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
4 Analyst Rating
3 Buy
1 Hold
0 Sell
Strong Buy
Current: 25.800
Low
24.00
Averages
34.75
High
45.00
Current: 25.800
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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- Earnings Release Schedule: MGP Ingredients will report its Q4 and full-year 2025 results on February 25, 2025, at 10 a.m. ET, with expectations to release financials before market open, reflecting the company's commitment to transparency and investor communication.
- Management Conference Call: The management team, including President and CEO Julie Francis and CFO Brandon Gall, will hold a conference call to discuss the results, indicating the company's desire to enhance investor confidence through direct communication.
- Investor Access Options: Investors can join the call by dialing 844-308-6398 (domestic) or 412-717-9605 (international), and a replay will be available post-call, ensuring all investors can access key information.
- Company Background: Founded in 1941, MGP Ingredients focuses on the alcoholic beverage and specialty ingredient sectors, boasting a portfolio of renowned brands, which underscores its market leadership and ongoing innovation capabilities.
See More
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- Management Conference Call: The management team, including President and CEO Julie Francis and CFO Brandon Gall, will hold a conference call to discuss the financial results, enhancing investor engagement and trust in the company's leadership.
- Investor Access Channels: Investors can access the live webcast through the company's Investor Relations website or dial in via domestic and international numbers, ensuring broad dissemination and accessibility of information.
- Company Background Overview: Since 1941, MGP Ingredients has focused on the alcoholic beverage and specialty ingredient sectors, boasting a portfolio of renowned brands and multiple distilleries, showcasing its leadership and innovation in the industry.
See More
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- Flavor Profile: The whiskey combines classic root beer flavors of sassafras, vanilla, and licorice with aged bourbon notes of caramel and honey, aiming to provide a unique drinking experience that enhances the brand's market competitiveness.
- Marketing Promotion: The distinctive label design and 'Shoot the Root' branding will be promoted through merchandise giveaways and chilled pour machines, aiming to boost consumer engagement and brand awareness.
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- Pricing Strategy: Rebel Root Beer Whiskey is launched at a suggested retail price of $19.99 for a 750mL bottle and $0.99 for a 50mL bottle, aiming to attract a broader consumer base through competitive pricing and strengthen market presence.
- Marketing Activation: The product's distinctive label and “Shoot the Root” branding will engage consumers through merchandise giveaways and shot machines, likely increasing brand interaction and customer loyalty.
- Industry Recognition: Other Rebel Bourbon products have received multiple industry awards in 2025, including “Single Barrel American Whiskey of the Year,” which will further enhance consumer trust and anticipation for the new product.
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MGP Ingredients Board Transition: Julie Francis Appointed Director
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- New Director Appointment: Julie Francis will join the Board on December 15, 2025, and as the current CEO, her addition is expected to enhance the Board's strategic focus and leadership, aiding in the execution of the company's long-term strategy.
- Leadership Succession: Seaberg noted that her retirement comes at a time of significant progress in attracting and retaining leadership talent, reflecting the company's robustness and foresight in its ongoing development.
- Long-term Value Creation: Francis emphasized the commitment to advancing MGP's strong heritage and long-term strategy, aiming to create lasting value for all stakeholders, which underscores the company's confidence and commitment to future growth.
See More
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- Small-Cap Changes: The S&P SmallCap 600 will remove several companies, such as SPX Technologies and Dycom Industries, indicating these firms no longer represent the small-cap market, which may influence asset allocation strategies for investors.
- Mid-Cap Updates: The S&P MidCap 400 will add companies like UL Solutions and Pinterest, enhancing its representation in the industrial and communication services sectors, potentially attracting more mid-cap investors.
- Market Impact: These adjustments will affect investment portfolios across multiple sectors, particularly in materials and consumer goods, prompting investors to monitor the potential implications for market liquidity and sector performance.
See More
MGP Ingredients to Report Q4 and Full Year 2025 Results
- Earnings Release Schedule: MGP Ingredients will report its Q4 and full-year 2025 results on February 25, 2025, at 10 a.m. ET, with expectations to release financials before market open, reflecting the company's commitment to transparency and investor communication.
- Management Conference Call: The management team, including President and CEO Julie Francis and CFO Brandon Gall, will hold a conference call to discuss the results, indicating the company's desire to enhance investor confidence through direct communication.
- Investor Access Options: Investors can join the call by dialing 844-308-6398 (domestic) or 412-717-9605 (international), and a replay will be available post-call, ensuring all investors can access key information.
