Dole (NYSE:DOLE) Q4 2025 Earnings call February 25, 2026 08:00 AM ET Company ParticipantsJacinta Devine - CFOJames O'Regan - Head of Investor RelationsPooran Sharma - Managing Director of Equity ResearchRory Byrne - CEO and Executive DirectorConference Call ParticipantsChristopher Barnes - VP and Equity Research AnalystPeter Galbo - Managing Director, Head of US Consumer Staples Equity Research, and Senior Equity Research AnalystOperatorWelcome to Dole plc's fourth quarter and full year 2025 results webcast ...

Dole (NYSE:DOLE) Q4 2025 Earnings call February 25, 2026 08:00 AM ET Company ParticipantsJacinta Devine - CFOJames O'Regan - Head of Investor RelationsPooran Sharma - Managing Director of Equity ResearchRory Byrne - CEO and Executive DirectorConference Call ParticipantsChristopher Barnes - VP and Equity Research AnalystPeter Galbo - Managing Director, Head of US Consumer Staples Equity Research, and Senior Equity Research AnalystOperatorWelcome to Dole plc's fourth quarter and full year 2025 results webcast ...

Dole (NYSE:DOLE) Q4 2025 Earnings call February 25, 2026 08:00 AM ET Speaker3Welcome to Dole plc's fourth quarter and full year 2025 results webcast. Today's webcast is being broadcast live over the internet and is also being recorded for playback purposes. Currently, all participants are in listen-only mode. After the speakers' presentations, there will be a question and answer session. For opening remarks and introductions, I would like to send the call over to the Head of Investor Relations with Dole plc ...

Results Presentation Q4'25 and FY'25 Disclaimer Today's presentation includes forward-looking statements that reflect Dole plc's current views with respect to future events, financial performance, expected synergies and industry conditions. These statements are not statements of historical fact. The words "believe," "may," "could," "will," "should," "would," "anticipate," "estimate," "expect," "intend," "objective," "seek," "strive," "target" or similar words, or the negative of these words, identify forwar ...

