million at June 30 from $1.7 million at year-end, due to a significant 2Q commercial shipment for which collection is expected in the ordinary course. Inventory remained comparatively stable at $2.3 million versus $2.3 million, despite the expanding commercial pipeline, suggesting the current commercial ramp has not required a disproportionate inventory build. As larger enterprise deployments scale, receivable timing and working-capital discipline should become increasingly important, while collection of the $3.1 million receivable balance should provide an additional source of near-term liquidity. The balance sheet continues to support near-term commercial execution; cash conversion is becoming more important as investment remains elevated. Cash and short-term deposits totaled $4.5 million at June 30 versus $8.8 million at December 31, while positive working capital remained $9 million and the current ratio was approximately 7.4x. Current assets totaled $10.5 million against $1.4 million of current liabilities, with shareholders’ equity of $12.3 million. 1H26 net cash used in operating activities increased modestly to approximately $4.3 million from $4.2 million y/y, reflecting continued investment in commercial scale. Importantly, spending remains concentrated on sales execution rather than manufacturing capex, while the elevated receivable balance provides an expected near-term source of cash as the underlying shipment is collected. The June 30 positive-EBITDA milestone was not triggered, leaving the $13 million cumulative-sales threshold as the principal remaining disclosed operating-linked contingent share milestone under the existing transaction structure. The 2H26 setup is increasingly centered on converting the commercial foundation into broader deployments, recurring revenue and improving unit economics. The company expects gross profit to improve as direct U.S. sales become a larger part of the mix, while key 2H26 execution indicators include expansion of the supermarket program beyond the additional 14 locations, progression of the existing ~70-restaurant casual-dining rollout, further penetration of the fast-food customer’s franchise network, additional Sysco-supported activity and repeat orders across existing deployments. With customer validation spanning 100+ U.S. locations, approximately 45 employees supporting the organization and manufacturing capabilities stated to support up to ~$100 million of annual sales, the focus increasingly shifts from building the platform toward increasing conversion, utilization and recurring revenue across the infrastructure already in place. Disclaimer: Exec Edge does not publish proprietary estimates, ratings, price targets, or investment recommendations. The valuation discussion below is illustrative only and is based on company filings, management commentary, and third-party data and estimates. It does not constitute a recommendation, price target, rating, or prediction of future pricing. BOIL continues to trade at a premium to more mature peers, reflecting its earlier commercialization stage and higher expected growth profile. Based on an enterprise value of $112 million and 2Q26 revenue of $1.4 million, or an annualized run-rate of roughly $5.6 million, BOIL trades at approximately 20x run-rate sales, down from ~33.6x at the time of our May update. This remains elevated relative to more mature restaurant-technology and food-ingredient peers, but BOIL is still an early-stage commercialization story where valuation is driven less by current revenue scale and more by the pace of multi-location rollout conversion, repeat ordering, gross-margin recovery and operating leverage as revenue expands, with valuation support increasingly dependent on revenue growth and operating leverage rather than further multiple expansion. The more relevant valuation framework is therefore revenue scaling into the infrastructure already in place. Holding the current $112 million enterprise value constant, $25 million of annual revenue would imply 4.5x EV/Sales, $50 million would imply 2.2x, $75 million would imply 1.5x and $100 million would imply 1.1x. These scenarios are illustrative rather than forecasts, but they highlight the potential for substantial multiple compression through revenue growth alone. Management indicated in July that existing manufacturing capabilities can support approximately $100 million of annual sales, materially above the current ~$5.6 million run-rate, providing capacity for enterprise conversion without requiring a proportional near-term manufacturing build. Overall, BOIL remains an execution-driven valuation story, with the recent reset lowering the hurdle for further rerating. Customer validation across 100+ U.S. locations, the ~70-restaurant casual-dining rollout, supermarket expansion and initial paid fast-food deployment provide a broader base for recurring revenue growth, while the direct-account model should improve control over rollout execution and customer economics. The key valuation drivers are now broader site penetration, repeat ordering, shorter sales cycles and recovery in gross margin from 42.2% toward the 50%+ levels achieved previously, which would improve absorption of the current $1.6 million quarterly sales and marketing base. Continued enterprise conversion, recurring reorder activity and improving operating leverage would provide increasing fundamental support for BOIL’s valuation as revenue scales into the commercial and manufacturing infrastructure already in place. Read Exec Edge’s Initiation on Beyond Oil Ltd. Here Subscribe to our Weekly Newsletter to Receive All Research Contact: Executives-Edge.com [email protected] The post Beyond Oil: Record Revenue & U.S. Direct-Sales Expansion Fuel Scaling Phase – Quarterly Update Report appeared first on ExecEdge.

Ingredion’s Q2 results were met favorably by the market, driven by ongoing momentum in its Texture & Healthful Solutions segment. Management highlighted nine consecutive quarters of volume growth in this area, supported by customer demand for clean-label, health-forward ingredients and new product launches. Operational challenges at the Argo facility and softer demand in Food & Industrial Ingredients U.S./Canada tempered results, but sequential production improvements at Argo and robust execution in Texture & Healthful Solutions helped offset these pressures. CEO James Zallie cited “strong net sales volume performance, solutions-led growth and market share gains” as key factors supporting performance. Is now the time to buy INGR? Find out in our full research report (it’s free). Revenue: $1.85 billion vs analyst estimates of $1.83 billion (flat year on year, 0.9% beat) Adjusted EPS: $2.82 vs analyst estimates of $2.72 (3.6% beat) Management lowered its full-year Adjusted EPS guidance to $10.60 at the midpoint, a 1.9% decrease Operating Margin: 10.2%, down from 14.8% in the same quarter last year Market Capitalization: $6.53 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Kristen Owen (Oppenheimer) asked about the assumptions in U.S./Canada guidance and progress at Argo. CFO Jason Payant clarified that guidance changes mainly reflect the Pakistan business sale, and Zallie detailed that targeted improvements at Argo should sustain operational gains. Benjamin Klieve (Benchmark) questioned the sustainability of Argo’s margin improvements. Zallie explained that enhanced reliability is being pursued through targeted capital investments and revised operational procedures to ensure long-term stability. Benjamin Theurer (Barclays) probed the significance of continued volume softness in Food & Industrial Ingredients U.S./Canada. Payant responded that most impact stemmed from Argo’s issues rather than underlying demand, and volumes should normalize as operations recover. Andrew Strelzik (BMO) asked about the integration of Tate & Lyle and potential surprises. Zallie said integration is proceeding as planned, with no unexpected developments so far, and regulatory approvals remain the next hurdle. Joshua Spector (UBS) inquired about quantifying the ongoing Argo impact and normalization timeline. Payant confirmed the financial impact estimates are directionally correct and noted margin normalization is expected as network adjustments resolve. In upcoming quarters, the StockStory team will monitor (1) the pace of margin recovery and operational consistency at the Argo facility, (2) the realization and pass-through of price increases on elevated input costs such as tapioca, and (3) the progress and regulatory milestones in the Tate & Lyle acquisition. Developments in sustainable packaging and further portfolio optimization will also be key indicators of management’s ability to execute its strategic priorities. Ingredion currently trades at $103.54, up from $100.42 just before the earnings. Is there an opportunity in the stock? The answer lies in our full research report (it’s free for active Edge members). ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

The end of the earnings season is always a good time to take a step back and see who shined (and who didn’t). Let’s take a look at how ingredients, flavors & fragrances stocks fared in Q2, starting with Ingredion (NYSE:INGR). Ingredients, flavors, and fragrances companies supply essential components to food, beverage, personal care, and household product manufacturers. These firms develop proprietary formulations that enhance taste, scent, and texture, creating customer stickiness through specialized expertise and regulatory-approved ingredient portfolios. Tailwinds include growing consumer demand for natural and clean-label products, expansion in emerging markets, and innovation in plant-based and functional ingredients. However, headwinds persist from volatile raw material costs, particularly for agricultural and petrochemical inputs. Regulatory scrutiny over synthetic additives and fragrance allergens poses compliance challenges, while consolidation among major customers increases pricing pressure and negotiating leverage against suppliers. The 5 ingredients, flavors & fragrances stocks we track reported a mixed Q2. As a group, revenues missed analysts’ consensus estimates by 2.4%. In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results. Known for its ability to turn ordinary corn into thousands of different food ingredients, Ingredion (NYSE:INGR) transforms grains, fruits, vegetables and other plant-based materials into specialty starches, sweeteners and other ingredients for food, beverage and industrial markets. Ingredion reported revenues of $1.85 billion, flat year on year. This print exceeded analysts’ expectations by 0.9%. Despite the top-line beat, it was still a mixed quarter for the company with a beat of analysts’ EPS estimates but a significant miss of analysts’ gross margin estimates. "Ingredion delivered a solid second quarter, with Texture & Healthful Solutions continuing its quarterly net sales volume growth and Food & Industrial Ingredients—U.S./CAN operating results sequentially improving during the quarter," said Jim Zallie, chairman, president and CEO of Ingredion. Interestingly, the stock is up 4.5% since reporting and currently trades at $104.90. Read our full report on Ingredion here, it’s free. Transforming crops from the world's most productive agricultural regions into everyday essentials, Archer-Daniels-Midland (NYSE:ADM) processes and transports agricultural commodities like grains and oilseeds while manufacturing ingredients for food, beverages, feed, and industrial applications. Archer-Daniels-Midland reported revenues of $22.68 billion, up 7.2% year on year, outperforming analysts’ expectations by 2.2%. The business had a very strong quarter with a beat of analysts’ EPS and gross margin estimates. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 1.8% since reporting. It currently trades at $76.65. Is now the time to buy Archer-Daniels-Midland? Access our full analysis of the earnings results here, it’s free. Responsible for the scents in your favorite perfumes and the flavors in your daily snacks, International Flavors & Fragrances (NYSE:IFF) creates and manufactures ingredients for food, beverages, personal care products, and pharmaceuticals used in countless consumer goods. International Flavors & Fragrances reported revenues of $1.95 billion, down 29.3% year on year, falling short of analysts’ expectations by 25%. It was a softer quarter as it posted full-year revenue and EBITDA guidance missing analysts’ expectations significantly. International Flavors & Fragrances delivered the weakest performance against analyst estimates and slowest revenue growth among its peers. Interestingly, the stock is up 6.2% since the results and currently trades at $85.87. Read our full analysis of International Flavors & Fragrances’s results here. With origins dating back to 1818 and operations spanning both hemispheres to balance seasonal harvests, Bunge Global (NYSE:BG) is an agribusiness and food company that processes oilseeds, grains, and other agricultural commodities into vegetable oils, protein meals, flours, and specialty ingredients. Bunge Global reported revenues of $24.04 billion, up 88.3% year on year. This result surpassed analysts’ expectations by 9.3%. It was a strong quarter as it also produced an impressive beat of analysts’ gross margin estimates and a beat of analysts’ EPS estimates. Bunge Global scored the biggest analyst estimate beat and fastest revenue growth in the group. The stock is down 7.7% since reporting and currently trades at $108.38. Read our full, actionable report on Bunge Global here, it’s free. Turning what others consider waste into valuable resources, Darling Ingredients (NYSE:DAR) collects and transforms animal by-products, used cooking oil, and other bio-nutrients into valuable ingredients for food, feed, fuel, and industrial applications. Darling Ingredients reported revenues of $1.72 billion, up 16.4% year on year. This print beat analysts’ expectations by 0.5%. Taking a step back, it was a mixed quarter as it also recorded a beat of analysts’ EPS estimates but a significant miss of analysts’ EBITDA estimates. The stock is up 1.4% since reporting and currently trades at $59.43. Read our full, actionable report on Darling Ingredients here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Image source: The Motley Fool. Tuesday, Aug. 4, 2026 at 9:00 a.m. ET Vice President of Investor Relations - Noah Weiss Chairman, President and Chief Executive Officer - Jim Zallie Vice President and Interim Chief Financial Officer - Jason Payant Operator: Good day, and thank you for standing by. Welcome to Ingredion's Second Quarter 2026 Earnings Call. [Operator Instructions]. Please be advised that today's conference is being recorded. I'd now like to hand the conference over to Noah Weiss, Vice President of Investor Relations. Please go ahead. Noah Weiss: Good