--- title: "MGP Ingredients | 8-K: FY2026 Q2 Revenue Beats Estimate at USD 124.36 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/294200507.md" datetime: "2026-07-29T11:32:36.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/294200507.md) - [en](https://longbridge.com/en/news/294200507.md) - [zh-HK](https://longbridge.com/zh-HK/news/294200507.md) --- # 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. ### Related Stocks - [MGPI.US](https://longbridge.com/en/quote/MGPI.US.md) ## Related News & Research - [MGPI: Q2 2026 sales fell 15% year-over-year, but premium brands and cost controls drove solid adjusted results](https://longbridge.com/en/news/294206701.md) - [MGP Ingredients (NASDAQ:MGPI) Posts Earnings Results, Beats Expectations By $0.23 EPS](https://longbridge.com/en/news/294236843.md) - [MGP Ingredients (NASDAQ:MGPI) Shares Pass Below 200 Day Moving Average - Time to Sell?](https://longbridge.com/en/news/280742866.md) - [MGP Ingredients, Inc. (NASDAQ:MGPI) Given Average Recommendation of "Hold" by Analysts](https://longbridge.com/en/news/293442507.md) - [MGP Ingredients Reports First Quarter 2026 Results | MGPI Stock News](https://longbridge.com/en/news/284559938.md)