MGP Ingredients (NASDAQ:MGPI) Announces Earnings Results

MGP Ingredients (NASDAQ:MGPI) released its quarterly earnings data on Wednesday. The company reported $0.39 earnings per share for the quarter, topping the consensus estimate of $0.32 by $0.07, FiscalAI reports. The business had revenue of $117.91 million for the quarter, compared to analyst estimates of $119.70 million. During the same quarter in the previous year, the company posted $0.85 EPS. The business’s quarterly revenue was down 9.9% on a year-over-year basis.

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

• Third-quarter results declined year over year: sales fell 10% to $117.9 million, adjusted EBITDA dropped 33% to $21.5 million, and adjusted EPS decreased 54% to $0.39, reflecting pressure across gross margins and lower brown-goods volumes.
• Management reaffirmed full-year 2026 guidance for sales of $480 million–$500 million, adjusted EBITDA of $90 million–$98 million, adjusted EPS of $1.50–$1.80, and free cash flow of $30 million–$35 million, excluding the Penelope earnout.
• Distilling Solutions remained the largest business headwind, with sales down 29% and brown-goods sales down 47% amid excess industry whiskey inventories, weak pricing, and large customers delaying new long-term commitments. The company is responding by expanding premium white goods, private-label, ready-to-drink, and warehouse-services offerings.
• Ingredient Solutions sales grew 5%, led by a 15% increase in specialty wheat protein, while improving plant reliability supports management’s expectation for a stronger fourth quarter. Executives said demand is sufficient for all available production and that customers have been retained despite prior operating disruptions.
• The company reduced total debt by $28.4 million during the quarter, ending with net leverage of 3.6 times, while cost controls—including agency consolidation expected to save more than $3 million annually—helped offset operating pressure. MGP will also rebrand as Sempreon and begin trading under the Nasdaq ticker CASK on November 2.

MGP Ingredients Stock Performance

MGPI traded up $0.82 during trading on Wednesday, reaching $16.14. 100,334 shares of the company were exchanged, compared to its average volume of 244,931. The company’s 50-day moving average is $15.05 and its two-hundred day moving average is $18.44. MGP Ingredients has a 12-month low of $12.42 and a 12-month high of $26.77.

Insider Transactions at MGP Ingredients

In other news, insider Leslie Lux sold 27,731 shares of the company’s stock in a transaction dated Wednesday, September 16th. The stock was sold at an average price of $14.40, for a total transaction of $399,326.40. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Paul Lux sold 33,000 shares of the stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $17.76, for a total transaction of $586,080.00. Following the completion of the sale, the insider directly owned 550,458 shares in the company, valued at approximately $9,776,134.08. The trade was a 5.66% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 31.70% of the stock is owned by insiders.

Analysts Set New Price Targets

A number of research firms have issued reports on MGPI. Wells Fargo & Company cut their price target on MGP Ingredients from $22.00 to $17.00 and set an “overweight” rating for the company in a research note on Monday, October 5th. Roth Capital lowered their price objective on MGP Ingredients from $32.00 to $30.00 and set a “buy” rating for the company in a research note on Friday, October 16th. TD Cowen increased 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, July 30th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of MGP Ingredients in a report on Friday, July 31st. Three research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, MGP Ingredients presently has an average rating of “Hold” and a consensus price target of $25.50.

About MGP Ingredients

MGP Ingredients, Inc (NASDAQ: MGPI) is a producer and marketer of distilled spirits and specialty food and beverage ingredients. The company operates distilleries and processing facilities that manufacture bourbon, rye whiskey, vodka, gin, tequila and other distilled products, as well as grain-based alcohol and related ingredients.

The company serves customers through both its Distilling Solutions and Branded Spirits businesses. Its branded portfolio includes products such as Ezra Brooks, Yellowstone, Daviess County, El Mayor and Everclear, while its distilling operations supply spirits and alcohol to beverage companies and other commercial customers.