MGP Ingredients Reports Third Quarter 2025 Results

ATCHISON, Kan.--( BUSINESS WIRE)--MGP Ingredients, Inc. (Nasdaq: MGPI), a leading provider of branded and distilled spirits and food ingredient solutions, today reported results for the third quarter ended September 30, 2025.

“Our third quarter results demonstrate the resilience of our business and our team’s ability to continue to deliver against our key initiatives amid ongoing industry headwinds,” said Julie Francis, president and CEO. “Our premium plus brands again delivered solid growth and our brown goods decline came in slightly better than anticipated. In our Ingredient Solutions segment, operational execution was below expectations, and we are taking decisive actions to address those challenges. These efforts, along with the continued focus and commitment of our team, supported solid third quarter results, and we believe they position MGP for sustained long-term value creation.”

She added, “Given our year-to-date performance, we are updating our full year adjusted EBITDA and adjusted EPS guidance to a range of $110 million to $115 million and $2.60 to $2.75, respectively, and tightening our full-year sales guidance to a range of $525 million to $535 million.”

2025 third quarter financial highlights compared to 2024 third quarter:

Consolidated Results

Third quarter 2025 consolidated sales decreased by 19% compared to the prior-year period primarily due to the expected declines in our brown goods sales. The lower brown goods volume also pressured profitability, leading to a 25% decline in third quarter consolidated gross profit. Operating income decreased to $21.0 million primarily due to lower gross profit. Adjusted operating income decreased to $25.0 million reflecting lower gross profit.

Third quarter advertising and promotion expenses decreased 31% to $6.7 million as we continued to realign our spend behind our most attractive growth opportunities. Branded Spirits advertising and promotion spend of $6.3 million was approximately 10% of Branded Spirits segment sales in the third quarter.

Branded Spirits

Branded Spirits segment sales decreased 3% to $60.7 million compared to the prior-year quarter. Our premium plus sales increased by 3% delivering another quarter of solid growth, as our targeted focus on our most attractive growth opportunities continues to take hold. Within this portfolio, Penelope Bourbon maintained its strong growth trajectory with another quarter of best-in-class growth among top selling premium plus American whiskey brands. As expected, sales of our mid and value priced portfolios, combined, declined by 7% due to lower volumes of certain cordial and tequila brands. Branded Spirits gross margin increased by 120 basis points to 53.0%, while gross profit moderated slightly to $32.2 million.

Distilling Solutions

Distilling Solutions segment sales decreased by 43% to $40.9 million compared to the prior-year quarter, as customer demand for brown goods remained constrained amid elevated industry-wide barrel inventories. Segment profitability also declined, with gross profit down 50% to $14.2 million, or 34.7% of segment sales.

As anticipated, several of our large strategic customers completed their existing contracts and expressed the need to temporarily pause their near-term whiskey purchases as they rebalance their inventories. Our teams remain closely engaged with these customers to align on their future brown goods needs, new product innovation, and opportunities in adjacent categories.

Ingredient Solutions

Ingredient Solutions segment sales increased by 9% to $29.3 million compared to the prior-year quarter, primarily driven by higher sales of both specialty and commodity wheat proteins as the conversion of new domestic customers continued during the quarter.

Segment gross profit decreased to $3.0 million, or 10.3% of segment sales, as the benefit of higher sales volumes was offset by higher waste starch disposal costs, elevated costs related to the commercialization of a new large textured protein customer, and operating inefficiencies resulting from the unanticipated outage of a key piece of equipment. We remain focused on improving operational consistency through continued investment in our Atchison facility designed to enhance manufacturing reliability and mitigate disposal costs.

2025 Financial Outlook

MGP provided updated consolidated guidance for fiscal 2025:

Revised

Fiscal 2025 Guidance

Sales

$525 to $535 million

$520 to $540 million

Adjusted EBITDA

$110 to $115 million

$105 to $115 million

Adjusted basic EPS

$2.60 to $2.75

$2.45 to $2.75

Effective tax rate

~25%

Basic weighted average shares outstanding

~ 21.4 million

Capital expenditures

~ $32.5 million

Conference Call and Webcast Information

MGP Ingredients will host a conference call today, October 29, 2025, at 10 a.m. ET to discuss these results and current business trends. Investors can dial 844-308-6398 or 412-717-9605 (international) to listen to the live call. A live webcast will be available at the “News and Events” section of the company’s Investor Relations website at ir.mgpingredients.com/news-events. A replay of the conference call will be available on the company’s website.

