MGP Ingredients : Presentation FY 2025

INVESTOR PRESENTATION

Fourth Quarter 2025

February 2026

QUARTERLY AND FULL-YEAR HIGHLIGHTS

2025 FULL-YEAR RESULTS ABOVE THE TOP END OF GUIDANCE

• Consolidated 4Q sales decreased 23% to $138.3 million. Full-year sales declined by 24% to $536.4 million.

• Branded Spirits accounted for approximately 45% of consolidated sales in 2025, driven by 10% and 5% premium plus growth in 4Q and full year 2025, respectively. Branded Spirits segment sales declined by 1% and 3% for the 4Q and full year.

• Distilling Solutions results came in slightly better than initial expectations. 4Q and full-year sales declined by 47% and 45%, respectively, while gross profit declined by 54% and 52%, respectively, primarily due to lower new distillate and aged whiskey sales.

• Ingredient Solutions sales decreased by 10% and 7% for the 4Q and full year periods, respectively, as lower production volumes due to inconsistent operational execution more than offset continued consumer demand driven tailwinds.

• Full-year adjusted EBITDA and adjusted EPS decreased by 41% and 49%, respectively, to $116.0 million and $2.85. Fourth quarter EBITDA and adjusted EPS decreased to $26.1 million and $0.63.

• Cash flows from operations increased by 19% to $121.5 million for 2025 - a record high for MGP.

• Net debt leverage ratio remained relatively stable at 2.0x as of December 31, 2025.

1. Note: All comparisons are on a year-over-year basis except where otherwise noted. See appendix for GAAP to non-GAAP reconciliations.

   
   
   

   FOURTH-QUARTER AND FULL-YEAR CONSOLIDATED RESULTS

   TANGIBLE PROGRESS ON EACH OF THE FIVE KEY INITIATIVES

   Fourth Quarter Price/ Change Reported ($, million) Q4 '24 Q4 '25 Vol. Mix (%)
   Branded Spirits	$64.0	$63.4	-1%	0%	-1%
   Distilling Solutions	$82.0	$43.6	-46%	-1%	-47%
   Ingredient Solutions	$34.7	$31.3	-13%	3%	-10%
   Consolidated Sales	$180.8	$138.3	-	-	-23%
   Gross Profit	$74.5	$48.3	-	-	-35%
   Adjusted Operating Income	$46.8	$18.7	-	-	-60%
   Adjusted EBITDA	$53.1	$26.1	-	-	-51%
   Adjusted EPS	$1.57	$0.63	-	-	-60%
   Cash flow from Operations	$28.8	$29.1	-	-	1%

   Reported ($, million)	Full Year
   	Price/ Change 2024 2025 Vol. Mix (%)
   Branded Spirits	$240.8	$232.9	-2%	-1%	-3%
   Distilling Solutions	$332.2	$181.4	-42%	-3%	-45%
   Ingredient Solutions	$130.6	$122.0	-6%	-1%	-7%
   Consolidated Sales	$703.6	$536.4	-	-	-24%
   Gross Profit	$286.3	$199.4	-	-	-30%
   Adjusted Operating Income	$170.7	$87.6	-	-	-49%
   Adjusted EBITDA	$196.5	$116.0	-	-	-41%
   Adjusted EPS	$5.64	$2.85	-	-	-49%
   Cash flow from Operations	$102.3	$121.5	-	-	19%

2. Note: Amounts may not foot due to rounding.

FOURTH-QUARTER AND FULL-YEAR ADJUSTED EPS BRIDGE

Fourth Quarter Full Year 2025

$5.64

$0.05

$0.09

$0.02

$0.01

$2.85

($2.87)

($0.04)

($0.05)

$1.57

$0.02

$0.01

$0.02

$0.63

($0.98)

($0.01)

Adjusted Basic

Operating

Interest

Other income

Weighted

Effective tax

Adjusted Basic

Adjusted Basic

Operating

Interest

Other income

Weighted

Effective tax Participanting

NCI Adjusted Basic

and Diluted EPS Q4 2024

income

expense, net

(expense), net average shares

outstanding

rate

and diluted EPS Q4 2025

and Diluted EPS 2024

income

expense, net (expense), net average shares

outstanding

rate

securities

and diluted EPS 2025

5

1 Items are net of tax based on the adjusted effective tax rate for the base year (2024), excluding the impacts of non-GAAP items. Note: See appendix for GAAP to non-GAAP reconciliations

