MGP Ingredients (MGPI) Q2 2025 earnings summary

Executive summary

• Q2 2025 results showed sequential improvement across all business segments, with consolidated sales down 24% year-over-year to $145.5 million and execution largely in line with expectations.

• Premium Plus branded spirits portfolio continued to show strength, while Ingredient Solutions rebounded year-over-year.

• Net income for Q2 2025 was $14.4 million, down 55% from the prior year; adjusted EPS declined 43% to $0.97.

• New CEO Julie Francis appointed, bringing a growth mindset and focus on operational excellence.

Financial highlights

• Consolidated sales declined 24% to $145.5 million; adjusted EBITDA fell 38% to $35.9 million; gross margin dropped 350 bps to 40.1%.

• Branded Spirits sales declined 5%, but Premium Plus sales grew 1%; Distilling Solutions sales fell 46% mainly due to a 54% drop in brown goods; Ingredient Solutions sales increased 5%.

• Net income dropped to $14.4 million; adjusted net income was $20.9 million; operating cash flow YTD rose to $56.4 million.

• Capital expenditures for 2025 projected at $32.5 million; cash balance at June 30, 2025 was $17.3 million.

Outlook and guidance

• Full-year 2025 guidance reaffirmed: net sales $520–$540 million, adjusted EBITDA $105–$115 million, adjusted EPS $2.45–$2.75, and capital expenditures at $32.5 million.

• Premium Plus sales expected to grow low single digits for the year; mid and value tier brands projected to decline low double digits.

• Branded Spirits segment gross margins expected in the upper 40% to low 50% range.