Ingredion Incorporated

Good day and thank you for standing by. Welcome to Ingredion's second quarter 2026 earnings call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 1 again. 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.

Good morning and welcome to Ingredient'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 ingredient.com in the investor 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 Ingredient 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 US 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.

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 and 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 and industrial ingredients US-Canada segment and continued macroeconomic pressures in Mexico. At the same time, performance across the rest of the portfolio was strong. as we deliver the second highest quarterly operating income ever in texture and 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 and healthful solutions. Quarter two 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 and 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 one to one and a half quarters to realize. In food and 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 and industrial ingredients US Canada, volumes remain 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 US 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 three 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 and healthful solutions. As part of texture and healthful solutions' diversified portfolio, We strengthen 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 strengthen 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. Ingredient 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 Thank you for joining us. 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 UK 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 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 opportunity to deliver 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 2.5 times 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 to 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 ingredients and Tate & Lyle's capabilities becomes particularly compelling. Together, we will bring a broader portfolio of complementary capabilities Thank you. Thank you. and more. Following the combination, more than half of our revenue will come from texture and 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.