DISCIPLINED INVENTORY MANAGEMENT THROUGH THE CYCLE

Net Whiskey Putaway

Barreled Inventory*

2021 2022 2023 2024 2025

$0

$0

$10

$50

$20

$18.5

$25.0

$100

$30

$32.9

$150

$40

$200

$50

$51.1

$250

$70

$60

$68.6

$300

$80

$350

Barreled Inventory* ($, million)

Annual Net Whiskey Putaway ($, million)

AGING WHISKEY INVENTORIES CONTINUE TO PROVIDE POTENTIAL LONG-TERM OPTIONALITY AND UPSIDE

1. * Barreled inventory values are recorded at costs

   
   
   

   STRONG FOCUS ON CASH GENERATION

   TIGHTER WORKING CAPITAL MANAGEMENT, INCLUDING LOWER WHISKEY PUTAWAY, DROVE DOUBLE DIGIT INCREASE IN CASHFLOW FROM OPERATIONS

   Cashflow from Operations

   2025 vs. 2024

   $ in millions

   $23.4

   $121.6

   $102.3

   $25.4

   $14.4

   $36.6

   -$80.5

   2024 Cashflow from Decrease in Adj. EBITDA Change in Receivables,

   Operations net

   Decrease in Net

   Barrelled Whiskey Putaway

   Decrease in Tax Other Working Capital 2025 Cashflow from

   Payments Changes Operations

2. Note: See appendix for GAAP to non-GAAP reconciliations

BALANCE SHEET FLEXIBILITY

PROACTIVE AND PRUDENT ACTIONS TO UPSIZE CREDIT FACILITY SUPPORT NEAR-TERM LIQUIDITY NEEDS

• Strong cash-flows from operations and lower capital spending enabled debt paydown of nearly $69 million in 2025.

  • Operating cash flows increased 19% in 2025 compared to 2024.

  • Capital expenditures decreased 54% in 2025 compared to 2024.

• Balance sheet remains strong with total debt of $252 million and a net leverage ratio of 2.0x as of December 31, 2025.

• In 2025, we successfully upsized our credit facility to $500 million and extended its maturity to 2030, while also extending the shelf for issuing up to $250 million of senior secured promissory notes to 2028. This refinancing provides availability and flexibility to meet near-term liquidity needs.

Note: See appendix for GAAP to non-GAAP reconciliations

8

BRANDED SPIRITS - FOURTH-QUARTER AND FULL-YEAR RESULTS

CONTINUED PREMIUM PLUS MOMENTUM DROVE SEGMENT PERFORMANCE

Reported ($, million)	Fourth Quarter Change Q4 '24 Q4 '25 (%)
Premium Plus	$28.3	$31.2	10%
Mid/Value	$27.2	$24.3	-11%
Other	$8.5	$8.0	-6%
Branded Spirts Sales	$64.0	$63.4	-1%
Gross Profit	$29.6	$28.9	-2%
Adjusted Operating Income	$10.1	$10.6	5%

Reported ($, million)	Full Year
	Change 2024 2025 (%)
Premium Plus	$111.0	$116.7	5%
Mid/Value	$105.6	$92.1	-13%
Other	$24.3	$24.1	-1%
Branded Spirts Sales	$240.8	$232.9	-3%
Gross Profit	$118.2	$115.3	-2%
Adjusted Operating Income	$41.6	$50.4	21%

9 Note: Totals may not match due to rounding. All comparisons are on a year-over-year basis. See appendix for GAAP to non-GAAP reconciliations