About MGP Ingredients, Inc.

MGP Ingredients Inc. (Nasdaq: MGPI) has been formulating excellence since 1941 by bringing product ideas to life across the alcoholic beverage and specialty ingredient industries through three segments: Branded Spirits, Distilling Solutions, and Ingredient Solutions. MGPI is one of the leading spirits distillers with an award-winning portfolio of premium brands including Penelope, Rebel, Remus, and Yellowstone bourbons and El Mayor tequila, under the Luxco umbrella. With distilleries in Indiana and Kentucky; a tequila distillery in Arandas, Mexico; and bottling operations in Missouri, Ohio, and Northern Ireland, the company creates distilled spirits for customers including many world-renowned spirits brands. In addition, the company’s high-quality specialty fiber, protein, and starch ingredients provide functional, nutritional, and sensory solutions for a wide range of food products. To learn more visit MGPIngredients.com.

Cautionary Note Regarding Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation statements about the ability of MGP Ingredients, Inc. (the “Company” or “MGP”) to address operational execution, position the Company for value creation, improve consistency, enhance reliability, and mitigate costs; and the Company’s 2025 outlook, including its expectations for sales, adjusted EBITDA, adjusted basic EPS, tax rate, shares outstanding, and capital expenditures. Forward looking statements are usually identified by or are associated with words such as “intend,” “plan,” “believe,” “estimate,” “expect,” “anticipate,” “project,” “forecast,” “hopeful,” “should,” “may,” “will,” “could,” “encouraged,” “opportunities,” “potential,” and similar terminology. These forward-looking statements reflect management’s current beliefs and estimates of future economic circumstances, industry conditions, Company performance, Company financial results, and Company financial condition and are not guarantees of future performance.

All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. Factors that could cause actual results to differ materially from our expectations include without limitation any effects of changes in consumer preferences and purchases and our ability to anticipate or react to those changes; our ability to compete effectively and any effects of industry dynamics and market conditions; damage to our reputation or that of any of our key customers or their brands; failure to introduce successful new brands and products or have effective marketing or advertising; changes in public opinion about alcohol or our products; our reliance on our distributors to distribute our branded spirits; our reliance on fewer, more profitable customer relationships; interruptions in our operations or a catastrophic event at our facilities; decisions concerning the quantity of maturing stock of our aged distillate; any inability to successfully complete our capital projects or fund capital expenditures or any warehouse expansion issues; our reliance on a limited number of suppliers; work disruptions or stoppages; climate change and measures to address climate change; regulation and taxation and compliance with existing or future laws and regulations; tariffs, trade relations, and trade policies; excise taxes, incentives and customs duties; our ability to protect our intellectual property rights and defend against alleged intellectual property rights infringement claims; failure to secure and maintain listings in control states; labeling or warning requirements or limitations on the availability of our products; product recalls or other product liability claims; anti-corruption laws, trade sanctions, and restrictions; litigation or legal proceedings; limited rights of common stockholders and anti-takeover provisions in our governing documents; the impact of issuing shares of our common stock; higher costs or the unavailability and cost of raw materials, product ingredients, energy resources, or labor; failure of our information technology systems, networks, processes, associated sites, or service providers; acquisitions and potential future acquisitions; interest rate increases; reliance on key personnel; commercial, political, and financial risks; covenants and other provisions in our credit arrangements; pandemics or other health crises; ability to pay any dividends and make any share repurchases; and the effectiveness or execution of our strategic plan. For further information on these risks and uncertainties and other factors that could affect the Company’s business, see the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 and its Quarterly Reports on Form 10-Q for the quarters ended March 31, June 30, and September 30, 2025, as well as the Company’s other SEC filings. The Company undertakes no obligation to update any forward-looking statements or information in this press release, except as required by law.

