MGP Ingredients Reports Third Quarter 2026 Results
ATCHISON, Kan.--( BUSINESS WIRE)--MGP Ingredients, Inc. (Nasdaq: MGPI), a leading provider of branded and distilled spirits and food ingredient solutions, which will change its name to Sempreon, Inc. and its ticker symbol to CASK on November 2, 2026, today reported results for the third quarter ended September 30, 2026. During the quarter, the company continued to execute against its strategic roadmap, reducing total debt by $28.4 million and delivering adjusted EBITDA and adjusted basic EPS ahead of its expectations.
Key Third Quarter Metrics
US$M, ex. per share
2026
2025
Consolidated sales
$117.9
$130.9
Gross profit
$40.5
$49.4
Gross margin
34.3%
37.8%
Net income
$6.9
$15.4
Adjusted net income
$8.6
$18.5
EPS, basic
$0.32
$0.71
Adjusted EPS, basic
$0.39
$0.85
Adjusted EBITDA
$21.5
$32.3
Capital expenditures, YTD
$11.0
$25.4
Net debt leverage ratio, as of 9.30.26
3.6x
1.8x
“Our third quarter results show that we are doing what we said we would do. Our cash flow from operations was $32 million during the quarter, and adjusted EBITDA, adjusted basic EPS and ending net leverage each came in better than our expectations. As a result, we are reaffirming guidance,” said Julie Francis, president and CEO. “In Branded Spirits, Penelope Bourbon sales grew 12% and our mid-priced brands grew 6%. Distilling Solutions continued to navigate an oversupplied market and Ingredient Solutions grew sales by 5%. As we become Sempreon on November 2, our focus remains on executing our strategic roadmap in each of our three businesses, supported by our financial discipline and our strong right to win.”
Consolidated Results
Third quarter 2026 versus prior year
Branded Spirits
Third quarter 2026 versus prior year
Key developments versus prior year
Distilling Solutions
Third quarter 2026 versus prior year
Key developments versus prior year
Ingredient Solutions
Third quarter 2026 versus prior year
Key developments versus prior year
2026 Financial Outlook
MGP reaffirmed its consolidated guidance for fiscal 2026:
Dividend Distribution
The company’s Board of Directors declared a dividend of $0.12 per share of common stock. The dividend is payable on November 27, 2026, to stockholders of record as of November 13, 2026.
Corporate Name Change and Ticker Change
As announced on October 15, 2026, the company’s name will change to Sempreon, Inc. and its Nasdaq ticker symbol will change to “CASK” effective November 2, 2026. The company’s CUSIP number will remain unchanged.
Conference Call and Webcast Information
MGP Ingredients will host a conference call today at 10 a.m. ET, October 28, 2026, to discuss the results, provide a general business update, and answer questions. Please visit the News and Events section of the company’s Investor Relations website to access the webcast. Investors can also dial (844) 308-6398 or (412) 717-9605 (international) to listen to the call. A replay will be available on the company’s website approximately 24 hours after the call concludes.
About MGP Ingredients, Inc.
MGP Ingredients Inc. (Nasdaq: MGPI) has been formulating excellence since 1941 by bringing product ideas to life across the alcoholic beverage and specialty ingredient industries through three segments: Branded Spirits, Distilling Solutions and Ingredient Solutions. MGPI is one of the leading spirits distillers with an award-winning portfolio of premium brands including Penelope, Rebel, Remus and Yellowstone bourbons and El Mayor tequila, under the Luxco umbrella. With distilleries in Indiana and Kentucky; a tequila distillery in Arandas, Mexico; and bottling operations in Missouri, Ohio and Northern Ireland, the company creates distilled spirits for customers including many world-renowned spirits brands. In addition, the company’s high-quality specialty fiber, protein and starch ingredients provide functional, nutritional and sensory solutions for a wide range of food products. On November 2, 2026, MGP Ingredients, Inc. will become Sempreon, Inc. To learn more visit MGPIngredients.com.
