MGP Ingredients (NASDAQ:MGPI – Get Free Report) posted its quarterly earnings data on Wednesday. The company reported $0.39 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.32 by $0.07, FiscalAI reports. The business had revenue of $117.91 million for the quarter, compared to the consensus estimate of $119.70 million. During the same period in the prior year, the business posted $0.85 EPS. MGP Ingredients’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 Up 5.4%
MGPI traded up $0.82 during trading on Wednesday, reaching $16.14. The stock had a trading volume of 100,334 shares, compared to its average volume of 244,931. The business has a 50-day moving average of $15.05 and a 200-day moving average of $18.44. MGP Ingredients has a one year low of $12.42 and a one year high of $26.77.
Wall Street Analysts Forecast Growth
A number of equities analysts have weighed in on MGPI shares. Wells Fargo & Company decreased their target price on MGP Ingredients from $22.00 to $17.00 and set an “overweight” rating on the stock in a research note on Monday, October 5th. Roth Capital dropped their price target on MGP Ingredients from $32.00 to $30.00 and set a “buy” rating for the company in a research report on Friday, October 16th. Weiss Ratings reissued a “sell (d-)” rating on shares of MGP Ingredients in a report on Friday, July 31st. Finally, TD Cowen boosted their price objective on MGP Ingredients from $18.00 to $20.00 and gave the stock a “hold” rating in a report on Thursday, July 30th. 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 company. Based on data from MarketBeat, the company has a consensus rating of “Hold” and an average price target of $25.50.
Get Our Latest Research Report on MGP Ingredients
Insider Activity
In other news, 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 transaction, the insider directly owned 550,458 shares in the company, valued at approximately $9,776,134.08. This represents a 5.66% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Leslie Lux sold 27,731 shares of the firm’s stock in a transaction dated Wednesday, September 16th. The shares were sold at an average price of $14.40, for a total value of $399,326.40. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 31.70% of the company’s stock.
MGP Ingredients Company Profile
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.
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