morning, and welcome to Ingredion's Second Quarter 2026 Earnings Call. I'm Noah Weiss, Vice President of Investor Relations. Joining me on today's call are Jim Zallie, our Chairman, President and CEO; and Jason Payant, our Vice President and Interim CFO. The press release issued this morning, along with the presentation we will reference during today's call, is available on ingredion.com in the Investors section. As a reminder, our comments within this presentation may contain forward-looking statements. These statements are subject to various risks and uncertainties and include expectations and assumptions regarding the company's future operations and financial performance. Actual results could differ materially from those estimated in the forward-looking statements, and Ingredion assumes no obligation to update them in the future as or if circumstances change. Additional information concerning factors that could cause actual results to differ materially from those discussed during today's conference call or in this morning's press release can be found in the company's most recently filed annual report on Form 10-K and subsequent reports on Forms 10-Q and 8-K. During the call, we also refer to certain non-GAAP financial measures, including adjusted earnings per share, adjusted operating income and adjusted effective tax rate, which are reconciled to U.S. GAAP measures in Note 2, non-GAAP information included in our press release and in today's presentation appendix. As part of our prepared remarks, we will touch on the announced acquisition of Tate & Lyle and the progress we have made since announcing the transaction. That said, given where we are in the process, we are limited in what we can disclose and cannot speculate on potential outcomes, timing, integration matters or other transaction-related topics beyond information already in the public domain. We appreciate your understanding and ask that questions today be focused on our operating results and outlook. With that, I will turn the call over to Jim. James Zallie: Thank you, Noah, and good morning, everyone. Ingredion delivered a second quarter performance, which was in line with expectations, led by continued momentum in Texture & Healthful Solutions, with net sales increasing 1% to $1.85 billion. Adjusted operating income was $258 million, down 5% from the prior year. Results were impacted by softer production and demand in our Food & Industrial Ingredients U.S./Canada segment and continued macroeconomic pressures in Mexico. At the same time, performance across the rest of the portfolio was strong as we delivered the second highest quarterly operating income ever in Texture & Healthful Solutions. We are pleased to say that Argo reliability and production sequentially improved during the quarter. And at the end of June, the plant was operating at normal production rates across all major operating units. Turning to the next slide. We are pleased with the momentum that we continue to see in Texture & Healthful Solutions. Quarter 2 marked the ninth consecutive quarter of net sales volume growth in the segment, up 7% with broad-based growth from our solutions offerings and clean label ingredients. While the consumer environment remains mixed, we are seeing robust customer innovation activity with reformulation across health and wellness, protein and fiber fortification and clean label, all supported by new product launches. These trends align with the value propositions inherent in our Texture & Healthful Solutions growth strategy, and they reinforce our confidence in sustainable long-term volume and margin growth. Tempering the positive innovation momentum, we did see additional increases in tapioca costs in the quarter with root prices now up more than 40% since the start of the year due to weather-related impacts limiting supply. We are actively passing through price increases, which, as a reminder, take approximately 1 to 1.5 quarters to realize. In Food & Industrial Ingredients LATAM, volumes were down slightly against a strong prior year comparison. While the macroeconomic conditions in Mexico have been challenging, underlying long-term market trends remain intact. The business in South America continued to benefit from broad regional strength, particularly the growth in Brazil's industrial and brewing markets. In Food & Industrial Ingredients U.S./Canada, volumes remained below prior year levels due to lower production and softer food and beverage demand. That said, reliability and performance at our Argo facility sequentially improved throughout the quarter, and we exited June operating at normal production rates. Our industrial business in U.S./Canada saw growth from the packaging sector, supported by a differentiated solution we recently launched for corrugating, which speeds up box production. Turning to the next slide. Let's review our progress against our 3 strategic pillars. First, under profitable growth, our announced pending acquisition of Tate & Lyle achieved an important milestone last week with the approval by Tate & Lyle shareholders of the deal. As stated previously, we believe this combination will establish Ingredion as a more comprehensive global leader in ingredient solutions with the innovation expertise and geographic reach that will help create the future of food. Our solutions-led growth strategy continues to gain traction, contributing to strong first half performance in Texture & Healthful Solutions. As part of Texture & Healthful Solutions diversified portfolio, we strengthened our pharma business in India through an announced strategic partnership with Sanstar. This important relationship expands our capabilities in pharmaceutical excipients with the opportunity to also partner in the development of specialty food ingredients while providing access to large-scale manufacturing in the world's most populous country and one of the fastest-growing markets for food ingredients. Moving to our next pillar. Innovation remains a key differentiator for Ingredion. We are increasingly leveraging digital capabilities to accelerate innovation. And during the quarter, we launched Ask Ingredion, our AI-powered formulation platform designed to help customers identify ingredients and solve formulation challenges that help them bring new products to market faster. We also strengthened our healthful solutions portfolio through the acquisition of Benicaros, a clinically supported immune health prebiotic. Benicaros' value proposition sits at the intersection of several attractive consumer trends, including digestive health, immune support and clean-label formulation. It is an example of how we are helping customers differentiate their products by enabling them to make science-backed health benefit claims. Additionally, we continue to target new, higher-value industrial applications. Our advancements in coatings, adhesives and barrier solutions for sustainable food packaging continue to gain traction with active customer engagements. For example, we are helping customers replace PFAS containing grease-resistant barriers with plant-based alternatives that maintain performance while improving recyclability and being regulatory compliant. Our differentiated bio-based adhesive solutions for corrugated packaging manufacturers are improving machine productivity, reducing waste and enhancing board performance. We are bullish on the growth prospects of these targeted industrial applications. We remain equally focused on delivering growth consistent with our sustainability commitments. Ingredion was named to Forbes Net Zero Leaders list for the second year in a row. This distinction is especially noteworthy because it is based on demonstrating progress against objective, quantifiable metrics for lowering greenhouse gas emissions. Finally, for the enterprise productivity pillar, we continue to invest to transform our portfolio and optimize our processes and network to best position the company for long-term value creation. Last quarter, we announced the sale of our majority stake in the Pakistan business as well as the closure of our Cabo, Brazil Plant. Both moves reduce our exposure to less differentiated ingredients and will drive improved effectiveness and efficiency. Last week, Tate & Lyle shareholders approved the terms of a recommended all-cash offer by Ingredion for the entire issued and to be issued share capital of Tate & Lyle, an important milestone in the U.K. scheme of arrangement process and a positive step toward completing the transaction. With shareholder approval secured, our focus is now on progressing the required regulatory reviews and satisfying the remaining closing conditions. We are actively engaged with the relevant authorities and are working to support their review processes as efficiently as possible. The financial profile of the transaction remains compelling with the addition of $2.7 billion of highly complementary revenue, the opportunity to deliver $130 million of expected run rate synergies by 2030 and the expectations to deliver greater than 15% adjusted EPS accretion in the first full calendar year post acquisition, all with a clear path to achieving less than 2.5x net leverage within 18 months of closing. Turning to the next slide. Let me explain why we are so enthusiastic about the strategic rationale for the pending acquisition of Tate & Lyle. Across the food and beverage industry, manufacturers are working successfully appeal to changing consumer buying behaviors. Consumers are placing greater emphasis on health and wellness in response to changing regulations and lifestyle preferences while brands remain under pressure to deliver affordability without compromising taste and the overall eating experience. These challenges increasingly require customers to optimize multiple attributes at the same time. That can include improving nutrition through fortification or reducing sugar while enhancing texture and mouthfeel to maintain great taste and delivering on affordability. This is where combining Ingredion's and Tate & Lyle's capabilities becomes particularly compelling. Together, we will bring a broader portfolio of complementary capabilities across sweetening, texture, mouthfeel, fiber and protein fortification, supported by expanded scientific expertise and a more comprehensive global innovation network. Beyond an expanded portfolio of individual ingredients, the opportunity is to provide more integrated and complete solutions that help customers solve formulation challenges more quickly and effectively. Combined with greater scale, deeper scientific capabilities and enhanced digital and AI-enabled tools, we believe we will be even better positioned to support customers as consumer needs continue to evolve. Following the combination, more than half of our revenue will come from Texture & Healthful Solutions, the fastest growth segment of our business portfolio, where customer and consumer demand remains strong and volume growth endures. Ultimately, Tate & Lyle will accelerate our shift toward higher value and higher-margin solutions and positions Ingredion to be an even stronger innovation partner and reliable supplier. With that, I'll turn the call over to Jason for the financial review. Jason Payant: Thank you, Jim, and good morning, everyone. Moving to our income statement. Net sales for the second quarter were $1.85 billion, up 1% versus prior year. Reported and adjusted operating income were $188 million and $258 million, respectively. Adjusted operating income declined 5%, driven by Argo-related manufacturing issues and foreign exchange and macroeconomic headwinds in Mexico, which were partially offset by strong Texture & Healthful Solutions performance. Turning to our Q2 net sales bridge. The 1% increase was driven by $36 million of favorable foreign exchange and $20 million of higher volume, partially offset by $39 million of unfavorable price mix. Moving to the next slide, we highlight net sales drivers by segment for the second quarter. Texture & Healthful Solutions net sales were up 5%, driven by sales volume growth of 7% and foreign exchange favorability of 1%, partially offset by lower price/mix. Food & Industrial Ingredients LATAM net sales were up 3%, driven by favorable foreign exchange, partially offset by lower volumes and weaker price/mix. Food & Industrial Ingredients U.S./Canada net sales declined 7%, driven by operational challenges at Argo and weaker consumer demand. Now let's turn to a summary of results by segment. Texture & Healthful Solutions net sales and operating income were both up 5% in the quarter. The increase in operating income was driven by volume growth and favorable foreign exchange, partially offset by unfavorable price/mix and higher tapioca costs. Texture & Healthful Solutions delivered its second highest quarterly operating income ever despite persistent inflationary pressures, which demonstrates the strength of the portfolio, the quality of execution by our team and the benefits of our solutions-led strategy. In Food & Industrial Ingredients LATAM, net sales were up 3%. Operating income decreased by 7% to $118 million with operating margins of 19.3%. This decrease was driven primarily by transactional currency impacts in Mexico and a more challenging demand environment. Moving to Food & Industrial Ingredients U.S./Canada. Second quarter net sales were down 7%. Operating income was $58 million, impacted by production challenges at our Argo facility and softer volumes and price/mix. Net sales in All Other increased 8%, driven by more than 40% net sales growth in protein fortification, particularly from higher-value isolates and specialty protein applications. Operating income improved by $7 million year-over-year, reflecting improved mix and operating leverage. Turning to our second quarter earnings bridge. The top half of the slide reconciles reported to adjusted diluted earnings per share and the bottom half walks through the drivers of the year-over-year change. Adjusted diluted EPS declined $0.05 compared to the prior year, primarily driven by $0.34 of margin impacts. These headwinds were partially offset by favorable foreign exchange impacts of $0.05 per share, other income benefits of $0.09 per share and $0.12 of nonoperating benefit, $0.07 from share repurchases and $0.05 from lower financing costs. Shifting to our year-to-date income statement highlights. Net sales for the first 6 months were approximately $3.6 billion, flat versus the prior year. Reported and adjusted operating income were $391 million and $470 million, a decrease of 29% and 14%, respectively. Turning to our year-to-date earnings bridge. The result is a decrease of $0.68 per share. Operationally, we saw a decrease of $0.85 per share for the first 6 months, driven by a margin decrease of $1.04, partially offset by other income and foreign exchange of $0.17 and $0.12, respectively. Moving