Cautionary Note Regarding Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation statements about the ability of MGP Ingredients, Inc. (the “Company” or “MGP”) to execute its roadmap; and the Company’s 2026 outlook, including its expectations for sales, adjusted EBITDA, adjusted basic earnings per share (“EPS”), shares outstanding, tax rate, and capital expenditures. Forward-looking statements are usually identified by or are associated with words such as “intend,” “plan,” “believe,” “estimate,” “expect,” “anticipate,” “project,” “forecast,” “hopeful,” “should,” “may,” “will,” “could,” “encouraged,” “opportunities,” “potential,” and similar terminology. These forward-looking statements reflect management’s current beliefs and estimates of future economic circumstances, industry conditions, Company performance, Company financial results, and Company financial condition and are not guarantees of future performance.
All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. Factors that could cause actual results to differ materially from our expectations include without limitation any effects of changes in consumer preferences and purchases and our ability to anticipate or react to those changes; our ability to compete effectively and any effects of industry dynamics and market conditions; unfavorable economic conditions; damage to our reputation or that of any of our key customers or their brands; failure to introduce successful new brands and products or have effective marketing or advertising; changes in public opinion about alcohol or our products; our reliance on our distributors to distribute our branded spirits; our reliance on fewer, more profitable customer relationships; interruptions in our operations or a catastrophic event at our facilities; decisions concerning the quantity of maturing stock of our aged distillate; any inability to successfully complete our capital projects or fund capital expenditures or any warehouse expansion issues; our reliance on a limited number of suppliers; work disruptions or stoppages; climate change and measures to address climate change; regulation and taxation and compliance with existing or future laws and regulations; tariffs, trade relations, and trade policies; excise taxes, incentives and customs duties; our ability to protect our intellectual property rights and defend against alleged intellectual property rights infringement claims; failure to secure and maintain listings in control states; labeling or warning requirements or limitations on the availability of our products; product recalls or other product liability claims; anti-corruption laws, trade sanctions, and restrictions; litigation or legal proceedings; limited rights of common stockholders and anti-takeover provisions in our governing documents; the impact of issuing shares of our common stock; higher costs or the unavailability and cost of raw materials, product ingredients, energy resources, or labor; failure of our information technology systems, networks, processes, associated sites, or service providers; inability to successfully implement our strategies; interest rate increases; reliance on key personnel; impairment charges; commercial, political, and financial risks; covenants and other provisions in our credit arrangements; pandemics or other health crises; ability to pay any dividends and make any share repurchases. For further information on these risks and uncertainties and other factors that could affect the Company’s business, see the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, and its Quarterly Report on Form 10-Q for the quarters ended March 31, June 30, and September 30, 2026, as well as the Company’s other SEC filings. The Company undertakes no obligation to update any forward-looking statements or information in this press release, except as required by law.
Non-GAAP Financial Measures
In addition to reporting financial information in accordance with U.S. GAAP, the Company provides certain non-GAAP financial measures that are not in accordance with, or alternatives for, GAAP. In addition to the comparable GAAP measures, the Company has disclosed adjusted selling, general, and administrative expenses (“SG&A”), adjusted operating income, adjusted income before income taxes, adjusted net income, adjusted MGP earnings, adjusted EBITDA, net debt, net debt leverage ratio, and adjusted basic and diluted EPS, as well as guidance for adjusted EBITDA and adjusted basic EPS. The presentation of these non-GAAP financial measures should be reviewed in conjunction with SG&A, operating income, income before income taxes, net income, net income used in earnings per common share calculation, debt, and basic and diluted EPS computed in accordance with U.S. GAAP and should not be considered a substitute for the GAAP measure. We believe that the non-GAAP measures provide useful information to investors regarding the Company's performance and overall results of operations. In addition, management uses these non-GAAP measures in conjunction with GAAP measures when evaluating the Company’s operating results compared to prior periods on a consistent basis, assessing financial trends, and for forecasting purposes. Non-GAAP financial measures may not provide information that is directly comparable to other companies, even if similar terms are used to identify such measures. The attached schedules provide a full reconciliation of historical non-GAAP financial measures to the most directly comparable U.S. GAAP financial measure. Full year 2026 guidance measures of adjusted EBITDA and adjusted basic EPS are provided on a non-GAAP basis without a reconciliation to the most directly comparable GAAP measures because the Company is unable to predict with a reasonable degree of certainty certain items contained in the GAAP measures without unreasonable efforts. Such items include without limitation, acquisition related expenses, restructuring and related expenses, and other items not reflective of the Company's ongoing operations.