Revenue and Income - Revenue for Q4 2025 was $2.4 billion, an increase of 9.2% compared to Q4 2024[4] - Full year revenue reached $9.2 billion, up 8.2% from $8.5 billion in 2024[4] - The company reported net revenue of $2,366.2 million for Q4 2025, compared to $2,167.5 million in Q4 2024, representing an increase of 9.2%[43] - For the year ended December 31, 2025, the company reported a net revenue of $9,172.9 million, with a gross profit of $714.3 million, resulting in a gross margin of 7.8%[58] - Fresh Fruit segment revenue for 2025 was $3.615 billion, up from $3.294 billion in 2024, indicating a growth of about 9.8%[63] - The Diversified Fresh Produce - EMEA segment revenue for 2025 was $4.017 billion, an increase from $3.609 billion in 2024, representing a growth of about 11.3%[63] Net Income and Earnings - Net income for Q4 2025 was $6.0 million, a significant improvement from a loss of $31.6 million in Q4 2024[6] - Adjusted net income for the year decreased to $115.0 million from $120.9 million in 2024, with adjusted diluted EPS at $1.20 compared to $1.27[12] - For the year ended December 31, 2025, net income was $81,975,000, a decrease of 42.8% from $143,419,000 in 2024[47] - Income from continuing operations for 2025 was $127,934,000, down 25.7% from $172,299,000 in 2024[47] - Reported net income for the year ended December 31, 2025, was $81.975 million, with diluted net income per share at $0.54, compared to $143.419 million and $1.31 per share in 2024[61] - Adjusted (Non-GAAP) net income for 2025 was $147.020 million, with diluted adjusted net income per share at $1.20, compared to $151.042 million and $1.27 per share in 2024[61] Cash Flow and Capital Expenditures - Free cash flow from continuing operations was $1.7 million, a decrease from $180.3 million in 2024 due to higher outflows and tax payments[29] - Capital expenditures for the year were $121.5 million, including investments in farm rehabilitation and logistics assets[27] - Capital expenditures for the year ended December 31, 2025, were $121,497,000, an increase from $82,435,000 in 2024[47] - Cash and cash equivalents at the end of the period were $267,854,000, down from $331,719,000 at the end of 2024[47] Debt and Leverage - Net debt reduced to $606.5 million from $637.1 million in 2024, with net leverage decreasing to 1.5x[30] - Net Debt as of December 31, 2025, was $606.5 million, with a Net Leverage ratio of 1.5x, down from 1.6x in 2024[64] Shareholder Returns - The Board declared a cash dividend of $0.085 per share for Q4 2025, payable on April 8, 2026[31] - The company initiated a $100 million share repurchase program and announced the sale of port assets in Ecuador for expected net proceeds of approximately $75 million[4] - The company repurchased 300,000 shares at an average price of $15.15 per share, totaling $4.5 million, with $95.5 million remaining under the share repurchase program[32] Operating Performance - Adjusted EBITDA for the full year was $395.4 million, slightly above guidance and up 0.8% from $392.2 million in 2024[4] - Adjusted EBITDA for the year ended December 31, 2025, was $395,376,000, a slight increase from $392,203,000 in 2024[49] - The gross profit for the year ended December 31, 2025, was $714.3 million, slightly down from $717.7 million in 2024[43] - The total operating expenses for 2025 were $495.5 million, compared to $474.1 million in 2024, reflecting a year-over-year increase[58] - The company reported an operating income of $222.9 million for 2025, compared to $280.6 million for 2024[58] Losses and Impairments - The company reported a net loss attributable to Dole plc of $2.7 million for Q4 2025, compared to a net loss of $39.1 million in Q4 2024[43] - The company experienced a loss from discontinued operations of $803 thousand for the three months ended December 31, 2025[57] - The company experienced a loss from discontinued operations of $45.9 million for the year ended December 31, 2025, compared to a loss of $28.880 million in 2024[61] - The company incurred impairment charges and asset write-downs of $2.9 million for the three months ended December 31, 2025, partially offset by a $1.1 million gain on asset sales[55] Future Outlook - For fiscal year 2026, the company is targeting an Adjusted EBITDA of at least $400 million[34] - The company forecasts routine capital expenditures of approximately $100 million for fiscal year 2026[35] - Interest expense for 2026 is expected to be approximately $60 million, assuming stable base rates[35]

Forward looking statements Certain statements made in this disclosure that are not historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, among other things, statements regarding the Company's voluntary election to file reports on U.S. domestic issuer forms, the expected timing and effects of such election, and the anticipated benefits thereo ...

Core Viewpoint - Dole plc (DOLE) is currently undervalued, providing significant exposure to the real food sector, and is expected to benefit from a higher margin of safety in its valuation [1] Company Analysis - Dole plc is trading at a deep discount to its fair value, indicating potential for price appreciation [1] - The company operates in the real food sector, which is gaining traction among consumers seeking healthier options [1] Investment Perspective - The analyst has extensive experience in researching various industries, including commodities and technology, which supports the credibility of the analysis [1] - There is a potential for initiating a long position in Dole plc, suggesting a favorable outlook for the stock [2]

Group 1 - Dole plc (DOLE) is currently trading at a significant discount to its fair value, even when considering a higher margin of safety, indicating potential for investment [1] - The company offers excellent exposure to the real food sector, which is increasingly relevant in today's market [1] Group 2 - The analyst has over a decade of experience researching various industries, including commodities and technology, which enhances the credibility of the insights provided [1] - The focus on value investing and the transition to a YouTube channel suggests a commitment to educating investors about potential opportunities in the market [1]