PREMIUM PLUS HAS DRIVEN SALES AND GROSS MARGIN

Premium Plus Share of Branded Spirits Sales

46%

42%

36%

50%

50%

Premium Plus' Share of

Reported Branded* Sales

46%

42%

38%

34%

30%

2022 2023 2024 2025

Branded Spirits Gross Margin

51.0%

Branded Spirits Gross

Margin

49.0%

47.0%

45.0%

43.0%

41.0%

39.0%

37.0%

35.0%

49.1% 49.5%

44.4%

40.1%

2022 2023 2024 2025

10

FOCUSED ON OUR BIGGEST GROWTH OPPORTUNITIES

PENELOPE CONTINUES TO BE ONE OF THE FASTEST GROWING PREMIUM PLUS BRANDS IN AMERICAN WHISKEY

13W

+48%

*13 Week Y/Y

Industry Premium Plus American Whiskey: -6%

*13 Week Y/Y

26W

+66%

*26 Week Y/Y

Industry Premium Plus American Whiskey: -5%

*26 Week Y/Y

52W

+76%

*52 Week Y/Y

Industry Premium Plus American Whiskey: -4%

*52 Week Y/Y

ONE OF THE FASTEST GROWING PREMIUM+ BRANDS IN AMERICAN WHISKEY

*Nielsen sales dollars for period ending 1/24/2026

CONSUMER CENTRIC INNOVATION ACROSS FOCUS BRANDS

AMERICAN WHISKEY

PREPARED COCKTAILS

UNIQUE FLAVORS

PACKAGE & SIZE

AMERICAN WHISKEY

PREPARED COCKTAILS

UNIQUE FLAVORS

PACKAGE & SIZE

BUILDING A STRONG PIPELINE OF ON-TREND NEW PRODUCT INNOVATION

PORTFOLIO OF AWARD-WINNING BRANDS CONTINUED IN 2025

#15

#17

INDUSTRY-LEADING CRITICAL ACCLAIM ACROSS BOTH WHISKEY AND TEQUILA

DISTILLING SOLUTIONS - FOURTH-QUARTER AND FULL-YEAR RESULTS

FULL-YEAR RESULTS SLIGHTLY BETTER THAN INITIAL EXPECTATIONS

Reported ($, million)	Fourth Quarter Change Q4 '24 Q4 '25 (%)
Brown Goods	$67.0	$31.3	-53%
Warehouse Services	$8.8	$8.3	-6%
White Goods and Other Co-Products	$6.2	$4.0	-34%
Distilling Solutions Sales	$82.0	$43.6	-47%
Gross Profit	$36.7	$16.9	-54%
Operating Income	$35.2	$16.2	-54%

Reported ($, million)	Full Year
	Change 2024 2025 (%)
Brown Goods	$265.9	$128.5	-52%
Warehouse Services	$33.4	$32.4	-3%
White Goods and Other Co-Products	$32.9	$20.6	-38%
Distilling Solutions Sales	$332.2	$181.4	-45%
Gross Profit	$141.9	$68.6	-52%
Adjusted Operating Income	$137.6	$65.1	-53%

1. Note: Totals may not match due to rounding. All comparisons are on a year-over-year basis. See appendix for GAAP to non-GAAP reconciliations

   
   
   

   INGREDIENT SOLUTIONS - FOURTH-QUARTER AND FULL-YEAR RESULTS

   RESULTS PRESSURED BY EQUIPMENT OUTAGE, OPERATIONAL RELIABILITY ISSUES, AND HIGH WASTE STARCH STREAM DISPOSAL COSTS

   Reported ($, million)	Fourth Quarter Change Q4 '24 Q4 '25 (%)
   Specialty Starches	$18.4	$16.8	-8%
   Specialty Proteins	$12.8	$11.0	-14%
   All Others	$3.6	$3.4	-4%
   Ingredient Solutions Sales	$34.7	$31.3	-10%
   Gross Profit	$8.2	$2.4	-70%
   Operating Income	$6.8	$1.4	-79%

   Reported ($, million)	Full Year
   	Change 2024 2025 (%)
   Specialty Starches	$76.0	$68.1	-10%
   Specialty Proteins	$41.8	$39.9	-4%
   All Others	$12.8	$14.0	9%
   Ingredient Solutions Sales	$130.6	$122.0	-7%
   Gross Profit	$26.2	$15.5	-41%
   Operating Income	$20.5	$10.5	-49%

2. Note: Totals may not match due to rounding. All comparisons are on a year-over-year basis.

   
   
   

   2026 FINANCIAL GUIDANCE

   Full Year 2026 Guidance1
   Sales	$480 million to $500 million
   Adjusted EBITDA	$90 million to $98 million
   Adjusted basic EPS	$1.50 to $1.80
   Effective tax rate	~ 27%
   Basic weighted average shares outstanding	~ 21.4 million
   Capital expenditures	~ $20 million

3. 1 Guidance is as of February 25, 2026.

APPENDIX

CHANGE IN BASIC AND DILUTED EPS

Change in Basic and Diluted EPS, quarter versus quarter	EPS	Change
Quarter ended December 31, 2025	$(1.91)
Change in operating income 1	(6.34)	(332)%
Change in interest expense, net1	0.03	2%
Change in other income, net1	(0.01)	(1)%
Change in effective tax rate	2.07	108%
Change in weighted average shares outstanding	(0.10)	(5)%
Change in income allocated to participating securities	0.04	2%
Quarter ended December 31, 2025	$(6.22)	(226)%

Change in Basic and Diluted EPS, year versus year	EPS	Change
Year ended December 31, 2024	$1.56
Change in operating income 1	(3.84)	(246)%
Change in interest expense, net1	0.03	2%
Change in other income (expense), net1	(0.03)	(2)%
Change in effective tax rate	(2.60)	(167)%
Change in income attributable to participating securities	0.04	3%
Change in weighted average shares outstanding	(0.15)	(10)%
Year ended December 31, 2025	$(4.99)	(420)%