MGP INGREDIENTS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (UNAUDITED)
(Dollars in thousands, except share and per share amounts)
Quarter Ended
September 30,
Year to Date Ended
September 30,
2026
2025
2026
2025
Sales
$
117,911
$
130,912
$
348,695
$
398,059
Cost of sales
77,452
81,479
228,183
246,909
Gross profit
40,459
49,433
120,512
151,150
Advertising and promotion expenses
6,408
6,691
18,282
21,776
Selling, general, and administrative expenses
21,520
18,926
62,823
63,287
Provision for credit loss
—
—
2,148
—
Impairment and other
514
—
180,791
—
Change in fair value of contingent consideration
—
2,800
—
25,500
Operating income (loss)
12,017
21,016
(143,532
)
40,587
Interest expense, net
(3,363
)
(1,739
)
(7,663
)
(5,490
)
Other income, net
281
428
530
957
Income (loss) before income taxes
8,935
19,705
(150,665
)
36,054
Income tax expense (benefit)
2,047
4,276
(34,755
)
9,255
Net income (loss)
6,888
15,429
(115,910
)
26,799
Attributable to noncontrolling interest
—
(7
)
3
25
Net income (loss) attributable to MGP Ingredients, Inc.
6,888
15,422
(115,907
)
26,824
Attributable to participating securities
(85
)
(190
)
(101
)
(322
)
Net income (loss) used in earnings per common share calculation
$
6,803
$
15,232
$
(116,008
)
$
26,502
Weighted average common shares
Basic
21,457,947
21,373,300
21,427,069
21,359,051
Diluted
21,457,947
21,373,300
21,427,069
21,359,051
Earnings per common share
Basic
$
0.32
$
0.71
$
(5.41
)
$
1.24
Diluted
$
0.32
$
0.71
$
(5.41
)
$
1.24
MGP INGREDIENTS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands)
September 30, 2026
December 31, 2025
ASSETS
Current Assets:
Cash and cash equivalents
$
13,601
$
18,460
Receivables, net
94,618
116,160
Inventory
400,979
382,741
Prepaid expenses
3,791
2,139
Refundable income taxes
—
3,209
Total current assets
512,989
522,709
Property, plant, and equipment
578,740
594,898
Less accumulated depreciation and amortization
(283,378
)
(266,911
)
Property, plant, and equipment, net
295,362
327,987
Operating lease right-of-use assets, net
10,217
13,847
Investment in joint venture
7,001
8,211
Intangible assets, net
205,265
244,696
Goodwill
—
115,667
Other assets
3,238
2,747
TOTAL ASSETS
$
1,034,072
$
1,235,864
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Current maturities of long-term debt
$
6,400
$
6,400
Accounts payable
42,311
54,589
Contingent consideration
—
110,800
Federal and state excise taxes payable
1,899
5,755
Income taxes payable
4,215
—
Accrued expenses and other
19,405
22,507
Total current liabilities
74,230
200,051
Long-term debt, less current maturities
138,414
49,735
Convertible senior notes
196,422
196,183
Long-term operating lease liabilities
7,322
10,561
Other noncurrent liabilities
3,213
2,534
Deferred income taxes
17,497
60,010
Total liabilities
437,098
519,074
Total equity
596,974
716,790
TOTAL LIABILITIES AND TOTAL EQUITY
$
1,034,072
$
1,235,864
MGP INGREDIENTS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Dollars in thousands)
Year to Date Ended September 30,
2026
2025
Cash Flows from Operating Activities
Net income (loss)
$
(115,910
)
$
26,799
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization
19,069
17,824
Goodwill and other long-lived assets impairment
179,526
—
Share-based compensation
4,002
3,320
Equity method investment gain
(290
)
(869
)
Deferred income taxes, including change in valuation allowance
(42,729
)
(25
)
Change in fair value of contingent consideration
—
25,500
Payment of contingent consideration
(48,700
)
—
Other, net
803
594
Changes in operating assets and liabilities:
Receivables, net
21,494
41,699
Inventory
(18,191
)
(19,935
)
Prepaid expenses
(1,419
)
(163
)
Income taxes payable
7,424
1,442
Accounts payable
(8,172
)
(8,446
)
Accrued expenses and other
(2,521
)
7,689
Federal and state excise taxes payable
(3,856
)
(2,906
)
Other, net
610
(74
)
Net cash provided by (used in) operating activities
(8,860
)
92,449
Cash Flows from Investing Activities
Additions to property, plant, and equipment
(14,878
)
(40,674
)
Distributions from equity method investment
1,500
—
Other, net
168
(14
)
Net cash used in investing activities
(13,210
)
(40,688
)
Cash Flows from Financing Activities
Payment of dividends and dividend equivalents
(7,797
)
(7,739
)
Repurchase of Common Stock
(921
)
(1,035
)
Loan fees paid related to borrowings
—
(2,712
)
Proceeds from long-term debt
145,000
28,000
Principal payments on long-term debt
(56,800
)
(80,800
)
Payment of contingent consideration
(62,100
)
—
Net cash provided by (used in) financing activities
17,382
(64,286
)
Effect of exchange rate changes on cash and cash equivalents
(171
)
699
Decrease in cash and cash equivalents
(4,859
)
(11,826
)
Cash and cash equivalents, beginning of period
18,460
25,273
Cash and cash equivalents, end of period
$
13,601
$
13,447
MGP INGREDIENTS, INC.
