By Emon Reiser

Shares for MGP Ingredients took a dive after the distilled-spirits maker guided for another year of declining sales as Americans pull back from buying alcohol.

The stock fell 21% to $20.44 a share in midday Wednesday trading. Shares are down 37% over the past 12 months.

MGP said it expects 2026 full-year sales to fall year over year to between $480 million and $500 million after its consolidated sales in 2025 decreased by 24%, to $536.4 million. Analysts polled by FactSet expected $510.9 million for sales this year.

"The operating backdrop remains challenging for the spirits industry, and we recognize that 2026 is likely to be another down year for the industry and our company," Chief Executive Julie Francis said on a call with investors.

As demand for alcohol wavers in the U.S., elevated inventory levels industrywide will continue to pressure the bourbon and whiskey maker's brown-goods business in the near term, Francis said.

MGP before the market open reported a fourth-quarter loss of $134.6 million, or $6.22 a share, compared with a loss of $41.5 million, or $1.91 a share, in the year-earlier quarter. The loss for the period ended Dec. 31 included a $152.6 million noncash goodwill adjustment from intangible assets tied to its branded-spirits segment, primarily due to unfavorable macroeconomic factors, such as a higher discount rate and lower peer valuation multiples year over year, the company said.

MGP said its fourth-quarter sales decreased 23% to $138.3 million.

Write to Emon Reiser at emon.reiser@wsj.com

(END) Dow Jones Newswires

February 25, 2026 11:59 ET (16:59 GMT)

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