to the change in nonoperational items. We had an increase of $0.17 per share, primarily driven by fewer shares outstanding of $0.13 per share and lower financing costs equivalent to $0.04 per share. Turning to cash flow and capital allocation. We maintained disciplined financial management throughout the quarter. Year-to-date cash from operations was $123 million, reflecting a planned investment of approximately $231 million in working capital that was driven primarily by receivables and payables. We invested $210 million of capital expenditures, net of disposals to support reliability, capacity and strategic priorities across the business. During the first half, we continued to return cash to shareholders through $105 million in dividends and the repurchase of $14 million of shares, which underscores our commitment to balanced capital allocation and long-term shareholder value creation. Now let me turn to our 2026 outlook. We are reaffirming our full year 2026 adjusted earnings per share outlook after amending guidance for the sale of the majority stake in our Pakistan business at the end of the second quarter. For the full year 2026, we still anticipate net sales to be flat to up low single digits, but are now expecting adjusted operating income to be down mid-single digits, reflecting the impact of the sale of our majority stake in the Pakistan business on the second half of the year. We expect full year adjusted earnings per share to be in the range of $10.30 to $10.90, in line with previous guidance after reflecting the sale of our majority stake in the Pakistan business. Guidance assumes diluted shares outstanding of 63 million to 64 million, which includes completion of our planned $100 million of share repurchases this year. We anticipate that our 2026 cash from operations will now be in the range of $700 million to $800 million, with the decrease again stemming from the sale of the majority stake in our Pakistan business. Capital expenditures for the full year are now anticipated to be between $450 million to $490 million with additional spend allocated to our Argo facility. Please note that our guidance reflects current tariff levels in effect at the end of July 2026. In addition, this guidance excludes any acquisition-related integration and restructuring costs as well as any potential impairment costs. Turning to our updated full year outlook by segment. For Texture & Healthful Solutions, we now expect net sales to be up mid-single digits and operating income to now be up mid- to high single digits, driven by higher volumes and solution sales growing at a faster rate than the overall business. For Food & Industrial Ingredients LATAM, net sales are now estimated to be up low single digits and operating income is expected to be down low single digits, reflecting transactional foreign currency and macroeconomic headwinds in Mexico, partially offset by foreign currency translation benefits in Brazil. As a reminder, our Mexico business is U.S. dollar-denominated, but most of our SG&A and operating costs are in pesos. As the peso strengthens against the dollar, our transactional costs increase in dollar terms, which negatively impacts operating income and can more than offset translational benefits from a weaker U.S. dollar in other parts of our LATAM business. For Food & Industrial Ingredients U.S./Canada, we expect net sales to be down low single digits and operating income to now be down 20% to 25%, driven by Argo's operational headwinds in the first half of the year. All Other net sales is expected to be down 20% to 25%, and its operating loss is now anticipated to be approximately $15 million after the sale of the majority stake in our Pakistan business. Lastly, for the third quarter of 2026, we expect net sales to be up low single digits and adjusted operating income to be down mid-single digits, which reflects the impact of the sale of the majority stake in our Pakistan business. Sequentially, Q3 corporate costs are expected to be higher as Q2 benefited from the timing of certain adjustments that are typically evaluated later in the year. Additionally, the second quarter benefited from a $2 million mark-to-market gain on our new investment in Sanstar, which is recorded in the Texture & Healthful Solutions segment. A mark-to-market adjustment based on our equity stake in Sanstar will be made at the end of each subsequent quarter. That concludes my comments, and I'll turn it back over to Jim. James Zallie: Thank you, Jason. As we wrap up, I'd like to highlight 4 reasons we remain confident in the direction of the business despite a dynamic macroeconomic environment and the first half challenges we experienced in Food & Industrial Ingredients U.S./Canada. First, Texture & Healthful Solutions continues to validate our growth strategy. Strong net sales volume performance, solutions-led growth and market share gains helped deliver the second highest quarterly operating income in the segment's history. Second, at Argo, we have made meaningful progress. Operational performance improved, production levels increased. And as stated, we expect to be operating at normalized run rates for the balance of the year. Our focus remains on sustaining reliability and restoring profitability. Third, we are already seeing the benefits from our enterprise productivity initiatives. These efforts, which are evidenced in our control of operating expenses, are helping to offset inflationary pressures, improving cost discipline and creating opportunities to reinvest for growth. And fourth, we are continuing to reshape our business portfolio in significant ways. The announced pending acquisition of Tate & Lyle will be transformational. And our integration planning efforts are underway to help ensure we're prepared to move quickly and effectively as one organization once the transaction closes. Our balance sheet and cash flow also provide us with flexibility to invest in the business for future integration activities and return capital to shareholders as we reaffirm our commitment to $100 million of share repurchases this year and to our continued track record of dividend growth. Now let's open the call for questions. Operator: [Operator Instructions]. Our first question comes from Kristen Owen with Oppenheimer. Kristen Owen: I wanted to follow up here, Jim, on the updated guidance, specifically around U.S./Can. Really happy to see some forward progress on Argo. Just in your second half guidance, is there any additional like volume or maybe mix headwinds implied there just as you get Argo to meet spec? And then I have an unrelated follow-up question. James Zallie: Yes. I'll tell you what, I'll talk about Argo and what gives us confidence going forward. But let me turn it over to Jason to take the view on the second half guidance. Jason, go ahead. Jason Payant: Yes. Thanks. So being specific about what changed, it's really only amending the range to reflect the sale of the majority stake in the Pakistan business. So our underlying full year expectations are otherwise unchanged. The composition shifted a little bit. We're seeing better performance in T&HS and a little bit softer performance in F&II U.S./Canada. Part of that is because of network optimization with some of our native starches that's benefiting T&HS and pulling a little bit back from F&II U.S./Can. The business is performing in line with expectations, and we continue to see solid execution across T&HS, which is very encouraging. And Jim will talk a little bit more about Argo. But as it remains an area of focus, production rates and yields are improving sequentially. They finished June running at normal rates. And the reality of our Q2 -- really Q2 to Q3 is we did have some corporate cost benefits in Q2 that -- corporate costs are going to sequentially be higher in Q3. We also had that Sanstar benefit. It was about a $2 million gain in Q2 that we believe will unwind in Q3. And what we've also seen a little bit in Q3 is we've been relatively fortunate in that the Argentine peso has been fairly benign over the last 5 months, but we did see a steep decline in July, and that's going to negatively impact Q3. So that's why we're seeing a little bit of a pull forward of some benefits in Q2 that are going to unwind a little bit in Q3 and then basically, all unrelated to Argo other than potentially some higher cost in inventory that are still flowing through the P&L in Q3. James Zallie: And I can, Kristen, just give you a little bit more specifics regarding Argo. We have systematically addressed the various issues that arose at Argo over the last number of quarters. I guess starting with the grind, it is now operating reliably and at expected run rates. We've talked previously about the downstream refinery issues, and that led to downtime and rework, and that's now been completely addressed. And the vast majority of the costs associated with that rework that impacted us previously, that's all now behind us. And the unexpected thermal event that occurred on April 10 that took down our germ processing unit came back up in early June really with heroic efforts by engineering, procurement, the operations teams and the supplier that was able to get us a rebuilt baghouse operation and our oil processing is now operating at historical run rates. So we feel these 3 accomplishments, along with the investment of some targeted additional capital directed specifically towards reliability at Argo gives us confidence in the guidance that we put forward for the rest of the year. Kristen Owen: That's super helpful. And then you talked about some of the transitory costs. I'm interested in some of the elevated input costs. I mean, tapioca is one you guys have been really clear about. But just help us understand how much of the inflationary costs that you're seeing, how much of that do you expect to stay with you versus maybe just some timing around your ability to pass that through in price? James Zallie: Yes. Let me turn it over to Jason because Jason has been actually on point similar to how the finance team was on point last year with tariffs, and we set up a tariff hub. This year, we've got a Middle East response team in response to, obviously, the conflict in the Middle East and what that's doing. But Jason, do you want to talk specifically about inflation and the tariffs and how we're looking at the net impact of that for the full year? Jason Payant: Yes. I mean, to Jim's comments, similar to the tariff response team last year, we now have a Middle East response team and it's really impacting to a greater degree our APAC and EMEA businesses. And what we're seeing there is generally in APAC, and it's a little bit compounded with the tapioca increases. But because of our history of passing through tapioca price changes, which can occur fairly dramatically and fairly quickly, that business is very solid and moving those prices through. It does take about 1 quarter to 1.5 quarters to completely pass those prices through and get more to a neutral place. At the end of the day, we're estimating that the net impact outside of tapioca for the inflationary pressures from the Middle East conflict, it's really manageable and the impact is in the range of a few million dollars, and that's all factored into the guidance. Operator: Our next question comes from Ben Klieve with Benchmark. Benjamin Klieve: I wanted to ask a follow-up here on the Argo progression. Great to hear all the progress on getting that operational at a full run rate by the end of the quarter. But I'm wondering if you can isolate the kind of margin structure that you're seeing out of that facility here at the end of the quarter. Great that volumes are back, but I'm wondering kind of where margins stand at the end of the quarter and kind of how you see the margin profile for that facility specifically kind of evolving over the next couple of quarters as those mechanical improvements that you noted are made. James Zallie: Jason, do you want to take that? Jason Payant: I know our margins were up, I don't know, 400 basis points or more. James Zallie: Yes. Significantly quarter-over-quarter... Jason Payant: Yes. And as we stated on the Q1 earnings call, what we were looking for even with the thermal event that, to Jim's point, required significant efforts by the team was sequential improvement during the quarter, and that's what we saw. So it does take some time for those costs to completely flow through inventory in the P&L. So we'll carry a little bit of that in for the July, but the plant now has room to run. And as the plant can run, as we can rebuild inventories, we should get back to normal historical margins towards the end of the year. Benjamin Klieve: Okay. Great. And then my follow-up is related to Argo as well here. You noted the investments to kind of enhance the kind of predictability for Argo going forward. I'm wondering if you can just lean into this a little bit. Tell us a bit about not only kind of what's changed operationally, but what these investments are to enhance the reliability out of this, so we can just kind of get a bit more comfort that this facility is going to be kind of more boring going forward? James Zallie: We also want it to be more boring as well. The investments are in targeted locations throughout the plant to improve reliability. We're also making changes. It's not just about the capital. We've conducted extensive root cause analysis across maintenance, training, leadership and operating procedures. And so for example, some of the things that occurred were related to some management of change issues that we have standardized more strongly. And those issues won't reoccur. But the targeted investments will be in some redundancies in, for example, the tanks that we use to -- they call saccharification tanks basically. And it's where you take the feedstock for the starch and you liquefy it, which is the main heart of the facility that feeds all the downstream refineries. And so we now have or will have the redundancies built in to prevent any kind of impact should one of those tanks not perform as they should, which is one of the things that impacted us as well. So that's where a notable amount of that, say, capital, but it's not just capital. I want to assure you, it's across the areas of maintenance, training, leadership and operating procedures. And a lot of these things have been improved. And we do feel we've turned the corner in relationship to stabilizing the plant. And now we just have to continue to demonstrate sequential incremental improvements quarter-on-quarter. Benjamin Klieve: Congratulations on the Argo improvements and the Solutions business as well. Operator: Our next question comes from Ben Theurer with Barclays. Benjamin Theurer: I wanted to dig a little bit and trying to understand a little bit more of the dynamics within the volume performance across sector. And particularly