RECONCILIATION OF SELECTED GAAP MEASURES TO ADJUSTED NON-GAAP MEASURES (UNAUDITED)
(in thousands, except per share amounts)
Quarter Ended September 30, 2026
SG&A
Operating Income
Income before Income Taxes
Net Income
MGP Earnings (a)
Basic and Diluted EPS
Reported GAAP Results
$
21,520
$
12,017
$
8,935
$
6,888
$
6,803
$
0.32
Adjusted to remove:
Impairment and other (b)
—
514
514
441
436
0.02
Executive transition costs (c)
(609
)
609
609
523
517
0.02
Professional service fees (d)
(21
)
21
21
18
18
—
Restructuring and other costs (e)
(821
)
821
821
705
696
0.03
Adjusted Non-GAAP results
$
20,069
$
13,982
$
10,900
$
8,575
$
8,470
$
0.39
Quarter Ended September 30, 2025
SG&A
Operating Income
Income before Income Taxes
Net Income
MGP Earnings (a)
Basic and Diluted EPS
Reported GAAP Results
$
18,926
$
21,016
$
19,705
$
15,429
$
15,232
$
0.71
Adjusted to remove:
Executive transition costs (c)
(1,143
)
1,143
1,143
895
885
0.04
Fair value of contingent consideration (g)
—
2,800
2,800
2,192
2,169
0.10
Adjusted Non-GAAP results
$
17,783
$
24,959
$
23,648
$
18,516
$
18,286
$
0.85
Year to Date Ended September 30, 2026
SG&A
Operating Income (loss)
Income (loss) before Income Taxes
Net Income (loss)
MGP Earnings (a)
Basic and Diluted EPS
Reported GAAP Results
$
62,823
$
(143,532
)
$
(150,665
)
$
(115,910
)
$
(116,008
)
$
(5.41
)
Adjusted to remove:
Impairment and other (b)
—
180,791
180,791
138,594
138,594
6.47
Executive transition costs (c)
(1,314
)
1,314
1,314
1,194
1,194
0.06
Professional service fees (d)
(271
)
271
271
246
246
0.01
Restructuring and other costs (e)
(3,062
)
3,062
3,062
2,781
2,781
0.13
Income tax items (f)
—
—
—
747
747
0.03
Adjusted Non-GAAP results
$
58,176
$
41,906
$
34,773
$
27,652
$
27,554
$
1.29
Year to Date Ended September 30, 2025
SG&A
Operating Income
Income before Income Taxes
Net Income
MGP Earnings (a)
Basic and Diluted EPS
Reported GAAP Results
$
63,287
$
40,587
$
36,054
$
26,799
$
26,502
$
1.24
Adjusted to remove:
Fair value of contingent consideration (g)
—
25,500
25,500
18,947
18,736
0.88
Professional service fees (d)
(382
)
382
382
284
281
0.01
Executive transition costs (c)
(1,825
)
1,825
1,825
1,356
1,341
0.06
Restructuring and other costs (e)
(613
)
613
613
455
450
0.02
Adjusted Non-GAAP results
$
60,467
$
68,907
$
64,374
$
47,841
$
47,310
$
2.21
MGP INGREDIENTS, INC.