Non-GAAP Financial Measures

In addition to reporting financial information in accordance with U.S. GAAP, the Company provides certain non-GAAP financial measures that are not in accordance with, or alternatives for, GAAP. In addition to the comparable GAAP measures, the Company has disclosed adjusted selling, general, and administrative expenses (“SG&A”), adjusted operating income, adjusted income before income taxes, adjusted net income, adjusted MGP earnings, adjusted EBITDA, net debt, net debt leverage ratio, and adjusted basic and diluted EPS, as well as guidance for adjusted EBITDA and adjusted basic EPS. The presentation of these non-GAAP financial measures should be reviewed in conjunction with SG&A, operating income, income before income taxes, net income, net income used in earnings per common share calculation, debt, and basic and diluted EPS computed in accordance with U.S. GAAP and should not be considered a substitute for the GAAP measure. We believe that the non-GAAP measures provide useful information to investors regarding the Company's performance and overall results of operations. In addition, management uses these non-GAAP measures in conjunction with GAAP measures when evaluating the Company’s operating results compared to prior periods on a consistent basis, assessing financial trends, and for forecasting purposes. Non-GAAP financial measures may not provide information that is directly comparable to other companies, even if similar terms are used to identify such measures. The attached schedules provide a full reconciliation of historical non-GAAP financial measures to the most directly comparable U.S. GAAP financial measure. Full year 2025 guidance measures of adjusted EBITDA and adjusted basic EPS are provided on a non-GAAP basis without a reconciliation to the most directly comparable GAAP measures because the Company is unable to predict with a reasonable degree of certainty certain items contained in the GAAP measures without unreasonable efforts. Such items include without limitation, acquisition related expenses, restructuring and related expenses, and other items not reflective of the Company’s ongoing operations.

MGP INGREDIENTS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(Dollars in thousands, except share and per share amounts)

Quarter Ended

September 30,

Year to Date Ended

September 30,

2025

2024

2025

2024

Sales

130,912

161,461

398,059

522,829

Cost of sales

81,479

95,646

246,909

310,987

Gross profit

49,433

65,815

151,150

211,842

Advertising and promotion expenses

6,691

9,647

21,776

29,995

Selling, general, and administrative expenses

18,926

17,204

63,287

60,942

Impairment of long-lived assets and other

—

137

Change in fair value of contingent consideration

2,800

6,400

25,500

15,900

Operating income

21,016

32,564

40,587

104,868

Interest expense, net

(1,739

)

(2,174

)

(5,490

)

(6,398

)

Other income, net

428

1,026

957

1,917

Income before income taxes

19,705

31,416

36,054

100,387

Income tax expense

4,276

7,554

9,255

23,924

Net income

15,429

23,862

26,799

76,463

Net loss (income) attributable to noncontrolling interest

)

162

Net income attributable to MGP Ingredients, Inc.

15,422

23,905

26,824

76,625

Income attributable to participating securities

(190

)

(257

)

(322

)

(828

)

Net income used in earnings per common share calculation

15,232

23,648

26,502

75,797

Weighted average common shares

Basic

21,373,300

22,069,885

21,359,051

22,110,315

Diluted

21,373,300

22,069,885

21,359,051

22,110,315

Earnings per common share

Basic

0.71

1.07

1.24

3.43

Diluted

0.71

1.07

1.24

3.43

MGP INGREDIENTS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(Dollars in thousands)

September 30, 2025

December 31, 2024

ASSETS

Current Assets:

Cash and cash equivalents

13,447

25,273

Receivables, net

106,668

148,488

Inventory

384,523

364,944

Prepaid expenses

4,130

3,983

Refundable income taxes

2,006

3,448

Total current assets

510,774

546,136

Property, plant, and equipment

588,443

562,714

Less accumulated depreciation and amortization

(261,462

)

(246,042

)