- Company Background: Founded in 1941, MGP Ingredients focuses on the alcoholic beverage and specialty ingredient sectors, boasting a portfolio of renowned brands, which underscores its market leadership and ongoing innovation capabilities.
See More
MGP Ingredients Schedules Q4 and Full Year Earnings Release
- Earnings Release Schedule: MGP Ingredients will report its fourth quarter and full year financial results for the year ended December 31, 2025, on February 25 at 10 a.m. ET, indicating the company's commitment to transparency and timely communication with stakeholders.
- Management Conference Call: The management team, including President and CEO Julie Francis and CFO Brandon Gall, will hold a conference call to discuss the financial results, enhancing investor engagement and trust in the company's leadership.
- Investor Access Channels: Investors can access the live webcast through the company's Investor Relations website or dial in via domestic and international numbers, ensuring broad dissemination and accessibility of information.
- Company Background Overview: Since 1941, MGP Ingredients has focused on the alcoholic beverage and specialty ingredient sectors, boasting a portfolio of renowned brands and multiple distilleries, showcasing its leadership and innovation in the industry.
See More
Rebel Bourbon Reintroduces Root Beer Whiskey at $19.99, Infused with Natural Flavors
- Product Comeback: Rebel Bourbon announces the return of Rebel Root Beer Whiskey, featuring a classic wheated recipe infused with bold root beer flavors, priced at $19.99 for a 750mL bottle and $0.99 for a 50mL bottle, expected to attract a wide consumer base.
- Flavor Profile: The whiskey combines classic root beer flavors of sassafras, vanilla, and licorice with aged bourbon notes of caramel and honey, aiming to provide a unique drinking experience that enhances the brand's market competitiveness.
- Marketing Promotion: The distinctive label design and 'Shoot the Root' branding will be promoted through merchandise giveaways and chilled pour machines, aiming to boost consumer engagement and brand awareness.
- Brand History: Rebel Bourbon has been known for its wheated recipe since 1849 and has recently won multiple industry awards, including the 2025 Single Barrel American Whiskey of the Year, highlighting its position in the premium spirits market.
See More
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- Product Comeback: Rebel Bourbon announces the return of the popular Rebel Root Beer Whiskey, which combines its traditional wheated recipe with bold root beer flavors, expected to attract loyal consumers and enhance brand visibility.
- Pricing Strategy: Rebel Root Beer Whiskey is launched at a suggested retail price of $19.99 for a 750mL bottle and $0.99 for a 50mL bottle, aiming to attract a broader consumer base through competitive pricing and strengthen market presence.
- Marketing Activation: The product's distinctive label and “Shoot the Root” branding will engage consumers through merchandise giveaways and shot machines, likely increasing brand interaction and customer loyalty.
- Industry Recognition: Other Rebel Bourbon products have received multiple industry awards in 2025, including “Single Barrel American Whiskey of the Year,” which will further enhance consumer trust and anticipation for the new product.
See More
MGP Ingredients Board Transition: Julie Francis Appointed Director
- Board Transition: MGP Ingredients announced that Karen Seaberg will retire on December 14, 2025, after over 15 years of service, indicating a strategic leadership transition within the company.
- New Director Appointment: Julie Francis will join the Board on December 15, 2025, and as the current CEO, her addition is expected to enhance the Board's strategic focus and leadership, aiding in the execution of the company's long-term strategy.
- Leadership Succession: Seaberg noted that her retirement comes at a time of significant progress in attracting and retaining leadership talent, reflecting the company's robustness and foresight in its ongoing development.
- Long-term Value Creation: Francis emphasized the commitment to advancing MGP's strong heritage and long-term strategy, aiming to create lasting value for all stakeholders, which underscores the company's confidence and commitment to future growth.
See More
S&P 500 Index Adjustments: Six New Additions Announced
- Index Adjustments: The S&P 500 will add six companies, including CRH, Carvana, and Comfort Systems USA, effective December 22, 2025, aiming to enhance the index's representation of market capitalization ranges, thereby increasing its investment appeal.
- Small-Cap Changes: The S&P SmallCap 600 will remove several companies, such as SPX Technologies and Dycom Industries, indicating these firms no longer represent the small-cap market, which may influence asset allocation strategies for investors.
- Mid-Cap Updates: The S&P MidCap 400 will add companies like UL Solutions and Pinterest, enhancing its representation in the industrial and communication services sectors, potentially attracting more mid-cap investors.
- Market Impact: These adjustments will affect investment portfolios across multiple sectors, particularly in materials and consumer goods, prompting investors to monitor the potential implications for market liquidity and sector performance.
See More