within Food & Industrial U.S., maybe to start off, I mean, obviously, you still have a little bit of an impact from Argo. But could you help us understand how significant the continued weakness in food and beverage sweetener volumes has been over the course of the quarter? But essentially, what is the decline if Argo would have been normal or not an impact on Food & Industrial U.S./Canada volumes? Jason Payant: Yes, I can take that one. I would say the teams really did a good job. If you look at our volume impact relative to the OI impact, it really was a lot about moving things around the network. And where we are seeing softer volumes in general, that was not the lion's share of the impact for us. So as the plant gets up and running and we can take additional opportunities for volume, we should expect that to normalize. We are seeing a little softness in the industrial side, basically market-driven. We expect that to improve balance of year as things normalize from a macroeconomic standpoint globally. But really, the larger share of the impact is from the Argo challenges, not necessarily the weaker demand environment. James Zallie: And we did go through -- kind of jump through some hoops to make sure that we service customers, which also came at some incremental cost, but the volume was there to ship and to supply. Benjamin Theurer: Okay. Got it. And then as we think about like just rounds of pricing, I mean, obviously, across the different regions, there are different challenges everywhere, right? I mean you have in LATAM, you have Mexico a little bit softer. In the U.S., you have lower demand. I mean, I think the only area of not so many issues are Texture & Healthful Solutions. But as we think about preparing customers for pricing initiatives and looking into what you can or should do in terms of pricing, what are the conversations you're having in terms of like just price evolution in, I would say, on the food and industrial areas, North America as well as Latin America. And what has been mix versus real price realization in terms of impact on the top line? And how should we think about this for the second half and then beyond that maybe into 2027 as you start renegotiating some of the contracts? James Zallie: Yes. I think the pricing approach that we've taken in year has been entirely related to that Middle East response team that we've assembled analogous to the tariff hub that we had established. And now, of course, we're looking again at what implications there may be of the 301 tariffs that appear to be going into place in August -- mid-August. And as Jason said, those surprisingly have went -- the customers have understood that those in-year price increases are justified. And to your point, they're kind of across regions depending on the origins of the impacts and the ingredients that are impacted and how freight and logistics are impacted and maybe chemicals could be impacted and the net impact of that is really not that much because of the offsets with the pricing increases. But that's really how we've been managing that. It's really too early to talk about next year and corn prices and all of that. What I will say is the one area outside of the Middle East response team that we are laser-focused on is the tapioca cost run-up. As we referenced, I think, from our quarter 1 call, we view that impact as temporary, and it's not going to be a structural margin impact. We're going to see some near-term margin pressures as pricing catches up to cost, as Jason says, 1, 1.5 quarters to typically realize that. But we have seen -- due to the dry conditions in Thailand, we have seen really record tapioca prices. Now the thing to point out, though, is the way this works is when tapioca prices do come down, and they will come down. Based on history, they do come down. We benefit from the sticky down, then we will have to give back some of that to customers. But typically, we benefit on the other side of that. But we've been laser-focused on that. And so far, so good on that. And the volumes for tapioca, because of its premium nature, have continued to be strong. Operator: Our next question comes from Pooran Sharma with Stephens. Pooran Sharma: I wanted to understand a little bit about the -- you've spoken about the industrial applications and kind of sustainable packaging. I wanted to better understand at what point do you think that these opportunities become meaningful enough to offset some of the secular pressure we're seeing in some of the more commoditized products? James Zallie: Yes. I think that what's important to note about our industrial business, and that would be, I would say, ex, say, CPG nonfood, which is personal care, beauty care and pharma, which we really don't talk about all that much, but which is those 2 segments are higher margin and growing at high single digits. But separate from those 2, which we will talk more about in the future as we made the investments, as we've talked about, in India, et cetera. But specific to your question about then industrial, it's a sizable business when you think about the Americas and a position we have in Asia. So for the last number of years, what we have done is focused more on the corrugating side of that business, where we see box production and linerboard production as being more durable and in need of better speeds, better strength for lower -- what they call basis weights or grammage. And we've been investing in a targeted fashion in some technologies to help the corrugators speed up that business. And so a larger portion of our business is exposed there as opposed to uncoated freesheet, for example, which is in a secular decline -- in a decline. And so in addition, there is a growing market for sustainable food packaging and food compliant packaging. For coatings, we talked about grease resistance, et cetera. And so we call that advanced packaging materials. So we've had, in concert with support from innovation and R&D, targeted new product development in that area, and those products are being trialed with customers, and they are growing. And so we're seeing nice volume and value growth. And these are also at very respectable margins, not quite at what our solutions margins are, but close. And in comparison to other industrial markets that are less differentiated, they're absolutely a trade-up. So we're excited by the prospects of that. And what I would point to is we strategically expanded, as you know, the capacity for Cedar Rapids. And we made an investment, and that was designed for exactly that business and to support some of those growth opportunities that we see in the future. So again, we think the trend is favorable to appeal to it. And again, we think we're very focused and selective on what we've chosen, and we hope to talk more about that in the future to you and its impact. Operator: Our next question comes from Andrew Strelzik with BMO. Andrew Strelzik: I had a couple, and apologies if any of this has already been asked, I hopped on a little late. But you mentioned in the press release some of the kind of integration planning work you've been able to do with the Tate business. Can you talk about at this stage, what you're able to do in terms of that work? And any surprises or learnings from that process as it relates to the combination of the 2 businesses? James Zallie: Yes. No real surprises. What I would say is, just as a reminder, this week was an exciting week for us because on Tuesday, shareholder approval -- or last week, I should say, shareholder approval was indeed an important milestone. And the transaction is now subject to ordinary regulatory approval in 11 jurisdictions, including the U.S. and the EU. And to date, we're on track with all requisite filings and the projected time line reflects the anticipated time required to get clearance for a deal of this size. So right now, that's kind of where it is. It's where it's at in the normal process. And again, we feel good about the shareholder approval, another step in the process. But that's really where we're at with the Tate & Lyle acquisition. Andrew Strelzik: Okay. I do know that you said it's kind of too early to talk about pricing and corn prices and those types of things. But I guess I've just been trying to think through, given we're on kind of year 2 of volume declines and for the industry, right, we've been pressured globally, kind of where utilization rates sit now for the industry or Ingredion in the U.S. and globally? And kind of -- I know that Ingredion has done a lot to improve the risk management over the last 5-plus years. But just how you think about the ability to offset a higher corn price environment should that materialize if utilization rates maybe aren't where they need to be? James Zallie: Well, just in relationship to corn prices, first of all, and I'll talk about, say, utilization here in a second and the essence of your question. But just on corn, we've successfully managed through multiple corn cycles using a combination of disciplined hedging and pass-through pricing. And while volatility can create short-term timing differences, our hedge program and the pricing mechanisms preserve earnings stability. So we would not expect changes in corn prices alone really impact margins and alter our long-term outlook. So that's kind of the strength of our business model. And I think that's just important to remind everybody about. And then what I would say is in our industry, in the U.S., there has been a significant announcement by one of the manufacturers that they will be closing one of their facilities, which represents about 5%, I believe, of capacity utilization sometime in 2027. So that is on the horizon. That will impact contracting going into 2027. And at the same time, I think we've not seen this year, we talked about F&II. Previously, there was a question about the volumes. And we have felt that putting aside the Argo challenges, the volumes were there to service our customers, especially for the products that we produce given where we sit in comparison to, say, larger producers of some of the sweeteners. But this impact of this closure of this one facility, which is 5% of capacity of the industry in 2027 is something that's going to be pretty notable. Andrew Strelzik: Okay. That's super helpful. And then just one last one, if I could squeeze it in. the Canada tariff announcement and the potential impact on your plant in Ontario, can you just talk about maybe work around some potential implications? And again, apologies if you've already addressed that. Jason Payant: I can take that one. And we have not addressed it. But what I can say is, obviously, that's still evolving. Nothing is in place yet other than having been announced. What I will say is we've managed through this multiple times this year already. And as we assess it, it appears that the impact on us will be fairly limited. We have the network capabilities to move product around where we need to. And historically, we've seen that we can pass through these additional costs to our customers, and we would expect to do the same going forward. Operator: Our next question comes from Josh Spector with UBS. Joshua Spector: I apologize, because I want to bring it back to Argo for a second here. I guess when I go through what you guys have said in the last couple of quarters, I mean, you guys said it was a $40 million impact in 1Q. My math looks like maybe it was $20 million, $25 million in 2Q. Maybe your 3Q guide implies about $10 million to $15 million in 3Q. I guess, overall, that gets to about $70 million to $75 million. I'm just wondering, one, are those numbers roughly right for 2Q, 3Q? And are those numbers we should be adding back for next year for a base assumption in F&II, U.S. and Canada? Or is there anything else offsetting that? You commented about some network inefficiencies serving texture and health. So I just want to square that away, if I can. James Zallie: Yes. So let me help with some of the numbers, but Jason is better at doing this than I am. So for quarter 2, 3, 4 last year, cumulative, the impact was $40 million. And in quarter 1 of this year, the impact was $40 million. And that was what was so frustrating for us about quarter 1. And I'll let you take it from there from a standpoint of the estimates for Q2 and how we have, I think, prudently taken an outlook to the second half, quarters 3 and 4 for Argo reliability. Jason Payant: Yes. I think in general, and we can follow up -- your math is directionally correct. What I would say is one piece that we need to think about is some of the network moves we made because there's native starches that we make at Argo that we also make in our Texture & Healthful Solutions network. So some of those volumes have moved, and it will take time to move those volumes back, particularly since we look to benefit the business as a whole versus just one segment to another. And when you have that situation, we have intersegment sales, obviously, and there's a bit of profit kept by the manufacturing entity and the remainder is passed to the selling entity. So that's a little bit of the math that's probably not quite as apparent when you're looking at that, but that will have a bit of an impact in Q3 and Q4. That will give you a little bit of a tailwind in T&HS, and it will offset with a little bit of a headwind in F&II U.S./Can. But having said that, we do expect F&II U.S./Can to get back to normal operations. There will be a little bit of a hangover from those network moves as we move into next year. But we do see the F&II U.S./Can business returning to normal profit margins and levels next year. Joshua Spector: Okay. Yes, I'll follow up on some of that offline. That sounds a little bit more complicated. I did want to ask on texture and health. Just I mean, obviously, the second quarter was very strong. I mean 7% volumes is great to see. I mean, clearly, we're not seeing any end market growing at that level. So I'm wondering if you could help decompose that a little bit between wins, like share gains? And just given some of the commentary around tapioca, is there any pull forward in 2Q, you think from customers expecting price increases? Or is this a good run rate you'd expect? James Zallie: Yes. We don't think there's any pull forward in the Q2 numbers. We're pleased with the 7% net sales volume growth, and we're pleased that it was our ninth consecutive quarter of sales volume growth. And that really continues to be driven by what we see as structural trends that we've been discussing really for the past several years, particularly clean label, where we have a great franchise, texture solutions, sugar reduction, protein fortification and where we're working increasingly on customized formulations and systems with large CPGs, private label manufacturers and insurgent brands, all through a revamped solution selling model supported