Property, plant, and equipment, net

326,981

316,672

Operating lease right-of-use assets, net

14,849

15,540

Investment in joint venture

7,894

7,024

Intangible assets, net

266,010

268,451

Goodwill

247,789

Other assets

2,736

4,173

TOTAL ASSETS

1,377,033

1,405,785

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current Liabilities:

Current maturities of long-term debt

6,400

Accounts payable

42,695

66,336

Contingent consideration, current

110,800

—

Federal and state excise taxes payable

2,452

5,358

Accrued expenses and other

21,584

14,356

Total current liabilities

183,931

92,450

Long-term debt, less current maturities

66,220

121,277

Convertible senior notes

196,103

195,864

Long-term operating lease liabilities

11,483

11,940

Contingent consideration

—

85,300

Other noncurrent liabilities

2,352

2,981

Deferred income taxes

63,405

63,430

Total liabilities

523,494

573,242

Total equity

853,539

832,543

TOTAL LIABILITIES AND TOTAL EQUITY

1,377,033

1,405,785

MGP INGREDIENTS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Dollars in thousands)

Year to Date Ended September 30,

2025

2024

Cash Flows from Operating Activities

Net income

26,799

76,463

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

17,824

16,298

Share-based compensation

3,320

2,748

Equity method investment gain

(869

)

(1,446

)

Deferred income taxes, including change in valuation allowance

(25

)

(1,084

)

Change in fair value of contingent consideration

25,500

15,900

Other, net

594

429

Changes in operating assets and liabilities:

Receivables, net

41,699

13,979

Inventory

(19,935

)

(24,979

)

Prepaid expenses

(163

)

(1,091

)

Income taxes payable (refundable)

1,442

(2,765

)

Accounts payable

(8,446

)

(10,627

)

Accrued expenses and other

7,689

(9,935

)

Federal and state excise taxes payable

(2,906

)

231

Other, net

(74

)

(609

)

Net cash provided by operating activities

92,449

73,512

Cash Flows from Investing Activities

Additions to property, plant, and equipment

(40,674

)

(52,850

)

Other, net

(14

)

(276

)

Net cash used in investing activities

(40,688

)

(53,126

)

Cash Flows from Financing Activities

Payment of dividends and dividend equivalents

(7,739

)

(8,013

)

Repurchase of Common Stock

(1,035

)

(12,235

)

Loan fees paid related to borrowings

(2,712

)

—

Proceeds from long-term debt

28,000

70,000

Principal payments on long-term debt

(80,800

)

(67,800

)

Net cash used in financing activities

(64,286

)

(18,048

)

Effect of exchange rate changes on cash and cash equivalents

699

Increase (decrease) in cash and cash equivalents

(11,826

)

2,384

Cash and cash equivalents, beginning of period

25,273

18,388

Cash and cash equivalents, end of period

13,447

20,772

MGP INGREDIENTS, INC.

RECONCILIATION OF SELECTED GAAP MEASURES TO ADJUSTED NON-GAAP MEASURES (UNAUDITED)

(in thousands, except per share amounts)

Quarter Ended September 30, 2025

SG&A

Operating Income

Income before Income Taxes

Net Income

MGP Earnings (a)

Basic and Diluted EPS

Reported GAAP Results

18,926

21,016

19,705

15,429

15,232

0.71

Adjusted to remove:

Fair value of contingent consideration (b)

—

2,800

2,192

2,169

0.10

Executive transition costs (c)

(1,143

)

1,143

895

885

0.04

Adjusted Non-GAAP results

17,783

24,959

23,648

18,516

18,286

0.85

Quarter Ended September 30, 2024

SG&A

Operating Income

Income before Income Taxes

Net Income

MGP Earnings (a)

Basic and Diluted EPS

Reported GAAP Results

17,204

32,564

31,416

23,862

23,648

1.07

Adjusted to remove:

Fair value of contingent consideration (b)

—

6,400

4,864

0.22

Business acquisition costs (g)

(15

)

—

Unusual items costs (h)

(34

)

—

Adjusted Non-GAAP results

17,155

39,013

37,865

28,763

28,549

1.29

Year to Date Ended September 30, 2025

SG&A

Operating Income

Income before Income Taxes

Net Income

MGP Earnings (a)

