MGP Ingredients | 8-K: FY2026 Q2 Revenue Beats Estimate at USD 124.36 M

Revenue: As of FY2026 Q2, the actual value is USD 124.36 M, beating the estimate of USD 123.86 M.

EPS: As of FY2026 Q2, the actual value is USD 0.55, beating the estimate of USD 0.43.

EBIT: As of FY2026 Q2, the actual value is USD 17.95 M.

Consolidated Financial Performance (Second Quarter Ended June 30, 2026 vs. 2025)

Profitability

• Gross profit was $46.5 million in Q2 2026, down from $58.4 million in Q2 2025, a 20% decrease.
• Gross margin decreased to 37.4% in Q2 2026 from 40.1% in Q2 2025, a decline of approximately 270 basis points.
• Net income for Q2 2026 was $12.0 million, compared to $14.4 million in Q2 2025.
• Adjusted net income was $15.8 million in Q2 2026, down from $20.9 million in Q2 2025.
• Operating income decreased to $17.7 million in Q2 2026.
• Adjusted operating income decreased by 30% to $20.1 million.
• Adjusted EBITDA decreased by 23% to $27.6 million in Q2 2026 from $35.9 million in Q2 2025.

Operational Costs

• Advertising and promotion expenses decreased 18% to $5.7 million.
• Selling, general and administrative (SG&A) expense declined 13%.
• Adjusted SG&A decreased 19% and represented 15% of consolidated sales.
• A provision for credit loss of $2.1 million was recorded in Q2 2026, compared to none in Q2 2025.

Balance Sheet and Cash Flow Metrics

• Year-to-date capital expenditures were $6.4 million in 2026, significantly lower than $18.7 million in 2025.
• The net debt leverage ratio as of June 30, 2026, was 3.5x, an increase from 1.8x as of June 30, 2025.
• Net cash used in operating activities year-to-date was - $40,732 thousand in 2026, a decrease from $56,357 thousand provided in 2025.
• Net cash used in investing activities year-to-date was - $8,397 thousand in 2026, compared to - $32,167 thousand in 2025.

Segment Performance (Second Quarter Ended June 30, 2026 vs. 2025)

Branded Spirits

• Sales decreased 1% to $59.6 million from $60.5 million.
• Gross profit decreased 1% to $31.6 million from $32.0 million.
• Gross margin increased by 20 basis points to 53.0% from 52.8%.
• Premium plus sales increased by 5%, with Penelope Bourbon sales up 13% and mid-priced offerings growing 5%.
• Operating income increased 74% to $15.2 million from $8.7 million.

Distilling Solutions

• Sales decreased 42% to $29.2 million from $50.0 million.
• Gross profit decreased 40% to $11.3 million from $18.8 million.
• Gross margin increased by 110 basis points to 38.7% from 37.6%.
• Brown goods sales declined 59% due to lower demand for aged and new distillate whiskey.
• Warehouse services revenue increased by high-single digits.
• Operating income decreased 40% to $10.6 million from $17.7 million.

Ingredient Solutions

• Sales increased 2% to $35.5 million from $35.0 million, primarily driven by favorable price and mix of specialty wheat proteins and starches, and increased sales of biofuel and other byproducts.
• Gross profit decreased 53% to $3.6 million from $7.6 million.
• Gross margin decreased to 10.1% from 21.7%.
• Higher waste starch stream costs pressured profitability despite improvements in operational reliability.
• Operating income decreased 57% to $2.7 million from $6.3 million.

2026 Financial Outlook

MGP Ingredients, Inc. reaffirmed its consolidated guidance for fiscal year 2026, projecting sales in the range of $480 million to $500 million. Adjusted EBITDA is expected to be between $90 million to $98 million, and adjusted basic EPS is anticipated to be in the $1.50 to $1.80 range. Full-year capital expenditures are expected to be approximately $20 million, with the effective tax rate anticipated around 23%.

Other Metrics

• The company’s Board of Directors declared a quarterly dividend of $0.12 per share of common stock.