by customer briefs and a strong pipeline of projects. And so customers increasingly want customized systems to appeal to really the trends, the regulation changes, the appeal towards health and wellness and some of the folks that are on some of the anti-obesity medications, again, looking for protein fortified and fiber-fortified ingredients. Operator: Our next question comes from Heather Jones with Heather Jones Research. Heather Jones: I wanted to revisit the T&HS volume question. If I'm doing the math correctly, it was like a 2-year stack of plus 10% on volumes. And if I'm remembering correctly, at the time of the Q1 call, it didn't sound like the -- I mean it sounded like things were good, but not that good. So I was just wondering if you could give us a sense of what the cadence for demand was as the quarter progressed. And I know you mentioned that there was some tailwind from the Argo issue, some of that got shifted to texturants, but did you see some restocking maybe in EMEA or whatever? Just wondering if you could help us understand what drove that. James Zallie: Jason? Jason Payant: Yes. Heather, I think we saw volume supported across the board. As you can see, the strong volume, and we still are seeing our solutions growing at a faster clip than the balance of the business, but we are also seeing strong performance in the remainder, including some of our native starches, which obviously is very positive from our standpoint. Nothing really around restocking. Just overall, the market is performing pretty well. Heather Jones: Okay. And then thinking again about the Argo impact and just fast forwarding into '27. And I don't know if you all are ready to quantify this, but the impact of Argo as you all were talking about earlier, I mean, it stacks up to a pretty sizable number. Have you done any work around how much the benefit to T&HS nets against that or how we should be thinking about that net benefit? I know you talked about it qualitatively, but have you all thought putting any numbers to it? Jason Payant: Yes. I mean, in general, I would say it's a few million dollars a quarter. And also, I would remind you that there is a tailwind there from the Sanstar $2 million gain on our shares that hit the T&HS business. So that's a bit of a one-timer that we think is going to unwind in the third quarter. But remember, it's not just moving the native starch, it's when you're filling up that other plant, you also get that absorption benefit that can sort of be outsized when you're talking about a native starch. Heather Jones: So your back half guidance for U.S./Can implies anywhere from like 5% to 20% plus year-on-year growth. Is that a function of demand growth? Or is that a function of does Argo improve at the clip you anticipate? Or is there some backsliding there? How should I think about that guidance range? Jason Payant: Yes. No, Argo, that definitely includes Argo improving in the second half. As I mentioned earlier, we did see a little bit of a benefit in Q2. So there was some -- a little bit of a pull forward in Q2 because of how our corporate costs laid out and the Sanstar benefit. But that assumes Argo recovering balance of year. As we look at that layout, we just continue to see it improving quarter by quarter by quarter, and that's what we anticipated in our guidance. James Zallie: But we also haven't in the second half, just projected an automatic uptick straight up. It's not -- it's a sequential increase and improvement. Jason Payant: Yes. And to give more color around that, a lot of the products we make out of Argo are dual supplied. And in cases where we're having challenges like we did in Q1 and Q2, our customer will pull more from one of the other suppliers. As we start to pull that volume back, that's why you see a little bit of a ramp-up in the third quarter and the fourth quarter and then expecting that to normalize next year. Operator: Our next question comes from Pooran Sharma with Stephens. Pooran Sharma: You guys have talked about the solutions business for quite some time now. So just wanted to understand if we could just get some higher-level details here around where you're at in terms of customer penetration. Are your largest global customers already heavily utilizing the platform? Or do you think the bigger opportunity for still expanding solutions is with existing customer relationships? James Zallie: Yes. What we have been talking about as it relates to our solution selling model, which has really evolved and transformed over the last really 2 years is, has been done while at the same time, our customer base and aligning our go-to-market resources towards where we have seen the majority of the reformulation and innovation coming from. So some of the dynamics that we've observed is obviously going back 1 year, 1.5 years ago, the amount of innovation and new product introductions coming from private label manufacturers, and we had already pivoted towards understanding that ecosystem, the co-manufacturing networks and where the innovation was getting done. And we incrementally have continued to focus there. The branded manufacturers have fought back to gain share, and they are also heavily trying to innovate right now to drive organic volume growth. And historically, we've had great relationships with them, and that's also benefited. But also -- and we've talked about this in some different interviews. We also are very focused on the growth of insurgent brands. And these kind of start-up companies really -- if you are formulated into their winning products, they are driving the majority of the organic volume growth in the food industry. And as a supplier, the business that you can generate with them in a relatively short period of time can be attractive as well. So we've reoriented our go-to-market model as it relates to our inside sales or selling as well as the regular sales force and how we reach these insurgent brands and support their efforts. So it's really in those 3 areas. And then equally, as it relates to foodservice and food consumed away from home, especially the QSRs and the focus for them on affordability and texture and textural innovation. So it's coming from a really variety of areas that we feel we have consciously purposefully segmented and deployed resources against to try our best to move to where we see the pursuit of the consumer and where real underlying organic volume growth exists. And that's why we think we've had 9 consecutive quarters of net sales volume growth for Texture & Healthful Solutions. Operator: That concludes today's question-and-answer session. I'd like to turn the call back to Jim Zallie for closing remarks. James Zallie: I want to thank everyone for joining us this morning. We look forward to seeing many of you at our upcoming investor events with the next significant engagement being the Barclays Global Consumer Conference on September 8 in Boston. At this time, I want to thank everyone for your continued interest in Ingredion. Operator: This concludes today's conference call. Thank you for participating. You may now disconnect. Before you buy stock in Ingredion, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ingredion wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $411,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 11, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Ingredion. The Motley Fool has a disclosure policy. Ingredion (INGR) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Archer Daniels Midland Company ADM is gaining from improving biofuels economics, higher crushing margins and investments aimed at expanding processing capacity. The company’s stronger first-half 2026 execution prompted management to raise its full-year earnings outlook, while targeted debottlenecking projects could support additional growth.The stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. ADM also has a VGM Score of A, with a Value Score of A, Growth Score of B and Momentum Score of A. The Zacks Style Scores complement the Zacks Rank by evaluating stocks on value, growth and momentum characteristics, with the VGM Score combining the weighted average of the individual Style Scores. ADM reported second-quarter 2026 adjusted earnings of $1.84 per share, up 98% year over year and ahead of the Zacks Consensus Estimate by 29.6%. Revenues rose 7.1% year over year to $22.68 billion. Total segment operating profit increased 75% year over year to $1.45 billion, supported by gains across Ag Services & Oilseeds, Carbohydrate Solutions and Nutrition.The Ag Services & Oilseeds segment benefited from stronger crushing margins and improved asset utilization. Segment operating profit jumped 129% year over year to $867 million, helped by favorable biofuels conditions, elevated energy prices and improved execution. Global oilseed processing volumes increased nearly 5% year over year during the quarter.ADM’s Crushing subsegment delivered a major improvement, with operating profit rising by $330 million from the prior-year quarter. The company cited stronger biofuels margins supported by renewable volume obligations, higher energy prices and solid global demand for soybean meal. Archer Daniels Midland Company price-consensus-eps-surprise-chart | Archer Daniels Midland Company Quote ADM is investing in its existing processing footprint to expand crushing capacity. The company has identified 10 U.S. crush facilities with potential capacity unlocks and is moving ahead with a first phase involving four locations. Management expects these debottlenecking projects to require about one-fourth the capital intensity of a new greenfield facility, with the initial phase potentially requiring around $100 million. The company’s recent capacity investments are aimed at increasing throughput and improving flexibility while supporting renewable fuel demand. ADM expects these upgrades to unlock roughly 700,000 metric tons of additional annual crush capacity across four facilities, creating more than 25 million bushels of new demand for U.S. farmers.ADM is also evaluating ethanol debottlenecking opportunities as improving yields and cost reductions create additional capacity potential. Image Source: Zacks Investment Research Beyond commodity processing, ADM continues to expand higher-margin businesses. Nutrition operating profit increased 51% year over year to $172 million in the second quarter, driven by improvements in both Human Nutrition and Animal Nutrition. Human Nutrition benefited from Flavors growth and progress at the Decatur East plant, while Animal Nutrition gained from operational improvements and portfolio actions.ADM is also pursuing opportunities in natural colors, precision fermentation, biosolutions and decarbonization.Management estimates the U.S. natural-colors transition represents an approximately $1 billion addressable revenue market and is targeting $80 million to $100 million of operating profit over time. Following the strong first-half performance, ADM raised its 2026 adjusted EPS outlook to $5.15-$5.60 from the previous range of $4.15-$4.70. Management expects continued improvement in crushing and ethanol, supported by the biofuels margin environment, while Nutrition is expected to maintain its recovery.The company also expects cost-saving initiatives to contribute over time. ADM remains on track with its enterprise-wide savings program, which targets $500 million to $750 million of aggregate savings over three to five years beginning in 2025. Ingredion Incorporated INGR, meanwhile, is a closer comparison with ADM’s higher-value ingredient operations. INGR converts grains and other plant-based raw materials into starches, sweeteners and specialty ingredient solutions for food, beverage and industrial customers. Adecoagro S.A. AGRO operates across food and agriculture, sugar, ethanol and energy, giving it meaningful exposure to renewable fuels alongside agricultural commodities. Despite the improved outlook, ADM remains exposed to commodity price swings, crush-margin volatility and mark-to-market impacts. Second-quarter results included about $100 million of net positive mark-to-market and timing impacts, which can create earnings volatility depending on market movements.The company also faces uncertainty from trade conditions, geopolitical developments and policy changes that could affect agricultural flows and margins. ADM’s outlook assumes continued North American soybean purchases from China, including progress toward a 25-million-ton U.S. soybean purchase commitment in 2026.With improving earnings trends, capacity expansion plans and favorable Zacks metrics, ADM’s combination of near-term earnings momentum and longer-term investments remains a key factor supporting the stock’s outlook. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Archer Daniels Midland Company (ADM) : Free Stock Analysis Report Ingredion Incorporated (INGR) : Free Stock Analysis Report Adecoagro S.A. (AGRO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Ingredion Incorporated INGR delivered a resilient second-quarter 2026 performance despite production challenges at its Argo facility and macroeconomic pressure in Mexico. Continued momentum in Texture & Healthful Solutions, favorable currency movements and improving Protein Fortification results supported the quarter.Adjusted earnings were $2.82 per share, which fell 1.7% year over year but topped the Zacks Consensus Estimate of $2.73. Ingredion Incorporated price-consensus-eps-surprise-chart | Ingredion Incorporated Quote Net sales increased 0.9% to $1,850 million and surpassed the consensus mark of $1,808 million. Texture & Healthful Solutions volumes rose 7%. Sales benefited from a $36 million favorable foreign exchange impact and a $20 million contribution from higher volume. These gains more than offset a $39 million unfavorable price-mix effect. Reported gross profit declined 10.7% to $426 million, while the cost of sales increased to $1,424 million from $1,356 million. The pressure reflected manufacturing headwinds, unfavorable price mix and higher input costs, including elevated tapioca costs.Adjusted operating income declined 5.5% to $258 million. The decrease primarily reflected Argo-related manufacturing issues and foreign exchange and macroeconomic headwinds in Mexico. Growth in Texture & Healthful Solutions and improved Protein Fortification performance partly offset these pressures. Texture & Healthful Solutions sales increased 4.7% to $627 million. Higher volume contributed $44 million and favorable foreign exchange added $5 million, partly offset by a $21 million unfavorable price-mix impact. Segment operating income rose 5.4% to $117 million, supported by volume growth but limited by higher tapioca costs and weaker price mix.The segment recorded its ninth consecutive quarter of net sales volume growth. Demand remained broad-based across clean-label ingredients, texture solutions, sugar reduction, and protein and fiber fortification. Management noted that tapioca root prices had increased more than 40% since the start of 2026 because of weather-related supply constraints. Food & Industrial Ingredients-LATAM sales increased 2.5% to $611 million as a $30 million currency benefit more than offset lower volume and unfavorable price mix. Segment operating income declined 7.1% to $118 million, primarily due to transactional currency pressure in Mexico and a more challenging demand environment. Excluding foreign exchange translation, operating income decreased 10%.Food & Industrial Ingredients-U.S./Canada sales fell 6.7% to $488 million. Segment operating income declined 32.6% to $58 million because of lower Argo production, softer volumes and unfavorable price mix. Argo exited June at normal production rates across all major operating units after the company addressed grind, refinery and germ-processing issues.All Other sales advanced 7.8% to $124 million, while operating income improved to $6 million from a loss of $1 million. The improvement reflected continued progress in Protein Fortification, where sales increased more than 40% on demand for higher-value isolates and specialty protein applications. Cash provided by operating activities came in at $123 million during the first six months of 2026. Capital expenditures totaled $210 million. Ingredion paid $105 million in dividends and repurchased $14 million of common stock during the first half. Cash and short-term investments were $952 million at quarter-end, while total debt stood at $1,783 million. For 2026, Ingredion reaffirmed its adjusted earnings guidance of $10.30-$10.90 per share. Net sales are expected to range from flat to low-single-digit growth, while adjusted operating income is projected to decline by a mid-single-digit percentage.Texture & Healthful Solutions operating income is now forecasted to increase by a mid-to-high-single-digit percentage. U.S./Canada operating income is expected to decline 20%-25%, reflecting the Argo headwinds incurred during the first half.Cash from operations is projected between $700 million and $800 million in 2026, with capital expenditures expected at $450-$490 million. For the third quarter, net sales are anticipated to increase by a low-single-digit percentage, while adjusted operating income is expected to decline by a mid-single-digit percentage, reflecting the sale of Ingredion’s majority stake in Pakistan. Shares of this Zacks Rank #4 (Sell) company have tumbled 17.2% over the past year, almost in line with the industry. Darling Ingredients Inc. DAR, a global developer and producer of sustainable natural ingredients derived from edible and inedible bio-nutrients, currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks hereThe Zacks Consensus Estimate for Darling’s current fiscal year sales calls for 13.2% growth from the prior-year levels. The consensus estimate for current fiscal-year earnings per share (EPS) stands at $5.34, which implies substantial growth from the year-ago period. DAR delivered a trailing four-quarter earnings surprise of 38.9%, on average.The Vita Coco Company, Inc. COCO, a leading beverage company that develops, markets and distributes coconut water and other plant-based beverages, currently sports a Zacks Rank #1. COCO delivered a trailing four-quarter earnings surprise of 21.9%, on average.The Zacks Consensus Estimate for The Vita Coco Company’s current fiscal-year sales and earnings calls for growth of 31.6% and 64.7%, respectively, from the year-ago figures.US Foods Holding Corp. USFD engages in the marketing, sale and distribution of fresh, frozen and dry food and non-food products to foodservice customers in the United States. USFD currently carries a Zacks Rank #2 (Buy). US Foods Holding delivered a trailing four-quarter earnings surprise of 1.4%, on average.The Zacks Consensus Estimate for US Foods Holding’s current fiscal-year sales and earnings implies growth of 5.1% and 16.3%, respectively, from the year-ago figures. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ingredion Incorporated (INGR) : Free Stock Analysis Report Vita Coco Company, Inc. (COCO) : Free Stock Analysis Report Darling Ingredients Inc. (DAR) : Free Stock Analysis Report US Foods Holding Corp. (USFD) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Ingredion Incorporated? Here are five stocks we like better. Q2 results were broadly in line with expectations: Net sales rose 1% to $1.85 billion, while adjusted operating income fell 5% to $258 million as Argo production issues, softer U.S./Canada demand and macroeconomic pressures weighed on earnings. Texture & Healthful Solutions remained the key growth engine, with sales and operating income each increasing 5% on 7% volume growth. However, tapioca costs have risen more than 40% since the start of the year, creating a near-term margin headwind. Ingredion reaffirmed its full-year adjusted EPS outlook of $10.30–$10.90 and expects U.S./Canada operating income to decline 20%–25% due to Argo disruptions. The proposed all-cash Tate & Lyle acquisition was approved by shareholders and remains subject to regulatory and other closing conditions. Ingredion (NYSE:INGR) reported second-quarter 2026 results that were in line with its expectations, as continued growth in Texture & Healthful Solutions offset operational and macroeconomic pressures in other parts of the portfolio. Second-quarter net sales increased 1% year over year to $1.85 billion. Reported operating income was $188 million, while adjusted operating income declined 5% to $258 million. The company said results were affected by manufacturing issues at its Argo facility, softer demand in Food & Industrial Ingredients—U.S./CAN, and foreign-exchange and macroeconomic headwinds in Mexico. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control Adjusted diluted earnings per share declined $0.05 from the prior year. Ingredion said margin impacts reduced earnings by $0.34 per share, partly offset by favorable foreign exchange, other income, share repurchases and lower financing costs. Texture & Healthful Solutions remained the company’s primary growth driver. Segment net sales rose 5%, supported by 7% volume growth and favorable foreign exchange, while operating income also increased 5%. The segment recorded its second-highest quarterly operating income ever, according to the company. → 3 Drone Stocks That Should Soar After the Summer Slump Chairman, President and CEO Jim Zallie said the quarter marked the segment’s ninth consecutive quarter of net-sales volume growth. Growth was broad-based across solutions offerings and clean-label ingredients, with customer activity centered on health and wellness reformulation, protein and fiber fortification, sugar reduction and clean-label products. Ingredion said higher tapioca costs remained a near-term headwind. Root prices have increased more than 40% since the start of the year because weather-related conditions have constrained supply. The company is passing through price increases, although it said the process generally requires about one to one-and-a-half quarters. → Why Rare Earth Processing Could Be the Real 2027 Opportunity Jason Payant, Ingredion’s vice president and interim CFO, said the company does not view the tapioca cost increase as a structural margin issue. He said the company expects costs to normalize over time and described the broader inflationary effects tied to the Middle East conflict as manageable, with a net impact in the range of a few million dollars that is already reflected in guidance. Food & Industrial Ingredients—U.S./CAN posted a 7% decline in second-quarter sales, and operating income was $58 million. Ingredion attributed the results to production challenges at the Argo facility, softer consumer demand and weaker price mix. Zallie said reliability and production improved sequentially at Argo during the quarter, with all major units operating at normal production rates by the end of June. The company has addressed issues involving grinding, downstream refining and an April thermal event that affected its germ-processing unit, he said. Ingredion is also increasing targeted capital spending at the facility to support reliability, including added redundancy in saccharification tanks. Zallie said the company has conducted root-cause work across maintenance, training, leadership and operating procedures. Payant said costs associated with prior production disruptions will continue to flow through inventory into July, but Ingredion expects the plant to rebuild inventories and return toward historical margins by the end of the year. The company expects the U.S./CAN business to return to normal operating profit margins and levels in 2027, although some effects from production-network changes may persist into next year. In Food & Industrial Ingredients—LATAM, sales increased 3%, while operating income fell 7% to $118 million. Mexico faced transactional currency effects and a challenging demand environment, while South America benefited from regional strength, including growth in Brazil’s industrial and brewing markets. Ingredion highlighted several portfolio and innovation actions during the quarter. The company announced a strategic partnership with Sanstar in India to expand pharmaceutical excipient capabilities and access large-scale manufacturing. It also acquired Benicaros, a clinically supported immune-health prebiotic, and introduced Ask Ingredion, an artificial intelligence-powered formulation platform for customers. The company also cited growth opportunities in sustainable packaging, including plant-based alternatives to PFAS-containing grease-resistant barriers and bio-based adhesive solutions for corrugated packaging. Net sales in the company’s All Other category rose 8%, aided by more than 40% growth in protein fortification sales, particularly higher-value isolates and specialty applications. Ingredion also continued reshaping its portfolio through the sale of its majority stake in its Pakistan business and the closure of its Cabo, Brazil, plant. The company said those actions reduce exposure to less differentiated ingredients. Meanwhile, Tate & Lyle shareholders approved Ingredion’s proposed all-cash acquisition of the company. Zallie said the transaction now awaits regulatory reviews and other closing conditions. Ingredion continues to expect the deal to add $2.7 billion in complementary revenue, generate $130 million in expected run-rate synergies by 2030 and deliver more than 15% adjusted EPS accretion in the first full calendar year after closing. Ingredion reaffirmed its full-year adjusted EPS outlook of $10.30 to $10.90 after accounting for the sale of its majority stake in Pakistan. The company still expects full-year net sales to be flat to up low single digits, although it now expects adjusted operating income to decline by a mid-single-digit percentage. Texture & Healthful Solutions sales are expected to rise by a mid-single-digit percentage, with operating income up mid- to high-single digits. Food & Industrial Ingredients—LATAM sales are expected to increase by a low-single-digit percentage, while operating income is expected to decline by a low-single-digit percentage. Food & Industrial Ingredients—U.S./CAN sales are expected to decline by a low-single-digit percentage, with operating income down 20% to 25% because of first-half Argo disruptions. Cash from operations is now projected at $700 million to $800 million, while capital expenditures are expected to total $450 million to $490 million, including additional spending at Argo. For the third quarter, Ingredion expects net sales to rise by a low-single-digit percentage and adjusted operating income to decline by a mid-single-digit percentage. The company said the outlook reflects the Pakistan divestiture, higher corporate costs relative to the second quarter, and the expected reversal of a $2 million second-quarter mark-to-market gain on its Sanstar investment. Ingredion Incorporated is a global ingredient solutions company specializing in the production and sale of starches, sweeteners, nutrition ingredients and biomaterials derived primarily from corn and other plant-based raw materials. The company serves a diverse set of industries, including food and beverage, brewing, pharmaceuticals and personal care, providing functional ingredients that enhance texture, stability, flavor and nutritional value in a wide array of end products. The company's product portfolio comprises native and modified starches, high-fructose corn syrup, dextrose, maltodextrins, specialty sweeteners and various texturizers. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Ingredion Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Ingredion (INGR) came out with quarterly earnings of $2.82 per share, beating the Zacks Consensus Estimate of $2.73 per share. This compares to earnings of $2.87 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +3.30%. A quarter ago, it was expected that this food sweetener, starch and nutritional ingredient company would post earnings of $2.44 per share when it actually produced earnings of $2.34, delivering a surprise of -4.1%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Ingredion, which belongs to the Zacks Food - Miscellaneous industry, posted revenues of $1.85 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.32%. This compares to year-ago revenues of $1.83 billion. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Ingredion shares have lost about 8.9% since the beginning of the year versus the S&P 500's gain of 11%. While Ingredion has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Ingredion was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.88 on $1.81 billion in revenues for the coming quarter and $10.81 on $7.22 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Food - Miscellaneous is currently in the bottom 15% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Freshpet (FRPT), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This seller of refrigerated fresh pet food is expected to post quarterly earnings of $0.20 per share in its upcoming report, which represents a year-over-year change of -39.4%. The consensus EPS estimate for the quarter has been revised 1.4% higher over the last 30 days to the current level. Freshpet's revenues are expected to be $292.86 million, up 10.