Basic and Diluted EPS

Reported GAAP Results

63,287

40,587

36,054

26,799

26,502

1.24

Adjusted to remove:

Fair value of contingent consideration (b)

—

25,500

18,947

18,736

0.88

Executive transition costs (c)

(1,825

)

1,825

1,356

1,341

0.06

Professional service fees (d)

(382

)

382

284

281

0.01

Restructuring and other costs (e)

(613

)

613

455

450

0.02

Adjusted Non-GAAP results

60,467

68,907

64,374

47,841

47,310

2.21

Year to Date Ended September 30, 2024

SG&A

Operating Income

Income before Income Taxes

Net Income

MGP Earnings (a)

Basic and Diluted EPS

Reported GAAP Results

60,942

104,868

100,387

76,463

75,797

3.43

Adjusted to remove:

Impairment of long-lived assets and other (f)

—

137

104

—

Fair value of contingent consideration (b)

—

15,900

12,116

0.55

Business acquisition costs (g)

(101

)

101

—

Executive transition costs (c)

(1,218

)

1,218

928

0.04

Unusual items costs (h)

(1,673

)

1,673

1,275

0.06

Adjusted Non-GAAP results

57,950

123,897

119,416

90,963

90,297

4.08

MGP INGREDIENTS, INC.

DESCRIPTION OF NON-GAAP ITEMS

MGP Earnings is defined as "Net income used in Earnings Per Common Share calculation," which accounts for the impacts of the net loss attributable to noncontrolling interest and income attributable to participating securities.

(b)

Fair value of contingent consideration relates to the quarterly adjustment of the contingent consideration liability related to the acquisition of Penelope Bourbon LLC. It is included in the Condensed Consolidated Statement of Income as a component of operating income and relates to the Branded Spirits segment.

(c)

The executive transition costs are included in the Condensed Consolidated Statement of Income within the selling, general, and administrative line item. The adjustment includes costs related to the transition of certain executive and board of director positions.

(d)

The professional services fees are included in the Condensed Consolidated Statement of Income within the selling, general, and administrative line item. The adjustment includes costs related to professional services in conjunction with the goodwill impairment valuation.

(e)

The restructuring and other costs are included in the Condensed Consolidated Statement of Income within the selling, general, and administrative line item. The adjustment includes special one-time severance costs related to the reduction in force that occurred during the period.

(f)

The impairment of long-lived assets and other relates to impairments of assets as well as miscellaneous expenses in connection with the closure of the Atchison distillery. Impairment of long-lived assets and other are included in the Condensed Consolidated Statement of Income as a component of operating income and relates to the Distilling Solutions segment.

(g)

Business acquisition costs are included in the Condensed Consolidated Statement of Income within the selling, general, and administrative line item and include transaction and integration costs associated with the acquisition of Penelope Bourbon LLC.

(h)

The unusual items costs are included in the Condensed Consolidated of Income within the selling, general, and administrative line item. The adjustment includes professional and legal costs associated with special projects.

MGP INGREDIENTS, INC.

RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA (UNAUDITED)

(in thousands)

Quarter Ended September 30,

Year to Date Ended September 30,

2025

2024

2025

2024

Net Income

15,429

23,862

26,799

76,463

Interest expense

1,739

2,174

5,490

6,398

Income tax expense

4,276

7,554

9,255

23,924

Depreciation and amortization

6,186

5,680

17,824

16,298

Share based compensation (a)

1,057

767

3,087

2,748

Equity method investment gain

(375

)

(832

)

(869

)

(1,446

)

Fair value of contingent consideration

2,800

6,400

25,500

15,900

Executive transition costs

1,143

—

1,825

1,218

Professional service fees

—

382

—

Restructuring and other costs

—

613

—

Impairment of long-lived assets and other

—

137

Business acquisition costs

—

101

Unusual items costs

—

1,673

Adjusted EBITDA

32,255

45,654

89,906

143,414

(a) This amount excludes share based compensation related to executive transition costs.

