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

MGP Ingredients (NASDAQ:MGPI) released its quarterly earnings data on Wednesday. The company reported $0.72 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.49 by $0.23, FiscalAI reports. The firm 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 45.70% and a positive return on equity of 7.48%. The company’s quarterly revenue was down 14.5% on a year-over-year basis. During the same period last 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 Stock Up 8.2%

NASDAQ:MGPI traded up $1.53 during mid-day trading on Wednesday, hitting $20.25. 86,546 shares of the company’s stock traded hands, compared to its average volume of 244,555. The company has a fifty day moving average of $17.15 and a 200 day moving average of $19.76. The company has a debt-to-equity ratio of 0.41, a quick ratio of 0.56 and a current ratio of 2.74. MGP Ingredients has a twelve month low of $15.72 and a twelve month high of $31.75. The company has a market capitalization of $432.64 million, a P/E ratio of -1.82 and a beta of 0.46.

Analysts Set New Price Targets

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

Insider Buying and Selling

In related news, major shareholder Caroline Lux Kaplan sold 30,000 shares of the firm’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 completion of the transaction, the insider owned 500,958 shares in the company, valued at $8,927,071.56. This trade represents a 5.65% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. 31.70% of the stock is owned by company insiders.

Institutional Investors Weigh In On MGP Ingredients

Several hedge funds and other institutional investors have recently made changes to their positions in MGPI. Osaic Holdings Inc. increased its position in MGP Ingredients by 130.3% during the second quarter. Osaic Holdings Inc. now owns 935 shares of the company’s stock worth $28,000 after purchasing an additional 529 shares during the last quarter. Global Retirement Partners LLC acquired a new position in MGP Ingredients in the 4th quarter valued at about $32,000. Quadrant Capital Group LLC grew its stake 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 valued at $44,000 after buying an additional 1,287 shares during the period. Tower Research Capital LLC TRC increased its holdings in shares of MGP Ingredients by 278.9% during the 2nd quarter. Tower Research Capital LLC TRC now owns 1,883 shares of the company’s stock worth $56,000 after buying an additional 1,386 shares during the last quarter. Finally, iSAM Funds UK Ltd purchased a new stake in shares of MGP Ingredients during the 3rd quarter valued at approximately $96,000. Institutional investors and hedge funds own 77.11% of the company’s stock.

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.