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ingredion Incorporated (INGR) : Free Stock Analysis Report Freshpet, Inc. (FRPT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Texture & Healthful Solutions (T&HS) achieved its ninth consecutive quarter of volume growth, driven by robust customer innovation in clean label and health-focused reformulations. Operational reliability at the Argo facility reached normal production rates by late June following a series of mechanical and thermal challenges that impacted first-half margins. Management attributed softer performance in Mexico to transactional currency headwinds and macroeconomic pressures, despite stable underlying long-term market trends. The company is aggressively pivoting toward higher-value industrial applications, such as sustainable packaging and bio-based adhesives, to offset secular declines in legacy paper markets. Strategic portfolio reshaping continued with the divestiture of a majority stake in the Pakistan business and the closure of the Cabo, Brazil plant to reduce exposure to undifferentiated ingredients. The pending Tate & Lyle acquisition is framed as a transformational move to create a global leader in integrated ingredient solutions, particularly in sugar reduction and fortification. Full-year 2026 adjusted EPS guidance is reaffirmed at $10.30 to $10.90, accounting for the Pakistan divestiture and expected sequential recovery at Argo. Management expects T&HS to continue outperforming the broader portfolio, with solution sales projected to grow faster than the overall segment. Guidance assumes a 1 to 1.5 quarter lag for passing through significant tapioca cost increases, which have risen over 40% year-to-date due to weather-related supply limits. The company anticipates achieving less than 2.5x net leverage within 18 months of closing the Tate & Lyle transaction, supported by $130 million in expected run-rate synergies by 2030. Capital expenditure is forecasted between $450 million and $490 million, with increased allocations specifically targeted at enhancing long-term reliability at the Argo facility. A thermal event at Argo on April 10 disabled the germ processing unit, requiring a complete rebuild of the baghouse operation that was not fully restored until early June. The strengthening Mexican peso against the U.S. dollar has increased transactional SG&A and operating costs, creating a headwind for the LATAM segment's operating income. Management flagged a 5% industry-wide capacity reduction in 2027 due to a competitor's plant closure announcement, which is expected to tighten the supply environment for future contracting. A $2 million mark-to-market gain from the Sanstar investment in Q2 is expected to unwind in Q3, contributing to a projected sequential decline in quarterly operating income. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed that the vast majority of rework costs are now in the past and the plant is operating at historical run rates. Future reliability will be supported by targeted capital investments in redundancies, such as saccharification tanks, and improved root cause analysis protocols. A dedicated 'Middle East response team' was established to manage inflationary pressures in APAC and EMEA. The net financial impact is estimated to be manageable, in the range of a few million dollars, and is fully factored into current guidance. Growth is viewed as structural rather than transitory, with no evidence of customer pull-forward or restocking in the quarter. Success is attributed to a revamped solution-selling model targeting private label, branded CPGs, and high-growth 'insurgent' brands. The Sanstar partnership in India provides access to the world's most populous market and expands capabilities in high-margin pharmaceutical excipients. New bio-based barrier solutions are successfully helping customers replace PFAS-containing materials in food packaging while maintaining performance.

Second quarter 2026 reported and adjusted* operating income decreased 31% and 5% compared to the second quarter 2025 Second quarter 2026 reported and adjusted EPS were $1.78 and $2.82, compared with $2.99 and $2.87 in the second quarter 2025 Reaffirming amended full-year guidance, which now reflects the sale of a majority stake in the Pakistan business, for reported EPS to be in the range of $9.15 to $9.75 and adjusted EPS to be in the range of $10.30 to $10.90 Ingredion’s 595 pence all-cash offer to acquire Tate & Lyle accepted by their shareholders WESTCHESTER, Ill., Aug. 04, 2026 (GLOBE NEWSWIRE) -- Ingredion Incorporated (NYSE: INGR), a leading global provider of ingredient solutions to the food and beverage manufacturing industry, today reported its second quarter 2026 results. "Ingredion delivered a solid second quarter, with Texture & Healthful Solutions continuing its quarterly net sales volume growth and Food & Industrial Ingredients—U.S./CAN operating results sequentially improving during the quarter," said Jim Zallie, chairman, president and CEO of Ingredion. "Additionally, we completed the sale of our majority stake in the Pakistan business, and we are pleased to report that Tate & Lyle’s shareholders approved our recommended all-cash offer on July 28, marking an important step toward completing the transaction." "Texture & Healthful Solutions delivered its ninth consecutive quarter of broad-based net sales volume growth, driven by continued strong customer demand for our solutions offerings, including clean-label ingredients, demonstrating the durability and margin enhancement of our solutions-selling model." "Food & Industrial Ingredients—LATAM continued to deliver in line with expectations, which was a result of focused execution across the region, the resilience of our diversified businesses, and the advancement of network optimization opportunities, which included the announced closure of our Cabo, Brazil facility. We also successfully navigated foreign exchange headwinds and macroeconomic pressures.” “In Food & Industrial Ingredients—U.S./CAN, reliability at our Argo plant improved, with sequentially better production rates and yields achieved throughout the quarter. We are pleased to say that the plant is operating at normal production rates across all major operating units.” “Looking ahead, we are focused on continued operational execution across our Food & Industrial Ingredients businesses and accelerating the growth of our Texture & Healthful Solutions portfolio. We have also commenced the integration planning work for the pending acquisition of Tate & Lyle, which, when completed, will establish Ingredion as a more comprehensive global leader in ingredient solutions with the innovation expertise and geographic reach that will help create the future of food.” * Reported results are in accordance with U.S. generally accepted accounting principles (“GAAP”). Adjusted financial measures are non-GAAP financial measures. See “II. Non-GAAP Information” in the Supplemental Financial Information that follows the Condensed Consolidated Financial Statements for a reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures. Diluted Earnings Per Share (EPS) Factors affecting changes in Reported and Adjusted EPS ** Totals may not sum or recalculate due to rounding Business Review Total Ingredion Net Sales Second quarter net sales increased 1%. The increase was primarily driven by higher net sales volume in T&HS and favorable foreign exchange in F&II—LATAM, partially offset by less favorable overall price mix and lower net sales volume in F&II—U.S./CAN. Reported Operating Income Adjusted Operating Income Second quarter reported and adjusted operating income were $188 million and $258 million, respectively. The difference between reported and adjusted operating income was primarily attributable to impairment charges and costs from the closure of our Cabo, Brazil facility, as well as costs attributable to the previously announced thermal event at our Argo plant. Excluding foreign exchange translation impacts, reported operating income was down 32% and adjusted operating income was down 7% from a year ago. Texture & Healthful Solutions Net Sales Segment Operating Income Second quarter operating income for Texture & Healthful Solutions was $117 million, up $6 million from a year ago, driven by sales volume growth, partially offset by unfavorable price mix and higher tapioca costs. Excluding foreign exchange translation impacts, segment operating income was up 5%. Food & Industrial Ingredients—LATAM Net Sales Segment Operating Income Second quarter operating income for Food & Industrial Ingredients—LATAM was $118 million, a $9 million decrease from a year ago, driven primarily by Mexico’s transactional currency impacts and a more challenging demand environment. Excluding foreign exchange translational impacts, segment operating income was down 10%. Food & Industrial Ingredients—U.S./CAN Net Sales Segment Operating Income Second quarter operating income for Food & Industrial Ingredients—U.S./CAN was $58 million, a $28 million decrease from the prior year. The decline resulted from lower production at our Argo facility, which had normalized by the end of the quarter, as well as softer volumes and price mix. Excluding foreign exchange translation impacts, operating income was down 33%. All Other* Net Sales All Other Operating Income (Loss) Second quarter operating income (loss) for All Other increased $7 million from the prior year, reflecting continued improvements in the Protein Fortification business. * All Other consists of the businesses of multiple operating segments that are not individually or collectively classified as reportable segments. Net sales from All Other are generated primarily by sweetener and starch sales from the Pakistan business, sales of stevia and other ingredients from our PureCircle and other sugar reduction businesses, and pea protein ingredients from our Protein Fortification business. Other Financial Items At June 30, 2026, total debt was $1.8 billion, and cash, including short-term investments, was $952 million, versus $1.8 billion and $1.0 billion, at December 31, 2025. Net financing costs were $55 million in Q2 2026, compared to $12 million in Q2 2025, primarily due to a $47 million mark-to-market foreign exchange loss on derivatives used to hedge British pound sterling exposure related to the pending Tate & Lyle acquisition. The reported and adjusted effective tax rates for the second quarter were 33.7% and 27.2%, compared to 23.6% and 27.2%, for the year-ago period. The increase in the reported effective tax rate was primarily attributable to the gain on the sale of a majority stake in the Pakistan business and the change in value of the Mexican peso relative to the U.S. dollar. These impacts were partially offset by the utilization of previously unbenefited capital losses. Net capital expenditures totaled $210 million through June 30, 2026. Dividends and Share Repurchases In the second quarter, the Company paid $52 million in dividends to shareholders. On May 20, 2026, the Company declared a quarterly dividend of $0.82 per share, which was paid on July 21, 2026. Year-to-date, the Company has repurchased $14 million of common stock and remains committed to its $100 million full-year target. Full-Year 2026 Outlook Ingredion reaffirms its 2026 full year outlook after reflecting the impact of the sale of a majority stake in the Pakistan business on the second half of the year. The Company expects its full-year 2026 reported EPS to be in the range of $9.15 to $9.75, and its adjusted EPS to be in the range of $10.30 to $10.90. The Company still expects full-year 2026 net sales to be flat to up low single digits, reflecting volume growth and favorable foreign exchange, partially offset by lower price mix as well as the impact of the previously mentioned sale of its majority stake in the Pakistan business. Reported operating income is expected to be down low double digits, with adjusted operating income now expected to be down mid-single-digits for full-year 2026, which reflects the second half impact from the sale of a majority stake in the Pakistan business. The 2026 full-year outlook further assumes the following: Texture & Healthful Solutions operating income is now expected to be up mid-to-high single-digits, driven by sales volume growth, partially offset by expected higher input cost inflation; Food & Industrial Ingredients—LATAM operating income is still anticipated to be down low single-digits, reflecting the continued strength of the Mexican peso; Food & Industrial Ingredients—U.S./CAN operating income is now expected to be down 20-25%, driven by the operational headwinds Argo incurred in the first half of 2026; and All Other’s operating loss is now anticipated to be approximately $(15) million, which reflects the removal of the second half earnings contribution of the Pakistan business. Corporate costs for full-year 2026 are now expected to be down mid-single-digits. For full-year 2026, the Company expects a reported effective tax rate of 27.4% to 28.9% and still expects an adjusted effective tax rate of 26.0% to 27.5%. Cash from operations for the full year 2026 is now expected to be in the range of $700 million to $800 million. Capital expenditures for the full year are now expected to be approximately $450 to $490 million. This guidance reflects tariff levels in effect as of the end of July 2026. In addition, this guidance excludes acquisition-related integration and restructuring costs, as well as any potential impairment costs. Third Quarter 2026 Outlook For the third quarter of 2026, compared to the same quarter last year, the Company expects net sales to be up low single-digits. Reported and adjusted operating income are both expected to be down mid-single-digits, which again reflects the impact of the sale of our majority stake in the Pakistan business. Conference Call and Webcast Details Ingredion will host a conference call on Tuesday, August 4, 2026, at 8 a.m. CT/9 a.m. ET, hosted by Jim Zallie, chairman, president and chief executive officer and Jason Payant, vice president and interim chief financial officer. The call will be webcast in real time and can be accessed at https://ir.ingredionincorporated.com/events-and-presentations. A presentation containing additional financial and operating information will be available on the Company’s website above and can be downloaded a few hours before the call begins. A replay will be available for a limited time at https://ir.ingredionincorporated.com/financial-information/quarterly-results. About Ingredion Ingredion Incorporated (NYSE: INGR), headquartered in the suburbs of Chicago, is a leading global ingredient solutions provider serving customers in more than 120 countries. With 2025 annual net sales of approximately $7.2 billion, the Company turns grains, fruits, vegetables and other plant-based materials into value-added ingredient solutions for the food, beverage, animal nutrition, brewing and industrial markets. With Ingredion Idea Labs® innovation centers located around the world and more than 11,000 employees, the Company co-creates with customers and fulfills its purpose of bringing the potential of people, nature and technology together to make life better. Visit ingredion.com for more information and the latest Company news. Forward-Looking Statements This news release 