Core Insights - The global fresh produce market is dominated by a few key players, with Mission Produce Inc. (AVO) and Dole plc (DOLE) standing out for different reasons, particularly in terms of scale, geographic reach, and product focus [1][2] Group 1: Mission Produce (AVO) - AVO is the world's largest vertically integrated avocado company, selling a record 691 million pounds of avocados in fiscal 2025, reinforcing its leadership in North America and expanding in Europe and Asia [3] - With nearly 70% household penetration in the U.S., AVO is pivotal in driving avocado consumption through promotions and retailer collaborations, aligning with health-driven consumer trends [4] - AVO's competitive advantage lies in its integrated global platform, ensuring supply consistency and quality control through owned Peruvian orchards [5] - The company is diversifying its portfolio by expanding into blueberries and mangoes, targeting health-conscious consumers and investing in digital tools for market insights [6] - AVO's strong cash flow generation is highlighted by record adjusted EBITDA and over $180 million in operating cash flow, with leverage well below 1X EBITDA [7] Group 2: Dole plc (DOLE) - Dole is a diversified produce giant with quarterly revenues of $2.3 billion in Q3 2025, holding leadership positions across Europe, North America, and select global markets [8] - Although avocados are a small part of Dole's portfolio, the company is enhancing its avocado presence through investments in ripening facilities, particularly in Europe [9] - Dole's investment case is based on its multi-category portfolio and resilient business model, balancing staple products like bananas with innovative offerings [10] - The brand appeals to affordability-focused, health-conscious consumers, supported by operational investments in automation and logistics [11] - Key challenges for Dole include higher sourcing costs and weather-related supply disruptions, which have impacted margins in 2025 [12] Group 3: Financial Estimates and Valuation - The Zacks Consensus Estimate for AVO indicates declines of 10.2% in sales and 10.1% in EPS for fiscal 2025, with a projected increase in sales and earnings for fiscal 2026 [13] - For Dole, the 2025 sales estimate suggests a year-over-year growth of 7.6%, while EPS is expected to decline by 27.6%, with significant growth projected for 2026 [13] - AVO trades at a forward P/E multiple of 18.24X, below its 5-year median, while DOLE trades at a lower multiple of 9.81X, reflecting different growth prospects [22][24] - AVO's premium valuation indicates investor confidence in its growth potential, while Dole's lower multiple may attract value-focused investors [24][25] Group 4: Investment Appeal - Both companies are strong players in the fresh produce market, but their investment appeal differs, with Dole offering stability and valuation comfort for value-oriented investors [26] - AVO is favored for its strong EPS revision trend and growth outlook, particularly in the avocado category, making it a compelling choice for growth-focused investors [27]

Group 1: Mission Produce Overview - Mission Produce, Inc. (AVO) is expanding its portfolio beyond avocados into berries, particularly blueberries, to reduce reliance on a single crop and unlock new growth avenues [1][7] - The company is leveraging its vertically integrated model, including owned farming operations and established distribution infrastructure, to compete in the berry category, which has strong long-term demand but high execution risk [1][7] - Investments in premium varietals, expanded acreage, and improved post-harvest handling are aimed at enhancing flavor, shelf life, and year-round availability, reflecting a disciplined, data-driven approach [1] Group 2: Diversification and Challenges - Diversification into berries introduces complexity, as they are more cost-intensive and sensitive to weather and labor dynamics, requiring sustained capital investment before returns materialize [2] - Near-term margin volatility is expected, but the broader strategy is anticipated to strengthen AVO's growth profile and resilience over time [2] - If AVO can consistently apply its operational expertise across multiple fruit categories, it could become a multi-category global produce leader, reducing exposure to single-crop cycles [2] Group 3: Market Position and Valuation - AVO's shares have decreased by 2.1% over the last six months, outperforming the industry's decline of 10.4% [6] - The company trades at a forward price-to-earnings ratio of 18.22X, significantly above the industry average of 14.45X [8] - The Zacks Consensus Estimate for AVO's fiscal 2026 earnings suggests a year-over-year decline of 10.13%, while fiscal 2027 indicates growth of 4.23% [9]