Earnings release
Page 1
MGP INGREDIENTS REPORTS THIRD QUARTER 2025 RESULTS Solid third quarter results; Raises full-year adjusted EBITDA and EPS outlook ATCHISON, Kan., October 29, 2025 - 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 sales decreased 19% to $130.9 million. • Consolidated gross profit decreased 25% to $49.4 million. Gross margin decreased by 300 basis points to 37.8%. • Net income decreased 35% to $15.4 million. On an adjusted basis, net income decreased 36% to $18.5 million. Basic earnings per common share (“EPS”) decreased to $0.71 per share from $1.07 per share. Adjusted basic EPS decreased 34% to $0.85 per share. • Adjusted EBITDA decreased 29% to $32.3 million. • Year-to-date operating cash flows increased 26% to $92.5 million compared to the prior-year period as we continue to prioritize strong cash generation by managing our working capital, including barrel inventory put-away. • Year-to-date capital expenditures declined 42% to $25.4 million compared to the year-ago period. • Net debt leverage ratio stands at approximately 1.8x as of September 30, 2025. 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. 1
Page 2
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: RevisedFiscal 2025 Guidance PreviousFiscal 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% ~25% Basic weighted average shares outstanding ~ 21.4 million ~ 21.4 million Capital expenditures ~ $32.5 million ~ $32.5 million 2
Page 3
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 3
Page 4
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. For More Information Investors: Amit Sharma, amit.sharma@mgpingredients.com Media: Patrick Barry, 314.540.3865, patrick@byrnepr.net 4
Page 5
MGP INGREDIENTS, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (Dollars in thousands, except share and per share amounts) Quarter Ended September30, Year to Date Ended September30, 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 (7) 43 25 162 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 sharecalculation $ 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 5
Page 6
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 247,789 247,789 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 $ 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 6
Page 7
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 46 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 7
Page 8
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 OperatingIncome Income beforeIncome Taxes NetIncome MGPEarnings Basic andDiluted EPS Reported GAAP Results $ 18,926 $ 21,016 $ 19,705 $ 15,429 $ 15,232 $ 0.71 Adjusted to remove: Fair value of contingent consideration — 2,800 2,800 2,192 2,169 0.10 Executive transition costs (1,143) 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 OperatingIncome Income beforeIncome Taxes NetIncome MGPEarnings Basic andDiluted EPS Reported GAAP Results $ 17,204 $ 32,564 $ 31,416 $ 23,862 $ 23,648 $ 1.07 Adjusted to remove: Fair value of contingent consideration — 6,400 6,400 4,864 4,864 0.22 Business acquisition costs (15) 15 15 11 11 — Unusual items costs (34) 34 34 26 26 — 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 OperatingIncome Income beforeIncome Taxes NetIncome MGPEarnings Basic andDiluted EPS Reported GAAP Results $ 63,287 $ 40,587 $ 36,054 $ 26,799 $ 26,502 $ 1.24 Adjusted to remove: Fair value of contingent consideration — 25,500 25,500 18,947 18,736 0.88 Executive transition costs (1,825) 1,825 1,825 1,356 1,341 0.06 Professional service fees (382) 382 382 284 281 0.01 Restructuring and other costs (613) 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 OperatingIncome Income beforeIncome Taxes NetIncome MGPEarnings Basic andDiluted 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 — 137 137 104 104 — Fair value of contingent consideration — 15,900 15,900 12,116 12,116 0.55 Business acquisition costs (101) 101 101 77 77 — Executive transition costs (1,218) 1,218 1,218 928 928 0.04 Unusual items costs (1,673) 1,673 1,673 1,275 1,275 0.06 Adjusted Non-GAAP results $ 57,950 $ 123,897 $ 119,416 $ 90,963 $ 90,297 $ 4.08 (a) (b) (c) (a) (b) (g) (h) (a) (b) (c) (d) (e) (a) (f) (b) (g) (c) (h) 8
