Ingredion (INGR) to shut Cabo Brazil facility, expects $43M in exit and impairment charges
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Ingredion Incorporated plans to cease operations at its Cabo, Brazil manufacturing facility as of June 30, 2026, and expects to sell the facility and underlying real property. The company anticipates approximately $43 million in pre-tax, non-recurring charges tied to this exit plan.
About $36 million of these charges are expected to be non-cash impairment charges related to fixed asset and inventory write-downs, with about $7 million in expected cash expenditures for employee-related, severance, and other termination costs. Most charges are expected in the second quarter of 2026, with remaining amounts through the first quarter of 2027.
Positive
- None.
Negative
- Material exit and impairment charges: Ingredion expects approximately $43 million in pre-tax, non-recurring charges from ceasing operations at its Cabo, Brazil facility, including about $36 million in non-cash impairments and $7 million in cash termination-related costs.
Insights
Ingredion is closing its Cabo, Brazil plant and booking $43M in related charges.
Ingredion committed to cease operations at its Cabo, Brazil manufacturing facility by June 30, 2026. The company expects pre-tax, non-recurring charges of about $43 million, mainly from non-cash write-downs of fixed assets and inventory at this site.
Roughly $36 million of the total is projected as pre-tax, non-cash impairment charges, while about $7 million should be cash costs for employee-related items, severance, and other termination expenses. Most of these charges are expected in Q2 2026, with remaining amounts through Q1 2027.
The company also notes that these figures are estimates based on assumptions and may differ from actual charges, and it highlights typical forward-looking statement risks, directing readers to existing risk factor disclosures in its December 31, 2025 Form 10-K and subsequent Form 10-Q filings.
8-K Event Classification
2 items: 2.05, 2.06
2 items
Item 2.05
Costs Associated with Exit or Disposal Activities
Financial
The company committed to an exit plan involving layoffs, facility closures, or restructuring charges.
Item 2.06
Material Impairments
Financial
The company concluded that a material charge for impairment of assets (goodwill, intangibles, etc.) is required.
Key Figures
Total expected charges: $43 million pre-tax
Impairment charges: $36 million
Cash exit costs: $7 million
+3 more
6 metrics
Total expected charges
$43 million pre-tax
Non-recurring charges tied to Cabo facility exit plan
Impairment charges
$36 million
Pre-tax, non-cash fixed asset and inventory write-downs in Q2 2026
Cash exit costs
$7 million
Employee-related, severance and other termination costs
Cabo facility shutdown date
June 30, 2026
Planned cessation of operations in Cabo, Brazil
Impairment timing
$36 million in Q2 2026
Expected timing of non-cash impairment charges
Charge recognition window
Q2 2026–Q1 2027
Period over which remaining exit charges will be incurred
Key Terms
non-recurring charges, impairment charges, fixed asset and inventory write-downs, forward-looking statements, +2 more
6 terms
non-recurring charges financial
"The Company expects to incur pre-tax non-recurring charges of approximately $43 million"
impairment charges financial
"approximately $36 million is expected to consist of impairment charges relating to fixed asset and inventory write-downs"
Impairment charges are one-time accounting write-downs taken when a company decides an asset — like a factory, brand, patent, or investment — is worth less than it was recorded for. Like marking down the price of a damaged item on a store shelf, they reduce reported profits and the asset’s book value; investors watch them because they can signal lasting business problems or change future earnings and balance-sheet strength.
fixed asset and inventory write-downs financial
"impairment charges relating to fixed asset and inventory write-downs"
forward-looking statements regulatory
"contains or may contain forward-looking statements within the meaning of Section 27A"
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.
safe harbor provisions regulatory
"Ingredion Incorporated intends these forward-looking statements to be covered by the safe harbor provisions"
Safe harbor provisions are rules or legal protections that shield companies or individuals from certain penalties or liabilities when they follow specific guidelines or procedures. They provide a sense of security, encouraging compliance and innovation by reducing the fear of legal repercussions if they act in good faith. For investors, these provisions help ensure that companies are transparent and accountable without the risk of unfair punishment for honest mistakes.