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. Ingredion Incorporated intends these forward-looking statements to be covered by the safe harbor provisions for such statements. Forward-looking statements include, among others, any statements regarding our expectations for third quarter 2026 net sales and reported and adjusted operating income, full-year 2026 reported and adjusted earnings per share, net sales, reported and adjusted operating income, segment operating income, corporate costs, reported and adjusted effective tax rate, cash from operations, and capital expenditures, and any other statements regarding our prospects and our future operations, financial condition, volumes, cash flows, expenses or other financial items, including management’s plans or strategies and objectives for any of the foregoing and any assumptions, expectations, or beliefs underlying any of the foregoing. In addition, such statements include statements regarding our expectations with respect to completion and benefits of the pending acquisition of Tate & Lyle (the “pending acquisition”), including statements regarding plans, objectives, intentions and expectations with respect to the future operations and financial performance of the combined group. These statements can sometimes be identified by the use of forward-looking words such as “may,” “will,” “should,” “anticipate,” “assume,” “believe,” “plan,” “project,” “estimate,” “expect,” “intend,” “continue,” “pro forma,” “forecast,” “outlook,” “opportunities,” “potential,” or other similar expressions or the negative thereof. All statements other than statements of historical facts therein are “forward-looking statements.” These statements are based on current circumstances or expectations, but are subject to certain inherent risks and uncertainties, many of which are difficult to predict and beyond our control. Although we believe our expectations reflected in these forward-looking statements are based on reasonable assumptions, investors are cautioned that no assurance can be given that our expectations will prove correct. The following factors relating to the pending acquisition, among others, could cause actual results to differ materially from those expressed in or implied by our forward-looking statements: failure of the pending acquisition to be completed when expected or at all because of the inability to satisfy material antitrust or other conditions or for other reasons; the risk that the expected benefits of the pending acquisition may not be fully realized or may take longer to realize than anticipated, including as a result of the risks and uncertainties discussed below; failure to integrate effectively the businesses of Ingredion and Tate & Lyle or to manage effectively the expanded operations of the combined group; the incurrence of substantial expenses and indebtedness by Ingredion and the combined group to complete the pending acquisition and to operate the enterprise after completion; and the risk of loss of contracts and customers, distributors, suppliers, vendors and other business partners of Tate & Lyle as a result of the pending acquisition. Actual results and developments may differ materially from the expectations expressed in or implied by our forward-looking statements, based on various risks and uncertainties, including changes in consumer practices, preferences, price sensitivity, behaviors, demand and perceptions; the impact of geopolitical developments, tensions, threats or conflicts on the availability and prices of raw materials and energy supplies, supply chains and foreign exchange and interest rates; the impact of global business and economic conditions on demand for our products or our access to global credit and equity markets; our reliance on certain industries for a significant portion of our sales; operating difficulties at our manufacturing facilities and liabilities relating to product safety and quality; our ability to keep pace with technological developments in research and development and continue to offer innovative products; competitive pressures that may adversely affect our market share, revenue and profitability; market volatility that may adversely affect our ability to pass through potential increases in the cost of corn and other raw materials to customers, to purchase quantities of corn and other raw materials at prices sufficient to sustain or increase our profitability, or to supply product quantities and meet shipment delivery requirements that our customers demand; the impact on inputs to our procurement, production processes and delivery channels, such as raw material, energy, and freight and logistics, of price fluctuations, supply chain interruptions, tariffs, duties, and shortages; our ability to contain costs, manage working capital, and achieve budgets, including completion of planned maintenance and investment projects on time and on budget; global climate change and legal, regulatory, or market measures to address climate change; our ability to identify and complete acquisitions, divestitures, or strategic alliances on favorable terms or achieve anticipated synergies; the economic, political and other risks inherent in conducting operations in foreign countries and with foreign currencies; our ability to maintain satisfactory labor relations; our ability to attract, develop, retain, motivate and maintain good relationships with our workforce, including key personnel; the impact of legal and regulatory proceedings; the risks associated with pandemics; the impact of any impairment charges on intangible assets and goodwill; global and regional economic policies and changes to existing laws and regulations; changes in our tax rates or exposure to additional income tax liabilities; increases in interest rates that could increase our borrowing costs; risks affecting our ability to raise funds at reasonable rates and other factors affecting our access to sufficient funds for future growth and expansion; risks relating to the use of artificial intelligence and other advanced technologies, and our reliance on third‑party technology providers; interruptions, security incidents, or failures with respect to information technology systems, processes, and sites; risks affecting the continuation of our dividend policy; and our ability to maintain effective internal control over financial reporting. Our forward-looking statements speak only as of the date on which they are made, and we do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of the statement as a result of new information or future events or developments or otherwise. If we do update or correct one or more of these statements, investors and others should not conclude that we will make additional updates or corrections. For a further description of these and other risks, see “Risk Factors” and other information included in our Annual Report on Form 10-K for the year ended December 31, 2025, and in our subsequent reports on Form 10-Q and Form 8-K filed with the Securities and Exchange Commission. This press release is for information purposes and is not intended to and does not constitute, or form part of, an offer, invitation or the solicitation of an offer to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of any securities, or the solicitation of any vote or approval in any jurisdiction, pursuant to the all-cash offer by the Company for the entire issued and to be issued ordinary share capital of Tate & Lyle, or otherwise, nor shall there be any sale, issuance or transfer of securities of Tate & Lyle in any jurisdiction in contravention of applicable law. The pending acquisition will be made solely by means of a scheme of arrangement (or, if the pending acquisition is implemented by way of a takeover offer, as that term is defined in the UK Companies Act 2006 (a “Takeover Offer”), the offer document), which will contain the full terms and conditions of the pending acquisition. If the Company exercises its right to implement the pending acquisition by way of a Takeover Offer, such offer will be made in compliance with applicable U.S. laws and regulations. Ingredion IncorporatedSupplemental Financial Information(Unaudited)(dollars in millions, except for percentages) I. Segment Information of Net Sales to Unaffiliated Customers and Operating Income Notes to Net Sales to Unaffiliated Customers (i)   Net of inter-segment sales of $35 million and $9 million for the second quarter of 2026 and 2025, and $44 million and $18 million for year-to-date 2026 and 2025. (ii)   Net of inter-segment sales of $11 million and $14 million for the second quarter of 2026 and 2025, and $21 million and $27 million for year-to-date 2026 and 2025. (iii)   Net of inter-segment sales of $48 million and $27 million for the second quarter of 2026 and 2025, and $75 million and $60 million for year-to-date 2026 and 2025. (iv)   Net of inter-segment sales of $8 million and $4 million for the second quarter of 2026 and 2025, and $12 million and $7 million for year-to-date 2026 and 2025.II. Non-GAAP Information To supplement the consolidated financial results prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), non-GAAP historical financial measures are used, which exclude certain GAAP items such as acquisition/integration costs, restructuring costs, impairment charges, net (gain) on sale of business, Mexico tax item, and other specified items. The term “adjusted” is generally used when referring to these non-GAAP financial measures. Management uses non-GAAP financial measures internally for strategic decision making, forecasting future results and evaluating current performance. By disclosing non-GAAP financial measures, management intends to provide investors with a more meaningful, consistent comparison of the Company’s operating results and trends for the periods presented. These non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP and reflect an additional way of viewing aspects of the Company’s operations that, when viewed with its GAAP results, provide a more complete understanding of factors and trends affecting its business. Expected financial measures may not reflect certain future charges, costs and/or gains that are inherently difficult to predict and estimate due to their unknown timing, effect and/or significance. Non-GAAP adjustments are generally made to adjusted financial measures, which increases management’s confidence in its ability to forecast adjusted financial measures than in its ability to forecast GAAP financial measures. These non-GAAP measures, including non-GAAP expected measures, should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP. Non-GAAP financial measures are not prepared in accordance with GAAP; therefore, the Company’s non-GAAP information is not necessarily comparable to similarly titled measures presented by other companies. A reconciliation of each non-GAAP financial measure to the most comparable GAAP measure is provided in the tables below. Net income and EPS may not sum or recalculate due to rounding. Notes(i)   During the three and six months ended June 30, 2026, we recorded pre-tax acquisition and integration costs of $53 million primarily related to our pending acquisition of Tate & Lyle, including a $47 million of acquisition-related foreign exchange hedging losses. There was no such activity during the three and six months ended June 30, 2025. (ii)   During the three and six months ended June 30, 2026, we recorded pre-tax impairment charges of $33 million, primarily related to the closure of our facility in Cabo, Brazil. During the three months ended June 30, 2025, we recorded a tax benefit for impairment charges to equity method investments. During the six months ended June 30, 2025, we recorded $6 million of pre-tax impairment charges on our equity investments. (iii)   During the three and six months ended June 30, 2026, we recorded pre-tax restructuring costs of $14 million and $25 million, primarily related to the closure of our facility in Cabo, Brazil, and costs related to our sale of the Pakistan business and other restructuring activity. During the three and six months ended June 30, 2025, we recorded pre-tax restructuring costs of $3 million and $4 million, primarily related to decommissioning costs for plant closures. (iv)   During the three and six months ended June 30, 2026, we recorded a net pre-tax gain of $44 million related to the sale of our Pakistan business. There was no such activity during the three and six months ended June 30, 2025. (v)   During the three and six months ended June 30, 2026, we recorded pre-tax charges of $19 million and $17 million primarily related to the Argo thermal event. During the three and six ended June 30, 2025, we recorded pre-tax benefits of $1 million and $11 million primarily related to insurance recoveries and a favorable judgment related to certain indirect taxes in Brazil. (vi)   The tax amounts are result of the movement of the Mexican peso against the U.S. dollar and its impact on the remeasurement of the Mexico financial statements during the period. (vii)   During the three and six months ended June 30, 2026,we recorded a change in our accrual related to the permanent reinvestment of foreign earnings, recognized prior-year tax liabilities, associated tax impacts related to the above current and prior-year non-GAAP adjustments, and recapture of prior-year U.S. tax benefits. These were partially offset by the utilization of previously unbenefited capital losses, recognition of a deferred tax asset, and interest income on previously recognized tax benefits associated with certain Brazilian local incentives that were previously taxable. For notes (i) through (v), see notes (i) through (v) included in the Reconciliation of GAAP Net Income attributable to Ingredion and Diluted Earnings Per Share (“EPS”) to Non-GAAP Adjusted Net Income attributable to Ingredion and Adjusted Diluted EPS. Ingredion IncorporatedReconciliation of GAAP Effective Income Tax Rate to Non-GAAP Adjusted Effective Income Tax Rate(Unaudited)(dollars in millions, except for percentages) For notes (i) through (vii), see notes (i) through (vii) included in the Reconciliation of GAAP Net Income attributable to Ingredion and Diluted Earnings Per Share (“EPS”) to Non-GAAP Adjusted Net Income attributable to Ingredion and Adjusted Diluted EPS. For notes (i) through (vii), see notes (i) through (vii) included in the Reconciliation of GAAP Net Income attributable to Ingredion and Diluted Earnings Per Share (“EPS”) to Non-GAAP Adjusted Net Income attributable to Ingredion and Adjusted Diluted EPS. For notes (i) through (vii), see notes (i) through (vii) included in the Reconciliation of GAAP Net Income attributable to Ingredion and Diluted Earnings Per Share (“EPS”) to Non-GAAP Adjusted Net Income attributable to Ingredion and Adjusted Diluted EPS. CONTACTS:Investors: Noah Weiss, 773-896-5242Media: Rick Wion, 708-209-6323