MGP Ingredients (NASDAQ:MGPI) Issues Earnings Results, Beats Estimates By $0.23 EPS

MGP Ingredients (NASDAQ:MGPI) issued its quarterly earnings data on Wednesday. The company reported $0.72 EPS for the quarter, topping analysts’ consensus estimates of $0.49 by $0.23, FiscalAI reports. MGP Ingredients had a positive return on equity of 7.48% and a negative net margin of 45.70%.The firm had revenue of $124.36 million during the quarter, compared to the consensus estimate of $125.16 million. During the same period in the prior year, the business earned $0.97 EPS. The firm’s revenue was down 14.5% on a year-over-year basis. 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

Shares of MGPI traded up $1.01 during trading hours on Wednesday, reaching $19.72. 62,965 shares of the company’s stock traded hands, compared to its average volume of 244,389. MGP Ingredients has a twelve month low of $15.72 and a twelve month high of $31.75. The business’s fifty day simple moving average is $17.15 and its two-hundred day simple moving average is $19.76. The company has a debt-to-equity ratio of 0.41, a current ratio of 2.74 and a quick ratio of 0.56. The firm has a market capitalization of $421.37 million, a price-to-earnings ratio of -1.77 and a beta of 0.46.

Insider Buying and Selling at MGP Ingredients

In other news, major shareholder Caroline Lux Kaplan sold 30,000 shares of the business’s stock in a transaction 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 sale, the insider owned 500,958 shares of the company’s stock, valued at approximately $8,927,071.56. The trade was a 5.65% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 31.70% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Osaic Holdings Inc. raised its position in MGP Ingredients by 130.3% in the second quarter. Osaic Holdings Inc. now owns 935 shares of the company’s stock worth $28,000 after acquiring an additional 529 shares in the last quarter. Global Retirement Partners LLC acquired a new position in shares of MGP Ingredients in the 4th quarter worth approximately $32,000. Quadrant Capital Group LLC raised its holdings in shares of MGP Ingredients by 237.0% in the 4th quarter. Quadrant Capital Group LLC now owns 1,830 shares of the company’s stock worth $44,000 after purchasing an additional 1,287 shares in the last quarter. Tower Research Capital LLC TRC lifted its stake in MGP Ingredients by 278.9% during the second quarter. Tower Research Capital LLC TRC now owns 1,883 shares of the company’s stock valued at $56,000 after purchasing an additional 1,386 shares during the last quarter. Finally, iSAM Funds UK Ltd acquired a new stake in MGP Ingredients during the third quarter valued at approximately $96,000. 77.11% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

MGPI has been the subject of several analyst reports. Wells Fargo & Company reduced their price target on shares of MGP Ingredients from $24.00 to $21.00 and set an “overweight” rating for the company in a report on Wednesday, July 8th. TD Cowen cut their price objective on shares of MGP Ingredients from $20.00 to $18.00 and set a “hold” rating on the stock 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, Zacks Research upgraded shares of MGP Ingredients from a “strong sell” rating to a “hold” rating in a research report on Tuesday, April 28th. Three equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Hold” and an average price target 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.