MGP Ingredients (NASDAQ:MGPI) Posts Earnings Results, Beats Expectations By $0.23 EPS

Key Points

• MGP Ingredients beat earnings expectations, reporting $0.72 adjusted EPS versus the $0.49 consensus, although quarterly revenue fell 14.5% year over year to $124.36 million.
• Branded Spirits showed resilience, with sales up 3% excluding other products and strong growth from Penelope, Yellowstone, and Everclear. However, Distilling Solutions sales plunged 42% amid industry oversupply and customer inventory reductions.
• The company rationalized 52 brands to improve margins and focus, while updating fiscal 2026 EPS guidance to $1.50–$1.80 and lowering its Ingredient Solutions margin outlook because of elevated disposal and implementation costs.

MGP Ingredients (NASDAQ:MGPI - Get Free Report) posted its earnings results on Wednesday. The company reported $0.72 EPS for the quarter, topping analysts' consensus estimates of $0.49 by $0.23, FiscalAI reports. The business had revenue of $124.36 million for the quarter, compared to analysts' expectations of $125.16 million. MGP Ingredients had a negative net margin of 45.70% and a positive return on equity of 7.48%. The business's revenue for the quarter was down 14.5% compared to the same quarter last year. During the same period in the previous year, the company posted $0.97 earnings per share. MGP Ingredients updated its FY 2026 guidance to 1.500-1.800 EPS.

Here are the key takeaways from MGP Ingredients' conference call:

• Second-quarter results declined year over year, with sales down 15% to $124.4 million, adjusted EBITDA down 23% to $27.6 million, and adjusted EPS down 26% to $0.72. Net leverage rose to approximately 3.5x following the $111 million Penelope earnout payment.
• Branded Spirits continued to outperform the broader spirits market, with reported sales up 3% excluding the other-products category, premium-plus sales up 5%, and Penelope, Yellowstone, and Everclear sales increasing 13%, 54%, and 13%, respectively. Distributor transitions and expanded points of distribution also supported early momentum.
• MGP has rationalized 52 brands, representing approximately 47% of its product portfolio, which management expects to improve annualized gross margin by about 25 basis points and enhance commercial focus. The company also reported improving performance in several mid- and value-tier brands.
• Distilling Solutions remains under significant pressure from industry oversupply and customer inventory reduction, driving a 42% sales decline and a 59% drop in brown-goods sales. Customers continue to prioritize working-capital management over long-term new-distillate commitments, although management said inventory growth is gradually moderating.
• Ingredient Solutions sales grew 2% to $35.5 million, but elevated waste-starch disposal and implementation costs reduced gross margin to 10.1%. MGP lowered its full-year margin outlook for the segment to the high-single- to low-double-digit range, while reaffirming consolidated 2026 sales, adjusted EBITDA, and adjusted EPS guidance.

MGP Ingredients Stock Performance

NASDAQ:MGPI traded up $1.01 during trading hours on Wednesday, reaching $19.72. 62,965 shares of the stock were exchanged, compared to its average volume of 244,389. The company has a quick ratio of 0.56, a current ratio of 2.74 and a debt-to-equity ratio of 0.41. The firm has a 50 day simple moving average of $17.15 and a 200-day simple moving average of $19.76. MGP Ingredients has a 52 week low of $15.72 and a 52 week high of $31.75. The stock has a market capitalization of $421.37 million, a P/E ratio of -1.77 and a beta of 0.46.

Insider Activity at MGP Ingredients

In other news, major shareholder Caroline Lux Kaplan sold 30,000 shares of the business's stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $17.82, for a total value of $534,600.00. Following the completion of the sale, the insider directly owned 500,958 shares in the company, valued at approximately $8,927,071.56. The trade was a 5.65% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 31.70% of the company's stock.

Hedge Funds Weigh In On MGP Ingredients

A number of hedge funds have recently added to or reduced their stakes in the business. Federated Hermes Inc. lifted its position in shares of MGP Ingredients by 45.7% in the 4th quarter. Federated Hermes Inc. now owns 1,437,836 shares of the company's stock worth $34,939,000 after buying an additional 450,713 shares during the last quarter. Vanguard Group Inc. lifted its holdings in MGP Ingredients by 8.9% in the third quarter. Vanguard Group Inc. now owns 1,222,672 shares of the company's stock worth $29,576,000 after acquiring an additional 99,995 shares during the last quarter. Ameriprise Financial Inc. lifted its holdings in MGP Ingredients by 13.3% in the second quarter. Ameriprise Financial Inc. now owns 400,896 shares of the company's stock worth $12,015,000 after acquiring an additional 46,978 shares during the last quarter. Millennium Management LLC boosted its stake in MGP Ingredients by 116.6% in the first quarter. Millennium Management LLC now owns 359,813 shares of the company's stock valued at $10,571,000 after acquiring an additional 193,660 shares during the period. Finally, Goldman Sachs Group Inc. boosted its stake in MGP Ingredients by 29.0% in the fourth quarter. Goldman Sachs Group Inc. now owns 359,561 shares of the company's stock valued at $8,737,000 after acquiring an additional 80,808 shares during the period. Institutional investors and hedge funds own 77.11% of the company's stock.

Analyst Ratings Changes

Several equities research analysts have issued reports on the company. Zacks Research upgraded MGP Ingredients from a "strong sell" rating to a "hold" rating in a report on Tuesday, April 28th. TD Cowen decreased their price target on shares of MGP Ingredients from $20.00 to $18.00 and set a "hold" rating for the company in a research report on Friday, June 26th. Weiss Ratings lowered shares of MGP Ingredients from a "sell (d)" rating to a "sell (d-)" rating in a research note on Monday, May 4th. Finally, Wells Fargo & Company cut their price target on shares of MGP Ingredients from $24.00 to $21.00 and set an "overweight" rating on the stock in a report on Wednesday, July 8th. Three research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $26.50.

MGP Ingredients Company Profile

MGP Ingredients, Inc NASDAQ: MGPI is a leading producer of distilled spirits and specialty ingredient solutions for the food, beverage and consumer products industries. Headquartered in Atchison, Kansas, the company operates two main facilities—its historic Atchison plant, founded in 1941 as Midwest Grain Products, and a modern distillery in Lawrenceburg, Indiana. MGP Ingredients supplies an array of distillation products under its beverage and ingredient segments, serving brand owners, private-label producers and co-packers worldwide.

The beverage segment features a broad portfolio of premium spirits, including bourbon and rye whiskies, vodka, gin and neutral spirits.

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