18 1 Items are net of tax based on the effective tax rate for the base year (2024)

RECONCILIATION OF SELECTED GAAP TO NON-GAAP MEASURES

($ in thousands)	2021	2022	2023	2024	2025
Net Income (Loss)	$90,817	$108,872	$107,130	$34,465	$(107,832)
Interest	4,037	5,451	6,647	8,439	7,044
Taxes	30,279	31,300	34,616	33,977	7,482
Depreciation and amortization	19,092	21,455	22,113	21,989	24,086
Share-based compensation expense2	3,306	5,502	7,501	3,188	4,216
Equity method investment loss (gain)	1,611	2,220	337	(1,827)	(1,187)
Impairment of long-lived assets and other	-	-	19,391	137	-
Fair value of contingent consideration	-	-	7,100	16,100	25,500
Goodwill and indefinite-lived intangible asset impairment	-	-	-	73,755	152,622
Professional service fees	-	-	-	-	495
Restructuring and other costs	-	-	-	-	803
Business acquisition costs	8,927	-	2,060	116	-
Executive transition costs	-	-	3,134	4,075	2,778
Insurance recoveries	(16,325)	-	-	-	-
Unusual items cost	-	-	-	2,081	-
Inventory step-up - Branded Spirits	2,529	-	-	-	-
Adjusted EBITDA	$144,273	$174,800	$210,029	$196,495	$116,007
Total debt	$233,399	$230,335	$287,249	$323,541	$252,318
Cash and cash equivalents	21,568	47,889	18,388	25,273	18,460
Total net debt	$211,831	$182,446	$268,861	$298,268	$233,858
Net debt leverage ratio1	1.5x	1.0x	1.3x	1.5x	2.0x

NET INCOME TO ADJUSTED EBITDA AND NET DEBT LEVERAGE RATIO

19

1 Net debt leverage ratio is defined as net debt divided by adjusted EBITDA, 2 This amount excludes share based compensation related to executive transition costs

RECONCILIATION OF SELECTED GAAP TO NON-GAAP MEASURES

20

FOR THE QUARTERS ENDED DECEMBER 31, 2025 AND 2024

Quarter Ended December 31, 2025 (in thousands, except per share amounts)	Operating Income (loss)	Net Income (loss)	Basic and Diluted EPS
Reported GAAP Results	$(135,202)	$(134,631)	$(6.22)
Goodwill and indefinite-lived intangible asset impairment	152,622	147,374	6.81
Executive transition costs	953	709	0.03
Professional services fees	113	84	-
Restructuring and other costs	190	141	0.01
Adjusted Non-GAAP Results	$18,676	$13,677	$0.63

Quarter Ended December 31, 2024 (in thousands, except per share amounts)	Operating Income (loss)	Net Income (loss)	Basic and Diluted EPS
Reported GAAP Results	$(30,442)	$(41,998)	$(1.91)
Goodwill impairment	73,755	73,755	3.36
Fair value of contingent consideration	200	152	0.01
Business acquisition costs	15	11	-
Executive transition costs	2,857	2,171	0.10
Unusual items costs	408	310	0.01
Adjusted Non-GAAP Results	$46,793	$34,401	$1.57

RECONCILIATION OF SELECTED GAAP TO NON-GAAP MEASURES

1

Year Ended December 31, 2025 (in thousands, except per share amounts)	Operating Income (loss)	Net Income (loss)	Basic and Diluted EPS
Reported GAAP Results	$(94,615)	$(107,832)	$(4.99)
Goodwill and indefinite-lived intangible asset impairment	152,622	147,374	6.81
Fair value of contingent consideration	25,500	18,972	0.88
Executive transition costs	2,778	2,067	0.10
Professional services fees	495	368	0.02
Restructuring and other costs	803	597	0.03
Adjusted Non-GAAP Results	$87,583	$61,546	$2.85

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

Year Ended December 31, 2024 (in thousands, except per share amounts)	Operating Income	Net Income	Basic and Diluted EPS
Reported GAAP Results	$74,426	$34,465	$1.56
Goodwill impairment	73,755	73,755	3.31
Impairment of long-lived assets and other	137	104	0.01
Fair value of contingent consideration	16,100	12,252	0.55
Business acquisition costs	116	88	-
Executive transition costs	4,075	3,101	0.14
Unusual items costs	2,081	1,584	0.07
2 Adjusted Non-GAAP Results	$170,690	$125,349	$5.64

