MGP Ingredients, Inc. reported fourth‑quarter and full‑year 2025 results on February 25, 2026, showing consolidated sales of $536.4 million, a 24% decline from the $703.6 million recorded in 2024. Adjusted EBITDA fell 41% to $116.0 million, and adjusted basic earnings per share dropped 49% to $2.85. The company’s record operating cash flow of $121.5 million was offset by a significant goodwill impairment charge that pushed net loss higher for the year.
In the quarter, MGP’s consolidated sales were $138.3 million, down 23% from $180.8 million in Q4 2024. Adjusted EPS of $0.63 beat the consensus estimate of $0.49 by $0.14, a 28.6% surprise, while revenue beat the $134.9 million estimate by $3.4 million. Gross profit margin contracted 630 basis points to 34.9% from 35.9% in the prior year, driven by lower brown‑goods volumes, equipment outages, and higher waste‑starch disposal costs. Distilling Solutions sales fell 47% in the quarter, whereas Ingredient Solutions saw improved operational reliability and Branded Spirits continued to grow, especially the premium‑plus portfolio.
For the full year, sales declined 24% to $536.4 million, and gross profit dropped 30% to $199.4 million. Adjusted EBITDA of $116.0 million represented a 41% decline, and adjusted basic EPS of $2.85 was 49% lower than the $5.00 reported in 2024. The goodwill impairment charge of $1.2 million contributed to the net loss, but the company’s cash‑flow generation remained strong. MGP’s record operating cash flow of $121.5 million underscored its ability to manage working capital amid declining sales.
Management guided for full‑year 2026 sales of $480 million to $500 million and adjusted basic EPS of $1.50 to $1.80, both below the consensus estimates of $2.29 for EPS and $520 million for sales. The lower guidance reflects continued pressure from elevated whiskey inventories in the Distilling Solutions segment and the need to invest in operational reliability in Ingredient Solutions. MGP expects the branded‑spirits segment to remain a growth driver, and it highlighted accelerated productivity and cost discipline as a partial offset to the headwinds.
Investors reacted cautiously to the results, focusing on the lower forward guidance, the significant year‑over‑year revenue decline, the goodwill impairment charge, and the persistent challenges in the Distilling Solutions business. The market’s attention to these factors indicates concern about near‑term growth prospects despite the earnings beat.
"2025 was a year of deliberate repositioning for MGP," said Julie Francis, president and CEO. "I am pleased with the team's efforts as we did what we said we will do and made meaningful progress against each of the five initiatives we outlined at the start of the year, advanced our key priorities, and delivered full-year financial results above our prior expectations." She added, "From an industry standpoint, we believe that elevated inventory levels will continue to pressure our brown goods business in the near‑term. However, we expect improved operational reliability in the Ingredient Solutions segment, continued premium plus momentum, and accelerated productivity and cost discipline to help partially offset these headwinds – all of those are reflected in our 2026 guidance." She concluded, "As we look ahead, we believe our enhanced strategic clarity, decisive actions, and disciplined execution will position the company to deliver sustained growth off of our 2026 guidance expectations. Many of these actions are well underway, and they are already changing how we operate, giving us confidence that MGP will emerge better aligned, more resilient, and well positioned for long‑term value creation."
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