MGP Ingredients (NASDAQ:MGPI) Issues Earnings Results

MGP Ingredients (NASDAQ:MGPI) posted its quarterly earnings data on Wednesday. The company reported $0.72 earnings per share for the quarter, topping the consensus estimate 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 for the quarter, compared to analysts’ expectations of $125.16 million. During the same quarter last year, the business earned $0.97 EPS. The company’s quarterly revenue was down 14.5% compared to the same quarter last year. 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 MGPI stock traded down $0.74 during trading hours on Thursday, reaching $18.14. The company’s stock had a trading volume of 100,914 shares, compared to its average volume of 244,359. MGP Ingredients has a fifty-two week low of $15.72 and a fifty-two week high of $31.75. The firm’s 50 day simple moving average is $17.16 and its 200-day simple moving average is $19.72. 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 company has a market capitalization of $387.65 million, a price-to-earnings ratio of -1.62 and a beta of 0.46.

MGP Ingredients Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Friday, August 14th will be issued a $0.12 dividend. This represents a $0.48 dividend on an annualized basis and a dividend yield of 2.6%. The ex-dividend date of this dividend is Friday, August 14th. MGP Ingredients’s dividend payout ratio (DPR) is currently -4.31%.

Analysts Set New Price Targets

Several research firms recently commented on MGPI. TD Cowen upped their price target on shares of MGP Ingredients from $18.00 to $20.00 and gave the company a “hold” rating in a research note on Thursday. Wells Fargo & Company lifted their price objective on shares of MGP Ingredients from $21.00 to $22.00 and gave the stock an “overweight” rating in a research note on Thursday. Weiss Ratings downgraded shares of MGP Ingredients from a “sell (d)” rating to a “sell (d-)” rating in a report 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 analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, MGP Ingredients presently has an average rating of “Hold” and an average target price of $27.25.

Key Stories Impacting MGP Ingredients

Here are the key news stories impacting MGP Ingredients this week:

• Positive Sentiment: Second-quarter adjusted EPS was $0.72, well above the analyst consensus of $0.49. The earnings beat may support the stock by demonstrating better-than-expected profitability despite challenging conditions. MGP Q2 Earnings Top Estimates
• Positive Sentiment: Wells Fargo raised its price target from $21 to $22 and assigned an Overweight rating, implying approximately 21% upside from the referenced price. The upgrade signals continued analyst confidence in MGPI’s longer-term prospects. Wells Fargo price target update
• Positive Sentiment: MGP declared a quarterly dividend of $0.12 per share, payable August 28 to shareholders of record August 14. The annualized payout is approximately $0.48 per share, or a yield near 2.5%, providing income support for investors.
• Neutral Sentiment: Management’s fiscal 2026 guidance calls for EPS of $1.50-$1.80 and revenue of $480 million-$500 million. The revenue range brackets analyst expectations, while the EPS midpoint of $1.65 is slightly above the $1.62 consensus, but the broad range reflects ongoing uncertainty. MGP Ingredients Q2 earnings call highlights
• Negative Sentiment: Quarterly revenue of $124.36 million fell short of the $125.16 million estimate and declined 14.5% year over year. EPS also decreased from $0.97 in the prior-year quarter, signaling weaker underlying demand or operating conditions despite the earnings beat. MGP Ingredients earnings report
• Negative Sentiment: The earnings call focused on navigating business challenges, which may be weighing on sentiment as investors look for evidence that declining sales and profitability pressures will improve. MGP Ingredients earnings call transcript

Insiders Place Their Bets

In other MGP Ingredients news, major shareholder Caroline Lux Kaplan sold 30,000 shares of MGP Ingredients stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $17.82, for a total value of $534,600.00. Following the transaction, the insider owned 500,958 shares in the company, valued at $8,927,071.56. The trade was a 5.65% decrease in their ownership of the stock. The transaction 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

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Canada Pension Plan Investment Board boosted its position in MGP Ingredients by 122.4% in the second quarter. Canada Pension Plan Investment Board now owns 143,700 shares of the company’s stock valued at $4,307,000 after buying an additional 79,100 shares in the last quarter. HRT Financial LP increased its holdings in shares of MGP Ingredients by 321.1% during the fourth quarter. HRT Financial LP now owns 189,120 shares of the company’s stock worth $4,595,000 after buying an additional 144,209 shares in the last quarter. Ameriprise Financial Inc. lifted its stake in shares of MGP Ingredients by 13.3% in the 2nd quarter. Ameriprise Financial Inc. now owns 400,896 shares of the company’s stock valued at $12,015,000 after acquiring an additional 46,978 shares during the last quarter. Millennium Management LLC boosted its holdings in shares of MGP Ingredients by 349.9% during the 4th quarter. Millennium Management LLC now owns 128,752 shares of the company’s stock valued at $3,129,000 after acquiring an additional 100,131 shares in the last quarter. Finally, Balyasny Asset Management L.P. acquired a new stake in shares of MGP Ingredients during the 2nd quarter valued at $1,862,000. 77.11% of the stock is owned by institutional investors.

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.