Dole plc — Second Quarter 2026 Earnings Summary

Financial Performance

• Revenue increased 2.9% year-over-year to $2,499 million for the three months ended June 30, 2026, and 6.9% to $4,842 million for the six months ended June 30, 2026.
• Net income increased to $35.1 million for the quarter (from $18.0 million) and $72.9 million for the six months (from $62.1 million).
• Net income attributable to Dole plc was $26.0 million for the quarter and $57.3 million for the six months.
• Diluted EPS was $0.27 for the quarter and $0.60 for the six months.
• Adjusted EBITDA decreased 14.8% to $116.8 million for the quarter and 10.3% to $217.1 million for the six months.
• Adjusted Net Income decreased 17.7% to $43.7 million for the quarter and 13.1% to $74.9 million for the six months.
• Adjusted Diluted EPS was $0.46 for the quarter and $0.78 for the six months.
• Gross profit decreased $23.0 million to $195.3 million for the quarter, primarily due to higher fruit sourcing costs.
• Operating income decreased $55.7 million to $47.5 million for the quarter, impacted by lower gross profit, higher SMG&A expenses (including a non-recurring legal settlement charge), and lower gains on asset sales compared to the prior year.
• Free cash flow from continuing operations was an outflow of $51.0 million for the six months, an improvement from an outflow of $132.6 million in the prior year.
• Net Debt was $746.1 million as of June 30, 2026, with a Net Leverage ratio of 2.0x.

Guidance and Future Outlook

• Management targets full-year Adjusted EBITDA of approximately $400 million for 2026.
• Routine capital expenditures are expected to be approximately $100 million for the full year.
• Interest expense is expected to be approximately $58 million for the full year.
• The operating environment remains complex with elevated fuel and shipping costs and geopolitical uncertainty, though some sharp cost increases from the second quarter appear to be moderating.
• Consumer demand is expected to remain resilient, supported by long-term health and wellness trends.
• The company expects to benefit from contractual pricing mechanisms, cost-saving initiatives in Fresh Fruit, and dynamic pricing models in Diversified businesses.

Business Segments and Product Lines

• Fresh Fruit: Revenue was $972.8 million, flat year-over-year. Adjusted EBITDA decreased 30.9% to $50.3 million, driven by higher sourcing costs, elevated shipping costs, adverse weather affecting pineapple availability, and the strengthening of the Costa Rican Colón.
• Diversified Fresh Produce - EMEA: Revenue increased 1.0% to $1,111.4 million, driven by foreign currency translation; like-for-like revenue decreased 1.7%. Adjusted EBITDA decreased 6.2% to $45.9 million, impacted by weaker performance in South Africa, the Netherlands, and Spain, partially offset by strong performance in Scandinavia.
• Diversified Fresh Produce - Americas & ROW: Revenue increased 13.9% to $440.1 million, driven by higher volumes in North America (cherries, kiwi, avocados) and positive season-end pricing in the southern hemisphere. Adjusted EBITDA increased 33.8% to $20.6 million.
• Acquisitions: Completed the acquisition of the Greenfood Fresh Produce division in Scandinavia.
• Divestitures: Completed the sale of a port in Ecuador post-quarter end.

Market and Competitive Landscape

• The company operates in over 85 countries as a global leader in fresh produce.
• Long-term health and wellness trends are supporting consumer demand across key markets.
• The business model demonstrates resilience through diversification, with strong performance in Americas & ROW partially offsetting challenges in Fresh Fruit.

Risks and Challenges

• Fresh Fruit segment faces cost pressures from higher fruit sourcing costs and elevated shipping/fuel costs.
• Adverse weather conditions have negatively impacted pineapple volumes and growing costs.
• Currency fluctuations, specifically the strengthening of the Costa Rican Colón and Swedish krona/euro, have impacted results.
• Geopolitical developments and elevated fuel/shipping costs create ongoing uncertainty.
• A non-recurring charge associated with the settlement of a historical legal matter impacted operating expenses.

Management Commentary and Tone

• Carl McCann, Executive Chairman, stated the quarter delivered a result in line with expectations and demonstrated the resilience of the diversified business model.
• Management expressed confidence in targeting full-year Adjusted EBITDA of $400 million despite a complex operating environment.
• The completion of the Ecuador port sale is viewed as supportive of continued investment in growth opportunities.

Other Key Points

• Post-Quarter Transactions: Completed the sale of the Ecuador port for expected net proceeds of approximately $95 million; completed the acquisition of Greenfood Fresh Produce in Scandinavia.
• Dividends: The Board declared a cash dividend of $0.085 per share for Q2 2026, payable on October 7, 2026.
• Share Repurchases: Repurchased 719,290 shares for $10.0 million during the quarter; $85.4 million remained available under the share repurchase program as of June 30, 2026.
• Capital Expenditures: Cash capital expenditures were $42.5 million for the six months ended June 30, 2026, including investments in Latin American farming, European distribution facilities, and blueberry/avocado packing equipment.
• Legal Settlement: Operating expenses included a non-recurring charge for the settlement of a historical legal matter.