DESCRIPTION OF NON-GAAP ITEMS
(a)
MGP Earnings is defined as "Net income used in Earnings Per Common Share calculation," which accounts for the impacts of the earnings attributable to noncontrolling interest and earnings attributable to participating securities.
(b)
Impairment and other relates to the first quarter of 2026 write-down of goodwill, indefinite-lived intangible assets and other long-lived assets as well as expenses incurred related to the idled Kentucky facilities. It is included in the Condensed Consolidated Statement of Income (Loss) as a component of operating income and relates to the Branded Spirits segment.
(c)
The executive transition costs are included in the Condensed Consolidated Statement of Income (Loss) within the selling, general, and administrative line item. The adjustment includes costs related to the transition of certain executive and board of director positions.
(d)
The professional services fees are included in the Condensed Consolidated Statement of Income (Loss) within the selling, general, and administrative line item. The adjustment includes costs related to professional services in conjunction with the goodwill and indefinite-lived intangible assets impairment valuation.
(e)
The restructuring and other costs are included in the Condensed Consolidated Statement of Income (Loss) within the selling, general, and administrative line item. The adjustment includes special one-time severance costs related to the reduction in force that occurred during the period and other special project costs related to the corporate name change.
(f)
Income tax items are included in the Condensed Consolidated Statement of Income (Loss) within the income tax expenses. The adjustment relates to the impacts of state law changes on the Company’s deferred tax balances.
(g)
Fair value of contingent consideration relates to the quarterly adjustment of the contingent consideration liability related to the acquisition of Penelope Bourbon LLC. It is included in the Condensed Consolidated Statement of Income (Loss) as a component of operating income and relates to the Branded Spirits segment.
MGP INGREDIENTS, INC.
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA (UNAUDITED)
(in thousands)
Quarter Ended
September 30,
Year to Date Ended
September 30,
2026
2025
2026
2025
Net income (loss)
$
6,888
$
15,429
$
(115,910
)
$
26,799
Interest expense
3,363
1,739
7,663
5,490
Income tax expense (benefit)
2,047
4,276
(34,755
)
9,255
Depreciation and amortization
6,418
6,186
19,069
17,824
Share based compensation (a)
1,388
1,057
3,629
3,087
Equity method investment gain
(140
)
(375
)
(290
)
(869
)
Executive transition costs
609
1,143
1,314
1,825
Restructuring and other costs
821
—
3,062
613
Impairment and other (b)
71
—
180,053
—
Professional service fees
21
—
271
382
Fair value of contingent consideration
—
2,800
—
25,500
Adjusted EBITDA
$
21,486
$
32,255
$
64,106
$
89,906
(a)
This amount excludes share based compensation related to executive transition costs and one-time severance costs (benefits).
(b)
This amount excludes depreciation expense related to the idled facility as it is included in depreciation and amortization expense.
The non-GAAP adjusted EBITDA measure is defined as earnings before interest expense, income tax expense (benefit), depreciation and amortization, share based compensation, equity method investment gain, executive transition costs, restructuring and other costs, impairment and other, fair value of contingent consideration, and professional service fees.
See "Reconciliation of selected GAAP measure to adjusted non-GAAP measures" for further details on selected non-GAAP items.
MGP INGREDIENTS, INC.
NET DEBT LEVERAGE RATIO (UNAUDITED)
(in thousands)
Quarter Ended
December 31,
2025
Quarter Ended
March 31,
2026
Quarter Ended
June 30,
2026
Quarter Ended
September 30,
2026
TTM (a)
September 30,
2026
Net income (loss)
$
(134,631
)
$
(134,807
)
$
12,009
$
6,888
$
(250,541
)
Interest expense
1,554
1,421
2,879
3,363
9,217
Income tax expense (benefit)
(1,773
)
(39,865
)
3,063
2,047
(36,528
)
Depreciation and amortization
6,262
6,265
6,386
6,418
25,331
Share based compensation (c)
1,129
923
1,318
1,388
4,758
Equity method investment loss (gain)
(318
)
19
(169
)
(140
)
(608
)
Impairment and other (d)
152,622
179,526
456
71
332,675
Professional service fees
113
—
250
21
384
Executive transition costs
953
333
372
609
2,267
Restructuring and other costs
190
1,197
1,044
821
3,252
Adjusted EBITDA
$
26,101
$
15,012
$
27,608
$
21,486
$
90,207
Total debt
$
341,236
Cash and cash equivalents
13,601
Net debt
$
327,635
Net debt leverage ratio (b)
3.6
(a)
TTM is defined as trailing twelve months.
