Solid third quarter results; Raises full-year adjusted EBITDA and EPS outlook

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.

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:

	Revised Fiscal 2025 Guidance	Previous Fiscal 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

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 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.

MGP INGREDIENTS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(Dollars in thousands, except share and per share amounts)

	Quarter Ended September 30,						Year to Date Ended September 30,
	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 share calculation	$	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

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

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

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

Operating Income

Income before Income Taxes

Net Income

MGP Earnings^(a)

Basic and Diluted EPS

Reported GAAP Results

18,926

21,016

19,705

15,429

15,232

0.71

Adjusted to remove:

Fair value of contingent consideration^(b)

—

2,800

2,192

2,169

0.10

Executive transition costs ^(c)

(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			Operating Income		Income before Income Taxes		Net Income		MGP Earnings^(a)		Basic and Diluted EPS
Reported GAAP Results	$	17,204		$	32,564	$	31,416	$	23,862	$	23,648	$	1.07
Adjusted to remove:
Fair value of contingent consideration^(b)		—			6,400		6,400		4,864		4,864		0.22
Business acquisition costs ^(g)		(15	)		15		15		11		11		—
Unusual items costs ^(h)		(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

Operating Income

Income before Income Taxes

Net Income

MGP Earnings^(a)

Basic and Diluted EPS

Reported GAAP Results

63,287

40,587

36,054

26,799

26,502

1.24

Adjusted to remove:

Fair value of contingent consideration^(b)

—

25,500

18,947

18,736

0.88

Executive transition costs ^(c)

(1,825

)

1,825

1,356

1,341

0.06

Professional service fees ^(d)

(382

)

382

284

281

0.01

Restructuring and other costs ^(e)

(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			Operating Income		Income before Income Taxes		Net Income		MGP Earnings^(a)		Basic and Diluted 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 ^(f)		—			137		137		104		104		—
Fair value of contingent consideration^(b)		—			15,900		15,900		12,116		12,116		0.55
Business acquisition costs ^(g)		(101	)		101		101		77		77		—
Executive transition costs ^(c)		(1,218	)		1,218		1,218		928		928		0.04
Unusual items costs ^(h)		(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

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.

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^(a)		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.

MGP INGREDIENTS, INC.

NET DEBT LEVERAGE RATIO (UNAUDITED)

(in thousands)

	Quarter Ended December 31, 2024			Quarter Ended March 31, 2024			Quarter Ended June 30, 2025			Quarter Ended September 30, 2025			TTM^(a) September 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 contingent consideration		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^(b)														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.

MGP INGREDIENTS, INC.

OPERATING SEGMENT RESULTS (UNAUDITED)

(Dollars in thousands)

	BRANDED SPIRITS
	Quarter Ended September 30,						Quarter versus Quarter Change Increase/(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^(a)

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 Change Increase/(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^(a)

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 Change Increase / (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^(a)

Operating income	$	1,809		$	3,277		$	(1,468	)	(45	)%
Depreciation and amortization	$	1,635		$	1,178		$	457		39	%

^(a) Percentage points ("pp").

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 Sales Change 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^(a)

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 Sales Change 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^(a)

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 Sales Change 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^(a)

Operating income	$	9,107		$	13,781		$	(4,674	)	(34	)%
Depreciation and amortization	$	4,213		$	3,517		$	696		20	%

^(a) Percentage points ("pp").

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20251029001847/en/

For More Information

Investors:

Amit Sharma, amit.sharma@mgpingredients.com

Media:

Patrick Barry, 314.540.3865, patrick@byrnepr.net

MGP Ingredients Reports Third Quarter 2025 Results