Sep 8, 2026, 4:17 PM ETConsumer Defensive

Mission Produce — Fiscal 2026 Third Quarter Earnings Summary

AVOMISSION PRODUCE INC

Financial Performance

Total revenue for the third quarter ended July 31, 2026, was $450.0 million, a 26% increase year-over-year, driven by a 38% increase in avocado volume sold, partially offset by a 9% decrease in per-unit avocado sales prices.
Net loss attributable to Mission Produce was $6.5 million ($0.08 per diluted share), compared to net income of $14.7 million ($0.21 per diluted share) in the prior year; the loss includes $25.4 million in pre-tax Calavo acquisition-related costs.
Adjusted net income was $15.0 million ($0.18 per diluted share), down from $18.2 million ($0.26 per diluted share) in the prior year.
Adjusted EBITDA was $32.4 million for the quarter, compared to $32.6 million in the prior year period.
Gross profit was $44.7 million (9.9% margin), a decrease of 270 basis points from the prior year; gross margin compression was driven by lower average sales prices in International Farming.
Selling, general and administrative (SG&A) expenses were $31.6 million, including $12.6 million in transaction advisory and integration costs related to the Calavo acquisition.
Cash and cash equivalents were $47.1 million as of July 31, 2026, down from $64.8 million as of October 31, 2025.
Net cash used in operating activities for the nine months ended July 31, 2026, was $25.9 million, compared to $21.4 million provided in the prior year period.
Capital expenditures were $32.0 million for the nine months ended July 31, 2026, compared to $39.8 million in the prior year.

Management raised the estimated annualized synergy opportunity from the Calavo acquisition to more than $30 million, based on higher-than-anticipated SG&A savings and network efficiencies.
Fiscal second-half 2026 Adjusted EBITDA guidance is reaffirmed at $84 million to $88 million.
Fourth-quarter 2026 Adjusted EBITDA is expected to be approximately $52 million to $55 million.
Full-year fiscal 2026 total capital expenditures are expected to be approximately $45 million.
Avocado industry volumes for the fiscal 2026 fourth quarter are expected to increase by approximately 10% versus the prior year.
Exportable avocado production from Mission's owned farms in Peru is expected to range between 120 million to 130 million pounds in the fiscal 2026 fourth quarter.
Pricing is expected to be lower year-over-year by approximately 10% in the fourth quarter compared to the $1.39 per pound average in the prior year.

Marketing & Distribution: Sales were $414.3 million (up from $344.1 million). Segment adjusted EBITDA was $24.7 million (up from $20.0 million), driven by the inclusion of Calavo's post-acquisition results.
Prepared Foods: Sales were $15.5 million. The segment reported an operating loss of $4.1 million and adjusted EBITDA of $0.2 million.
International Farming: Sales were $45.8 million (down from $49.0 million). Segment adjusted EBITDA was $7.6 million (down from $12.1 million), impacted by lower average sales prices due to higher global supply.
Blueberries: Sales were $5.4 million (up from $4.5 million). Segment operating income was $2.4 million (up from a $0.2 million loss), driven by IEEPA tariff refunds. Segment adjusted EBITDA was -$0.1 million.
The Company completed the acquisition of Calavo Growers, Inc. on May 28, 2026, entering the prepared food sector and expanding avocado supply reliability.
The transaction involved issuing 17,530,762 shares of common stock and paying approximately $267 million in cash.

The Company reported meaningful year-to-date U.S. retail market share growth for the legacy Mission business.
Higher global supply of avocados in the current year has led to lower average sales prices, impacting gross profit in the International Farming segment.
The Company serves retail, wholesale, and foodservice customers in more than 25 countries with sourcing capabilities across 20+ premium growing regions.

Financial results were negatively impacted by $25.4 million in pre-tax acquisition-related costs and $12.6 million in transaction advisory and integration costs.
Operating cash flows are seasonal and influenced by working capital shifts, including inventory buildup in the International Farming segment during the first half of the year.
Inventory growth was driven by higher crop yields and harvest timing in International Farming and Blueberries segments.
Trade receivables increased due to seasonality, pricing, and timing of sales, as well as value-added tax refunds.

CEO John Pawlowski stated that results demonstrate the strength of the business and the team's focus on operational execution.
Management expressed confidence in the strategic and financial merits of the Calavo combination, citing early work reinforcing synergy opportunities.
Priorities for the future include extending marketplace momentum, executing consistently across the global network, integrating Calavo thoughtfully, and translating expanded scale into stronger earnings.
The Company noted that the progress made provides a strong platform for the next phase of growth, to be discussed further at an Investor Day in October.

The acquisition of Calavo provides Mission with entry into the high-growth prepared food sector and opportunities for value creation through cost synergies.
The Blueberries segment benefited from a one-time impact of IEEPA tariff refunds in the current year.
The Company highlighted that while operating cash flows were negative for the nine-month period, this is not indicative of full-year operating performance due to seasonal working capital increases.
Capital expenditures were primarily directed toward pre-production orchard maintenance and land improvements in Guatemala, land development and blueberry plant cultivation in Peru, and construction costs for Mexican packing operations.