(b)
Net debt leverage ratio is defined as net debt divided by adjusted EBITDA.
(c)
This amount excludes share based compensation related to executive transition costs and one-time severance costs (benefits).
(d)
This amount excludes depreciation expense related to the idled facility as it related to depreciation and amortization expense.
See "Reconciliation of selected GAAP measure to adjusted non-GAAP measures" for further details on selected non-GAAP items.
MGP INGREDIENTS, INC.
OPERATING SEGMENT RESULTS (UNAUDITED)
(Dollars in thousands)
BRANDED SPIRITS
Quarter Ended
September 30,
Quarter versus Quarter Change Increase/(Decrease)
2026
2025
$ Change
% Change
Premium plus
$
31,871
$
32,119
$
(248
)
(1
)%
Mid
15,661
14,835
826
6
Value
7,612
8,170
(558
)
(7
)
Other
3,054
5,624
(2,570
)
(46
)
Total Branded Spirits Sales
$
58,198
$
60,748
$
(2,550
)
(4
)%
Gross profit
$
29,219
$
32,220
$
(3,001
)
(9
)%
Gross margin %
50.2
%
53.0
%
(2.8
)
pp (a)
Operating income
$
15,128
$
14,751
$
377
3
%
Depreciation and amortization
$
2,145
$
2,157
$
(12
)
(1
)%
DISTILLING SOLUTIONS
Quarter Ended
September 30,
Quarter versus Quarter Change Increase/(Decrease)
2026
2025
$ Change
% Change
Brown goods
$
14,976
$
28,512
$
(13,536
)
(47
)%
Warehouse services
8,266
8,052
214
3
White goods and other co-products
5,718
4,317
1,401
32
Total Distilling Solutions Sales
$
28,960
$
40,881
$
(11,921
)
(29
)%
Gross profit
$
9,394
$
14,200
$
(4,806
)
(34
)%
Gross margin %
32.4
%
34.7
%
(2.3
)
pp (a)
Operating income
$
8,723
$
13,304
$
(4,581
)
(34
)%
Depreciation and amortization
$
1,748
$
2,041
$
(293
)
(14
)%
INGREDIENT SOLUTIONS
Quarter Ended
September 30,
Quarter versus Quarter Change Increase / (Decrease)
2026
2025
$ Change
% Change
Specialty wheat starches
$
14,888
$
16,965
$
(2,077
)
(12
)%
Specialty wheat proteins
10,278
8,905
1,373
15
Commodity wheat starches
2,663
2,317
346
15
Commodity wheat proteins
924
993
(69
)
(7
)
Biofuel and other
2,000
103
1,897
1,842
Total Ingredient Solutions Sales
$
30,753
$
29,283
$
1,470
5
%
Gross profit
$
1,846
$
3,013
$
(1,167
)
(39
)%
Gross margin %
6.0
%
10.3
%
(4.3
)
pp (a)
Operating income
$
1,131
$
1,809
$
(678
)
(37
)%
Depreciation and amortization
$
2,167
$
1,635
$
532
33
%
(a)
Percentage points (“pp”).
MGP INGREDIENTS, INC.
