MGP Ingredients (MGPI) investor relations material

Executive summary

• Q3 2025 sales declined 19% year-over-year to $130.9 million, driven by lower demand in Distilling Solutions and Branded Spirits, partially offset by growth in Ingredient Solutions.

• Premium plus spirits, especially Penelope Bourbon, outperformed, with Penelope among the fastest-growing premium plus American whiskey brands.

• Net income for Q3 2025 was $15.4 million, a 35% decrease; adjusted EPS fell 34% to $0.85.

• Year-to-date operating cash flows increased 26% to $92.5 million, with a stable net debt leverage ratio of 1.8x.

• Full-year adjusted EBITDA and EPS guidance raised, and sales guidance narrowed based on year-to-date performance.

Financial highlights

• Q3 2025 consolidated sales were $130.9 million, down 19% year-over-year; gross profit was $49.4 million, down 25%.

• Adjusted EBITDA for Q3 2025 was $32.3 million, down 29%; adjusted EPS was $0.85, down 34%.

• Net income for Q3 2025 was $15.4 million; adjusted net income was $18.5 million, down 36%.

• Year-to-date operating cash flows rose 26% to $92.5 million; capital expenditures down 42% to $25.4 million.

• Gross margin for Q3 2025 was 37.8%, down 300 basis points year-over-year.

Outlook and guidance

• Full-year 2025 sales guidance narrowed to $525–$535 million.

• Adjusted EBITDA guidance raised to $110–$115 million; adjusted EPS to $2.60–$2.75.

• Capital expenditures for 2025 projected at ~$32.5 million.

• Management expects cash sources to be adequate for capital expenditures, M&A, and operating needs for the next 12 months and beyond.

• Ingredient Solutions and Distilling Solutions segments expected to see continued margin pressure due to operational and market challenges.