Risk Factors financial
"For a further description of these and other risks, see “Risk Factors”"
Risk factors are elements or conditions that could cause an investment's value to decrease or lead to potential losses. They are like warning signs or obstacles that can affect the success of an investment, making it uncertain or more unpredictable. Recognizing risk factors helps investors understand the possible challenges and make more informed decisions.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 1, 2026
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
| (Address of principal executive offices) | (Zip Code) | |||||||||||||
(708 ) 551-2600
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.05 Costs Associated with Exit or Disposal Activities.
On May 1, 2026, Ingredion Incorporated (the “Company”) committed to a plan to cease operations at its Cabo, Brazil manufacturing facility (the “Cabo manufacturing facility”) as of June 30, 2026. The Company expects to sell the manufacturing facility and the underlying real property but has not entered into a contract of sale as of the date of this report.
The Company expects to incur pre-tax non-recurring charges of approximately $43 million under the plan, of which approximately $36 million is expected to consist of impairment charges relating to fixed asset and inventory write-downs and approximately $7 million is expected to consist of cash expenditures for employee-related costs, severance payments, and other termination-related costs. The Company expects to incur the majority of these charges in the second quarter of 2026 and the remaining charges in subsequent fiscal periods through the first quarter of 2027.
The foregoing estimates of the charges the Company expects to incur under the plan are subject to assumptions, and actual charges may differ from such estimates.
Item 2.06 Material Impairments.
The information set forth in Item 2.05 is incorporated by reference in this Item 2.06.
In connection with the cessation of operations at the Cabo manufacturing facility, the Company expects to record approximately $36 million in pre-tax, non-cash impairment charges in the second quarter of 2026 relating to fixed asset and inventory write-downs.
Forward-Looking Statements
This current report on Form 8-K 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 the potential costs associated with the cessation of operations at the Cabo manufacturing facility, our prospects, future operations, or future financial condition, earnings, net sales, tax rates, capital expenditures, 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. 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. 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.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: May 5, 2026 | Ingredion Incorporated | ||||||||||||||||||||||||||||
| By: | /s/ Tanya M. Jaeger de Foras | ||||||||||||||||||||||||||||
Tanya M. Jaeger de Foras Senior Vice President, Chief Legal Officer, Corporate Secretary and Chief Compliance Officer | |||||||||||||||||||||||||||||
FAQ
What action did Ingredion (INGR) announce regarding its Cabo, Brazil facility?
Ingredion plans to cease operations at its Cabo, Brazil manufacturing facility as of June 30, 2026. The company also expects to sell the facility and underlying real property, although no sale contract had been signed at the time of the disclosure.
How much in total charges does Ingredion (INGR) expect from the Cabo facility closure?
Ingredion expects approximately $43 million in pre-tax, non-recurring charges from the Cabo facility exit. This total includes both non-cash impairment charges and cash expenditures related to employees, severance, and other termination activities associated with shutting down the site.
What cash costs will Ingredion (INGR) incur from closing the Cabo facility?
Ingredion anticipates approximately $7 million in cash expenditures connected to the Cabo facility closure. These cash costs are expected to cover employee-related items, severance payments, and other termination-related expenses as operations at the site are wound down.
When will Ingredion (INGR) recognize most Cabo facility closure charges?
Ingredion expects to recognize the majority of the Cabo facility-related charges in the second quarter of 2026. Remaining charges are anticipated in subsequent fiscal periods through the first quarter of 2027, reflecting the timing of the shutdown and related activities.
Are Ingredion’s (INGR) estimated Cabo closure charges final and guaranteed?
The company characterizes the approximately $43 million in expected charges as estimates based on assumptions. It cautions that actual charges associated with ceasing operations at the Cabo facility may differ from these estimates due to inherent uncertainties and evolving circumstances.