MGP Ingredients reported second-quarter 2026 results with consolidated sales of $124.4 million and adjusted EBITDA of $27.6 million; adjusted basic EPS was $0.72 and GAAP net income was $12.0 million. The company reaffirmed full-year 2026 guidance for sales of $480–500 million, adjusted EBITDA of $90–98 million and adjusted basic EPS of $1.50–1.80. The board declared a quarterly dividend of $0.12 per share payable August 28, 2026.

Financial Highlights

  • Revenue (Consolidated sales): $124.4 million for Q2 2026 (Q2 2025: $145.5 million).
  • Gross profit: $46.5 million for Q2 2026; consolidated gross margin 37.4% (Q2 2025 gross profit $58.4 million; margin 40.1%).
  • Operating income: $17.7 million for Q2 2026 (reported operating income).
  • Net income: $12.0 million for Q2 2026; basic earnings per share $0.55. Adjusted net income: $15.8 million; adjusted basic EPS $0.72.
  • Adjusted EBITDA: $27.6 million for Q2 2026. Capital expenditures year-to-date: $6.4 million; net debt leverage ratio as of 6/30/26: 3.5x.

Business Highlights

  • Branded Spirits: Sales of $59.6 million (down 1% year-over-year) with premium plus portfolio momentum—Penelope Bourbon up 13% and Yellowstone showing significant growth driven by a limited-edition offering; premium plus sales increased 5% excluding private label bottled products.
  • Distilling Solutions: Sales decreased to $29.2 million (down 42% year-over-year) driven by a 59% decline in brown goods as demand for aged and new distillate whiskey softened; warehouse services revenue grew by high-single digits due to expanded offerings.
  • Ingredient Solutions: Sales increased 2% to $35.5 million with growth in specialty wheat proteins and starches and increased sales of biofuel and byproducts; profitability was pressured by higher waste starch stream costs, lowering gross margin to 10.1% from 21.7% year-over-year.
  • Operational initiatives: Continued rollout of an ownership cost management initiative to eliminate waste and drive efficiencies, alongside strengthening sales, marketing and supply chain functions to address growth opportunities.
  • Corporate actions and one-time items: First-quarter impairments related to goodwill and indefinite-lived intangible assets and actions tied to idled Kentucky facilities were recorded; the company also recorded a provision for credit loss related to a customer bankruptcy during the quarter.

Original SEC Filing:

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