MGP Ingredients, Inc. (MGPI) Q3 2025 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 29 2025
0mins
Should l Buy MGPI?
Source: SeekingAlpha
Consolidated Sales Declined 19% year-over-year due to growth in premium plus portfolio and higher specialty ingredient sales being offset by declines in brown goods and mid- to value brands.
Adjusted EBITDA Declined to $32 million, reflecting a decrease of 29% year-over-year. This was due to lower gross profits but was above expectations due to favorable mix improvements, pricing discipline, and productivity initiatives.
Adjusted Basic Earnings Per Share Reached $0.85, a decrease of 34% year-over-year, attributed to lower operating results.
Operating Cash Flows Increased 26% year-over-year to $93 million, driven by strong cash generation and effective working capital management.
Branded Spirits Segment Sales Decreased by 3% year-over-year. Premium plus sales showed positive growth, driven by Penelope Bourbon, but were offset by a 7% decline in mid and value brands.
Distilling Solutions Segment Sales Declined by 43% year-over-year, with brown goods sales decreasing by 50%. However, year-to-date sales and margins were better than initial outlook due to higher aged whiskey sales and proactive customer partnerships.
Ingredient Solutions Segment Sales Increased by 9% year-over-year, driven by higher specialty and commodity wheat protein sales. However, gross profit declined by 36% due to equipment outages and operational reliability issues.
Gross Margin Declined by 300 basis points to 37.8%, primarily due to lower gross profits in the Distilling Solutions and Ingredient Solutions segments.
SG&A Expenses Increased by 10% year-over-year, but adjusted SG&A increased by only 4%. Excluding incentive accrual reinstatement, adjusted SG&A was down 9%, reflecting productivity initiatives.
Advertising and Promotion Expenses Declined by 31% year-over-year as spending was realigned to focus on the most attractive growth opportunities.
Net Income Decreased to $15 million, a decline of 36% year-over-year, primarily due to lower operating results.
Capital Expenditures Reduced by more than 50% year-over-year to $7 million for the quarter and $25 million year-to-date, reflecting streamlined capital expenditures.
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Analyst Views on MGPI
Wall Street analysts forecast MGPI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MGPI is 34.75 USD with a low forecast of 24.00 USD and a high forecast of 45.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
3 Buy
1 Hold
0 Sell
Strong Buy
Current: 25.860
Low
24.00
Averages
34.75
High
45.00
Current: 25.860
Low
24.00
Averages
34.75
High
45.00
About MGPI
MGP Ingredients, Inc. is a producer of branded and distilled spirits, as well as food ingredient solutions. Its offerings include bourbon and rye whiskeys, gins, and vodkas. It operates through three segments: Distilling Solutions, Branded Spirits, and Ingredient Solutions. Its Distilling Solutions Segment processes corn and other grains (including rye, barley, wheat, barley malt, and milo) into food-grade alcohol and distillery co-products, such as distillers feed, which are produced at its distilleries in Lawrenceburg, Indiana, and Bardstown, Kentucky. Branded Spirits segment consists of a portfolio of brands, which it produces through its distilleries and bottling facilities and sells to distributors or to state governments that directly control the sale of alcohol. Its Ingredient Solutions segment consists of specialty wheat starches, specialty wheat proteins, commodity wheat starches, and commodity wheat protein products which are sold to customers pursuant to purchase orders.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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