Page 9
MGP INGREDIENTS, INC. DESCRIPTION OF NON-GAAP ITEMS (a) 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. 9
Page 10
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 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 — 15 — 101 Unusual items costs — 34 — 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. (a) 10
Page 11
MGP INGREDIENTS, INC. NET DEBT LEVERAGE RATIO (UNAUDITED) (in thousands) Quarter EndedDecember 31,2024 Quarter EndedMarch 31,2024 Quarter EndedJune 30,2025 Quarter EndedSeptember 30,2025 TTMSeptember 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 contingentconsideration 200 14,700 8,000 2,800 25,700 Goodwill impairment 73,755 — — — 73,755 Professional service fees — 382 — — 382 Business acquisition costs 15 — — — 15 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 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. (a) (b) 11
Page 12
MGP INGREDIENTS, INC. OPERATING SEGMENT RESULTS (UNAUDITED) (Dollars in thousands) BRANDED SPIRITS Quarter Ended September 30, Quarter versus Quarter ChangeIncrease/(Decrease) 2025 2024 $ Change % Change Premium plus $ 32,119 $ 31,086 $ 1,033 3 % Mid 14,835 14,788 47 — 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) (3)% Gross profit $ 32,220 $ 32,446 $ (226) (1)% Gross margin % 53.0 % 51.8 % 1.2 pp Operating income $ 14,751 $ 7,391 $ 7,360 100 % Depreciation and amortization $ 2,157 $ 2,192 $ (35) (2)% DISTILLING SOLUTIONS Quarter Ended September 30, Quarter versus Quarter ChangeIncrease/(Decrease) 2025 2024 $ Change % Change Brown goods $ 28,512 $ 57,110 $ (28,598) (50)% Warehouse services 8,052 8,264 (212) (3) 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 Operating income $ 13,304 $ 27,631 $ (14,327) (52)% Depreciation and amortization $ 2,041 $ 1,975 $ 66 3 % INGREDIENT SOLUTIONS SALES Quarter Ended September 30, Quarter versus Quarter ChangeIncrease / (Decrease) 2025 2024 $ Change % Change Specialty wheat starches $ 16,965 $ 16,172 $ 793 5 % Specialty wheat proteins 8,905 7,752 1,153 15 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 9 % Gross profit $ 3,013 $ 4,725 $ (1,712) (36)% Gross margin % 10.3 % 17.6 % (7.3) pp Operating income $ 1,809 $ 3,277 $ (1,468) (45)% Depreciation and amortization $ 1,635 $ 1,178 $ 457 39 % Percentage points (“pp”). (a) (a) (a) (a) 12
Page 13
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 SalesChange Increase/(Decrease) 2025 2024 $ Change % Change Premium plus $ 85,536 $ 82,699 $ 2,837 3 % Mid 43,355 46,610 (3,255) (7) Value 24,447 31,698 (7,251) (23) Other 16,157 15,804 353 2 Total Branded Spirits $ 169,495 $ 176,811 $ (7,316) (4)% Gross profit $ 86,402 $ 88,611 $ (2,209) (2)% Gross margin % 51.0 % 50.1 % 0.9 pp Operating income $ 14,342 $ 15,534 $ (1,192) (8)% Depreciation and amortization $ 6,442 $ 5,867 $ 575 10 % DISTILLING SOLUTIONS SALES Year to Date Ended September 30,Year to Date versus Year to Date SalesChange Increase/(Decrease) 2025 2024 $ Change % Change Brown goods $ 97,225 $ 198,884 $ (101,659) (51)% Warehouse services 24,130 24,612 (482) (2) 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 Operating income $ 48,927 $ 102,228 $ (53,301) (52)% Depreciation and amortization $ 6,121 $ 5,900 $ 221 4 % INGREDIENT SOLUTIONS SALES Year to Date Ended September 30,Year to Date versus Year to Date SalesChange 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) (8) 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) (5)% Gross profit $ 13,056 $ 18,031 $ (4,975) (28)% Gross margin % 14.4 % 18.8 % (4.4) pp Operating income $ 9,107 $ 13,781 $ (4,674) (34)% Depreciation and amortization $ 4,213 $ 3,517 $ 696 20 % Percentage points (“pp”). (a) (a) (a) (a) 13
Page 14
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 $ 201,250,000 $ 201,250,000 $ 201,250,000 Par value $ 1,000 $ 1,000 $ 1,000 $ 1,000 Number of bonds outstanding (a) 201,250 201,250 201,250 201,250 Initial conversion rate 10.3911 10.3911 10.3911 10.3911 Conversion price $ 96.23620 $ 96.23620 $ 96.23620 $ 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) — — — — (a) 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. 14