MGP Ingredients reported its second-quarter fiscal 2026 results on July 29, with adjusted earnings per share of $0.72, surpassing the market consensus of $0.47. Both adjusted EBITDA and adjusted EPS came in above the company's internal expectations. However, quarterly revenue of $124.4 million fell slightly short of the analyst estimate of $125.22 million.

Overall performance declined compared to the same period last year. Consolidated sales for the second quarter dropped 15% year-over-year to $124.4 million, while gross profit fell 20% to $46.5 million. Net income was $12.0 million, down from $14.4 million in the prior-year period.

By business segment, the distilled spirits solutions division was hit hardest by weakening demand for brown spirits, with sales plunging 42% to $29.2 million. Within this, brown spirits shipments collapsed by 59%. The branded spirits segment saw a slight 1% decline in sales to $59.6 million, although its premium and above product portfolio performed steadily, with sales growing 5% and Penelope Bourbon rising 13%. The ingredient solutions segment posted a 2% sales increase to $35.5 million, but gross margin sharply contracted from 21.7% to 10.1% due to higher waste starch costs.

The company reaffirmed its full-year fiscal 2026 guidance, projecting sales between $480 million and $500 million, with adjusted EPS in the range of $1.50 to $1.80. MGP Ingredients also declared a quarterly dividend of $0.12 per share.

Headquartered in Atchison, Kansas, MGP Ingredients operates across three core segments: branded spirits, distilled spirits solutions, and food ingredients.