The non-GAAP adjusted EBITDA measure is defined as earnings before interest expense, income tax expense, depreciation and amortization, share based compensation, equity method investment gain, fair value of contingent consideration, executive transition costs, professional service fees, restructuring and other costs, impairment of long-lived assets and other, business acquisition costs, and unusual items costs.

See "Reconciliation of selected GAAP measure to adjusted non-GAAP measures" and "Description of Non-GAAP items" for further details on selected non-GAAP items.

MGP INGREDIENTS, INC.

NET DEBT LEVERAGE RATIO (UNAUDITED)

(in thousands)

Quarter Ended

December 31,

2024

Quarter Ended

March 31,

2024

Quarter Ended

June 30,

2025

Quarter Ended

September 30,

2025

TTM (a)

September 30, 2025

Net income (loss)

(41,998

)

(3,057

)

14,427

15,429

(15,199

)

Interest expense

2,041

1,854

1,897

1,739

7,531

Income tax expense

10,053

671

4,308

4,276

19,308

Depreciation and amortization

5,691

5,808

5,830

6,186

23,515

Share based compensation

440

742

1,288

1,057

3,527

Equity method investment gain

(381

)

(257

)

(237

)

(375

)

(1,250

)

Fair value of contingent consideration

200

14,700

8,000

2,800

25,700

Goodwill impairment

73,755

—

73,755

Professional service fees

—

382

—

382

Business acquisition costs

—

Executive transition costs

2,857

306

376

1,143

4,682

Restructuring and other costs

—

613

—

613

Unusual items costs

408

—

408

Adjusted EBITDA

53,081

21,762

35,889

32,255

142,987

Total debt

268,723

Cash and cash equivalents

13,447

Net debt

255,276

Net debt leverage ratio (b)

1.8

(a) TTM is defined as trailing twelve months.

(b) Net debt leverage ratio is defined as net debt divided by adjusted EBITDA.

See "Reconciliation of selected GAAP measure to adjusted non-GAAP measures" and "Description of Non-GAAP items" for further details on selected non-GAAP items.

MGP INGREDIENTS, INC.

OPERATING SEGMENT RESULTS (UNAUDITED)

(Dollars in thousands)

BRANDED SPIRITS

Quarter Ended September 30,

Quarter versus Quarter Change Increase/(Decrease)

2025

2024

$ Change

% Change

Premium plus

32,119

31,086

1,033

Mid

14,835

14,788

—

Value

8,170

10,034

(1,864

)

(19

)

Other

5,624

6,716

(1,092

)

(16

)

Total Branded Spirits Sales

60,748

62,624

(1,876

)

Gross profit

32,220

32,446

(226

)

Gross margin %

53.0

51.8

1.2

pp (a)

Operating income

14,751

7,391

7,360

100

Depreciation and amortization

2,157

2,192

(35

)

DISTILLING SOLUTIONS

Quarter Ended September 30,

Quarter versus Quarter Change Increase/(Decrease)

2025

2024

$ Change

% Change

Brown goods

28,512

57,110

(28,598

)

(50

Warehouse services

8,052

8,264

(212

)

White goods and other co-products

4,317

6,545

(2,228

)

(34

)

Total Distilling Solutions Sales

40,881

71,919

(31,038

)

(43

Gross profit

14,200

28,644

(14,444

)

(50

Gross margin %

34.7

39.8

(5.1

)

pp (a)

Operating income

13,304

27,631

(14,327

)

(52

Depreciation and amortization

2,041

1,975

INGREDIENT SOLUTIONS SALES

Quarter Ended September 30,

Quarter versus Quarter Change Increase / (Decrease)

2025

2024

$ Change

% Change

Specialty wheat starches

16,965

16,172

793

Specialty wheat proteins

8,905

7,752

1,153

Commodity wheat starches

2,317

2,611

(294

)

(11

)

Commodity wheat proteins

993

383

610

159

Biofuel and other

103

—

103

n/a

Total Ingredient Solutions

29,283

26,918

2,365

Gross profit

3,013

4,725

(1,712

)

(36

Gross margin %

10.3

17.6

(7.3

)

pp (a)

Operating income

1,809

3,277

(1,468

)

(45

Depreciation and amortization

1,635

1,178

457

(a) Percentage points (“pp”).