OPERATING SEGMENT RESULTS (UNAUDITED)
(Dollars in thousands)
BRANDED SPIRITS
Year to Date Ended
September 30,
Year to Date versus Year to Date Sales Change Increase/(Decrease)
2026
2025
$ Change
% Change
Premium plus
$
87,167
$
85,536
$
1,631
2
%
Mid
45,129
43,355
1,774
4
Value
22,439
24,447
(2,008
)
(8
)
Other
7,330
16,157
(8,827
)
(55
)
Total Branded Spirits Sales
$
162,065
$
169,495
$
(7,430
)
(4
)%
Gross profit
$
81,951
$
86,402
$
(4,451
)
(5
)%
Gross margin %
50.6
%
51.0
%
(0.4
)
pp (a)
Operating income (loss)
$
(142,038
)
$
14,342
$
(156,380
)
(1,090
)%
Depreciation and amortization
$
6,448
$
6,442
$
6
—
%
DISTILLING SOLUTIONS
Year to Date Ended
September 30,
Year to Date versus Year to Date Sales Change Increase/(Decrease)
2026
2025
$ Change
% Change
Brown goods
$
44,145
$
97,225
$
(53,080
)
(55
)%
Warehouse services
25,180
24,130
1,050
4
White goods and other co-products
16,855
16,469
386
2
Total Distilling Solutions Sales
$
86,180
$
137,824
$
(51,644
)
(37
)%
Gross profit
$
29,321
$
51,692
$
(22,371
)
(43
)%
Gross margin %
34.0
%
37.5
%
(3.5
)
pp (a)
Operating income
$
27,143
$
48,927
$
(21,784
)
(45
)%
Depreciation and amortization
$
5,313
$
6,121
$
(808
)
(13
)%
INGREDIENT SOLUTIONS
Year to Date Ended
September 30,
Year to Date versus Year to Date Sales Change Increase/(Decrease)
2026
2025
$ Change
% Change
Specialty wheat starches
$
52,193
$
51,292
$
901
2
%
Specialty wheat proteins
35,735
28,865
6,870
24
Commodity wheat starches
7,950
8,097
(147
)
(2
)
Commodity wheat proteins
1,383
2,383
(1,000
)
(42
)
Biofuel and other
3,189
103
3,086
2,996
Total Ingredient Solutions Sales
$
100,450
$
90,740
$
9,710
11
%
Gross profit
$
9,240
$
13,056
$
(3,816
)
(29
)%
Gross margin %
9.2
%
14.4
%
(5.2
)
pp (a)
Operating income
$
6,768
$
9,107
$
(2,339
)
(26
)%
Depreciation and amortization
$
6,244
$
4,213
$
2,031
48
%
(a)
Percentage points (“pp”).
MGP INGREDIENTS, INC.
DILUTIVE SHARES OUTSTANDING CALCULATION (UNAUDITED)
Quarter Ended
September 30,
Year to Date Ended
September 30,
2026
2025
2026
2025
Principal amount of the bonds
$
201,250,000
$
201,250,000
$
201,250,000
$
201,250,000
Par value
$
1,000
$
1,000
$
1,000
$
1,000
Number of bonds outstanding (a)
201,250
201,250
201,250
201,250
Initial conversion rate
10.3911
10.3911
10.3911
10.3911
Conversion price
$
96.23620
$
96.23620
$
96.23620
$
96.23620
Average share price (b)
$
16.55156
$
28.99063
$
18.98037
$
30.67755
Impact of conversion (c)
$
—
$
—
$
—
$
—
Cash paid for principal
(201,250,000
)
(201,250,000
)
(201,250,000
)
(201,250,000
)
Conversion premium
$
—
$
—
$
—
$
—
Average share price
$
16.55156
$
28.99063
$
18.98037
$
30.67755
Conversion premium in shares (d) (e)
—
—
—
—
(a)
Number of bonds outstanding is calculated by taking the principal amount of the bonds divided by the par value.
(b)
Average share price is calculated by taking the average of the daily closing share price for the period. If the average share price is less than the conversion price of $96.23620 per share, the impact to EPS is anti-dilutive and therefore the shares were excluded from the diluted EPS calculation.
(c)
Impact of conversion is calculated by taking the number of bonds outstanding multiplied by the initial conversion rate multiplied by the average share price. If the average share price is less than the conversion price then the impact of conversion is zero.
(d)
The impacts of the Convertible Senior Notes are included in the diluted weighted average common shares outstanding if the impact is dilutive. The Convertible Senior Notes would only have a dilutive impact if the average market price per share during the quarter exceed the conversion price of $96.23620 per share.
(e)
Conversion premium in shares is calculated by taking the conversion premium divided by the average share price. If the average share price is less than the conversion price, then the conversion premium in shares is zero.