Del Monte Corporation — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net sales for the quarter ended September 25, 2026, were $1.095 billion, a 7.2% increase year-over-year; adjusted net sales increased 14.2%.
• Gross profit was $102.6 million, up 27.0% year-over-year, with gross margin expanding 150 basis points to 9.4% (compared to 7.9% in the prior-year quarter).
• Operating income was $29.1 million; adjusted operating income was $35.4 million.
• Net income attributable to Del Monte Corporation was $18.3 million; adjusted net income attributable to Del Monte Corporation was $23.6 million.
• Diluted EPS was $0.39; adjusted diluted EPS was $0.50.
• EBITDA was $54.6 million; adjusted EBITDA was $60.9 million, up 5.0% year-over-year.
• Net cash provided by operating activities for the first nine months of 2026 was $53.1 million.
• Long-term debt was $482.5 million as of September 25, 2026, compared to $173.0 million at the end of 2025.

Guidance and Future Outlook:

• Management expressed confidence in the strategy and the long-term potential of the expanded Del Monte portfolio, citing early results from the Del Monte Foods integration.
• The Company aims to build a more resilient, competitive, and innovative Del Monte that delivers sustainable long-term shareholder value.
• Focus areas include deepening commercial and operational collaboration, optimizing fresh and agricultural operations, and leveraging the reunited brand to accelerate innovation.

Business Segments and Product Lines:

• Prepared Foods: Generated net sales of $261.2 million and gross profit of $45.8 million, achieving a 17.5% gross margin, the highest among reportable segments. Growth was driven by the acquisition of Del Monte Foods in March 2026.
• Fresh and Value-Added Products: Generated net sales of $461.3 million and gross profit of $50.5 million. Results were impacted by lower avocado and fresh-cut fruit volumes and the absence of prior-year Mann Packing contributions, partially offset by favorable pricing.
• Bananas: Generated net sales of $313.3 million and reported a gross loss of $2.7 million. Lower volume and higher costs (including $6.1 million in incremental production costs for Black Sigatoka prevention) offset higher per-unit selling prices in North America.
• Other Products and Services: Generated net sales of $59.5 million and gross profit of $9.0 million, supported by higher commercial cargo activity.
• The Company advanced the integration of Del Monte Foods, establishing it as a core part of the expanded platform across fresh, refrigerated, shelf-stable, and prepared food categories.
• The Company closed four banana farms in Costa Rica to improve operating efficiency and concentrate resources on higher-return opportunities.
• Six new product innovations were showcased at the 2026 IFPA Global Produce & Floral Show.

Market and Competitive Landscape:

• The Company navigated a complex global operating environment shaped by weather volatility and geopolitical uncertainty.
• The Banana segment faced increased competition and supply constraints in the Middle East.
• Sales claims due to shipping delays in the Middle East, primarily related to disruptions in the Strait of Hormuz, were a factor in the nine-month period.
• The Company operates across fresh produce, fresh-cut fruit and vegetables, refrigerated foods, and shelf-stable categories in more than 90 countries.

Risks and Challenges:

• Ongoing foreign currency, weather-related, and cost pressures across portions of the fresh and agricultural operations.
• Adverse foreign currency movements related to the Costa Rican colón and other global currencies.
• Increased ocean freight costs and higher production costs for pineapples and fresh-cut fruit.
• Risks associated with the conflict in the Middle East, including disruptions to shipping lanes through the Strait of Hormuz and congestion at other ports.
• Potential inability to successfully execute on the integration strategy for the Del Monte Foods acquisition.
• Risks related to servicing additional indebtedness incurred for the acquisition and complying with credit facility covenants.
• Exposure to tariffs and elevated commodity, freight, and supply chain costs.

Management Commentary and Tone:

• Mohammad Abu-Ghazaleh, Chairman and CEO, stated that third-quarter results provide clear evidence of the strategic and financial value of the expanded portfolio.
• Management highlighted that the Prepared Foods segment is adding scale, attractive margins, and greater balance to the earnings profile just six months after the acquisition.
• The tone was confident regarding the long-term potential of the company, emphasizing discipline in optimizing operations and leveraging the reunited brand.

Other Key Points:

• The Company completed the divestiture of its Mann Packing Inc. business operations during the fourth quarter of 2025.
• The Board of Directors declared a quarterly cash dividend of $0.30 per share, payable December 4, 2026, to shareholders of record as of November 11, 2026.
• The Company acquired select assets of Del Monte Foods in March 2026, financing the acquisition which contributed to the increase in long-term debt.
• Capital allocation balanced investment in integration and inventory with the return of capital through dividends.
• The Company changed its corporate name from Fresh Del Monte Produce Inc. to Del Monte Corporation in June 2026.