MGP INGREDIENTS, INC.

OPERATING SEGMENT RESULTS (UNAUDITED)

(Dollars in thousands)

BRANDED SPIRITS SALES

Year to Date Ended September 30,

Year to Date versus Year to Date Sales Change Increase/(Decrease)

2025

2024

$ Change

% Change

Premium plus

85,536

82,699

2,837

Mid

43,355

46,610

(3,255

)

Value

24,447

31,698

(7,251

)

(23

)

Other

16,157

15,804

353

Total Branded Spirits

169,495

176,811

(7,316

)

Gross profit

86,402

88,611

(2,209

)

Gross margin %

51.0

50.1

0.9

pp (a)

Operating income

14,342

15,534

(1,192

)

Depreciation and amortization

6,442

5,867

575

DISTILLING SOLUTIONS SALES

Year to Date Ended September 30,

Year to Date versus Year to Date Sales Change Increase/(Decrease)

2025

2024

$ Change

% Change

Brown goods

97,225

198,884

(101,659

)

(51

Warehouse services

24,130

24,612

(482

)

White goods and other co-products

16,469

26,663

(10,194

)

(38

)

Total Distilling Solutions

137,824

250,159

(112,335

)

(45

Gross profit

51,692

105,200

(53,508

)

(51

Gross margin %

37.5

42.1

(4.6

)

pp (a)

Operating income

48,927

102,228

(53,301

)

(52

Depreciation and amortization

6,121

5,900

221

INGREDIENT SOLUTIONS SALES

Year to Date Ended September 30,

Year to Date versus Year to Date Sales Change Increase/(Decrease)

2025

2024

$ Change

% Change

Specialty wheat starches

51,292

57,646

(6,354

)

(11

Specialty wheat proteins

28,865

28,947

(82

)

—

Commodity wheat starches

8,097

8,846

(749

)

Commodity wheat proteins

2,383

420

1,963

467

Biofuel and other

103

—

103

n/a

Total Ingredient Solutions

90,740

95,859

(5,119

)

Gross profit

13,056

18,031

(4,975

)

(28

Gross margin %

14.4

18.8

(4.4

)

pp (a)

Operating income

9,107

13,781

(4,674

)

(34

Depreciation and amortization

4,213

3,517

696

(a) Percentage points (“pp”).

MGP INGREDIENTS, INC.

DILUTIVE SHARES OUTSTANDING CALCULATION (UNAUDITED)

Quarter Ended September 30,

Year to Date Ended September 30,

2025

2024

2025

2024

Principal amount of the bonds

201,250,000

Par value

1,000

Number of bonds outstanding (a)

201,250

Initial conversion rate

10.3911

Conversion price

96.23620

Average share price (b)

28.99063

82.66859

30.67755

82.41075

Impact of conversion (c)

—

Cash paid for principal

(201,250,000

)

(201,250,000

)

(201,250,000

)

(201,250,000

)

Conversion premium

—

Average share price

28.99063

82.66859

30.67755

82.41075

Conversion premium in shares (d) (e)

—

Number of bonds outstanding is calculated by taking the principal amount of the bonds divided by the par value.

(b)

Average share price is calculated by taking the average of the daily closing share price for the period. If the average share price is less than the conversion price of $96.23620 per share, the impact to EPS is anti-dilutive and therefore the shares were excluded from the diluted EPS calculation.

(c)

Impact of conversion is calculated by taking the number of bonds outstanding multiplied by the initial conversion rate multiplied by the average share price. If the average share price is less than the conversion price then the impact of conversion is zero.

(d)

The impacts of the Convertible Senior Notes are included in the diluted weighted average common shares outstanding if the impact is dilutive. The Convertible Senior Notes would only have a dilutive impact if the average market price per share during the quarter exceed the conversion price of $96.23620 per share.

(e)

Conversion premium in shares is calculated by taking the conversion premium divided by the average share price. If the average share price is less than the conversion price, then the conversion premium in shares is zero.