MGP Ingredients Inc

Latest Results (15.04.2026):

MGP Ingredients Inc's fourth quarter of 2025 results show a sharp near-term decline driven by a large non‑cash impairment in the Branded Spirits business; consolidated Q4 sales fell 23% to $138.3 million and the company reported a GAAP net loss of $134.6 million (driven by a $152.6 million goodwill/intangible impairment), while adjusted results were positive but down materially versus prior year.

Q4 2025 consolidated results

Consolidated sales down 23% to $138.3M; gross profit down 35% to $48.3M and gross margin 34.9% (‑630 bps). GAAP net loss $134.6M (Q4 basic EPS $(6.22)) primarily due to a $152.6M non‑cash goodwill/indefinite‑lived intangible impairment; adjusted net income $13.7M (‑60%) and adjusted EBITDA $26.1M (‑51%); adjusted EPS $0.63.

Full‑year 2025 snapshot

Full‑year sales $536.4M (‑24%); gross profit $199.4M (‑30%), gross margin 37.2% (‑350 bps). GAAP net loss $(107.8M) mainly from the impairment; adjusted net income $61.5M (‑51%); adjusted EBITDA $116.0M (‑41%); adjusted EPS $2.85. Operating cash flow hit a record $121.5M. Capital expenditures were $31.9M (‑56%).

Impairment detail

The company recorded a $152.6M non‑cash write‑down in Q4 2025 to goodwill and indefinite‑lived intangible assets in the Branded Spirits segment, citing higher discount rates and lower peer valuation multiples as primary drivers—this is the main cause of the GAAP losses and EPS swing.

Segment performance highlights

Branded Spirits Q4 sales $63.4M (‑1%) with premium‑plus portfolio strength (Penelope Bourbon +10%) offset by mid/value declines. Distilling Solutions Q4 sales $43.6M (‑47%) — brown goods down ~53% as customers paused purchases. Ingredient Solutions Q4 sales $31.3M (‑10%) were impacted by a key equipment outage (returned to service Nov 2025) and higher waste‑starch disposal costs.

Liquidity and leverage

Year‑end cash $18.5M (vs. $25.3M); total debt $252.3M and net debt $233.9M; reported net debt leverage ~2.0x (Dec 31, 2025). Strong operating cash flow ($121.5M) offset weaker operating earnings and supported working‑capital management.

2026 outlook

Guidance for 2026: sales $480–500M, adjusted EBITDA $90–98M, adjusted basic EPS $1.50–1.80 (assumes ~21.4M shares and ~27% tax rate), and capex ≈ $20M. Management cites near‑term pressure on brown goods but expects improved Ingredient Solutions reliability, premium momentum, and productivity/cost discipline to help offset headwinds.