MGP Ingredients (NASDAQ:MGPI) Issues Quarterly Earnings Results

MGP Ingredients (NASDAQ:MGPI) issued its quarterly earnings results on Wednesday. The company reported $0.72 earnings per share for the quarter, beating the consensus estimate of $0.49 by $0.23, FiscalAI reports. The business had revenue of $124.36 million for the quarter, compared to the consensus estimate of $125.16 million. MGP Ingredients had a negative net margin of 48.08% and a positive return on equity of 7.41%. The company’s revenue for the quarter was down 14.5% on a year-over-year basis. During the same quarter in the previous year, the firm earned $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 Price Performance

Shares of NASDAQ:MGPI traded down $0.03 on Friday, reaching $17.71. The company’s stock had a trading volume of 72,361 shares, compared to its average volume of 244,519. MGP Ingredients has a 52-week low of $15.72 and a 52-week high of $31.75. The company has a market cap of $378.51 million, a P/E ratio of -1.57 and a beta of 0.46. The company has a 50-day simple moving average of $17.15 and a 200 day simple moving average of $19.67. The company has a debt-to-equity ratio of 0.61, a quick ratio of 0.56 and a current ratio of 6.99.

MGP Ingredients Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Friday, August 14th will be given a dividend of $0.12 per share. The ex-dividend date is Friday, August 14th. This represents a $0.48 annualized dividend and a yield of 2.7%. MGP Ingredients’s dividend payout ratio (DPR) is -4.26%.

Insider Activity

In related news, major shareholder Caroline Lux Kaplan sold 30,000 shares of the stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $17.82, for a total value of $534,600.00. Following the completion of the transaction, the insider owned 500,958 shares of the company’s stock, valued at approximately $8,927,071.56. This trade represents a 5.65% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 31.70% of the company’s stock.

Institutional Investors Weigh In On MGP Ingredients

Several institutional investors have recently modified their holdings of the stock. Millennium Management LLC boosted its holdings in shares of MGP Ingredients by 349.9% in the 4th quarter. Millennium Management LLC now owns 128,752 shares of the company’s stock worth $3,129,000 after purchasing an additional 100,131 shares during the period. Engineers Gate Manager LP raised its holdings in MGP Ingredients by 144.9% during the 4th quarter. Engineers Gate Manager LP now owns 38,286 shares of the company’s stock valued at $930,000 after buying an additional 22,652 shares during the period. Balyasny Asset Management L.P. lifted its position in MGP Ingredients by 172.1% in the fourth quarter. Balyasny Asset Management L.P. now owns 49,973 shares of the company’s stock worth $1,214,000 after buying an additional 31,609 shares during the last quarter. Trexquant Investment LP bought a new stake in MGP Ingredients in the fourth quarter worth $817,000. Finally, Jump Financial LLC purchased a new position in MGP Ingredients during the fourth quarter worth $908,000. 77.11% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

Several brokerages recently weighed in on MGPI. Wells Fargo & Company upped their target price on shares of MGP Ingredients from $21.00 to $22.00 and gave the stock an “overweight” rating in a report on Thursday. Zacks Research raised MGP Ingredients from a “strong sell” rating to a “hold” rating in a report on Tuesday, April 28th. TD Cowen upped their price objective on MGP Ingredients from $18.00 to $20.00 and gave the stock a “hold” rating in a research note on Thursday. Finally, Weiss Ratings cut MGP Ingredients from a “sell (d)” rating to a “sell (d-)” rating in a research report on Monday, May 4th. Three investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, MGP Ingredients presently has an average rating of “Hold” and a consensus target price of $27.25.

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.