MGP Ingredients Q4 revenue down 23%, beats estimates

Overview

• Spirits and ingredients provider's Q4 revenue fell 23% but beat analyst expectations

• Company reported a Q4 net loss due to a $152.6 mln non-cash impairment charge

• Distilling Solutions segment sales fell 47% due to lower brown goods demand

Outlook

• MGP Ingredients projects 2026 sales between $480 mln and $500 mln

• Company expects 2026 adjusted EBITDA between $90 mln and $98 mln

• MGP Ingredients anticipates 2026 adjusted basic EPS between $1.50 and $1.80

Result Drivers

• BROWN GOODS PRESSURE - Distilling Solutions segment sales fell 47% due to lower demand for brown goods, impacting overall revenue

• EQUIPMENT FAILURE - Ingredient Solutions segment sales decreased 10% due to the impact of equipment failure, affecting specialty fiber and protein sales

• PREMIUM PLUS GROWTH - Premium plus brands in Branded Spirits segment grew 10%, led by Penelope Bourbon, despite overall segment sales decline

Company press release: ID:nBw8jMZDqa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the distillers & wineries peer group is "buy"

• Wall Street's median 12-month price target for MGP Ingredients Inc is $35.00, about 35.6% above its February 24 closing price of $25.81

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 9 three months ago

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