RECONCILIATION OF SELECTED GAAP TO NON-GAAP MEASURES

FOR THE QUARTERS AND YEARS ENDED DECEMBER 31, 2025 AND 2024 - BRANDED SPIRITS

Quarter Ended December 31, 2025 (in thousands)	Operating Income
Reported GAAP Results - Branded Spirits	$(142,022)
Goodwill and indefinite-lived intangible asset impairment	152,622
Adjusted Non-GAAP Results - Branded Spirits	$10,600

Year Ended December 31, 2025 (in thousands)	Operating Income
Reported GAAP Results - Branded Spirits	$(127,680)
Goodwill and indefinite-lived intangible asset impairment	152,622
Fair value of contingent consideration	25,500
Adjusted Non-GAAP Results - Branded Spirits	$50,442

Quarter Ended December 31, 2024 (in thousands)	Operating Income
Reported GAAP Results - Branded Spirits	$(63,814)
Goodwill impairment	73,755
Fair value of contingent consideration	200
Adjusted Non-GAAP Results - Branded Spirits	$10,141

Year Ended December 31, 2024 (in thousands)	Operating Income
Reported GAAP Results - Branded Spirits	$(48,279)
Goodwill impairment	73,755
Fair value of contingent consideration	16,100
Adjusted Non-GAAP Results - Branded Spirits	$41,576

22

RECONCILIATION OF SELECTED GAAP TO NON-GAAP MEASURES

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 - DISTILLING SOLUTIONS

Year Ended December 31, 2025 (in thousands)	Operating Income
Reported GAAP Results - Distilling Solutions	$65,079
Adjusted Non-GAAP Results - Distilling Solutions	$65,079

Year Ended December 31, 2024 (in thousands)	Operating Income
Reported GAAP Results - Distilling Solutions	$137,468
Impairment of long-lived assets and other	137
Adjusted Non-GAAP Results - Distilling Solutions	$137,605

23

RECONCILIATION OF SELECTED GAAP TO NON-GAAP MEASURES

($ in thousands)	Quarter Ended 12/31/2025	Quarter Ended 12/31/2024
Net income (loss)	$(134,631)	$(41,998)
Interest expense	1,554	2,041
Income tax expense (benefit)	(1,773)	10,053
Depreciation and amortization	6,262	5,691
Share based compensation1	1,129	440
Equity method investment gain	(318)	(381)
Goodwill and indefinite-lived intangible asset impairment	152,622	73,755
Executive transition costs	953	2,857
Professional service fees	113	-
Restructuring and other costs	190	-
Fair value of contingent consideration	-	200
Business acquisition costs	-	15
Unusual items costs	-	408
Adjusted EBITDA	$26,101	$53,081

RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA

24

1 This amount excludes share based compensation related to executive transition costs

DESCRIPTION OF NON-GAAP ITEMS

• Goodwill and indefinite-lived intangible asset impairment relates to the write down of goodwill and indefinite-lived intangible assets during the quarter and year ended December 31, 2025. Goodwill impairment relates to the write down of the goodwill during the quarter and year ended December 31, 2024. The goodwill impairment is nondeductible for income tax purposes. It is included in the Consolidated Statement of Income (Loss) as a component of operating income and relates to the Branded Spirits segment.

• 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 Consolidated Statement of Income (Loss) as a component of operating income and relates to the Branded Spirits segment.

• The executive transition costs are included in the Consolidated Statement of Income (Loss) within the selling, general and administrative line item. The adjustment includes costs related to the transition of certain executive positions.

• The professional services fees are included in the Consolidated Statement of Income (Loss) within the selling, general, and administrative line item. The adjustment includes costs related to professional services in conjunction with the goodwill impairment valuation.

• 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 various acquisitions and mergers.

• The restructuring and other costs are included in the Consolidated Statement of Income (Loss) 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 2025.

• 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.

• The unusual items costs are included in the Consolidated Statement of Income (Loss) within the selling, general, and administrative line item. The adjustment includes professional and legal costs associated with special projects.

• The insurance recovery costs are included in the Consolidated Statement of Income within the insurance recoveries line item. During November 2020, we experienced a fire at the Atchison facility. The fire damaged certain equipment in the facility's feed drying operations and caused a temporary loss of production time. This adjustment includes the legally binding commitment from our insurance carrier for final settlement for the replacement of the damaged dryer.

• The finished goods inventory valuation step-up costs are included in the Consolidated Statement of Income within cost of goods by the Branded Spirits segment. The adjustment includes the purchase accounting adjustment to value the acquired finished goods inventory at its estimated fair value.

25